Slide 1: Fiscal 2023 Fourth-Quarter and Full-Year Business Update
Fiscal 2023 Fourth-Quarter and Full-Year Business Update // November 16, 2023
Slide 2: Forward-Looking Statements and Other Disclaimers
Forward-Looking Statements and Other Disclaimers This press release may contain forward-looking statements, including, without limitation, statements about value creation; eventual resolution of Utah state regulatory questions; the company's lithium brine development project, including its value, pr
Slide 3: Fiscal 2023 Highlights
Fiscal 2023 Highlights • Generated net income of $15.5 million for fiscal 2023 versus net loss of $37.3 million in prior year • Adjusted EBITDA1 up 7% year over year, despite lower sales volumes in both Salt and Plant Nutrition businesses • Restored full-year adjusted EBITDA margins in excess of $20
Slide 4: Strategic Focus Areas for Fiscal 2024
Strategic Focus Areas for Fiscal 2024 ZERO HARM SALT SOP PROFITABILITY PRODUCTION Build on strong safety performance in our Maintain disciplined Execute on data-driven continued drive toward pricing strategy and a strategies to deliver more zero harm across each of focus on geographically reliable,
Slide 5: Fourth-Quarter and Fiscal 2023 Results
Fourth-Quarter and Fiscal 2023 Results
Slide 6: Fourth-Quarter and Fiscal 2023 Consolidated Results
Fourth-Quarter and Fiscal 2023 Consolidated Results Consolidated Results 4Q23 FY23 (y/y change) Commentary Revenue -6% -3% • 4Q23 adjusted EBITDA1 reflects Plant Nutrition sales weakness offset by improved Salt profitability year over year Adjusted EBITDA1 -9% +7% • FY23 adjusted EBITDA1 improved 7%
Slide 7: Fourth-Quarter and Fiscal 2023 Salt Results
Fourth-Quarter and Fiscal 2023 Salt Results ($ in millions) 4Q23 4Q22 %Δ FY23 FY22 %Δ Sales Volumes (in thousands of short tons) Revenue $186.7 $188.9 -1.2% $1,010.8 $1,010.3 0.0% 10,435 Adj. EBITDA1 $44.4 $34.4 +29.1% $230.7 $183.2 +25.9% 9,321 2,121 Adj. EBITDA1 margin 23.8% 18.2% +5.6 pts 22.8% 1
Slide 8: Fourth-Quarter and Fiscal 2023 Plant Nutrition Results
Fourth-Quarter and Fiscal 2023 Plant Nutrition Results ($ in millions) 4Q23 4Q22 %Δ FY23 FY22 %Δ Revenue $35.3 $57.8 -38.9% $172.1 $222.3 -22.6% Sales Volumes (in thousands of short tons) Adj. EBITDA1 $6.7 $21.8 -69.3% $45.5 $72.7 -37.4% Adj. EBITDA1 margin 19.0% 37.7% -18.7pts 26.4% 32.7% -6.3pts 2
Slide 9: Strategic Growth Initiatives
Strategic Growth Initiatives
Slide 10: Fortress Update
Fortress Update Fiscal 2023 Recap • Completed acquisition of the remaining 55% of Fortress, bringing the company to full ownership in May 2023 • In May 2023, Fortress entered into an agreement with the U.S. Forest Service (USFS) to provide products and services at up + to five mobile retardant bases
Slide 11: Lithium Project Update
Lithium Project Update • Compass Minerals has operated on the Great Salt Lake for over 50 As a leading provider of essential minerals, Compass Minerals’ vision years and is an important contributor to the Utah economy and is to support the North American battery market by accelerating the local comm
Slide 12: Charting a Prudent Financial Path Forward
Charting a Prudent Financial Path Forward • Focused on continuous balance sheet improvement and Liquidity and Net Debt maintaining credit profile $400 Liquidity Net Debt $1,400 (in millions) • Closed strategic equity partnership with Koch Minerals & Trading, $1,200 LLC $300 $317 $1,000 Liquidity Net
Slide 13: 2024 Outlook and Guidance
2024 Outlook and Guidance
Slide 14: Salt Outlook and Guidance
Salt Outlook and Guidance Long-Term Attributes Near-Term Initiatives • Resilient, recession-resistant demand profile • Maintain disciplined pricing strategy and focus on geographically advantageous markets • Difficult to replicate asset base with important logistical advantages • Advance Goderich mi
Slide 15: Plant Nutrition Outlook and Guidance
Plant Nutrition Outlook and Guidance Fiscal 2024 Plant Nutrition Long-Term Attributes Guidance 2024 Range • Largest producer of SOP in the Western Hemisphere FY24 Volumes (thousands of tons) 290 320 • Unique solar evaporation asset in Ogden, Utah, provides competitive advantages FY24 Revenue (in mil
Slide 16: Consolidated Guidance Summary
Consolidated Guidance Summary 2024 Adj. EBITDA (in millions) Salt $230 $270 Plant Nutrition 20 40 Fortress1 ~12 ~12 Lithium (10) (5) Other (67) (67) Corporate (65) (60) 2024 Capital Expenditures TOTAL $185 $250 (in millions) Sustaining $90 $100 Lithium 25 30 Fortress 10 10 TOTAL $125 $140 Other Cons
Slide 17: Appendix
Appendix
Slide 18: Special Items
Special Items Special Items Impacting Three Months Ended September 30, 2023 (unaudited, in millions, except per share data) Item Description Segment Line Item Amount Tax Effect1 After Tax EPS Impact Accrued legal costs related to SEC investigation Corporate and Other SG&A $(0.2) --- $(0.2) --- Total
Slide 19: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Adjusted Operating Earnings (Loss) (unaudited, in millions) Three months ended Twelve months ended September 30, September 30, 2023 2022 2023 2022 Operating earnings $ 3.9 $ 6.0 $ 79.1 $ 42.9 Executive transition costs1 --- --- --- 3.8 Restru
Slide 20: 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 September 30, September 30, 2023 2022 2023 2022 Net (loss) earnings $ (2.5) $ (5.5) $ 15.5 $ (37.3) Executive transition costs1 --- --- --- 3.8 Restr
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 September 30, September 30, 2023 2022 2023 2022 Net (loss) earnings $ (2.5) $ (5.5) $ 15.5 $ (37.3) Interest expense 13.1 14.0 55.5 55.2 Income tax (be
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 September 30, September 30, 2023 2022 2023 2022 Sales $ 186.7 $ 188.9 $ 1,010.8 $ 1,010.3 Operating earnings $ 28.8 $ 15.1 $ 170.7 $ 116.2 Operati
Slide 23: Salt Reconciliation of Non-GAAP Information
Salt Reconciliation of Non-GAAP Information Reconciliation for Salt Segment Adjusted Operating Earnings (unaudited, in millions) Three months ended Twelve months ended September 30, September 30, 2023 2022 2023 2022 Reported GAAP segment operating earnings $ 28.8 $ 15.1 $ 170.7 $ 116.2 Restructuring
Slide 24: Plant Nutrition Segment Performance
Plant Nutrition Segment Performance Plant Nutrition Segment Performance (in millions, except for sales volumes and prices per short ton) Three months ended Twelve months ended September 30, September 30, 2023 2022 2023 2022 Sales $ 35.3 $ 57.8 $ 172.1 $ 222.3 Operating (loss) earnings $ (1.6) $ 12.6
Slide 25: Plant Nutrition Reconciliation of Non-GAAP Information
Plant Nutrition Reconciliation of Non-GAAP Information Reconciliation for Plant Nutrition Segment Adjusted Operating Earnings (unaudited, in millions) Three months ended Twelve months ended September 30, September 30, 2023 2022 2023 2022 Reported GAAP segment operating earnings $ (1.6) $ 12.6 $ 11.2
Slide 26: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Historical EBITDA and Margins (by calendar year) (unaudited, in millions) 2023 2022 2021 2020 Three months ended Three months ended Three months ended Three months ended Sept 30 Jun 30 Mar 31 Dec 31 Sept 30 Jun 30 Mar 31 Dec 31 Sept 30 Jun 30