Compass Minerals Intl Inc · NYSE:CMP
Compass Minerals Intl — Compass Minerals — Loop Capital Markets Investor Conference 2022
25 slides from Compass Minerals Intl's conference presentation, Jun 1, 2022
Slide 1: Loop Capital Markets Investor Conference
LOOP CAPITAL MARKETS INVESTOR CONFERENCE June 1, 2022
Slide 2: Forward-Looking Statements and Other Disclaimers
Forward-Looking Statements and Other Disclaimers This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about the company’s ability to raise and increase earnings capacity as well
Slide 3: An Essential Minerals Company
AN ESSENTIAL MINERALS COMPANY
Slide 4: Why Compass Minerals?
Why Compass Minerals? Resilient Core Business, Leveraging Competencies into Attractive Adjacent Markets Expected to Raise Long-Run Earnings Capacity and Drive Shareholder Value Advantaged assets and a leading MAXIMIZE Management team with decades of supplier of salt products SHAREHOLDER experience o
Slide 5: A Focused Essential Minerals Leader
A Focused Essential Minerals Leader1 Compass Minerals is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. $1,146M Every day, Compass Minerals produces what’s essential through the r
Slide 6: Strategic Priorities
Strategic Priorities BUILD SUSTAINABLE CULTURE > Drive Zero Harm imperative for our people and environment > Increase employee engagement and build execution muscle These priorities support Compass DELIVER ON COMMITMENTS Minerals’ Core Purpose to help > Meet then exceed customer and shareholder expe
Slide 7: Salt Segment: Well-Positioned in a Unique Industry
Salt Segment: Well-Positioned in a Unique Industry Main Attributes Steady Price Improvement Despite Winter Variability Resilient, Recession-resistant Demand Profile $90 Average Selling Price ($ per ton) $79 $75 Low Cost Structure and Attractive EBITDA margins $60 $45 Advantaged Assets Yield Competit
Slide 8: Plant Nutrition Segment: Strong Foothold in Key Areas
Plant Nutrition Segment: Strong Foothold in Key Areas Main Attributes HIGH Crop Chloride Sensitivity LOW Largest producer of SOP in Western Hemisphere • Typically supply ~70% of North American SOP demand Tree Nuts Avocado Potatoes Citrus Lettuce Alfalfa Low Cost Structure and Attractive EBITDA margi
Slide 9: Capital Allocation Framework Aligned with Strategy
Capital Allocation Framework Aligned with Strategy • New Goderich mine plan development expected to increase efficiency and lower SUSTAIN AND long-term cost structure IMPROVE OPERATIONS • Cote Blanche barge dock upgrade anticipated to improve safety, logistics and efficiency • Expect to enter the co
Slide 10: Focused on Safety and Sustainability
Focused on Safety and Sustainability We approach our Environmental, Social and Governance (ESG) work through a fundamental commitment to four key pillars: safety, growth, transparency and stewardship. Together, these pillars form our sustainability compass, guiding our decisions and business practic
Slide 11: Charting a Path to Long-Term Value Creation
CHARTING A PATH TO LONG- TERM VALUE CREATION
Slide 12: Leveraging Core Competencies in Adjacent Markets Expected to Accelerate Growth
Leveraging Core Competencies in Adjacent Markets Expected to Accelerate Growth and Reduce Weather Dependency World-Class Assets Provide Potential New Growth Avenues ASSET FOOTPRINT CORE COMPETENCIES PRODUCTS MARKETS Goderich Mine Underground Rock Salt Extraction Deicing Cote Blanche Chemical Salt In
Slide 13: Path Ahead Targets Value Creation and Growth
Path Ahead Targets Value Creation and Growth ORGANIC OPTIMIZATION LITHIUM DEVELOPMENT FORTRESS INVESTMENT • Seek to recoup inflationary costs • Leverage existing infrastructure at • Portfolio of proprietary, magnesium during upcoming 2023 North America Ogden production facility to chloride-based fir
Slide 14: Our Lithium Vision
Our Lithium Vision Support the North American battery market by accelerating the development of a sustainable, secure domestic lithium supply chain
Slide 15: Lithium: Select Accomplishments and Expected Milestones
Lithium: Select Accomplishments and Expected Milestones STATUS People Bolstered senior management team and Board of Directors through addition of key executives with deep industry and advanced battery supply chain experience, including Lorin Crenshaw, CFO; Chris Yandell, head of lithium; and Gareth
Slide 16: Extensive Experience Operating in the Great Salt Lake
Extensive Experience Operating in the Great Salt Lake Ogden Asset Development Timeline 1962 – Lithium Corporation of America leased 2018 – Initiated By 2025 – Lithium 55,000 acres of Great exploration and expected to be Salt Lake lakebed to sampling campaign delivered from our prospect lithium for t
Slide 17: Battery-Grade Lithium Hydroxide Production
Battery-Grade Lithium Hydroxide Production Successful test of conversion to battery-grade lithium hydroxide at a concentration of >56.5% LiOH▪H2O, exceeding the established battery-grade standard First known instance of battery-grade lithium hydroxide production originating from the sustainable brin
Slide 18: Sustainable Lithium and Essential Mineral Lifecycle
Sustainable Lithium and Essential Mineral Lifecycle Once lithium is removed, It takes 3 years to move the minerals through our system and we believe we 5 the brine will be further can manage this process to an effective life for lithium processed to other products As brine flows into the North Arm,
Slide 19: Capable and Ready to Deliver Our Vision
Capable and Ready to Deliver Our Vision We anticipate a lower emissions footprint compared to other projects because we use brine that is already being processed We expect to be cost competitive due to synergy with existing operations We expect to have a low lead time to deliver our product domestic
Slide 20: Fortress: Select Accomplishments and Expected Milestones
Fortress: Select Accomplishments and Expected Milestones STATUS Product Qualifications • Two conditionally qualified aerial LT retardants on U.S. Forest Service’s Qualified Products List (QPL): FR-200 & FR- 100 (pending final approvals) • One fully qualified ground applied LT retardant on U.S. Fores
Slide 21: Fortress Leverages Existing Production
Fortress Leverages Existing Production • North America represents ~60-70% of the estimated $300 million global LTR market • Ogden facility is strategically located near primary wildfire regions in the U.S. • Target customers include federal and state agencies, utilities, insurance companies, commerc
Slide 22: Appendix
Appendix ?~ COMPASS MINERALS
Slide 23: Fiscal 2022 Second Half Outlook
Fiscal 2022 Second Half Outlook1 (Guidance as of May 5, 2022) Salt Plant Nutrition 2H22 Revenue $300M $340M $95M $110M 2H22 EBITDA $60M $75M $25M $35M Salt • Anticipated impact of inflationary pressures on shipping and distribution costs expected to compress margins with fuel surcharge escalation of
Slide 24: Fiscal 2022 Guidance
Fiscal 2022 Guidance1 (Guidance as of May 5, 2022) Key Metrics for continuing operations (in millions of dollars unless otherwise noted) Segment Outlook Low High Salt segment sales volumes 12.2 12.7 (in millions of tons) Plant Nutrition segment sales volumes 270 290 (in thousands of tons) Consolidat
Slide 25: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Historical EBITDA and Margins (TTM) (unaudited, in millions) 2022 2021 2020 2019 2018 Three months ended Three months ended Three months ended Three months ended Three months ended March 31 Dec. 31 Sept. 30 June 30 March 31 Dec. 31 Sept. 30 J
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