Compass Minerals Intl Inc · NYSE:CMP
Compass Minerals Intl — Compass Minerals — Investor Day (September 2017)
73 slides from Compass Minerals Intl's investor day presentation, Sep 29, 2017
Slide 1: Balanced and Built for Growth
BALANCED AND BUILT FOR GROWTH a0? Se Z veston
Slide 2: Agenda
AGENDA INTRODUCTION Theresa Womble COMPANY OVERVIEW Fran Malecha SALT BUSINESS Anthony Sepich PLANT NUTRITION BUSINESS Brad Griffith PLANT NUTRITION INNOVATION SPOTLIGHT Ryan Bartlett FINANCIAL REVIEW Jamie Standen Q&A Compass Minerals Management Team 2
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this presentation, including without limitation statements about the company’s ability to achieve growth, cost savings, value-creating opportunities, top line improvements, certain operating margins and salt costs, higher operating rates, price improv
Slide 4: Compass Minerals: Fran Malecha, CEO
Compass Minerals: FRAN MALECHA CEO BALANCED AND BUILT FOR GROWTH
Slide 5: Two Well-Positioned Businesses in Attractive Markets
TWO WELL-POSITIONED BUSINESSES IN ATTRACTIVE MARKETS SALT PLANT NUTRITION • Leading rock salt producer in • Only North American producer of North America and the U.K. sulfate of potash (SOP) • Strong highway deicing position based • Expanding portfolio of innovative specialty on advantaged assets pr
Slide 6: Our Mission
At Compass Minerals, we help keep people safe, feed the world and enrich lives every day. OUR MISSION: To be the best essential minerals company by safely delivering where and when it matters. 6
Slide 7: Profitable Through the Trough
PROFITABLE THROUGH THE TROUGH EBITDA* Margin Cash Flow from Operations Cash Dividends (in millions) (per share) 45.0% $300 $3.00 40.0% $250 $2.50 35.0% $200 $2.00 30.0% $150 $1.50 25.0% $100 $1.00 20.0% $50 $0.50 15.0% 10.0% $0 $0.00 2012 2013 2014 2015 2016 2017E 2012 2013 2014 2015 2016 2012 2013
Slide 8: Keys of Today's Event
KEYS OF TODAY’S EVENT We are building We have a We are Our businesses Our focus is on a better, strong executing on are poised to disciplined balanced management key projects that benefit from capital allocation, company to team in place to are critical for improving balance sheet drive deliver resu
Slide 9: Our Strategy for Growth
OUR STRATEGY FOR GROWTH OBJECTIVE APPROACH EXPECTED OUTCOME Strengthen safety culture, workforce engagement and A high performance Consistently deliver asset longevity company with sustainable growth growth and Increase balance between opportunities and shareholder value two businesses significantly
Slide 10: Our Cultural Framework
OUR CULTURAL FRAMEWORK SAFETY PEOPLE SUSTAINABILITY Train and develop our people High Performing, Sustainable Culture Build a Empower effective diverse & decision- inclusive making workforce 10
Slide 11: Key Capital Investments Expected to Provide Near and Long Term Benefits
KEY CAPITAL INVESTMENTS EXPECTED TO PROVIDE NEAR AND LONG TERM BENEFITS ~$225M Continuous Mining $140M - $160M Plant Expansion Shaft Relining Investment Capital Plant Refurbishment Special MOB Ogden Goderich Asset Longevity Production Reliability Margin Improvement Organic Growth 11
Slide 12: Leveraging Operational Excellence to Reduce Cost and Improve Profitability
LEVERAGING OPERATIONAL EXCELLENCE TO REDUCE COST AND IMPROVE PROFITABILITY • Completed review of all operations and functions to identify opportunities for cost improvements • Every function contributed to the savings • Key initiatives identified: COST SAVINGS TOTALING - Create shared-services funct
Slide 13: Brazil Acquisition: The Right Company at the Right Price
BRAZIL ACQUISITION: THE RIGHT COMPANY AT THE RIGHT PRICE Revenue by Business • Well-established company with historical mid-teens top and bottom line growth • Strong Brazilian brands in micronutrients and specialty Before Brazil blends with sales force in key markets Acquisition* - Small specialty c
Slide 14: Long-Term Trends Support Demand for Advanced Agriculture
