Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — 2009 Citi Investment Research Basic Materials Conference
22 slides from Mosaic Company (the)'s conference presentation, Dec 2, 2009
Slide 1: 2009 Citi Investment Research Basic Materials Conference
2009 Citi Investment Research Basic Materials Conference Larry Stranghoener, Executive Vice President and Chief Financial Officer December 2, 2009 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: Strategic Focus
Strategic Focus Deliver value for shareholders Focus on Potash and Phosphate • Grow Potash • Strengthen Phosphate Align distribution assets Maintain a strong balance sheet
Slide 4: Net Cash Position (Cash Less Debt)
Net Cash Position (Cash Less Debt) $(1,500) $(1,000) $(500) $- $500 $1,000 $1,500 FY2008 FY2009 FY2010
Slide 5: Leading Global Potash Producer
Leading Global Potash Producer World capacity approximates 73 million tonnes (all potash products) • Potash Fertilizer Capacity Mosaic potash production • 13% Global • 40% North America • Five mines Competitive industry position PotashCorp Mosaic Belaruskali Kali & Salz Silvinit Uralkali Million ton
Slide 6: MOP Demand
MOP Demand World MOP Demand 09F 10F Mil Tonnes Source: Mosaic
Slide 7: Growth Opportunities - Our Potash Expansions
Growth Opportunities - Our Potash Expansions * The projected annual capacity includes approximately 1.3 million tonnes (as shaded in blue) that we currently produce under a third party tolling agreement at our Esterhazy, Saskatchewan potash mine. Based on our present calculations, we believe that ou
Slide 8: Expansions Improve Mosaic's Cost Structure
Expansions Improve Mosaic’s Cost Structure First Quintile Weighted Average Second Quintile Weighted Average Third Quintile Weighted Average Fourth Quintile Weighted Average Fifth Quintile Weighted Average *Excludes Canadian Resource Taxes and Royalties for all Canadian potash producers. Source: Mosa
Slide 9: Shift in Business Mix (sales tonnes)
Shift in Business Mix (sales tonnes) Potash 49% Phosphates 51% Potash 60% Phosphates 40% Present Future
Slide 10: World's Largest Integrated Phosphate Producer
World’s Largest Integrated Phosphate Producer World capacity approximates 74 million tonnes (DAP/MAP/TSP) • Phosphate Fertilizer Capacity World’s largest capacity of finished phosphate fertilizer Mosaic phosphate production share 13% Globally 58% U.S. World scale & efficient operations Mosaic YTH OC
Slide 11: Phosphate Demand
Phosphate Demand World Processed Phosphate Demand 09F 10F Mil Tonnes Source: Mosaic DAP, MAP and TSP
Slide 12: Industry Leading Cost Structure in Phosphate
Industry Leading Cost Structure in Phosphate First Quintile Weighted Average Second Quintile Weighted Average Third Quintile Weighted Average Fourth Quintile Weighted Average Fifth Quintile Weighted Average Industry Cost Curve - DAP fob Plant/Port 2009 Q2 Million Tonnes US$ Tonne Mosaic Average Sour
Slide 13: Phosphates Opportunities
Phosphates Opportunities Operational Cost Savings MRO Contract services Process chemicals Energy – heat recovery and conversion Phosphate Rock and Other Strategic Opportunities
Slide 14: Distribution Assets Aligned with Global Demand
Distribution Assets Aligned with Global Demand Canada 3 Mines United States 9 Current & Future Mines 4 Phosphate Plants Argentina 1 Warehouse & Blender 1 Production/Warehouse Brazil 7 Warehouse & Blender 2 Production/Warehouse China 2 Warehouse & Blender 2 Production/Warehouse India 1 Warehouse
Slide 15: Business Outlook
Business Outlook
Slide 16: Growing Global Affluence + Fuel
Growing Global Affluence + Fuel China and India: GDP & middle class growth trends continue USA: Ethanol growth to 15 billion gallons by 2015* The 2009 mandate for ethanol is 10.5 billion gallons* Brazil: Growth trends in soybean yields and planted area *Source: EPA
Slide 17: Growing Grain & Oilseed Use
Growing Grain & Oilseed Use World Grain and Oilseed Use 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 08E Source: USDA and Mosaic Bil Tonnes Actual Actual for US Ethanol Forecast Forecast for U.S. Ethanol
Slide 18: Another Large Crop Needed in 2010
Another Large Crop Needed in 2010 World Grain and Oilseed Stocks L M H Mil Tonnes Days of Use Stocks Days of Use Source: USDA and Mosaic (for 10/11 scenarios) 2010/11 Scenario Assumptions Low Medium High Harvested Area Change -0.5% -0.5% -0.5% Yield Deviation from 11-Year Trend Largest Negative Larg
Slide 19: Farm Economics Remain Strong
Farm Economics Remain Strong Key assumptions ISU application rate recommendations 2009 and 2010 crops sold at CBOT closing prices on Nov 23, 2009 less basis Fertilizer prices for 2003 - 2009 are from USDA. 2010 fertilizer prices are based on current spot wholesale prices Crop Nutrient Costs on Corn
Slide 20: Growth Expected to Resume
Growth Expected to Resume 2007/08 2008/09E 2009/10F 2010/11F 2013/14F Nitrogen 3.3% -1.9% 2.5% 2.4% 7.3% Phosphate 0.3% -10.1% 3.8% 5.3% 17.8% Potash 7.0% -19.5% -3.7% 10.8% 26.7% Total 3.2% -6.8% 1.9% 4.2% 12.6% Source: IFA May & November 2009 Changes in World Fertilizer Consumption World Nutrient
Slide 21: Key Takeaways
Key Takeaways Global leader with vertically integrated operations Focus on value creation Potash growth projects at attractive capital costs Phosphate growth options in rock reserves and acquisitions Encouraging recent market trends
Slide 22: Thank you
Thank you
Mosaic — 2009 Citi Investment Research Basic Materials Conference on 6ix