The Mosaic Company (NYSE:MOS) Q1 2024 Earnings Conference Call May 2, 2024 11:00 AM ET Company Participants Jason Tremblay - VP, Finance, Strategy & Digital Transformation Bruce Bodine - President and CEO Clint Freeland - EVP and CFO Jenny Wang - EVP, Commercial Conference Call Participants Steve Byrne - Bank of America Vincent Andrews - Morgan Stanley Viktor Sayek - Scotiabank Joel Jackson - BMO Chris Parkinson - Wolfe Research Richard Garchitorena - Wells Fargo Adam Samuelson - Goldman Sachs Ben Theurer - ...

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 March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Comm ...

Exhibit 99.2 The Mosaic Company Selected Calendar Quarter Financial Information (Unaudited) | Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 | | --- | | Consolidated data (in millions, except per share) | | Adjusted diluted net earnings per share $ 3.64 $ 3.22 $ 1.74 $ 1.14 $ 1.04 $ 0.68 $ 0.71 $ 0.65 | | Diluted weighted average # of shares outstanding 363.1 347.7 343.8 338.7 333.7 332.0 327.7 323.5 | | Total Net Sales $ 5,373 $ 5,348 $ 4,481 $ 3,604 $ 3,395 $ 3,548 $ 3,149 $ 2,679 | | Cos ...

Summary of The Mosaic Company Conference Call Company Overview - **Company**: The Mosaic Company (NYSE:MOS) - **Industry**: Agriculture and Materials, specifically focusing on phosphate and potash production Key Points and Arguments Leadership Transition - Bruce Bodine has recently taken over as CEO, bringing 30 years of industry experience, with over 25 years at Mosaic [4][5][6] - The previous CEO, Joc, set a strong foundation for the company, particularly through the Vale acquisition in 2018, which enhanced geographic diversity [7][8] Strategic Focus - The new leadership aims to optimize the portfolio, improve cost structures, and enhance shareholder returns [9][10] - A primary goal is to restore phosphate production to historical levels of 8 million tonnes, which has been affected post-COVID [9][18] Phosphate Market Dynamics - The phosphate market is currently strong due to tight global grain and oilseed stock-to-use ratios, supporting robust farm economics [14] - Global phosphate demand recovered over 6% last year, with expectations for continued growth [14][15] - Supply disruptions, particularly from China, have restricted phosphate exports, maintaining a tight supply situation [15][16] Product Portfolio and Innovations - Mosaic is focusing on decommoditizing its product portfolio, with an emphasis on premium performance products like MicroEssentials, which is expected to enhance margins [10][19] - The company is also investing in biologics, with ongoing R&D partnerships and product launches aimed at improving crop yields [20][27] Potash Market Insights - The potash market is relatively balanced, with a demand recovery of over 13% last year across major markets [32] - Despite strong demand recovery, potash prices have not surged due to increased supply from Russia and Belarus [34][36] - Mosaic is strategically managing its potash operations to remain flexible and responsive to market conditions [37][38] Distribution and Market Expansion - The acquisition of Fertilizantes has strengthened Mosaic's distribution capabilities in Brazil, with plans for further expansion [40][42] - The company is investing in additional distribution capacity, anticipating significant growth in the Brazilian market [42][43] Financial Strategy - Mosaic maintains a strong capital allocation strategy focused on business investment, balance sheet optimization, and returning free cash flow to shareholders [45] - The company has successfully refinanced $900 million in debt and returned $1.1 billion to shareholders through buybacks and dividends [45] Additional Important Insights - The company is addressing inflationary pressures and production issues through a $150 million cost reduction initiative [42] - The introduction of new products, such as MicroEssentials Pro, aims to enhance market differentiation and protect against competition [26][27] - The focus on biologics and performance products is expected to contribute significantly to future earnings growth [20][29] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting the company's focus on optimizing operations, expanding market presence, and enhancing shareholder value.