LONG-TERM TRENDS SUPPORT DEMAND FOR ADVANCED AGRICULTURE GROWING LIMITED INCREASED NEED FOR POPULATION ARABLE LAND CROP YIELD (billions) (arable hectares Global per person) 10 population projected to 0.3 Arable land per person 80% 9 approach to decline of future increased 0.25 8 9.8 28% crop product
Slide 15: How Brazil and Compass Minerals Contribute to Meeting These Needs
HOW BRAZIL AND COMPASS MINERALS CONTRIBUTE TO MEETING THESE NEEDS Brazil’s Leading Position in Key Products • Brazil – global agriculture leader (2014/2015) - More available, unfarmed arable land than any other country Product Production Exports Soy #2 #2 - The water and climate to support agricultu
Slide 16: Poised for Significant Growth
POISED FOR SIGNIFICANT GROWTH • Investments nearing completion to drive greater efficiency and production • Capital spending expected to materially decline in 2018 and beyond • Greater balance between Salt and Plant Nutrition to offset winter weather variability • Significant near-term earnings and
Slide 17: Salt: Strong Foundation for the Future
SALT STRONG FOUNDATION FOR THE FUTURE ANTHONY SEPICH Senior Vice President, Salt
Slide 18: Our Salt Business: Advantaged Assets Serving Broad-Based, Non-Cyclical Markets
OUR SALT BUSINESS: ADVANTAGED ASSETS SERVING BROAD-BASED, NON-CYCLICAL MARKETS • Salt is an essential mineral with thousands of applications and a diverse 2016 Salt Sales customer base $812 - Recession-resistant and non-cyclical Million - Relatively low cost to end-users - Largely regional markets w
Slide 19: Key Assets Offer Important Advantages
KEY ASSETS OFFER IMPORTANT ADVANTAGES • Goderich, Ontario, and Cote Blanche, Louisiana, rock salt mines - Serve highway and consumer deicing uses and chemical production - Possess important logistical advantages - Goderich additional advantages include size and deep water port on Lake Huron • Ogden
Slide 20: Salt Demand Drivers
SALT DEMAND DRIVERS DEICING NON-DEICING SAFETY SERVICE COMMERCE WEATHER POPULATION GDP GROWTH GROWTH Governments’ Citizens’ Roads closed Drives seasonal Drives seasonal Influence varies Influence varies emphasis on demand for high due to snow fluctuations in fluctuations in: by product and
Slide 21: Key Competitive Strengths
KEY COMPETITIVE STRENGTHS Rock salt mines Strategically located Ability to use Dense depot Proven supplier allow for synergies in a high-demand lowest-cost network adds across broad across product lines deicing markets shipping methods logistics advantages product portfolio 21
Slide 22: Our Salt Strategy
OUR SALT STRATEGY OBJECTIVE APPROACH EXPECTED OUTCOME Optimize and simplify across businesses Organic growth to Improve profitability drive top line Operational excellence to improvements through superior commercial and deliver returns on investments Achieve operating operational execution margins i
Slide 23: Optimization and Simplification Providing Positive Impact to Business
OPTIMIZATION AND SIMPLIFICATION PROVIDING POSITIVE IMPACT TO BUSINESS • Simplified product portfolio to drive operational and service efficiency - Consumer and industrial product offerings rationalized - Exited consumer food salt in the U.S. TOTAL • Optimized customer portfolio to reduce service cos
Slide 24: Initiatives Expected to Further Boost Profitability
INITIATIVES EXPECTED TO FURTHER BOOST PROFITABILITY • Building service-centric platform based on collaboration - Unifying all logistics, customer service and production planning across Compass Minerals COST SAVINGS • Leveraging common platform / business process TOTALING systems to improve agility,
Slide 25: ~$225 Million Investment Program
IMPORTANT INVESTMENTS TO IMPROVE GODERICH MINE NEARING COMPLETION ~$225 MILLION INVESTMENT PROGRAM (2014 – 2018) SHAFT RELINING CONTINUOUS MINING AND HAULAGE Ensures MINE INTEGRITY ~25% SCALABILITY to ramp up/down to meet for decades to come REDUCTION IN OPERATING demand fluctuations COSTS 25
