The Mosaic Company (NYSE:MOS) 2019 Citi Basic Materials Conference December 4, 2019 9:30 AM ET Company Participants Clint Freeland – Chief Financial Officer Andy Jung – Chief Economist and Market Expert Conference Call Participants P.J. Juvekar – Citi P.J. Juvekar The presentation is from Mosaic. And from Mosaic, we have CFO, Clint Freeland. And we also have Andy Jung, who’s the economist at Mosaic. And if you remember, Andy did a great Chemicals for the Non-Chemist session on Monday. So Clint brings over 2 ...

Table of Contents _______________________________________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________ FORM 10-Q ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Com ...

The Mosaic Company (NYSE:MOS) Q3 2019 Results Earnings Conference Call November 5, 2019 9:00 AM ET Company Participants Laura Gagnon - Vice President, Investor Relations Joc O’Rourke - President and CEO Clint Freeland - Senior Vice President and CFO Corrine Ricard - Senior Vice President, Commercial Conference Call Participants Lucas Beaumont - Credit Suisse Adam Samuelson - Goldman Sachs Jonas Oxgaard - Bernstein Mark Connelly - Stephens Incorporated John Roberts - UBS Andrew Wong - RBC Capital Markets PJ ...

Company and Industry Overview * **Company**: The Mosaic Company (NYSE: MOS) * **Industry**: Fertilizer and agricultural products * **Focus**: Largest finished phosphate and potash producer in the world, with a significant presence in the Americas and a focus on premium fertilizer production and distribution. Key Points 1. 2019 Challenges and Outlook * **Challenges**: 2019 has been a challenging year for the agricultural sector, particularly for fertilizers and phosphates, due to weather-related disruptions and lower demand. * **Outlook**: The company believes the current challenges are transitory and not structural, and that the market will eventually rebalance. 2. Business Actions and Initiatives * **Curtailment**: Mosaic announced a curtailment of 500,000 tons of phosphate production to address excess inventory and improve supply/demand balance. * **Brazil Synergies**: The company is confident in achieving its synergy targets in Brazil and has announced the next phase of its business transformation, aiming to improve EBITDA by $200 million over three years. * **Share Buyback**: Mosaic announced a $250 million share buyback program to return capital to shareholders. 3. Financial Projections * **2020**: The company expects a structural improvement of $200 million to $225 million in adjusted EBITDA compared to 2019, driven by various initiatives and operational improvements. * **2021**: The company aims for a $600 million improvement in adjusted EBITDA between 2019 and 2021, with two-thirds of that improvement coming from items within the company's control. 4. Potash Market Dynamics * **Supply**: The company does not anticipate any significant surprises in the potash supply landscape in the near term. * **Demand**: The company is closely monitoring the situation in China, which is a major potash consumer and exporter. * **Inventory**: The company is focused on working through excess inventory in North America to improve supply/demand balance. 5. Brazil Market Positioning * **Advantage**: Mosaic has a commanding lead in Brazil, with significant infrastructure and production assets. * **Strategies**: The company is exploring opportunities to further solidify its position, including expanding distribution, leveraging existing assets, and considering additional M&A or small acquisitions. Additional Notes * The company's K3 mine in Canada is expected to be one of the most efficient potash mines in the world, with significant cost and risk reductions. * The company is also focused on reducing rock costs in its phosphate business through various initiatives and technology advancements.