The Mosaic Company (NYSE:MOS) Q4 2023 Earnings Conference Call February 22, 2024 11:00 AM ET Company Participants Jason Tremblay - Vice President, Finance, Strategy & Digital Transformation Bruce Bodine - President & Chief Executive Officer Clint Freeland - Executive Vice President & Chief Financial Officer Jenny Wang - Executive Vice President, Commercial Conference Call Participants Steve Byrne - Bank of America Richard Garchitorena - Wells Fargo Joel Jackson - BMO Capital Markets Vincent Andrews - Mor ...

The Mosaic Company 2023 Results ...

Production Capacity and Operations - The Phosphates segment produced approximately 6.2 million tonnes of concentrated phosphate crop nutrients in 2023, accounting for about 80% of estimated North American annual production[28]. - The U.S. phosphate operations have a production capacity of approximately 4.5 million tonnes of phosphoric acid per year, representing about 7% of global capacity and 60% of North American capacity[26]. - The Florida phosphate rock mines produced approximately 10.0 million tonnes in 2023, which is about 47% of estimated North American annual production[29]. - The company has a 75% economic interest in the Miski Mayo Phosphate Mine in Peru, which has an annual production capacity of 4.8 million tonnes[31]. - The company produced approximately 3.0 million tonnes of phosphoric acid in 2023, with operational capacity being affected by various factors including demand and maintenance[28]. - The company has a 25% interest in the Ma'aden Wa'ad Al Shamal Phosphate Company, which produced 3.1 million tonnes of phosphate in 2023[33]. - The potash segment has an annual operational capacity of 11.5 million tonnes, accounting for approximately 14% of world annual capacity and 35% of estimated North American annual production[49]. - In 2023, production totaled 8.3 million tonnes, representing about 13% of estimated world annual production[49]. - The Esterhazy mine, the largest potash mine globally, is expected to complete full ramp-up of capacity and production during 2024 or early 2025[45]. - Mosaic Fertilizantes produced approximately 2.6 million tonnes of concentrated phosphate crop nutrients in 2023, which accounted for approximately 48% of estimated Brazilian annual production[62]. - The Brazilian phosphoric acid production totaled approximately 1.0 million tonnes in 2023, accounting for approximately 84% of Brazilian annual output[58]. Raw Material Consumption - The company consumed approximately 1.0 million tonnes of ammonia during 2023, with one tonne of DAP requiring approximately 0.23 tonnes of ammonia[36]. - The company purchased approximately 3.3 million long tons of sulfur in 2023, which is a key raw material for producing sulfuric acid[34]. - Natural gas usage for potash production totaled 16.6 million MM BTU during 2023[53]. Land and Resource Management - The company plans to explore and develop the DeSoto and South Pasture properties to offset future depletion at its Florida properties[31]. - The company owns over 368,000 acres of land in Florida, which provides access to phosphate rock reserves and supports its long-term land use strategy[43]. - The company owns approximately 1% of the Tiplam terminal in Santos, São Paulo, ensuring unloading priority for ammonia and capacity for rock, sulfur, and crop nutrients[69]. Sales and Market Presence - Mosaic Fertilizantes sold approximately 9.7 million tonnes of crop nutrient products in 2023, accounting for about 20% of fertilizer shipments in Brazil[57]. - The company distributed approximately 1,073,000 tonnes of phosphate and potash crop nutrients in China and 536,000 tonnes in India in 2023[75]. - The company has an entitlement percentage of 36.2% in Canpotex for potash exports, which is a significant part of its international sales strategy[82]. Financial and Community Investments - The company paid approximately $15.5 million in royalties and resource taxes in 2023 for phosphate and potash production in Brazil[65]. - In 2023, the company paid royalties of approximately $9.8 million related to the leasing of potash assets and mining rights for Taquari[72]. - The company invested $16.7 million in community