Slide 26: Innovating Our Approach to Mining at Goderich
INNOVATING OUR APPROACH TO MINING AT GODERICH Innovations Advantages Outcome Increased flexibility to ramp up or down production Continuous mining and Increased operational leverage haulage Solidify cost-leadership Safer, more sustainable production environment position in North America Optimized sa
Slide 27: Leveraging Our Wide Economic Moat to Drive Organic Growth
LEVERAGING OUR WIDE ECONOMIC MOAT TO DRIVE ORGANIC GROWTH North American Salt Production • Full utilization of Goderich Mine’s (in millions of tons) competitive strengths across all salt markets 2.4 - Increase use of low-cost rock salt in consumer and industrial products 3 2 - Positioned as swing su
Slide 28: Maximizing Opportunities from Advantaged Assets
MAXIMIZING OPPORTUNITIES FROM ADVANTAGED ASSETS Capitalizing on Western Great Britain U.S. presence Leveraging to meet non-seasonal changing businesses for market diversification • Capitalize on opportunities in Western U.S. with both solar salt and magnesium chloride • Drive more salt from Goderich
Slide 29: Well-Positioned for Growth and Margin Expansion from Current Levels
WELL-POSITIONED FOR GROWTH AND MARGIN EXPANSION FROM CURRENT LEVELS Salt Operating Margin Outlook Key factors for growth: 30.0% • A return to average winter weather 25.0% • Driving incremental volume growth across all salt businesses 20.0% • Benefit of $40 million in annualized 15.0% savings from Go
Slide 30: Plant Nutrition: New Directions for Growth
PLANT NUTRITION NEW DIRECTIONS FOR GROWTH BRAD GRIFFITH Senior Vice President, Plant Nutrition 30
Slide 31: Solution-Driven Specialty Plant Nutrition Business
SOLUTION-DRIVEN SPECIALTY PLANT NUTRITION BUSINESS To meet the global need for sustainably produced food 2016 Plant Nutrition Pro Forma Sales Inputs such as specialty plant nutrients help farmers $555 maximize the genetic potential of their crop Million* Compass Minerals is delivering the leading sp
Slide 32: Specialty Plant Nutrients: Addressing the Yield Gap
SPECIALTY PLANT NUTRIENTS: ADDRESSING THE YIELD GAP What are specialty plant nutrients? • Important nutritional components required for plant health and maximum production • Support the 4Rs of nutrient stewardship - Right source Liebig’s Law of Minimums is Determined by the - Right rate Least Availa
Slide 33: Well-Positioned to Lead the Specialty Plant Nutrition Category
COMPASS MINERALS WELL-POSITIONED TO LEAD THE SPECIALTY PLANT NUTRITION CATEGORY COMMODITY SPECIALTY K SPECIALTY PLANT NUTRITION FERTILIZER Coated Fertilizer Slow Seed N P K SOP, SOPM& KTS Release - NPK Blends Solubles Foliars Treatment Adjuvants Biostimulants Agrium/PCS Mosaic Haifa Chemical SQM Yar
Slide 34: Sustainable Competitive Advantages Enable Category Leadership
SUSTAINABLE COMPETITIVE ADVANTAGES ENABLE CATEGORY LEADERSHIP Commercialization Geographically Innovation capabilities and Only High-quality advantaged assets capabilities to grow grower direct North American specialty product in Western product portfolio network in Brazil producer of SOP portfolio
Slide 35: Our Strategy for Success
OUR STRATEGY FOR SUCCESS OBJECTIVE APPROACH EXPECTED OUTCOME Maximize asset advantages Significant revenue growth Leverage expanded product over next five years portfolio and innovation Build market-leading platform to introduce new Achieve consistent specialty plant nutrition solutions operating ma
Slide 36: Robust Specialty Plant Nutrition Growth Expected in World's Leading Ag Markets
ROBUST SPECIALTY PLANT NUTRITION GROWTH EXPECTED IN WORLDS LEADING AG MARKETS ESTIMATED MARKET SIZE IN NORTH AMERICA ESTIMATED MARKET SIZE IN BRAZIL Specialty K Micronutrients & Solubles Micronutrients & Solubles ESTIMATED ESTIMATED ESTIMATED MARKET MARKET MARKET GROWTH GROWTH GROWTH 3%-5% 7%-10% 7%
Slide 37: Produquímica Transforms Specialty Plant Nutrition Business
