Slide 1: Fiscal 2022 Fourth-Quarter and Full-Year Business Update
Fiscal 2022 Fourth-Quarter and Full-Year Business Update // Nov. 29, 2022
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; implementation of SafeStart ®; the company’s fire retardant business (Fortre
Slide 3: Fiscal 2022 and Recent Highlights
Fiscal 2022 and Recent Highlights • Consolidated revenue for fourth quarter and fiscal 2022 up 18% and 9%, respectively, versus the comparable year-over-year period, on strong Salt segment sales volumes • Adjusted EBITDA from continuing operations of $35.0 million, for fourth quarter and $187.1 mill
Slide 4: Positioning Company for Accelerated Growth
Positioning Company for Accelerated Growth Completed Sale of South America Chemicals Business and Received Maximum Recalibrated Dividend and Capital Allocation Policy Earnout Payment on South America Specialty Plant Nutrition Business Enabled strategic shift toward expanding essential minerals produ
Slide 5: Exceptional Safety Performance
Exceptional Safety Performance The company achieved a Total Case Incident Rate (TCIR) of 1.27 for fiscal 2022, reflecting an approximate 56% improvement from the comparable year-over-year period and demonstrating exceptional safety performance • Working towards the company’s ultimate goal of zero ha
Slide 6: Fourth-Quarter and Fiscal 2022 Results
Fourth-Quarter and Fiscal 2022 Results
Slide 7: Fourth-Quarter and Fiscal 2022 Consolidated Results
Fourth-Quarter and Fiscal 2022 Consolidated Results Consolidated Results Commentary 4Q22 FY22 ($ in millions) • Fiscal fourth-quarter 2022 revenue above prior year 18% driven by Revenue year over year +18% +9% strong Salt segment sales volume and Plant Nutrition SOP pricing Adjusted EBITDA1 year ove
Slide 8: Fourth-Quarter and Fiscal 2022 Salt Segment Results
Fourth-Quarter and Fiscal 2022 Salt Segment Results Sales Volumes Salt Segment Results (in thousands of short tons) 4Q22 4Q21 %Δ FY22 FY212 %Δ 10,435 ($ in millions) 9,295 Revenue $188.9 $159.5 +18.4% $1,010.3 $899.6 +12.3% 2,122 1,997 EBITDA1 $33.1 $40.1 -17.5% $181.9 $248.4 -26.8% EBITDA1 margin 1
Slide 9: Fourth-Quarter and Fiscal 2022 Plant Nutrition Segment Results
Fourth-Quarter and Fiscal 2022 Plant Nutrition Segment Results Plant Nutrition Segment Results Sales Volumes 4Q22 4Q21 %Δ FY22 FY212 %Δ (in thousands of short tons) ($ in millions) Revenue $57.8 $49.3 +17.2% $222.3 $235.0 -5.4% EBITDA1 $21.8 $8.7 +150.6% $72.7 $44.9 +61.9% 403 286 EBITDA1 margin 37.