initiatives in 2023, focusing on food, water, and local community[109]. - In 2023, 29% of the company's global giving targeted underserved or underrepresented populations[109]. Workforce and Labor Relations - The company employs 14,049 individuals as of December 31, 2023, including 10,352 salaried and 3,697 hourly employees[101]. - As of December 31, 2023, the company had 14,049 employees, with 11,644 males and 2,405 females[105]. - The company has eight collective bargaining agreements in the U.S. and Canada, with approximately 33% expiring in 2024[102]. - The company has not experienced significant work stoppages in many years, indicating strong labor relations[103]. - The company maintains specific talent programs for critical roles to minimize turnover and ensure operational continuity[109]. Safety, Diversity, and Inclusion - The company aims for zero harm to people and zero environmental incidents through its safety management system[106]. - The company is committed to diversity and inclusion, with ongoing initiatives to enhance workforce representation and accountability[109]. - The company has established internal analytical capabilities to evaluate pay equity and plans to address identified disparities in the 2024 compensation cycle[109]. - The company offers educational reimbursement programs to support employee skill development and career opportunities[109]. Competitive Landscape - The company operates in a highly competitive market, with significant competition from domestic and international producers, impacting pricing and market share[88]. - The company has a vertically integrated business model, providing a competitive advantage through economies of scale and strategic distribution networks[96]. - The company’s potash cost structure is competitive and expected to improve with ongoing expansion projects[95]. Innovation and Development - The company announced the formation of the Mosaic Biosciences platform in 2023, focusing on biological fertilizer innovations to enhance nutrient use efficiency[87].

[Consolidated Financial Information](index=1&type=section&id=Consolidated%20Financial%20Information) [Consolidated Income Statement Highlights](index=1&type=section&id=Consolidated%20Income%20Statement%20Highlights) The company experienced a significant decline in diluted net earnings per share and total net sales from Q1 2022 to Q4 2023, with a notable loss in Q3 2023. Gross margin rates also decreased over this period **Diluted Net Earnings (Loss) Per Share:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($) | 3.19 | 2.85 | 2.42 | 1.52 | 1.28 | 1.11 | (0.01) | 1.11 | **Total Net Sales:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 3,922 | 5,373 | 5,348 | 4,481 | 3,604 | 3,395 | 3,548 | 3,149 | **Gross Margin Rate:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Rate (%) | 37 | 34 | 28 | 22 | 19 | 17 | 12 | 18 | [Consolidated Cash Flow and Balance Sheet Highlights](index=1&type=section&id=Consolidated%20Cash%20Flow%20and%20Balance%20Sheet%20Highlights) Operating cash flow showed variability, with a significant increase in Q2 2023, while investing activities consistently used cash. Net debt fluctuated, ending Q4 2023 higher than Q4 2022 **Net cash provided by (used in) operating activities:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 506 | 1,585 | 889 | 956 | 149 | 1,073 | 647 | 538 | **Net debt:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 3,576 | 3,138 | 3,457 | 2,887 | 3,779 | 2,996 | 3,066 | 3,413 | [Consolidated Operating Data](index=2&type=section&id=Consolidated%20Operating%20Data) Total finished product tonnes sold showed fluctuations, with a peak in Q3 2023, while sales of performance products also varied, reaching a high in Q3 2023 **Total finished product tonnes sold ('000 tonnes):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Volume | 5,645 | 6,832 | 6,838 | 6,372 | 6,246 | 6,829 | 7,413 | 6,935 | **Sales of Performance Products (third party) ('000 tonnes):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Volume | 711 | 741 | 790 | 1,265 | 819 | 977 | 1,305 | 1,044 | [Segment Contributions](index=3&type=section&id=Segment%20Contributions) [Phosphates