PRODUQUÍMICA TRANSFORMS COMPASS MINERALS’ SPECIALTY PLANT NUTRITION BUSINESS Product Portfolio Broadened Innovation Capabilities Current Addressable Acres (Product mix by % of revenue) Significantly Expanded Now Doubled* (Number of R&D professionals) 2015 2016 Pro Forma ~725M acres of potential in W
Slide 38: Our Core Geographic Presence Today
OUR CORE GEOGRAPHIC PRESENCE TODAY Compass Minerals’ North Locations advantaged to American Crop Mix serve key agriculture markets in Tree nuts Western Hemisphere 30% 25% Vegetables Fruits • SOP production well-positioned to serve Other, including 10% 15% specialty crops turf and horticulture Plant
Slide 39: Enhanced Commercialization Capabilities in North America
ENHANCED COMMERCIALIZATION CAPABILITIES IN NORTH AMERICA Driving Growth Despite Ag Headwinds: Retail/Distributor Focus in North America • Focusing on differentiated agronomic benefits of SOP to increase market penetration • Expanding commercialization capabilities to enable distribution partners • M
Slide 40: Driving Value Through Direct-to-Grower Distribution in Brazil
DRIVING VALUE THROUGH DIRECT-TO-GROWER DISTRIBUTION IN BRAZIL Consultative sales force backed by agronomic research and proven innovation capabilities • 180+ sales associates with ~30 agronomists that reach over 4,400 large farmers in central Brazil • Focused on value-added product sales Cerrados (e
Slide 41: Chemical Solutions South America Business Offsets Agro Seasonality
CHEMICAL SOLUTIONS SOUTH AMERICA BUSINESS OFFSETS AGRO SEASONALITY Provides steady volumes, Almost ½ Brazil’s Only 37% attractive margins and synergistic production of sewage with agricultural business population lacks in Brazil is access to currently sewage treated Average Monthly Sales Volumes by
Slide 42: Capacity in Place to Capture Continued Growth
CAPACITY IN PLACE TO CAPTURE CONTINUED GROWTH 2016 Sales Volume and Production Capacity Summary • Ogden-focused investments key to strengthening SOP business in North America - Reliability and efficiency of pond-only SOP production increased North America South American Ag Chemical Solutions - Incre
Slide 43: Plant Nutrition Business Poised for Growth
PLANT NUTRITION BUSINESS POISED FOR GROWTH Combined Plant Nutrition Expect to exceed market rates of growth by: 20.0% Operating Margin Outlook • Leveraging direct-to-farmer platform in South America • Maximizing portfolio synergies between North 15.0% America and South America • Enabling distributio
Slide 44: Spotlight on Innovation
SPOTLIGHT ON INNOVATION RYAN BARTLETT Vice President, Innovation and Product Development 44
Slide 45: Innovation Focused on Effective and Sustainable Plant Nutrition Solutions
INNOVATION FOCUSED ON EFFECTIVE AND SUSTAINABLE PLANT NUTRITION SOLUTIONS Improving application efficiency by Delivering the nutrition plants require Feeding crops what they need increasing root interception points results in healthier soil profiles when they need it maximizes provides accessible nu
Slide 46: Enhanced R&D Capabilities Focused on Delivering Innovative Products
ENHANCED R&D CAPABILITIES FOCUSED ON DELIVERING INNOVATIVE PLANT NUTRITION PRODUCTS Capabilities Basic Lab & Field Growth Greenhouse & Seed Product Manufacturing Scientists Formulation Chamber Field Trials Applied Development Research North America 20 South America 53 46
Slide 47: Strong History of Product Development with Robust Pipeline
STRONG HISTORY OF PRODUCT DEVELOPMENT WITH ROBUST PIPELINE Wolf Trax 2.0 Protassium+ Targeted North NuTrax Seed Treatment America Liquid Protassium+ ProAcqua – North America Soluble Portfolio DISCOVERY PHASE 1 PHASE 2 PHASE 3 PHASE 4 LAUNCH 40%+ of 2016 Plant Nutrition 5 New Product Launches in 2017
Slide 48: Leveraging Innovation Across Regions Leads to Effective Grower Solutions
LEVERAGING INNOVATION ACROSS REGIONS LEADS TO EFFECTIVE GROWER SOLUTIONS Chelating and Complexing Formulated with Single Nutrient Offerings Micro + NPK blends Technology Innovative Surfactants 48
