Slide 1: The Mosaic Company August 2011
The Mosaic Company August 2011 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results. Such statements are based upon the current
Slide 3: Mosaic is well positioned to capitalize on attractive near and long-term opportunities
Mosaic is well positioned to capitalize on attractive near and long-term opportunities: High quality production and distribution assets • Largest combined P&K producer • Global presence Experienced and talented management team focused on operational excellence and execution • $5 billion potash expan
Slide 4: Market Overview
Market Overview Attractive near and long term industry fundamentals will drive crop nutrient demand growth
Slide 5: Key demand drivers suggest strong nutrient demand
Key demand drivers suggest strong nutrient demand Crop Nutrients Required to Meet Global Demand for Food, Fuel, Feed and Fiber Crop nutrients are a key component required to meet the food security challenge Global population growth Growing affluence leading to higher protein usage Biofuel production
Slide 6: Accelerating Grain and Oilseed Use
Accelerating Grain and Oilseed Use Agricultural commodity prices highly sensitive to weather and political developments Steady upward trend in demand Source: USDA, lighter bars indicate recession years
Slide 7: Stocks Remain at Low Levels
Stocks Remain at Low Levels World requires record yields and harvested area to maintain stocks at secure levels Crop nutrient needed to deliver required yields Source: USDA
Slide 8: Crop Nutrients Very Affordable
Crop Nutrients Very Affordable Crop nutrients provide farmers an excellent return on investment: Crop Nutrient Price Index: NPK weighting based on US nutrient use from 2005/06 thru 2007/08, indexed to average prices in 2000 = 100 Crop Price Index: Crop price weighting based on Corn/Wheat/Soybean US
Slide 9: Record Phosphate and Potash Demand
Record Phosphate and Potash Demand Positive P&K demand prospects underpinned by high agricultural commodity prices and outstanding farm economics worldwide Producers running hard to keep up, inventories expected to remain lean Expect 2011 global processed phosphate shipments of 60 to 62 million tonn
Slide 10: Key supply drivers suggest capacity constraints
Key supply drivers suggest capacity constraints New Capacity Required Significant capacity expected to be required to meet growing demand for crop nutrients Large capital requirements Long lead time for new capacity Operating rates high Limited global rock reserves
Slide 11: High Operating Rates Required to Balance Supply and Demand
High Operating Rates Required to Balance Supply and Demand Operating rates expected to remain at high levels to meet projected demand growth, with both brownfield and greenfield capacity added Source: Fertecon demand assumptions, Mosaic estimates of capacity additions of 11 million tonnes of phospho
Slide 12: DAP Prices Impacted by Raw Material Input Costs
DAP Prices Impacted by Raw Material Input Costs Slide depicts margin after raw material costs for non integrated producers RAW MATERIAL COST IN ONE TONNE OF DAP $ PER TONNE -600 -400 -200 1,000 1,200 1,400 May 06 May 07 May 08 May 09 May 10 May 11 DAP Export Price Margin After Raw Material Cost Sour
Slide 13: Significant Cost Advantage for Integrated Producers
Significant Cost Advantage for Integrated Producers Source: Fertecon and Mosaic Note: This analysis assumes 68% BPL rock and a 92% recovery rate. Prices as reported by Fertecon. Central Florida producers integrated in rock, partially in ammonia. • Approximately one-third of industry production is by
Slide 14: Potash Prices Strengthening
Potash Prices Strengthening Source: Green Markets, ICIS
Slide 15: Strategic and Business Overview
Strategic and Business Overview As a leader in crop nutrients, Mosaic is positioned to capitalize on strong industry fundamentals and grow shareholder value
Slide 16: Strategic Overview
Strategic Overview As a global leader in crop nutrients, Mosaic is positioned to benefit from attractive long- term agricultural fundamentals: Potash – grow cash flow by increasing volume Phosphates – grow cash flow by optimizing return on invested capital Leverage global distribution assets to enha
Slide 17: Changing Business Mix Expected to Enhance Already Strong Returns
Changing Business Mix Expected to Enhance Already Strong Returns * Phosphates: FY11 processed phosphate operational capacity, assumed to stay constant in the future. Potash: FY11 peaking capacity, assumed to add 4.9 million tonnes from expansions and 1.3 million tonnes from reversion of the Esterhaz
Slide 18: A Leading Global Potash Producer
A Leading Global Potash Producer World MOP nameplate capacity approximates 70 million tonnes Mosaic FY11 MOP production share – 12% Global – 38% North America Global scale Growing volume through brownfield expansions Top 10 producers represent over 90% of industry production (a) Reflects capacity re
Slide 19: Potash – Grow Cash Flow Through Increased Volume