Slide 10: Fortress: Select Accomplishments and Expected Milestones
Fortress: Select Accomplishments and Expected Milestones Product Qualifications Expected Milestones • Two conditionally qualified aerial LT retardants on U.S. Forest • Advance commercialization of FR-600, a fully approved ground Service’s (USFS) Qualified Products List (QPL): FR-200 & FR- retardant
Slide 11: Lithium: Recent Accomplishments and Expected Milestones
Lithium: Recent Accomplishments and Expected Milestones Strategic Equity Investment Expected Milestones • Announced and closed $252 million strategic equity investment partnership with Koch Minerals • Secure additional definitive offtake & Trading LLC, with funds expected to be used to advance phase
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 FEL 3 (DFS) Construct East Side Li2CO3 Asset Operate Phase-Two: West Side (estimated at ~24kMT
Slide 13: Phase-One Project Economics Support Substantial Value Creation and Competitive Cost Position
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 Selling Price $4,347 $985M 36% Cash Cost2/MT Li2CO3 After-tax NPV1 After-tax IRR1 (Base +30%) 202
Slide 14: Implied Valuation of Ogden Resource Suggests Considerable Upside
Implied Valuation of Ogden Resource Suggests Considerable Upside to Compass Minerals Shares Over Time Lithium Valuation Benchmarking Compass Minerals Lithium Market Capitalization / Expected Annual Production, US$ 000 / MT LCE 68 68 66 Precedent Transactions Brine Developer Hardrock Developer In-Pla
Slide 15: 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 • Recalibrated capital allocation policy by reducing dividend in Nov
Slide 16: Fiscal 2023 Outlook
FISCAL 2023 OUTLOOK1 Salt Plant Nutrition Mild Strong Winter3 2023 Range2 Winter3 2023 Range FY23 Volumes 10,000 11,350 12,200 13,200 265 295 FY23 Revenue $895 $990 $1,065 $1,125 $200 $240 FY23 EBITDA $175 $215 $255 $275 $55 $70 • Salt has recalibrated its sales mix to improve profitability to histo
Slide 17: 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 $175 $230 11,350 12,200 (in thousands of tons) Sustain
Slide 18: Appendix
Appendix
Slide 19: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Adjusted Net (Loss) Earnings (unaudited, in millions) Three months ended Twelve months ended Sept. 30, Sept. 30, 2022 2021 2022 2021 Net (loss) earnings from continuing operations $ (4.9) $ (4.6) $ (36.7) $ 35.6 Executive transition costs, ne
Slide 20: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Adjusted Operating Earnings (unaudited, in millions) Three months ended Twelve months ended Sept. 30, Sept. 30, 2022 2021 2022 2021 Operating earnings $ 7.5 $ 2.1 $ 44.4 $ 107.1 Executive transition costs1 --- --- 3.8 --- Accrued loss and leg
Slide 21: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions) Three months ended Twelve months ended Sept. 30, Sept. 30, 2022 2021 2022 2021 Net (loss) earnings from continuing operations $ (4.9) $ (4.6) $ (36.7) $ 35.6 Interest expense 14.0 13.6 55.2
Slide 22: Salt Segment Performance
Salt Segment Performance Salt Segment Performance (in millions, except for sales volumes and prices per short ton) Three months ended Twelve months ended Sept. 30, Sept. 30, 2022 2021 2022 2021 Sales $ 188.9 $ 159.5 $ 1,010.3 $ 899.6 Operating earnings 16.3 22.4 117.4 177.7 Operating margin 8.6% 14.
Slide 23: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Salt Segment EBITDA (unaudited, in millions) Three months ended Twelve months ended Sept. 30, Sept. 30, 2022 2021 2022 2021 Reported GAAP segment operating earnings $ 16.3 $ 22.4 $ 117.4 $ 177.7 Depreciation, depletion and amortization 16.8 1
Slide 24: Plant Nutrition Segment Performance
Plant Nutrition Segment Performance Plant Nutrition Segment Performance (unaudited, dollars in millions, except for prices per short ton) Three months ended Twelve months ended Sept.30, Sept. 30, 2022 2021 2022 2021 Sales $ 57.8 $ 49.3 $ 222.3 $ 235.0 Operating earnings (loss) $ 12.6 $ (0.2) $ 37.1
Slide 25: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Plant Nutrition Segment EBITDA (unaudited, in millions) Three months ended Twelve months ended Sept. 30, Sept. 30, 2022 2021 2022 2021 Reported GAAP segment operating earnings (loss) $ 12.6 $ (0.2) $ 37.1 $ 9.1 Depreciation, depletion and amo
Slide 26: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Historical EBITDA and Margins (TTM) (unaudited, in millions) Note: Continuing operations only. 1 The company incurred severance and other costs related to executive transition. 2 The company recorded a contingent loss accrual during the twelv
Slide 27: Lithium Mineral Resources
Lithium Mineral Resources Resource Area Average Grade Lithium Resource LCE (mg/L) (tonnes) (tonnes) Indicated Resources Great Salt Lake North Arm 51 226,860 1,207,577 Great Salt Lake South Arm 25 208,711 1,110,970 Pond 96, Halite Aquifer 214 908 4,835 Pond 98, Halite Aquifer 221 868 4,623 Pond 113,