Slide 49: South American Production Requires Intense Nutrient Management
SOUTH AMERICAN PRODUCTION REQUIRES INTENSE NUTRIENT MANAGEMENT THROUGHOUT CROP LIFE CYCLE Soybean example Bio Stimulant Special Balanced Nutritional Supplements and Adjuvants Soluble Solids Essential Better Leaf Grain Formation Bioavailable micronutrients coated Absorption Nutrients Sulphur on dry f
Slide 50: Strong Data Supports Our Solutions-Driven Approach to Innovation
STRONG DATA SUPPORTS OUR SOLUTIONS-DRIVEN APPROACH TO INNOVATION Δ YIELD (%) 100% Cerrado Northeast South Southeast 80% 60% 40% 20% Grower Average Yield Returns 6% Advantage 0% 88% Win Rate 2x+ Return on Investment -20% Produquímica/Compass Minerals Innovation Team, 2016, 2017 N = 409 50
Slide 51: North American Portfolio Positioned to Service High Value Crops
NORTH AMERICAN PORTFOLIO POSITIONED TO UNIQUELY SERVICE THE NEEDS OF HIGH VALUE CROPS Almond example FOLIAR SOIL AND FOLIAR APPLIED AS NEEDED SOIL 51
Slide 52: Strategic Partnerships Can Enhance Differentiation and Drive Innovation
STRATEGIC PARTNERSHIPS CAN ENHANCE DIFFERENTIATION AND DRIVE INNOVATION Commercial Partnerships Academic Research Engagement Collaboration Open for Collaboration Asset Product Co- Acquisitions Development 52
Slide 53: Financial Review
FINANCIAL REVIEW JAMIE STANDEN Chief Financial Officer 53
Slide 54: Setting the Stage – Consolidated Impact of Trough Earnings
SETTING THE STAGE – CONSOLIDATED IMPACT OF TROUGH EARNINGS IN BOTH BUSINESSES Adjusted EBITDA Bridge from 2013 to 2017E* (in millions) $259 2013* 2014 Winter 2014 Strong Back to Back 2015-2017 Acquisition 2017E Ag Pricing Mild Winters Downcycle in Ag Benefit *Non-GAAP measure. See appendix for recon
Slide 55: Salt Segment Financial Roadmap
SALT SEGMENT FINANCIAL ROADMAP Salt Segment EBITDA* Outlook • Continuous Mining investment in place to (in millions) drive anticipated $2 to $3 improvement in per-unit salt costs • Return to average winter weather and other $247 cost reduction initiatives support improvement in both expected volume
Slide 56: Plant Nutrition North America Financial Roadmap
PLANT NUTRITION NORTH AMERICA FINANCIAL ROADMAP Plant Nutrition North America EBITDA* Outlook • Expect revenue growth from selling (in millions) incremental SOP capacity at steady prices as well as new product lines - Anticipate increased percent of sales from micronutrients and other specialty form
Slide 57: Plant Nutrition South America Financial Roadmap
PLANT NUTRITION SOUTH AMERICA FINANCIAL ROADMAP Plant Nutrition South America EBITDA* Outlook • Continued expansion of direct-to-grower (in millions) sales expected • Continued growth in sales from new product introductions • Increased operational leverage with better $67 plant utilization anticipat
Slide 58: Consolidated View of Earnings Growth Potential
CONSOLIDATED VIEW OF EARNINGS GROWTH POTENTIAL EBITDA* 2020 Outlook (in millions) $320 +$250 Free Cash Flow (in millions) 2016* Continous Mining Volume Margin 2020E 2020E *Pro Forma adjusted EBITDA including 12 months of Prodduquímica earnings. Non-GAAP measure. See appendix for reconciliation. 58
Slide 59: Debt Profile
DEBT PROFILE FIXED VARIABLE BRAZILIAN OPPORTUNITIES $250M $842M $88M • Rebalance fixed FACE VALUE TERM LOANS MATURE and variable IN 2021 20% components 4.875% GOVERNMENT • Consider DUE IN 2024 $300M SUBSIDIZED advantages offered REVOLVING CREDIT FACILITY MATURES by falling interest IN 2021 ~14% rate
Slide 60: Cash Flow and Leverage Improvements Expected
CASH FLOW AND LEVERAGE IMPROVEMENTS EXPECTED Free Cash Flow • Cash flow generation increasing despite (in millions) headwinds $300 $250 • Amended debt covenant to 5.0X adjusted EBITDA for one year $200 - Cost of 5 bps or ~$500,000 $150 • Expect to return to targeted leverage ratio $100 by 2019 $50 $
Slide 61: Capital Allocation Philosophy