Segment](index=3&type=section&id=Phosphates%20Segment) The Phosphates segment experienced a decline in net sales and gross margin from Q1 2022 to Q4 2023, with operating earnings turning negative in Q3 2023 before a slight recovery. Capital expenditures remained substantial [Financial Performance](index=3&type=section&id=Phosphates%20Segment%20Financial%20Performance) **Net Sales:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 1,496 | 1,801 | 1,577 | 1,310 | 1,382 | 1,286 | 986 | 1,070 | **Operating Earnings:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 493 | 578 | 131 | 145 | 266 | 146 | (58) | 21 | **Gross margin as a percent of sales:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Rate (%) | 35 | 36 | 23 | 18 | 19 | 17 | 9 | 13 | [Operating Data](index=3&type=section&id=Phosphates%20Segment%20Operating%20Data) **Total Finished Product Sales volumes ('000 tonnes):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Volume | 1,661 | 1,675 | 1,651 | 1,571 | 1,836 | 1,922 | 1,651 | 1,582 | **DAP selling price (fob plant) ($):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Price | 785 | 920 | 809 | 722 | 660 | 585 | 487 | 552 | **Realized costs - Ammonia (tonne) ($):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Cost | 532 | 591 | 665 | 653 | 605 | 441 | 353 | 366 | [Equity Investments](index=4&type=section&id=Phosphates%20Segment%20Equity%20Investments) **MWSPC equity earnings (loss) ($ millions):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount | 31 | 34 | 72 | 58 | 31 | 10 | 17 | — | **Miski Mayo external sales revenue ($ millions):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount | 26 | 21 | 33 | 38 | 41 | 47 | 33 | 18 | [Potash Segment](index=5&type=section&id=Potash%20Segment) The Potash segment experienced a decline in net sales and gross margin from Q1 2022 to Q4 2023, with operating earnings also decreasing significantly. Adjusted EBITDA followed a similar downward trend [Financial Performance](index=5&type=section&id=Potash%20Segment%20Financial%20Performance) **Net Sales:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 1,060 | 1,580 | 1,432 | 1,136 | 907 | 849 | 720 | 758 | **Operating Earnings:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 563 | 915 | 793 | 497 | 402 | 328 | 200 | 222 | **Adjusted EBITDA:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 651 | 998 | 871 | 597 | 474 | 408 | 267 | 322 | [Operating Data](index=5&type=section&id=Potash%20Segment%20Operating%20Data) **Total Finished Product Sales volumes ('000 tonnes):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Volume | 1,792 | 2,304 | 2,142 | 1,863 | 1,910 | 2,163 | 2,220 | 2,577 | **MOP selling price (fob mine) ($):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Price | 582 | 678 | 666 | 581 | 421 | 326 | 266 | 243 | **Operating Rate (%):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Rate | 80 | 87 | 81 | 77 | 69 | 69 | 66 | 90 | [Supplemental Cost Information](index=5&type=section&id=Potash%20Segment%20Supplemental%20Cost%20Information) **Canadian resource taxes ($ millions):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount | 157 | 274 | 258 | 238 | 121 | 95 | 86 | 102 | **MOP cash costs of production excluding brine / production tonne ($):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Cost | 81 | 78 | 78 | 76 | 81 | 74 | 73 | 66 | [Mosaic Fertilizantes Segment](index=7&type=section&id=Mosaic%20Fertilizantes%20Segment) The Mosaic Fertilizantes segment experienced fluctuating net sales and gross margins, with operating earnings turning negative in Q1 and Q2 2023 before recovering. Adjusted EBITDA also showed significant variability [Financial Performance](index=7&type=section&id=Mosaic%20Fertilizantes%20Segment%20Financial%20Performance) **Net Sales:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 1,488 | 2,260 | 2,629 | 1,910 | 1,343 | 1,419 | 1,731 | 1,192 | **Operating Earnings:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 187 | 420 | 323 | (20) | (32) | (20) | 77 | 50 | **Adjusted EBITDA:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 233 | 444 | 343 | 29 | 3 | 66 | 147 | 111 | [Operating Data](index=7&type=section&id=Mosaic%20Fertilizantes%20Segment%20Operating%20Data) **Total