Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — Merrill Lynch Agricultural Chemicals Conference (June 2006)
29 slides from Mosaic Company (the)'s conference presentation, Jun 14, 2006
Slide 1: The Mosaic Company Overview and Outlook
The Mosaic Company Overview and Outlook Exhibit 99.1 Merrill Lynch Agricultural Chemicals Conference
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement Certain statements contained herein constitute “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995. Although we believe the assumptions made in connection with the forward-looking statements are r
Slide 3: Business Overview
Business Overview Phosphates Potash Nitrogen / Offshore Financial Outlook
Slide 4: Mosaic will be the global leader in nourishing crops
Mosaic will be the global leader in nourishing crops, delivering distinctive value to world agriculture and to all we touch.
Slide 5: Ag Fundamentals are Solid
Ag Fundamentals are Solid Pound of feed per Pound of meat produced Cattle 8 Hogs 4 Poultry 2 Population growth plus per capita GDP growth in developing countries Leads to more protein in diets and increasing growth in feed grain demand Along with growth in bio-fuels, especially ethanol in U.S. Limit
Slide 6: The ethanol impact in the USA
The ethanol impact in the USA USDA projects an increase in fuel ethanol production will help drive corn plantings to 85 million acres in 2009 and 90 million acres in 2012. U.S. Corn Utilized in Fuel Ethanol Production 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 06F 08F 10F 12F B
Slide 7: Mosaic Net Sales by Country
Mosaic Net Sales by Country Canpotex 7% China 7% Argentina 3% Canada 2% India 12% United States 32% Other 22% Brazil 15% March 2005 – February 2006 Total Net Sales $5.4 Billion
Slide 8: Mosaic’s Sales and Operating Earnings
Mosaic’s Sales and Operating Earnings 1213.3 1229.5 3122.0 68.8 0.0 500.0 1000.0 1500.0 2000.0 2500.0 3000.0 3500.0 Phosphate Potash Offshore Nitrogen Total Net Sales - $5.4 billion -51.7 -36.7 344.9 198.3 -100 Phosphate Potash Offshore Nitrogen Other Total Operating Earnings - $464.8 million March
Slide 9: Business Overview: Phosphates
Business Overview Phosphates Potash Nitrogen / Offshore Financial Outlook
Slide 10: Mosaic’s Phosphates Segment
Mosaic’s Phosphates Segment Key: Operate a low-cost and globally competitive Phosphates business World’s largest manufacturer Improving global fundamentals Restructured to lower costs and operate efficiently Closed 1 high-cost mine and 2 high-cost concentrates plants in Florida Operate remaining min
Slide 11: Phosphate Restructuring Strategy
Phosphate Restructuring Strategy
Slide 12: World Processed Phosphate Import Demand
World Processed Phosphate Import Demand In 2006, world import demand is forecast to decline by about 4%. India’s import levels to remain above 2 million tonnes Higher MAP but lower TSP imports by Brazil China continues to import over 1 million tonnes Processed phosphate includes DAP, MAP and TSP Pro
Slide 13: Phosphate Export Supply Declining
Phosphate Export Supply Declining In 2006, world exports are forecast to decline by about 4% with U.S. exports declining by over one million tonnes following the closure of the USAC plant and two Mosaic phosphate plants . Processed Phosphate Export Supply by Region 05E 06F MMT USA Africa & Mideast F
Slide 14: DAP Prices at record highs
DAP Prices at record highs DAP Prices have been on the rise for the last three years. After a modest dip this winter, they are back near $267 to $270 per tonne. DAP Prices US$ MT fob Tampa Vessel Source: Fertecon
Slide 15: DAP Market Margins Recovering
DAP Market Margins Recovering The DAP market margin has recently started to recover due to falling ammonia prices and rising DAP prices. DAP Market Margin Calculated from Published Spot Prices for a Central Florida Plant $ MT Source: Fertecon, Green Markets, Mosaic
