Compass Minerals Intl Inc · NYSE:CMP
Compass Minerals Intl — Compass Minerals International — Cowen Mobility Disruption Conference 2022
25 slides from Compass Minerals Intl's conference presentation, Mar 2, 2022
Slide 1: Cowen Mobility Disruption Conference March 3, 2022
COWEN MOBILITY DISRUPTION CONFERENCE March 3, 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?
MAXIMIZE SHAREHOLDER VALUE Advantaged assets and a leading supplier of salt products in North America and the U.K. Sustainable competitive advantage, given unique, difficult to replicate Salt and Plant Nutrition assets Protassium+® sulfate of potash (SOP) product is a market leader for high-value cr
Slide 5: A Focused Essential Minerals Leader
A Focused Essential Minerals Leader1 51 Information presented represents only the continuing operations of the company and is for trailing 12-month period from Oct 1, 2020, to Sept. 30, 2021. TOTAL SALES $1,146M 12 PACKAGING AND PRODUCTION FACILITIES ~2,000 EMPLOYEES 11.3M TONS SALT VOLUMES SOLD 404
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 DELIVER ON COMMITMENTS > Meet then exceed customer and shareholder expectations > Continue operational improvements at mines and facili
Slide 7: Salt Segment: Well-Positioned in a Unique Industry
Salt Segment: Well-Positioned in a Unique Industry Main Attributes Resilient, Recession-resistant Demand Profile Low Cost Structure and Attractive EBITDA margins Advantaged Assets Yield Competitive Strengths • Goderich mine world’s largest operating underground salt mine • Winsford mine U.K.’s large
Slide 8: Plant Nutrition Segment: Strong Foothold in Key Areas
Plant Nutrition Segment: Strong Foothold in Key Areas Main Attributes Historical EBITDA1 and Margin (TTM)2 $61 $60 $45 $51 0% 10% 20% 30% 40% 50% $0 $20 $40 $60 Sept. 30, 2019 Sept. 30, 2020 Sept. 30, 2021 Dec. 31, 2021 EBITDA EBITDA Margin HIGH LOWCrop Chloride Sensitivity Tree Nuts Avocado Potatoe
Slide 9: Capital Allocation Framework Aligned with Strategy
An agile approach to capital allocation balancing safety and reliability of existing assets, maintaining credit profile, value-creating growth investments, and return of capital SUSTAIN AND IMPROVE OPERATIONS • New Goderich mine plan development expected to increase efficiency and lower long-term co
Slide 10: Focus on Sustainability and Safety
Focus on Sustainability and Safety FRESHWATER INTENSITY 13% HIGHLIGHTS FROM OUR 2020 ESG REPORT1 1 Metrics represent year-over-year improvement from 2019 to 2020. SCOPE 3 EMISSIONS 6% TOTAL CASE INCIDENT RATE 16% EMPLOYEE TRAINING AND DEVELOPMENT 13% Our Core Values, Corporate Sustainability Princip
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
Leveraging Core Competencies in Adjacent Markets Expected to Accelerate Growth and Reduce Weather Dependency 12 World-Class Assets Provide Potential New Growth Avenues ASSET FOOTPRINT CORE COMPETENCIES PRODUCTS MARKETS Goderich Mine Cote Blanche Winsford Ogden Goderich Plant Lyons Unity Amherst Wyny
Slide 13: Path Ahead Targets Value Creation and Growth
Path Ahead Targets Value Creation and Growth • Seek to recoup inflationary costs during upcoming 2023 North America highway deicing bid season • Restore Ogden pond productivity to historical levels • Advance long-term Goderich mine plan to increase efficiency and reduce costs • Leverage advantaged a
Slide 14: Our Lithium Vision
Support the North American battery market by accelerating the development of a sustainable, secure domestic lithium supply chain Our Lithium Vision
Slide 15: Lithium Milestones and 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 Joyce, independent director Summer 2022 Achieved Key Proof Poin
Slide 16: Ogden Asset Development Timeline
Ogden Asset Development Timeline 1962 – Lithium Corporation of America leased 55,000 acres of Great Salt Lake lakebed to prospect lithium for the Pentagon’s nuclear program 2018 – Initiated exploration and sampling campaign to define the lithium resource 2021 – Lithium resource defined, comprised of
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: Lithium in the Great Salt Lake and Ogden Process
South Arm North Arm Four rivers feed the Great Salt Lake, carrying lithium and other minerals 1 Over time, brine concentrates in the ponds 3 We plan to ultimately extract and process ~30-40 kMT of lithium carbonate equivalent per year with direct lithium extraction technology 4 Once lithium is remov
Slide 19: 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 As a long-standing operator and engaged stakeholder on the Great Salt Lake, we have strong working relati
Slide 20: Fortress Product Qualifications and Status
STATUS Conditional Product Qualifications Three conditionally qualified products on U.S. Forest Service’s Qualified products list: FR-600 ground applied LT retardant (fully qualified), FR-200 & FR-100 aerial LT retardants (conditionally qualified) pending final approvals Achieve Full Product Qualifi
Slide 21: Fortress Leverages Existing Production
Fortress Leverages Existing Production • $45 million equity investment in Fortress North America (Fortress), an early-stage long-term fire retardant (LTR) company • Compass Minerals secured minority equity stake ownership of ~45% • Fortress’ patent portfolio of LTR and ground retardant formulations
Slide 22: Compass Minerals
FN COMPASS MINERALS
Slide 23: First Half Fiscal 2022 Outlook
1 Continuing operations only. Reflects Oct. 1 to Sept. 30 fiscal year. Information as of Feb 8, 2022. Salt • Shipping and distribution costs tracking higher than originally expected due to inflationary pressures year to date, primarily in the C&I business • Relatively weak start to winter reflected
Slide 24: Fiscal 2022 Guidance
Key Metrics for continuing operations (in millions of dollars unless otherwise noted) Segment Outlook Low High Salt segment sales volumes (in millions of tons) 11.8 12.8 Plant Nutrition segment sales volumes (in thousands of tons) 280 320 Consolidated and Corporate Outlook Low High Consolidated Adju
Slide 25: Reconciliation of Non-GAAP Information
Reconciliation of Non-GAAP Information Reconciliation for Historical EBITDA and Margins (TTM) (unaudited, in millions) 1 The company incurred severance and other costs related to executive transition. 2 The company incurred costs related to the ongoing SEC investigation. 3 The company incurred forei
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