PROJECTED INVESTMENT ($ IN BILLIONS) PEAKING CAPACITY (MILLION TONNES) ESTIMATED CONSTRUCTION COMPLETION (FISCAL YEAR) Potash – Grow Cash Flow Through Increased Volume CONSTRUCTION COMPLETE Colonsay 0.0 0.2 Esterhazy 0.0 0.1 CONSTRUCTION IN PROCESS Belle Plaine 0.5 0.6 Colonsay 0.7 0.5 Esterhazy 2.0
Slide 20: World's Largest Integrated Phosphate Producer
World’s Largest Integrated Phosphate Producer World capacity approximates 80 million tonnes (DAP/MAP/TSP) Mosaic FY11 phosphate production share – 13% Global – 57% North America Vertically integrated Large scale of mines and plants Geographic advantages (a) Feed phosphate production capacity This ch
Slide 21: Phosphates – Grow Cash Flow by Optimizing ROIC
Phosphates – Grow Cash Flow by Optimizing ROIC Grow innovative, high value products Leverage scale and location Low cost producer Cost advantaged sulfur, competitive ammonia Procurement leverage Extend phosphate reserves (incl. investment in Miski Mayo) Operational excellence Maintenance practices E
Slide 22: A Global Presence
A Global Presence Global distribution capabilities with local presence provides additional flexibility to maximize cash flow generation: Ship product to approximately 40 countries Balance seasonal demand to improve operating efficiency Increase ability to effectively position product and improve log
Slide 23: Financial Performance
Financial Performance Substantially improved profitability, a strong balance sheet and significant financial flexibility allow investments to capitalize on opportunities across the cycle and generate shareholder value
Slide 24: Potash Sales and Gross Margin
Potash Sales and Gross Margin Fiscal year end: May 31 FY08 FY09 FY10 FY11 SEGMENT SALES $ IN BILLIONS 0% 15% 30% 45% 60% 1,200 1,600 FY08 FY09 FY10 FY11 SEGMENT GROSS MARGIN $ IN MILLIONS GROSS MARGIN %
Slide 25: Phosphate Sales and Gross Margin
Phosphate Sales and Gross Margin Fiscal year end: May 31 FY08 FY09 FY10 FY11 FY08 FY09 FY10 FY11 1,200 1,800 2,400 GROSS MARGIN % 40% 30% 20% 10% 0% SEGMENT SALES $ IN BILLIONS SEGMENT GROSS MARGIN $ IN BILLIONS
Slide 26: EBITDA and Earnings Per Share
EBITDA and Earnings Per Share Fiscal year end: May 31 * Excludes gain on sale from Saskferco and Fosfertil S.A. See Appendix 1 for reconciliation of Adusted EBITDA and Appendix 4 for reconciliation of EPS Excluding gain on sale from Saskferco and Fosfertil S.A. FY08 FY09 FY10 FY11 ADJUSTED EBITDA *
Slide 27: Investing for Growth and Returns
Investing for Growth and Returns Fiscal FY12 Capex guidance $1.6 to $1.9 billion Potash expansion project expenditures continuing at high level Increase in opportunity investments to improve returns on invested capital Fiscal year end: May 31 2012F CAPITAL EXPENDITURES $ IN BILLIONS Sustaining Oppor
Slide 28: Financial Strength & Flexibility
Financial Strength & Flexibility High Cash and Low Debt Financial Targets • $3.9 billion in cash and cash equivalents • $2.4 billion in cash from operations in fiscal 2011 • $0.8 billion in long-term debt • Maintain $1.5 billion in liquidity • Maintain “BBB” rating, Moody’s criteria (a) : – Debt to
Slide 29: Mosaic: positioned to create long-term shareholder value
Mosaic: positioned to create long-term shareholder value Positioned to Create Value As the leading producer of phosphate and potash crop nutrients, Mosaic is well positioned to create value: High quality assets Industry leading facilities Global marketing and distribution Differentiated products Exc
Slide 30: Thank you
Thank you
Slide 31: Appendix
Appendix
Slide 32: Appendix 1: EBITDA Reconciliation
FY2008 FY2009 FY2010 FY2011 Appendix 1: EBITDA Reconciliation $ IN MILLIONS (1) Gain on sale of our interest in Saskferco (2) Gain on the sale of our interest in Fosfertil S.A. Net earnings $2,082.8 $2,350.2 $827.1 $2,514.6 Interest expense, net 90.5 43.3 49.6 5.1 Income tax expense 714.9 649.3 347.
Slide 33: Appendix 2: Return on Invested Capital
FY 2010 FY 2011 Appendix 2: Return on Invested Capital Short term debt $83.1 $23.6 Current maturity of long-term debt 15.2 48.0 Long-term debt, less current maturities 1,245.6 761.3 Total equity 8,748.4 11,661.9 Total capitalization 10,092.3 12,494.8 Average capitalization $11,293.6 Net income $2,51
Slide 34: Appendix 3: Orderly Distribution of Cargill Shares
Formation Offerings Post – Formation Offerings Appendix 3: Orderly Distribution of Cargill Shares Initial formation offering of approximately 115 million shares on May 25, 2011 42 million shares from Charitable Trusts remain to be sold within 15 months after closing Possible disposition: • S&P inclu
Slide 35: Appendix 4: EPS Reconciliation
FY2008 FY2009 FY2010 FY2011 Appendix 4: EPS Reconciliation (1) Gain on sale of our interest in Saskferco (2) Gain on sale of our interest in Fosfertil S.A. EPS $4.67 $5.27 $1.85 $5.62 Gain on sales 1.03 (1) 1.25 (2) Adjusted EPS $4.67 $4.24 $1.85 $4.37
Slide 36: Appendix 5: Earnings Sensitivity to Key Drivers
2011 Actual Change Estimated Change in Pre-Tax Earnings ($ in millions) Estimated Change in Annual EPS Appendix 5: Earnings Sensitivity to Key Drivers (a) (a) These factors do not change in isolation; actual results could vary from the above estimates MOP Price ($/tonne) $359 $50 $368 $0.59 Potash V