Finished Product Sales volumes ('000 tonnes):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Volume | 1,822 | 2,320 | 2,824 | 2,472 | 2,080 | 2,385 | 3,060 | 2,158 | **Brazil MAP price ($):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Price | 882 | 1,021 | 866 | 663 | 669 | 653 | 533 | 580 | **Phosphate operating rate (%):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Rate | 92 | 83 | 76 | 87 | 78 | 74 | 81 | 77 | [Realized Costs and Purchases](index=7&type=section&id=Mosaic%20Fertilizantes%20Segment%20Realized%20Costs%20and%20Purchases) **Realized Costs - Ammonia/tonne ($):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Cost | 1,145 | 1,396 | 1,267 | 1,354 | 1,150 | 912 | 667 | 655 | **Purchases - Potash from Mosaic/Canpotex ('000 tonnes):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Volume | 398 | 663 | 798 | 417 | 235 | 756 | 672 | 404 | **Average BRL / USD:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Rate | 5.235 | 4.917 | 5.244 | 5.255 | 5.196 | 4.954 | 4.880 | 4.953 | [Corporate and Other Segment](index=9&type=section&id=Corporate%20and%20Other%20Segment) The Corporate and Other segment reported fluctuating net sales and gross margins, often showing losses. Operating earnings were consistently negative, and Adjusted EBITDA also remained negative for most periods [Financial Performance](index=9&type=section&id=Corporate%20and%20Other%20Segment%20Financial%20Performance) **Net Sales:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | (122) | (268) | (290) | 125 | (28) | (159) | 111 | 129 | **Operating Earnings (Loss):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | 13 | (239) | (93) | 78 | (91) | (85) | (74) | (14) | **Adjusted EBITDA:** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount ($ millions) | (65) | (172) | (9) | 77 | (82) | (115) | (21) | (46) | [Operating Data](index=9&type=section&id=Corporate%20and%20Other%20Segment%20Operating%20Data) **Sales volumes ('000 tonnes):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Volume | 370 | 533 | 221 | 466 | 420 | 359 | 482 | 618 | **Purchases - Potash from Mosaic/Canpotex ('000 tonnes):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Volume | 220 | 471 | 332 | 337 | 296 | 126 | — | 345 | [Notable Items](index=10&type=section&id=Notable%20Items) [Q4 2023 Notable Items](index=10&type=section&id=Q4%202023%20Notable%20Items) Notable items in Q4 2023 resulted in a net positive EPS impact of $0.40, primarily driven by a tax law change benefit and foreign currency transaction gains, partially offset by environmental reserve and land reclamation costs - **Total Notable Items Impact on EPS: $0.40**[17](index=17&type=chunk) - **Key positive impacts: Foreign currency transaction gain ($0.20 EPS), Unrealized gain on derivatives ($0.10 EPS), Tax law change ($0.42 EPS)**[17](index=17&type=chunk) - **Key negative impacts: Environmental reserve ($(0.16) EPS), Land reclamation ($(0.07) EPS)**[17](index=17&type=chunk) [Q3 2023 Notable Items](index=10&type=section&id=Q3%202023%20Notable%20Items) Notable items in Q3 2023 resulted in a net negative EPS impact of $(0.69), primarily due to ARO Adjustment, foreign currency transaction loss, and pension plan termination settlement - **Total Notable Items Impact on EPS: $(0.69)**[17](index=17&type=chunk) - **Key negative impacts: ARO Adjustment ($(0.28) EPS), Foreign currency transaction gain (loss) ($(0.23) EPS), Pension plan termination settlement ($(0.10) EPS)**[17](index=17&type=chunk) [Q2 2023 Notable Items](index=12&type=section&id=Q2%202023%20Notable%20Items) Notable items in Q2 2023 resulted in a net positive EPS impact of $0.07, driven by unrealized foreign currency transaction gains, partially offset by ARO adjustment and environmental reserve costs - **Total Notable Items Impact on EPS: $0.07**[20](index=20&type=chunk) - **Key positive impacts: Unrealized foreign currency transaction gain ($0.26 EPS), Unrealized gain on derivatives ($0.08 EPS)**[20](index=20&type=chunk) - **Key negative impacts: ARO Adjustment ($(0.06) EPS), Environmental reserve ($(0.08) EPS), Land reclamation ($(0.07) EPS)**[20](index=20&type=chunk) [Q1 2023 Notable