Slide 1: Earnings Conference Call – 2nd Quarter Fiscal 2013
The Mosaic Company Earnings Conference Call – 2nd Quarter Fiscal 2013 January 4, 2013 Jim Prokopanko, President and Chief Executive Officer Larry Stranghoener, Executive Vice President and Chief Financial Officer Laura Gagnon, Vice President Investor Relations Exhibit 99.2
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: Key Messages
Key Messages Key Messages Outstanding Farm Economics Fundamentals Over Sentiment Balance Sheet Flexibility
Slide 4: Second Quarter Financial Highlights
Second Quarter Financial Highlights $1.47 Reported EPS $0.99 Adjusted With Full-Year Tax Rate of 23.3% $2.5 billion $560 million Net Sales Phosphates Potash Operating Earnings
Slide 5: New Crop Corn Prices at Historic Highs
New Crop Corn Prices at Historic Highs 2013 prices significantly higher than 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00 J A S O N D J F M A M J J US$ BU New Crop Corn Prices Daily Close of the December Contract from July 1 to June 30 Source: CBOT
Slide 6: Issues
Issues China Contract Delay India Subsidy Imbalance Mississippi River Levels
Slide 7: 2006 Analog Year
2006 Analog Year Source: Fertecon and Mosaic ‘000 Tonnes KCL -3,300 7,400 -4,200 -6,000 -4,000 -2,000 2,000 4,000 6,000 8,000 … Global MOP Shipments - Change From Prior Year 4,500
Slide 8: World Potash Shipments
World Potash Shipments New China contract sets the foundation for a strong spring and record 2013 12F 13F Mil Tonnes KCL World Muriate of Potash Shipments Source: Fertecon and Mosaic 55-57 China North Am Brazil India Indo/Malay Other
Slide 9: World Phosphate Shipments
World Phosphate Shipments Continued steady demand growth leading to record global shipments in 2013 12F 13F Mil Tonnes DAP/MAP/TSP World Processed Phosphate Shipments China India North Am Brazil Europe/FSU Other Source: Fertecon and Mosaic 63-65
Slide 10: MicroEssentials Continues to Grow Market Share
MicroEssentials Continues to Grow Market Share ® North America Brazil MicroEssentials ® Share of Phosphate Sales (Fiscal Year) Source: Mosaic 1.7% 3.3% 5.5% 6.9% 9.3% 10.6% 0% 2% 4% 6% 8% 10% 12% 2013 YTD 0.7% 0.7% 1.7% 4.0% 5.0% 5.9% 0% 1% 2% 3% 4% 5% 6% 7% 2013 YTD
Slide 11: Capital Priorities
Capital Priorities Balance Sheet Structure Maintain Liquidity Buffer Maintain Investment Grade Rating Capital Priorities Finance Organic Growth Strategic Investments Return to Shareholders
Slide 12: Financial Guidance Summary – Fiscal 2013
Financial Guidance Summary Category Guidance – Fiscal 2013 Potash Q3 Sales volume 1.5 - 1.8 million tonnes Q3 MOP selling price $370-$400 per tonne Q3 Operating rate above 70 percent Phosphates Q3 Sales volume 2.5- 2.8 million tonnes Q3 DAP selling price $485- $515 per tonne Q3 Operating rate above
Slide 13: Mosaic
Mosaic
Slide 14: Potash Operating Rates
Potash Operating Rates Source: Fertecon demand assumptions, Assumes global MOP demand grows to 65 million tonnes in 2017 and effective capacity increases to 75 million tonnes in 2017. Source: Mosaic • Better than expected balance during the next five years • More capacity later in the decade • Some
Slide 15: Phosphate Operating Rates in the Short and Near Term
Phosphate Operating Rates in the Short and Near Term Source: Fertecon demand assumptions, Mosaic estimates of capacity additions of 11 million tonnes of phosphoric acid in Middle East, North Africa, China and Latin America based on announced expansion plans, including: Ma’aden on line in 2011, doubl
Slide 16: Second Quarter Financial Performance
Second Quarter Financial Performance In millions, except per share amounts Three Months Ended November 30, 2012 2011 Net Sales $2,536 $3,015 Gross Margin $676 $881 % of net sales 27% 29% Net Earnings $629 $624 % of net sales 25% 21% Diluted EPS $1.47 $1.40 Effective Tax Rate (14%) 27% Cash Flow Prov
Slide 17: Potash Segment Highlights
Potash Segment Highlights In millions, except MOP price Q2 FY13 Q1 FY13 Q2 FY12 Net sales $780 $960 $839 Gross Margin $355 $459 $394 Percent of net sales 46% 48% 47% Operating earnings $316 $416 $358 Sales volumes 1.5 1.9 1.8 Production volume 1.8 1.5 1.8 Production operating rate 76% 65% 78% Avg MO
Slide 18: Phosphates Segment Highlights
Phosphates Segment Highlights In millions, except DAP price Q2 FY13 Q1 FY13 Q2 FY12 Net sales $1,762 $1,561 $2,179 Gross Margin $318 $288 $476 Percent of net sales 18% 18% 22% Operating earnings $245 $208 $432 Sales volumes 3.0 2.7 3.2 NA production volume (a) 2.1 2.0 2.1 Finished product operating
Slide 19: Earnings Sensitivity to Key Drivers
FY13 Q2 Actual Change FY13 Q1 Margin % Actual % Impact on Segment Margin Pre-Tax Impact EPS Impact Earnings Sensitivity to Key Drivers (a) Marketing MOP Price ($/tonne) (b) $443 $50 45.6% 8.5% $66 $0.12 Potash Volume (million tonnes) 1.5 0.5 45.6% 22.5% $175 $0.31 DAP Price ($/tonne) $544 $50 18.0%
Slide 20: Raw Material Cost Detail
Raw Material Cost Detail Mosaic is currently implementing a new inventory valuation system. After implementation, Mosaic expects to include this information in its performance data disclosures. Q2 FY2013 % Ammonia ($/MT) Realized in COGS $ 561 Average Purchase Price $ 706 Sulfur ($/LT) Realized in C