CAPITAL ALLOCATION PHILOSOPHY Value- • Invest in existing business Creating • Strategic acquisitions Opportunities • Direct returns to shareholders Debt Reduction and Ratings Improvement Maintain Dividend and Sustain Assets 61
Slide 62: Current Headwinds
CURRENT HEADWINDS Salt • Production reduction at Goderich causing increased per-unit cost • Bid season 90% complete with price down 3% and average market-wide bid volumes down 5%, consistent with expectations Plant Nutrition • Ongoing commissioning of equipment at Ogden facility - Using supplemental
Slide 63: Current 2017 Outlook Summary
CURRENT 2017 OUTLOOK SUMMARY Full Year 2017 EPS – $2.50 to $2.80 Salt Segment 2H17 FY17 Volumes 5.3 million to 5.6 million tons 10.7 million to 11.0 million tons Average selling price (per ton) $71 to $75 Operating earnings margin 19% to 22% Plant Nutrition North America Segment Volumes 165,000 to 1
Slide 64: Key Financial Take-Aways
KEY FINANCIAL TAKE-AWAYS Salt Sales Volumes and Snow Days 16,000 250 14,000 200 12,000 Average snow days = 163 10,000 150 Plant Nutrition Investments 8,000 businesses in place to expected to 100 Weather achieve 6,000 achieve +10% reverts to the estimated top line and 4,000 mean $30 per ton +15% EBIT
Slide 65: Appendix
APPENDIX Tax Rate Sensitivity Table and Non-GAAP Reconciliations 65
Slide 66: Effective Tax Rate Sensitivity
EFFECTIVE TAX RATE SENSITIVITY Sensitivity of timing of release of certain valuation allowances associated with the acquired Produquímica business 3Q17 4Q17 FY17 Expected effective tax rate based on expected decrease in operating ~ 13% ~ 18% ~ 18% earnings Expected effective tax rate if certain valu
Slide 67: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION Reconciliation for Salt Segment EBITDA and Adjusted EBITDA (unaudited) (in millions) 2012 2013 2014 2015 2016 Salt segment GAAP operating earnings 126.0 $ 181.3 $ 291.4 $ 215.2 $ 200.6 Depreciation, depletion and amortization 38.9 45.1 44.8 43.9 46.7 Salt segme
Slide 68: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION Reconciliation for Plant Nutrition North America Segment EBITDA (unaudited) (in millions) 2012 2013 2014 2015 2016 Plant nutrition N.A. segment GAAP operating earnings $ 58.4 $ 58.7 $ 74.8 $ 57.9 $ 21.1 Depreciation, depletion and amortization 21.4 23.8 27.3 29
Slide 69: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION Reconciliation for Plant Nutrition North America and South America Combined Adjusted Operating Earnings and Margin (unaudited) (in millions) 2016 Reported GAAP Plant Nutrition North America segment operating earnings $ 21.1 Reported GAAP Plant Nutrition South A
Slide 70: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION Reconciliation for Free Cash Flow (unaudited) (in millions) 2012 2013 2014 2015 2016 Cash flow from operations $ 151.7 $ 238.3 $ 242.9 $ 137.9 $ 167.3 Capital Expenditures 130.9 122.7 125.2 217.6 182.2 Free cash flow $ 20.8 $ 115.6 $ 117.7 ($ 79.7) ($ 14.9) 70
Slide 71: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION Reconciliation for EBITDA and Adjusted EBITDA (unaudited) (in millions) 2013 Net earnings $ 130.8 Interest expense 43.3 Income tax expense 17.9 Depreciation, depletion and amortization 73.0 EBITDA $ 265.0 Adjustments to EBITDA Other income, net(1) (6.4) Adjuste
Slide 72: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION Reconciliation for EBITDA and Adjusted EBITDA (unaudited) (in millions) 2016 Net earnings $ 162.7 Interest expense 34.1 Income tax expense 34.6 Depreciation, depletion and amortization 90.3 EBITDA $ 321.7 Adjustments to EBITDA Gain from remeasurement of equity
Slide 73: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION Reconciliation for Plant Nutrition South America Pro Forma* EBITDA and Adjusted EBITDA (unaudited) (in millions) 2016 Plant nutrition S.A. segment operating earnings $ 38.7 Depreciation, depletion and amortization 18.8 Earnings in equity method investee 0.3 Pla