Slide 16: Florida Land Holdings
Florida Land Holdings Over 300,000 people move to Florida each year Mosaic’s preliminary estimate of Florida land holdings total about 260,000 acres or approximately 400 square miles Develop a strategy to maximize value of Florida land assets Over 300,000 people move to Florida each year
Slide 17: Business Overview: Potash
Business Overview Phosphates Potash Nitrogen / Offshore Financial Outlook
Slide 18: Potash - World Scale
Export Shipments 3.50 mmt 41% of Total North American Shipments 5.10 mmt 59% of Total Top 5 Export Markets China Brazil India Indonesia Malaysia Potash - World Scale
Slide 19: Mosaic’s Potash Segment
Mosaic’s Potash Segment World Potash Demand Growth to Recover in 2007 Great fundamentals Canpotex - China contract negotiations continue Superior earnings with high cash generation Excellent platform for growth Low cost and intelligent operator One of the largest manufacturers in the world
Slide 20: Potash Price Stabilizes
Potash Price Stabilizes Cornbelt-Saskatchewan Potash Prices US$ ST Granular Grade Cornbelt Warehouse Saskatchewan Mine Source: Green Markets
Slide 21: Business Overview: Nitrogen / Offshore
Business Overview Phosphates Potash Nitrogen / Offshore Financial Outlook
Slide 22: Mosaic’s Nitrogen Segment
Mosaic’s Nitrogen Segment Equity stake of 50% in Saskferco Products Inc., a world scale facility Energy-efficient plant with 1.2 million tonnes nitrogen capacity Continued to run profitably even with high-priced natural gas Mosaic is the agency marketer for Saskferco production Saskferco’s equity ea
Slide 23: Mosaic’s Offshore Segment
Mosaic’s Offshore Segment Offshore currently distributes about 1 million tonnes of Mosaic’s production Emphasis on distribution of Mosaic’s production Manages seasonality of global demand Mainly Brazil and other large growth markets Challenging short-term environment, but promising long-term growth
Slide 24: Business Overview: Financial Outlook
Business Overview Phosphates Potash Nitrogen / Offshore Financial Outlook
Slide 25: Fiscal 2006 Highlights
Fiscal 2006 Highlights Fiscal 2006 was a year of challenges: Hurricanes, record high energy prices, transportation/supply disruptions, delayed customer purchases, poor farmer economics in Brazil Phosphate fertilizer and feed sales volume of about 10.3 million tonnes Potash sales volume of about 6.5
Slide 26: Fiscal 2007 Financial Outlook
Fiscal 2007 Financial Outlook Phosphate fertilizer and feed sales volume of 9.0 to 9.4 million tonnes Phosphate market margin strong in Q1 Potash sales volume of about 7.7 to 8.2 million tonnes Potash price to remain strong Equity earnings of $15 to $25 million Capital spending of $250 to $290 milli
Slide 27: Sensitivities
Sensitivities Pre-Tax Change Earnings Market Prices and Volume +/- ($ in millions) EPS MOP Price ($/tonne) $10 $74 $0.09 Potash Volume (000 tonnes) $36 $0.05 DAP Price ($/tonne) $10 $84 $0.11 Phosphate Volume (000 tonnes) $20 $0.03 Input Costs - Raw Materials Sulfur ($/lt) $5 $22 $0.03 Ammonia ($/to
Slide 28: Mosaic Finance Priorities
Mosaic Finance Priorities Focus on Execution and Cash Flow Generation Restructure phosphate capacity to lower costs Grow our successful potash business Generate cash to pay down debt / lower interest expense Strive towards investment grade goal Implement new ERP / SOX / financial controls Demonstrat
Slide 29: Mosaic Overview
Mosaic Overview Management: Fritz Corrigan, President & CEO Jim Thompson, Executive Vice President Larry Stranghoener, Executive Vice President & CFO Website: www.Mosaicco.com Headquarters: 3033 Campus Drive, Suite E490, Plymouth, MN 55441 Trading Symbol: NYSE: MOS Investor Relations: Doug Hoadley,
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