Items](index=12&type=section&id=Q1%202023%20Notable%20Items) Notable items in Q1 2023 resulted in a net positive EPS impact of $0.14, primarily due to a gain on the sale of Streamsong Resort and foreign currency transaction gains, partially offset by ARO adjustment and facility costs - **Total Notable Items Impact on EPS: $0.14**[20](index=20&type=chunk) - **Key positive impacts: Gain on sale of Streamsong Resort ($0.13 EPS), Foreign currency transaction gain ($0.11 EPS)**[20](index=20&type=chunk) - **Key negative impacts: ARO Adjustment ($(0.04) EPS), Closed and indefinitely idled facility costs ($(0.03) EPS)**[20](index=20&type=chunk) [Q4 2022 Notable Items](index=13&type=section&id=Q4%202022%20Notable%20Items) Notable items in Q4 2022 resulted in a net negative EPS impact of $(0.22), primarily due to environmental reserve, hurricane Ian idle costs, and pension plan termination settlement, partially offset by foreign currency transaction gains - **Total Notable Items Impact on EPS: $(0.22)**[21](index=21&type=chunk) - **Key negative impacts: Environmental reserve ($(0.09) EPS), Hurricane Ian idle costs ($(0.07) EPS), Pension plan termination settlement ($(0.09) EPS)**[21](index=21&type=chunk) - **Key positive impacts: Foreign currency transaction gain ($0.16 EPS)**[21](index=21&type=chunk) [Q3 2022 Notable Items](index=13&type=section&id=Q3%202022%20Notable%20Items) Notable items in Q3 2022 resulted in a net negative EPS impact of $(0.80), largely driven by ARO adjustment, environmental reserve, and unrealized gain/loss on derivatives - **Total Notable Items Impact on EPS: $(0.80)**[21](index=21&type=chunk) - **Key negative impacts: ARO Adjustment ($(0.31) EPS), Environmental reserve ($(0.15) EPS), Unrealized gain (loss) on derivatives ($(0.16) EPS), Foreign currency transaction gain (loss) ($(0.13) EPS)**[21](index=21&type=chunk) [Q2 2022 Notable Items](index=15&type=section&id=Q2%202022%20Notable%20Items) Notable items in Q2 2022 resulted in a net negative EPS impact of $(0.79), primarily due to foreign currency transaction loss, unrealized gain/loss on derivatives, and environmental reserve - **Total Notable Items Impact on EPS: $(0.79)**[24](index=24&type=chunk) - **Key negative impacts: Foreign currency transaction gain (loss) ($(0.47) EPS), Unrealized gain (loss) on derivatives ($(0.12) EPS), Environmental reserve ($(0.06) EPS)**[24](index=24&type=chunk) [Q1 2022 Notable Items](index=15&type=section&id=Q1%202022%20Notable%20Items) Notable items in Q1 2022 resulted in a net positive EPS impact of $0.78, primarily driven by foreign currency transaction gains and unrealized gain on derivatives - **Total Notable Items Impact on EPS: $0.78**[23](index=23&type=chunk) - **Key positive impacts: Foreign currency transaction gain ($0.62 EPS), Unrealized gain (loss) on derivatives ($0.21 EPS)**[23](index=23&type=chunk) [Footnotes](index=16&type=section&id=Footnotes) [Overview](index=16&type=section&id=Footnotes%20Overview) This section provides definitions and explanations for various terms and calculations used throughout the financial tables, including how notable items impact EPS, definitions of non-GAAP measures, and specifics on sales volumes, pricing, and cost components - Notable items impact on EPS is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares[25](index=25&type=chunk) - Finished product sales volumes include intersegment sales[25](index=25&type=chunk) - MOP cash costs of production are reflective of actual costs during the period excluding brine management costs, depreciation, depletion, accretion, carbon-based and Canadian resource tax, idle and turnaround costs[25](index=25&type=chunk) [Non-GAAP Financial Measures](index=17&type=section&id=Non-GAAP%20Financial%20Measures) [Overview and Definitions](index=17&type=section&id=Non-GAAP%20Financial%20Measures%20Overview%20and%20Definitions) The company presents non-GAAP financial measures to supplement GAAP, emphasizing that these measures should not be considered substitutes for GAAP results and may not be comparable to other companies' similarly titled measures - Non-GAAP financial measures are supplemental numerical measures that either exclude or include amounts not