Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — Q2 2024 Earnings Presentation
25 slides from Mosaic Company (the)'s earnings presentation, Aug 7, 2024
Slide 1: Second Quarter 2024 Results
The Mosaic Company Second Quarter 2024 Results August 6, 2024
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 transactions or strateg
Slide 3: Second Quarter 2024 Performance
Second Quarter 2024 Performance CONSOLIDATED OPERATING NET ADJUSTED (1) REVENUES EARNINGS LOSS EBITDA $2817M $233M $162M $584M PHOSPHATE POTASH MOSAIC FERTILIZANTES Net Operating Adjusted(1) Net Operating Adjusted(1) Net Operating Adjusted(1) Revenues Earnings EBITDA Revenues Earnings EBITDA Revenue
Slide 4: Second Quarter 2024 Key Takeaways
Second Quarter 2024 Key Takeaways Ø Achieved more than one-third of the $150 million run rate cost reduction excluding the significant progress made on phosphate fixed cost absorption Ø Phosphate production volume highest since Q1 of 2023 Business Ø Unit production cost reductions across all segment
Slide 5: Cost and Capex Reduction Progress
Cost and Capex Reduction Progress Significant progress made on the $150 million cost reduction run rate target Ø Reduced unit production costs across all three segments Ø Phosphate cash conversion costs declined 15% to $100 per production tonne since the end of 2023. Achieved significant improvement
Slide 6: Phosphate Production Progress
Phosphate Production Progress Overall 98,000 tonne improvement 2Q over 1Q, on track to achieve target Bartow New Wales Ø Achieved almost 90% of target annual run rate in 2Q 2024. Finished Ø Achieved over 90% of target annual run rate in 2Q 2024 product production highest since the second half of 202
Slide 7: Mosaic Biosciences
Mosaic Biosciences North and Central America Acres 67% CAGR 5.0 mil. 3.3 mil. 1.8 mil. 2022 2023 2024 Main Mosaic Biosciences Markets Leveraging Mosaic’s expansive reach in key markets, Mosaic Biosciences is making significant progress in North and Central America with products used on 5 million acr
Slide 8: Investing in Our Strengths
Investing in Our Strengths Strategic Initiatives Projects Completed On Time On Budget Esterhazy Compaction Optimized Operations Esterhazy Hydrofloat Riverview MicroEssentials® A Value-Added Portfolio Capacity Conversion Palmeirante Blending Facility Expansive Market Access Construction 8
Slide 9: Market Highlights
Market Highlights
Slide 10: Agriculture Fundamentals
Agriculture Fundamentals Core U.S. Crops Other Global Crops Indexed Daily Close of Front Month Contract Indexed Daily Close of Front Month Contract 300 400 Corn Soybean Cotton Wheat Coffee Rice Palm Oil Sugar 300 200 2018=100 2018=100 200 100 100 0 0 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-20 Jan-21
Slide 11: Plant Nutrients Affordability
Plant Nutrients Affordability Plant Nutrient Price Index / Crop Price Index 1.60 Less Affordable Affordability Metric Average (2010-present) 1.40 1.20 1.00 0.80 0.60 More affordable 0.40 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Overall nutrient affordability remains generally cons
Slide 12: Rising and Stabilized Fertilizer Prices
Rising and Stabilized Fertilizer Prices Phosphate prices remain elevated and potash prices are relatively stable. Source: Argus, Green Markets, Fertecon, Mosaic. Data through August 1, 2024 12
Slide 13: Phosphate Outlook
Phosphate Outlook MMT End-June Stocks MMT Brazil Phosphate Imports MMT India DAP Imports (DAP/MAP/TSP/NPS) 4.0 6.0 6.0 5.0 5.0 3.0 4.0 4.0 3.0 3.0 2.0 2.0 2.0 1.0 1.0 1.0 0.0 0.0 0.0 H1 H2 H1 H2 Brazil India 2022=7.6 2023=8.4 2024F=8.3 2022=6.8 2023=6.5 2024F=5.9 5-Yr. Avg. 2023 2024 Low stocks and
