Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q2 2023 Earnings Presentation
20 slides from Mosaic Company (the)'s earnings presentation, Aug 2, 2023
Slide 1: Second Quarter 2023 Results
The Mosaic Company Second Quarter 2023 Results Date: August 01, 2023
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending future transactions or
Slide 3: Second Quarter 2023 Performance
Second Quarter 2023 Performance CONSOLIDATED OPERATING NET ADJUSTED(1) REVENUES EARNINGS EARNINGS EBITDA $3,394M $369M $369M $744M -37% Y/Y -78% Y/Y -64% Y/Y -63% Y/Y PHOSPHATES POTASH MOSAIC FERTILIZANTES Net Operating Adjusted Net Operating Adjusted Net Operating Adjusted Revenues Earnings EBITDA(
Slide 4: Elevated Agriculture Prices Provide Support to Growers
Elevated Agriculture Prices Provide Support to Growers Ag commodity prices remain healthy, and in many cases, prices are higher than those that prevailed in 2021 which was a strong year for fertilizers Indexed Daily Close of Front Month Contract Indexed Daily Close of Front Month Contract 400 400 Co
Slide 5: Solid Agricultural Fundamentals
Solid Agricultural Fundamentals Slow down in yield growth in recent years has pressured our stocks-to-use ratio metric, which is unlikely to recover in a single season Grain and Oilseed Stocks MMT Percent World Less China Stocks Percent of Use 500 20% 450 19% 400 18% 350 17% 300 16% 250 15% 200 14%
Slide 6: Phosphate and Potash Prices
Phosphate and Potash Prices Nutrient prices have stabilized and are reversing higher $/MT Global DAP/MAP Benchmark Prices $/MT Potash Prices Published Spot Prices Published Spot Prices 1,400 1,400 c&f Brazil c&f SE Asia fob NOLA delivered Cornbelt 1,200 1,200 1,000 1,000 800 800 600 600 400 400 DAP
Slide 7: China Exports Structurally Constrained
China Exports Structurally Constrained Permanent closure of domestic DAP/MAP capacity, rising secular industrial demand, particularly for LFP production, and a focus on meeting domestic demand to ensure food security should limit exports Mil Tonnes China Phosphate Exports 15 12 9 6 3 0 2015 2020 202
Slide 8: Mosaic North America MOP Ending Stocks
Mosaic North America MOP Ending Stocks Mosaic’s strategy is focused on meeting market demand through prudent inventory and production management Mil Tonnes Mosaic North America MOP Ending Stocks 1.5 Min-Max Range (7-year) Ending Stocks 1.2 0.9 0.6 0.3 0.0 8 Source: TFI, Mosaic
Slide 9: Highlights
Highlights • Robust demand in North America and late quarter Brazil sales drove volumes Phosphates • Lower raw material costs will continue to benefit margins in Q3 • Restarted Colonsay in July to offset the short-term impact of Esterhazy’s planned summer maintenance Potash • Esterhazy nameplate cap
Slide 10: 2023 Capital Allocation
2023 Capital Allocation Our capital allocation strategy remains unchanged. Invest in the Maintain Strong Return Capital to Business Balance Sheet Shareholders High-returning, focused Current balance sheet Continue returning virtually investments with modest reflects investment grade all Free Cash Fl
Slide 11: Opportunities for Growth
Opportunities for Growth Value-Add Products Purified Phosphoric Acid • Initial $30 million investment related to piloting activity, including preliminary • Expansion of MicroEssentials capacity at engineering and permitting Riverview to be completed by end of 2023 • ~50% of North American annual • I
Slide 12: Outlook for 2023
Outlook for 2023 Pricing & Sensitivities FY 2022 Sensitivity Average DAP fob plant ($/tonne)(1) $804 $10 price = $90 mm adjusted EBITDA Average MOP fob mine ($/tonne)(2) $632 $10 price = $60 mm adjusted EBITDA BRL/USD(3) 5.16 Unhedged: $0.10 = $10 mm adjusted EBITDA (1) Approximately 20% of DAP pric
Slide 13: Appendix
Appendix
Slide 14: Potash Y/Y Adjusted EBITDA Bridge
Potash Y/Y Adjusted EBITDA(1) Bridge $(590) $998 $(660) $ in millions $179 $(74) $(9) $408 $(26) Q2 2022 Sales Price CRT Sales Idle/TA Other Q2 2023 Adjusted Volume Adjusted EBITDA EBITDA (1)See Non-GAAP Financial Measures for additional information 14
Slide 15: Phosphate Y/Y Adjusted EBITDA Bridge
Phosphate Y/Y Adjusted EBITDA(1) Bridge $(373) $758 $(704) $ in millions $199 $(36) $43 $385 $(28) $46 $107 Q2 2022 Sales Sales Raw Conversion Rock Idle/TA Other Q2 2023 Adjusted Price Volume Materials Adjusted EBITDA EBITDA (1)See Non-GAAP Financial Measures for additional information 15
Slide 16: Mosaic Fertilizantes Y/Y Adjusted EBITDA Bridge
Mosaic Fertilizantes Y/Y Adjusted EBITDA(1) Bridge $(378) $444 $(402) $ in millions $30 $66 $(6) $0 Q2 2022 Market Sales Volume Idle/TA Other Q2 2023 Adjusted Adjusted EBITDA EBITDA (1)See Non-GAAP Financial Measures for additional information 16
Slide 17: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (in millions) Q2 2023 Q2 2022 Consolidated net earnings attributable to Mosaic $369 $1,036 Less: Consolidated interest expense, net (36) (34) Plus: Consolidated depreciation, depletion and amortization 244 245 Plus: Accretion expense 23 20 Pl
Slide 18: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Potash Earnings (in millions) Q2 2023 Q2 2022 Operating earnings $328 $915 Plus: Depreciation, depletion and amortization 74 81 Plus: Accretion expense 2 2 Plus: Foreign exchange gain (loss) 23 (23) Plus: Other income (expense) - - Plus: Notable items (19) 23 Adju
Slide 19: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Phosphate Earnings (in millions) Q2 2023 Q2 2022 Operating earnings $146 $578 Plus: Depreciation, depletion and amortization 129 133 Plus: Accretion expense 16 14 Plus: Foreign exchange gain (loss) (2) - Plus: Other income (expense) (1) (24) Less: Earnings (loss)
Slide 20: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Mosaic Fertilizantes Earnings (in millions) Q2 2023 Q2 2022 Operating earnings (loss) $(20) $420 Plus: Depreciation, depletion and amortization 38 27 Plus: Accretion expense 5 4 Plus: Foreign exchange gain (loss) 73 (83) Plus: Other income (expense) (1) (1) Less: