Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

THE MOSAIC COMPANY

(MOS)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Mosaic : Bradesco BBI Conference

07/01/2021 EDT

The Mosaic Company

Corrine Ricard

Senior Vice President, Mosaic Fertilizantes

Eduardo Monteiro

Commercial Vice President, Mosaic Fertilizantes

July 1, 2021

Forward Looking Statements

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 strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: the economic impact and operating impacts of the coronavirus (Covid-19) pandemic, the potential drop in oil demand/production and its impact on the availability and price of sulfur, political and economic instability and changes in government policies in Brazil and other countries in which we have operations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the effect of future product innovations or development of new technologies on demand for our products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations and those of joint ventures in which Mosaic participates, including the performance of the Wa'ad Al Shamal Phosphate Company (also known as MWSPC), the timely development and commencement of operations of production facilities in the Kingdom of Saudi Arabia, and the future success of current plans for MWSPC and any future changes in those plans; difficulties with realization of the benefits of our long term natural gas based pricing ammonia supply agreement with CF Industries, Inc., including the risk that the cost savings initially anticipated from the agreement may not be fully realized over its term or that the price of natural gas or ammonia during the term are at levels at which the pricing is disadvantageous to Mosaic; customer defaults; the effects of Mosaic's decisions to exit business operations or locations; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic's operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic's processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States, Canada or Brazil, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management's current estimates, including, among others, asset retirement, environmental remediation, reclamation or other

environmental regulation, Canadian resources taxes and royalties, or the costs of the MWSPC; reduction of Mosaic's available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund financial assurance requirements and strategic investments; brine inflows at Mosaic's Esterhazy, Saskatchewan, potash mine or other potash shaft mines; other accidents and disruptions involving Mosaic's operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss; as well as other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.

Non-GAAP Financial Measures

This includes the presentation and discussion of non-GAAP diluted net earnings per share guidance, or adjusted EPS, and adjusted EBITDA, referred to as non-GAAP financial measures. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles, or GAAP. Non-GAAP financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, because non-GAAP measures are not determined in accordance with GAAP, they are thus susceptible to varying interpretations and calculations and may not be comparable to other similarly titled measures of other companies. Adjusted metrics, including adjusted EPS and adjusted EBITDA are calculated by excluding the impact of notable items from the GAAP measure. Notable items impact on gross margin and EBITDA is pretax. Notable items impact on diluted net earnings per share is calculated as the notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Management believes that these adjusted measures provide securities analysts, investors, management and others with useful supplemental information regarding our performance by excluding certain items that may not be indicative of, or are unrelated to, our core operating results. Management utilizes these adjusted measures in analyzing and assessing Mosaic's overall performance and financial trends, for financial and operating decision-making, and to forecast and plan for future periods. These adjusted measures also assist our management in comparing our and our competitors' operating results. We are not providing forward looking guidance for U.S. GAAP reported diluted net earnings per share, gross margin per tonne, or a quantitative reconciliation of forward-looking adjusted EPS, adjusted gross margin and adjusted EBITDA because we are unable to predict with reasonable certainty our notable items without unreasonable effort. Historically, our notable items have included, but are not limited to, foreign currency transaction gain or loss, unrealized gain or loss on derivatives, acquisition-related fees, discrete tax items, contingencies and certain other gains or losses. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. Reconciliations for current and historical periods beginning with the quarter ended June 30, 2019, for consolidated adjusted EPS and adjusted EBITDA, as well as segment adjusted EBITDA and adjusted gross margin per tonne are provided in the Selected Calendar Quarter Financial Information performance data for the related periods. This information is being

furnished under Exhibit 99.2 of the Form 8-K and available on our website at www.mosaicco.comin the "Financial Information - Quarterly Earnings" section under the "Investors" tab.

2

Mosaic's Strategic Priorities

1

2

3

North America

Transformation

Uncover and pursue new opportunities to improve the profitability and competitiveness of our potash and phosphate businesses

South America

Growth Engine

Leverage Mosaic's in-country capabilities to drive additional growth and profitability

Grow and Strengthen

Our Product Portfolio

Pursue diverse opportunities that make us stronger and that yield mutual benefits for Mosaic and our customers

4

5

6

Drive Functional

Collaboration and Efficiency

Rethink and re-engineer outdated and inefficient processes, and continue to look for new ways to improve

Optimize Operating Assets

and Capital Management

Continually assess, prioritize and allocate capital across the business and make decisions that strengthen our balance sheet

Act Responsibly

Be a good corporate citizen and contribute to the vitality of the people and the communities around us

3

The Mosaic Company at a glance

Business highlights

  • World's largest combined producer of P&K fertilizers
  • 21 million tonnes produced in 2020
  • Locations in 9 countries
  • Serving customers in more than 40 countries
  • Organized in three segments:
  1. Phosphates o Potash

o Mosaic Fertilizantes

  • Publicly traded since 2004 (NYSE: MOS)
  • Fortune 500 list
  • $12 billion market capitalization

Summary of Consolidated financial metrics

in $ million

2018

2019

2020

1Q2021

(unless otherwise stated)

Finished product sold(1)

27,637

26,736

30,496

6,581

(in '000 tonnes)

Net Sales

$9,587

$8,906

$8,682

$2,297

Consolidated Gross Margin

$1,498

$897

$1,065

$435

Operating Earnings

$928

$(1,095)

$413

$313

Net Income

$470

$(1,067)

$666

$157

Adjusted EBITDA(2)

$2,108

$1,407

$1,563

$560

  1. Includes intersegment sales volumes
  2. See Non-GAAP Financial Measures for additional information

Sales Tonnes by Segment

Net Sales by Segment

(as of 2020)

(as of 2020)

Mosaic

Mosaic

Fertilizantes

Fertilizantes

Phosphates

Phosphates

35%

31%

40%

36%

29%

23%

Potash

Potash

4

Mosaic Fertilizantes Segment

1909

1960

2000

2004

2011

Our History in Brazil

IMC Global is founded; mining initiates

Cargill Fertilizantes is founded

Cargill Fertilizantes acquires Fertiza and Solorrico

IMC Global and Cargill merge to become The Mosaic Company (NYSE: MOS)

Cargill divests its interest in The Mosaic Co (US)

Summary of Mosaic Fertilizantes Segment Metrics

in $ million

2017

2018

2019

2020

1Q2021

(unless otherwise stated)

Finished product sold

6,016

9,133

9,245

10,564

2,064

(in '000 tonnes)

Production volume

N/A*

3,748

3,327

3,918

885

(in '000 tonnes)

Net Sales

$2,220

$3,747

$3,783

$3,481

$764

Gross Margin

$129

$382

$289

$420

$103

Operating Earnings

$63

$241

$133

$347

$90

Adjusted EBITDA(1)

$73

$429

$304

$473

$104

Capital Expenditures

$33

$148

$183

$145

$39

  1. See Non-GAAP Financial Measures for additional information

2014

2018

Mosaic acquires ADM's fertilizers business in Brazil and Paraguay

Mosaic concludes Vale Fertilizantes acquisition to become Mosaic Fertilizantes

Mosaic Fertilizantes verticalized operations (B2B + B2C) provides an unique advantage over our competitors.

*2017 production not available as Vale Fertilizantes' Production assets were acquired in 2018

5

Disclaimer

The Mosaic Company published this content on 01 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 July 2021 16:24:43 UTC.


© Publicnow 2021
All news about THE MOSAIC COMPANY
10:12aMOSAIC : Villages in India Program Expands
AQ
09/15MOSAIC : Villages in India Program Expands
PU
09/14AgBiome, LLC announced that it has received $116 million in funding from a gr..
CI
09/13MOSAIC : Business Unit Sales Rise in August From Year Before
MT
09/13MOSAIC : Announces August 2021 Sales Revenue and Volumes
PU
09/09MOSAIC : RBC Capital Markets 2021 Global Industrials Conference
PU
09/03MOSAIC : Our Responsibility to Contribute Positively to Global Food Security
PU
09/02MOSAIC : Forecasts Reduced Production at Faustina, Uncle Sam Facilities Due to H..
MT
09/02MOSAIC : Announces $100,000 Donation for Disaster Relief Efforts
PU
09/02MOSAIC : Announces Hurricane Ida Impacts
PU
More news
Analyst Recommendations on THE MOSAIC COMPANY
More recommendations
Financials (USD)
Sales 2021 12 227 M - -
Net income 2021 1 691 M - -
Net Debt 2021 3 293 M - -
P/E ratio 2021 7,70x
Yield 2021 0,76%
Capitalization 12 780 M 12 780 M -
EV / Sales 2021 1,31x
EV / Sales 2022 1,27x
Nbr of Employees 12 617
Free-Float 87,9%
Chart THE MOSAIC COMPANY
Duration : Period :
The Mosaic Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends THE MOSAIC COMPANY
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 21
Last Close Price 33,64 $
Average target price 40,19 $
Spread / Average Target 19,5%
EPS Revisions
Managers and Directors
James Calvin O'Rourke President, Chief Executive Officer & Director
Clint C. Freeland Chief Financial Officer & Senior Vice President
Gregory Lorne Ebel Chairman
Emery N. Koenig Independent Director
Steven M. Seibert Independent Director
Sector and Competitors