Slide 14: Potash Growth Drivers
Potash Growth Drivers SE Asia MOP/CPO Price Ratio Mil Tonnes Indonesia + Malaysia MOP Imports (MOP/CPO) 1.4 7.0 Less Affordable Fertilizers Min/Max Range (19-23) 1.2 6.0 2023 1.0 5.0 2024 0.8 4.0 0.6 3.0 48% 0.4 2.0 0.2 1.0 More Affordable Fertilizers 0.0 0.0 15 16 17 18 19 20 21 22 23 24 Jan Feb Ma
Slide 15: Appendix
Appendix
Slide 16: 2024 Assumptions
2024 Assumptions Pricing & Sensitivities FY 2023 Sensitivity Average DAP fob plant ($/tonne)(1) $578 $10 price = $70 mm adjusted EBITDA Average MOP fob mine ($/tonne)(2) $308 $10 price = $60 mm adjusted EBITDA BRL/USD(3) 5.00 Unhedged: $0.10 = $10 mm adjusted EBITDA (1) Approximately 20% of DAP pric
Slide 17: Potash
Potash Y/Y Adjusted EBITDA(1) Bridge Q1 2024 Q1 2023 Variance $(137) Q2 2024 Q2 2023 Variance 49 (252) Sales Volumes (mt in millions) 2.346 2.163 0.183 MOP Selling Price (FOB Mine) ($/mt) $ 224 $ 326 $ (102) 408 MOP cash costs of production ($/mt) $ 64 $ 74 $ (10) $ in millions $ in millions Q2 2024
Slide 18: Phosphate
Phosphate Y/Y Adjusted EBITDA(1) Bridge Q2 2024 Q2 2023 Variance $(77) Sales Volumes (mt in millions) 1.696 1.922 (0.226) $385 $(48) DAP Selling Price (FOB Plant) ($/mt) $ 575 $ 585 $ (10) $18 $(28) Production volume (mt in millions) 1.675 1.660 0.015 $(19) FL Cash Rock Cost of production ($/mt) $ 5
Slide 19: Mosaic Fertilizantes
Mosaic Fertilizantes Y/Y Adjusted EBITDA(1) Bridge Q2 2024 Q2 2023 Variance Sales Volumes (mt in millions) 2.196 2.385 (0.189) $30 $ in millions Average Finished Product Selling Price ($/mt) $ 463 $ 487 $ (24) 18 96 MAP Price (delivered price to third party) ($/mt) $ 596 $ 653 $ (56) 66 (8) 319 (299
Slide 20: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Consolidated Earnings (Loss) (in millions) Q2 2024 Q2 2023 Consolidated net earnings (loss) attributable to Mosaic $(162) $369 Less: Consolidated interest expense, net (46) (36) Plus: Consolidated depreciation, depletion and amortization 264 244 Plus: Accretion ex
Slide 21: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Potash Earnings (in millions) Q2 2024 Q2 2023 Operating earnings $174 $328 Plus: Depreciation, depletion and amortization 94 74 Plus: Accretion expense 3 2 Plus: Foreign exchange gain (loss) (12) 23 Plus: Notable items 12 (19) Adjusted EBITDA $271 $408 21
Slide 22: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Phosphate Earnings (in millions) Q2 2024 Q2 2023 Operating earnings $133 $146 Plus: Depreciation, depletion and amortization 128 129 Plus: Accretion expense 20 16 Plus: Foreign exchange gain (loss) 2 (2) Plus: Other income (expense) (2) (1) Plus: Dividends receive
Slide 23: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures Mosaic Fertilizantes Earnings (in millions) Q2 2024 Q2 2023 Operating earnings (loss) $61 $(20) Plus: Depreciation, depletion and amortization 40 38 Plus: Accretion expense 5 5 Plus: Foreign exchange gain (loss) (144) 73 Plus: Other income (expense) (2) (1) Less:
Slide 24: High Return & Low Capital-Intensity Projects
High Return & Low Capital-Intensity Projects Optimized Operations A Value-Added Portfolio Expansive Market Access Completed Esterhazy Compaction Completed MicroEssentials capacity Constructing a 1 million tonne project. conversion at Riverview blending and distribution facility in Ø $150 million inv
Slide 25: ©2024 The Mosaic Company
©2024 The Mosaic Company