Financial Performance - For the three months ended June 30, 2019, Mosaic reported a net loss of $233.1 million, or $(0.60) per diluted share, compared to net earnings of $67.9 million, or $0.18 per diluted share for the same period in 2018[95]. - Net sales for the three months ended June 30, 2019, were $2,176.9 million, a decrease of 1% from $2,205.0 million in the same period of 2018[92]. - The gross margin for the three months ended June 30, 2019, was $227.2 million, representing a gross margin percentage of 10%, down from 13% in the prior year[92]. - For the six months ended June 30, 2019, Mosaic reported a net loss of $102.3 million, or $(0.27) per diluted share, compared to net earnings of $110.2 million, or $0.29 per diluted share for the same period in 2018[99]. Segment Performance - Operating results in the Potash segment were positively impacted by higher average selling prices, driven by strong global demand, despite lower sales volumes[95]. - For the six months ended June 30, 2019, the Phosphates segment's net sales were $1.7 billion, a decrease of 10% from $1.9 billion in the same period of 2018[107]. - The Potash segment's net sales increased to $599.1 million for the three months ended June 30, 2019, up from $569.5 million in the same period a year ago, representing a 5% increase[112]. - Mosaic Fertilizantes segment's net sales increased to $832.7 million for Q2 2019, up from $712.7 million in Q2 2018, driven by higher sales volumes and prices[118]. Production and Costs - Plant City closure costs amounted to $369 million, significantly impacting the net loss for the quarter[95]. - The company temporarily idled its Tapira and Catalão phosphate mines in Brazil to comply with new legislation regarding tailing dam safety, impacting production and costs[98]. - The average finished product selling price for the Phosphates segment was $418 per tonne for the six months ended June 30, 2019, down 5% from the prior year[107]. - North American phosphate rock production decreased to 5.9 million tonnes for the six months ended June 30, 2019, down from 8.0 million tonnes in the same period of 2018[109]. Cash Flow and Liquidity - Net cash provided by operating activities for the six months ended June 30, 2019, was $331.8 million, a decrease of 55% compared to $736.0 million in the same period of 2018[137]. - The company had cash and cash equivalents of $0.4 billion and long-term debt of approximately $4.6 billion as of June 30, 2019[135]. - The company paid dividends of $28.9 million during the six months ended June 30, 2019, compared to $19.2 million in the prior year[140]. - The company anticipates that funds generated from operations and available cash will be sufficient to finance operations for the next 12 months[135]. Foreign Currency and Commodity Risks - The company is exposed to fluctuations in the Canadian dollar and Brazilian real, with notional amounts of $399.6 million and $644.8 million respectively for foreign currency exchange forwards[156]. - The company is exposed to fluctuations in the purchase price of natural gas, ammonia, and sulfur, which may impact earnings and cash flows[169]. - The company utilizes derivatives to mitigate foreign currency risks, interest rate risks, and the effects of changing commodity prices[169]. - The company is managing risks associated with significant price changes in natural gas through derivatives[159]. Regulatory and Legal Risks - The company is subject to various regulatory risks, including environmental regulations and trade policies, which may impact operations[151]. - The company is subject to ongoing legal proceedings related to the 2015 Clean Water Rule, which may increase compliance costs and permitting requirements[168]. - The company faces risks from potential defaults by customers on trade credit, particularly during business exits[151]. Operational Challenges - The company expects increased expenses of up to $80 million in 2019 due to higher delivered costs of phosphate rock and idle plant costs[98]. - The unfavorable working capital change for the six months ended June 30, 2019, was $372.9 million, primarily due to an increase in inventories of $413.6 million[138]. - The company recognized pre-tax costs of $369.4 million related to the permanent closure of the Plant City facility in Q2 2019[126]. - Other operating expenses for Q2 2019 were $21.6 million, up from $19.0 million in Q2 2018, including costs related to integration and future synergies[127].

The Mosaic Company (NYSE:MOS) Q2 2019 Earnings Conference Call August 6, 2019 9:00 AM ET Company Participants Laura Gagnon - Vice President of Investor Relations James O'Rourke - President and Chief Executive Officer Clint Freeland - Senior Vice President and Chief Financial Officer Andy Jung - Director, Market and Strategic Analysis Karen Swager - Senior Vice President of Potash Corrine Ricard - Senior Vice President of Commercial and Supply Chain Richard McLellan - Senior Vice President of Brazil Conferen ...