Slide 1: Third Quarter 2020 Business Update
Third Quarter 2020 Business Update Nov. 4, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation, including without limitation statements about demand; pricing; yield; the company’s enterprise wide optimization efforts, including expected benefits and ability to increase SOP feedstock and lengthen evaporation season; the company
Slide 3: 3Q20 Highlights
3Q20 Highlights YTD • Year-to-date performance 19% remains strong despite short- Operating vs. term challenges in 3Q20 2019* Earnings - Multiple hurricanes striking Louisiana mine - Dry weather and extreme fires YTD in key agriculture markets 10% Adjusted vs. - Continued weakening of Brazilian curre
Slide 4: Taking Care of People First
Taking Care of People First • Excellent progress with safety improvement throughout the company Total Case Incident Rate - 3Q20 among the safest quarters in Compass (12-month rolling) Minerals history - Our Ogden, Utah facility nearing 1 million 4.00 working exposure hours without a lost time injury
Slide 5: Salt Segment Demonstrating Benefits of Improved Execution and Optimization
Salt Segment Demonstrating Benefits of Improved Execution and Optimization Significant Margin Strong Production Performance Improvement 30.0% Delivered at Goderich Mine +28% 22.7% 18.8% 17.7% 12.9% 8.8% +53% 2020 2020 OPERATING MARGIN ADJUSTED EBITDA* THIRD QUARTER YEAR TO DATE MARGIN 3Q18 3Q19 3Q20
Slide 6: 3Q20 Plant Nutrition Results Impacted by Dry Weather in Brazil and Wildfire in Western US
3Q20 Plant Nutrition Results Impacted by Dry Weather in Brazil and Wildfire in Western US • Both North and South America Plant Nutrition businesses faced timing challenges in sales due to dry weather conditions +10% Year-Over-Year Sales Growth for Plant Nutrition Products • North America sales addit
Slide 7: Enterprise-Wide Optimization Highlight – Ogden SOP Harvest Project
Enterprise-Wide Optimization Highlight – Ogden SOP Harvest Project • Project underway expected to Full Enterprise-Wide Optimization Effort materially increase available pond- Expected to Benefit Multiple Value Streams based SOP feedstock through new approach to harvesting - Insourcing all harvest an
Slide 8: Remaining on a Strong Growth Trajectory
Remaining on a Strong Growth Trajectory Initial 2020 Outlook $350M to $400M Current 2020 Outlook $330M to $345M** Adjusted EBITDA* in $ millions 1Q20 $314 Mild BRL Winter weakness COVID-19 $291 Impact vs. USD Impacts $281 ~$45M Earnings Impact 2020 guidance 2017 2018 2019 2021E • Strategic prioritie
Slide 9: 3Q20 Consolidated Results Snapshot
3Q20 Consolidated Results Snapshot Consolidated Results vs. Commentary (Dollars in millions) 3Q19 Revenue -17% • Lower sales volumes across Salt and both Plant Nutrition North and South America Operating earnings -46% ̵ YTD20 sales volumes up 20% vs. prior year for Plant Nutrition North America and
Slide 10: Strong 3Q20 Salt Segment Earnings
Strong 3Q20 Salt Segment Earnings • Salt segment 3Q20 revenue down 11% vs. 3Q19 Salt 2017 Segment Results 3Q20 3Q19 %Δ ($ in millions) - Sales volumes dropped 13% driven with 14% 2016 lower volumes in Highway Deicing and 8% lower Revenue $141 $160 -11% volumes for Consumer & Industrial sales Operati
Slide 11: Plant Nutrition North America Segment Pressured by Sales Timing in 3Q20
Plant Nutrition North America Segment Pressured by Sales Timing in 3Q20 • 3Q20 revenue down 21% vs. 3Q19 on 22% Plant Nutrition North America lower sales volumes partially offset by 2% Segment Results ($ in millions) 3Q20 3Q19 %Δ higher average sales price Revenue $35 $44 -21% - SOP sales volumes im
Slide 12: 3Q20 Plant Nutrition South America Results
3Q20 Plant Nutrition South America Results • 3Q20 revenue down 23% vs. 3Q19 while Plant Nutrition South up 5% in local currency vs vs America Segment 3Q20 3Q19 3Q20 3Q19 - Agriculture sales volumes down 11% due ($ in millions) USD USD BRL BRL to early season demand filled in 2Q20 and Revenue $103 -2
Slide 13: 4Q20 Outlook
4Q20 Outlook Plant Nutrition Plant Nutrition Salt North America South America 4Q20 Revenue $310M $335M $65M $85M $100M $120M 4Q20 EBITDA $85M $100M $20M $30M $20M $30M • Continue to expect increased 4Q20 sales volumes vs. 4Q19, although pricing anticipated to decline due to highway deicing bid seaso
Slide 14: 2020 Full-Year Guidance Items
2020 Full-Year Guidance Items Key Metrics vs. Prior Guidance (in millions of dollars unless otherwise noted) Current (Aug. 4, 2020) Segment Outlook Low High Low High Salt Segment sales volumes (in millions of tons) 10.5 10.8 10.7 11.1 Plant Nutrition North America Segment sales volumes (in thousands
Slide 15: Maintaining Strong Liquidity Position and Improving Balance Sheet
Maintaining Strong Liquidity Position and Improving Balance Sheet • $34 million of cash on hand and more than $220 million of total Total Year-End Liquidity liquidity at end of 3Q20 (in millions) $225 to - Additional ~$72 million $302 $250 available from accounts $252 receivable securitization facil
Slide 16: Appendix
Compass Minerals:
Slide 17: Paving the Way for Long-Term Success at Goderich Mine
Paving the Way for Long-Term Success at Goderich Mine • Expected to increase efficiency Long-Term Goderich Mine Illustration of mining systems, decrease maintenance needs of previously mined space and provide greater optionality to address potential variability in geology and deposit quality • Key f
Slide 18: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for EBITDA and Adjusted EBITDA (unaudited) (in millions) Three months ended September 30, 2020 2019 Net (loss) earnings $ (2.1) $ 10.6 Interest expense 17.1 17.7 Income tax (benefit) expense (1.3) 4.8 Depreciation, depletion and amortization 35.6
Slide 19: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Salt Segment EBITDA (unaudited) (in millions) Three months ended September 30, 2020 2019 Segment GAAP operating earnings $ 25.0 $ 20.6 Depreciation, depletion and amortization 17.4 14.3 Segment EBITDA $ 42.4 $ 34.9 Executive transition costs
Slide 20: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Plant Nutrition North America Segment EBITDA (unaudited) (in millions) Three months ended September 30, 2020 2019 Segment GAAP operating (loss) earnings $ (6.1) $ 4.7 Depreciation, depletion and amortization 10.0 11.0 Segment EBITDA $ 3.9 $ 1
Slide 21: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Free Cash Flow (unaudited, in millions) Nine months ending Sept. 30, 2019 2020 Cash Flow From Operations $98 $189 Capital Spending (72) (63) Free Cash Flow $26 $126 21