normally excluded or included in GAAP[27](index=27&type=chunk) - These measures should not be considered substitutes for, or superior to, GAAP measures and may not be comparable to other companies' measures[28](index=28&type=chunk) [Adjusted Diluted Net Earnings Per Share](index=17&type=section&id=Adjusted%20Diluted%20Net%20Earnings%20Per%20Share) Adjusted diluted net earnings per share is defined as diluted net earnings per share, excluding the impact of notable items. Management uses this measure to assess performance by excluding items not indicative of core operating results - Definition: Diluted net earnings per share, excluding the impact of notable items[29](index=29&type=chunk) - Purpose: Provides useful supplemental information by excluding items not indicative of core operating results, used for analyzing performance, financial/operating decision-making, forecasting, and comparing with competitors[29](index=29&type=chunk) [Consolidated Adjusted EBITDA](index=17&type=section&id=Consolidated%20Adjusted%20EBITDA) Consolidated Adjusted EBITDA is defined as consolidated Net Income (Loss) before various non-operating and non-cash expenses, further adjusted for notable items. It is provided to assist in comparisons of operational performance across companies - Definition: Consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization, asset retirement obligation accretion, share-based compensation expense, provision for/(benefit) from income taxes, and adjusted for notable items[30](index=30&type=chunk) - Purpose: Assists securities analysts, investors, lenders, and others in comparing operational performance, valuation, and debt capacity across companies[30](index=30&type=chunk) **Consolidated Adjusted EBITDA ($ millions):** | Quarter | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Amount | 1,451 | 2,028 | 1,686 | 1,051 | 777 | 744 | 594 | 646 | [Segment Adjusted EBITDA](index=17&type=section&id=Segment%20Adjusted%20EBITDA) Segment Adjusted EBITDA is defined as segment operating earnings (loss) plus specific adjustments, including depreciation, accretion, foreign exchange, other income/expense, equity earnings, and notable items. It is used for evaluating segment operational performance and valuation - Definition: Segment's operating earnings (loss) plus depreciation, depletion and amortization, asset retirement obligation accretion, foreign exchange gain (loss), other income (expense), equity earnings (loss) less equity earnings (loss) from noncontrolling interests, and adjusted for notable items[32](index=32&type=chunk) - Purpose: Used for internal management reporting and planning, evaluating operational performance and valuation of segments, and comparing segment performance with competitors[33](index=33&type=chunk) [Adjusted Gross Margin](index=18&type=section&id=Adjusted%20Gross%20Margin) Adjusted gross margin is defined as gross margin excluding the impact of notable items. Management uses this adjusted measure to gain supplemental information about core operating results for decision-making and forecasting - Definition: Gross margin excluding the impact of notable items[34](index=34&type=chunk) - Purpose: Provides useful supplemental information by excluding items not indicative of core operating results, used for analyzing performance, financial/operating decision-making, and forecasting[34](index=34&type=chunk)

Financial Data and Key Metrics Changes - The company expects total capital expenditures (CapEx) to decrease by up to $200 million in 2024 compared to 2023, which is projected to be a high watermark for capital spending [10][22] - Year-to-date, the company has returned nearly $900 million to shareholders through buybacks and dividends, including $150 million of repurchases in the third quarter [22] Business Line Data and Key Metrics Changes - In potash, the company expects fourth quarter sales volumes of 2.4 million to 2.6 million tonnes, with netback prices at the mine ranging from $235 to $260 per tonne [19] - In phosphates, fourth quarter sales volumes are expected to be in the range of 1.6 million to 1.8 million tonnes, with prices at the plant gate between $530 and $580 per tonne [20] - The Fertilizantes segment in Brazil reported strong third quarter results, with over 90% of fourth quarter sales volume already committed and priced, expecting margins to increase to $40 to $50 per tonne [21] Market Data and Key Metrics Changes - Global stock-to-use ratios for grain and oilseeds remain near historic lows, indicating that crop supply is struggling to keep up with demand [12] - In Brazil, total fertilizer shipments are expected to reach 43 million to 44 million tonnes for the full year, marking the second highest total in history [17] - In India, phosphate inventory levels are near the low end of the recent five-year range, suggesting strong demand and potential for higher shipments [18] Company Strategy and Development Direction - The company is focusing on expanding its portfolio of value-added specialty fertilizers and optimizing its potash production facilities [8] - Investments are being made in non-commodity value-added agricultural products, including purified phosphoric acid for lithium iron phosphate battery production [9] - The company aims to continue returning excess cash to shareholders while maintaining a strong balance sheet [10][22] Management's Comments on Operating Environment and Future Outlook - The management highlighted that food security is a major concern globally, with crop production constrained by weather conditions and geopolitical issues [12] - Despite reduced production levels, global demand remains strong, particularly from China and India, which are importing record levels of agricultural products [13] - The company anticipates elevated crop prices to persist through 2024, driving demand for fertilizers [14] Other Important Information - The company is undergoing a leadership transition, with Bruce Bodine set to become the new CEO starting January 1, 2024 [6][7] - The management emphasized the importance of proper fertilization to maximize crop yields, noting a clear relationship between nutrient application and yield performance [60] Q&A Session Summary Question: Recent rulings regarding countervailing duty petitions - The Department of Commerce raised duties on Russian products but lowered duties on Moroccan supply, affecting trade flows but not overall supply and demand dynamics [25][26] Question: Differentiation of Mosaic's business in Brazil - Mosaic effectively managed destocking in the first half of 2023, leading to stabilized prices and expected margins of $40 to $50 per tonne in the fourth quarter [28][29] Question: Outlook for the potash market - Demand for potash is expected to rebound, with a forecasted recovery of 5 million tonnes in 2024, driven by strong application rates in North America and Brazil [32][33] Question: Potash production levels for next year - The company expects to maintain similar production levels next year, with potential for slight increases depending on market demand [43][44] Question: Impact of Janssen's second phase on the potash industry - The ramp-up of Janssen's production is not expected to significantly impact the market until 2030, allowing for gradual absorption of additional supply [68] Question: Phosphate shipment forecast - The company anticipates an increase of 2 million to 3 million tonnes in phosphate shipments next year, with a tight market outlook [72]

Financial Performance - Q3 2023 - Consolidated net revenues were $3.548 billion[5] - The company reported a net loss of $4 million[5] - Adjusted EBITDA was $594 million[5] - Mosaic Fertilizantes reported net revenues of $1.731 billion[5] Segment Performance - Phosphate segment net revenues were $986 million with an adjusted EBITDA of $201 million[5] - Potash segment net revenues were $720 million with an adjusted EBITDA of $267 million[5] - Mosaic Fertilizantes segment net revenues were $1.731 billion with an adjusted EBITDA of $147 million[5] Outlook and Strategy - The company expects capital expenditures of $1.3 to $1.4 billion in 2023, including approximately $500 million in growth investments[35] - The company is targeting $150 million in cost savings through optimization initiatives[40] - The company expects to refinance $900 million of long-term debt that matures this year[35]