Slide 1: The Mosaic Company Capital Management Philosophy
The Mosaic Company Capital Management Philosophy May 13, 2013 Larry Stranghoener, Executive Vice President and Chief Financial Officer Laura Gagnon, Vice President Investor Relations 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: Agenda
Agenda Agenda • Key Balance Sheet Targets • Cash Use Priorities • Capital Return Philosophy • Cargill Split-off Primer
Slide 4: Key Balance Sheet Targets
Key Balance Sheet Targets Our primary objective is to maintain a solid investment grade rating and financial flexibility. Contingent Capital Long term Target Cash Committed Lines $ in billions multiple Liquidity Adjusted Debt / EBITDA
Slide 5: Surplus Cash Balance
Surplus Cash Balance Estimated Cash Balance $ 3,700 Foreign Cash (950) Liquidity Buffer (750) Surplus Cash Balance $ 2,000 Mosaic expects to have approximately $2 billion in surplus cash at May 31, 2013. Foreign Cash – Expected to be used to fund non-U.S. investments over the next 4 years. $ in mill
Slide 6: Surplus Cash & Debt Capacity
Surplus Cash & Debt Capacity $2 billion of Surplus Cash $3 billion of Debt Capacity Share Repurchases ARO Escrow Strategic Investments
Slide 7: Cash Use Priorities
Maintain ratings & financial strength Sustain assets & recurring dividend Investments to drive organic growth Opportunistic strategic investments Return surplus to shareholders Mosaic
Slide 8: Sustaining Capital & Dividends
Sustaining Capital & Dividends* Sustaining capital of about $700 million Expected to remain flat over next few years $1.00 per share dividend expected to grow as earnings grow over time $ in billions Mosaic’s sustaining capital investment and dividends are expected to grow over time. $0.0 $0.5 $1.0
Slide 9: Investing for Growth
Investing for Growth $ in billions The company expects to generate appropriate risk-adjusted returns for each investment. * Not fully approved investments $0.0 $0.5 $1.0 $1.5 Potash Mines Ma'aden JV Ammonia Plant* International & Supply Chain* Calendar year
Slide 10: Capital Return Philosophy
Capital Return Philosophy Disciplined approach to return meaningful capital via share repurchases Capital Return History Near Term • • Post A-Share Resolution • $ in billions Calendar year ? $0.0 $0.5 $1.0 $1.5 Dividends Repurchases Favor share repurchases Preservation of capital to maintain flexibi
Slide 11: Cargill Split-off Primer
Cargill Split-off Primer 129 million Class A restricted shares outstanding No discussions with MAC Trusts until after May 26, 2013 Seller intentions uncertain Agreements contemplate secondary offering Contractual agreement may be modified Common Shares # of shares November 26, 2013 43mm November 26,
Slide 12: Summary
Summary • Committed to investment grade rating and strong liquidity buffer • Approximately $5 billion of surplus cash and debt capacity • Expect our recurring dividend per share to grow in line with earnings growth • Expect to fund our planned capital expenditures with foreign cash and operating cas
Slide 13: Selected Non-GAAP Financial Measures and Reconciliations
Selected Non-GAAP Financial Measures and Reconciliations FY12 FY11 FY10 FY09 FY08 As of May 31, 2012 US$ Millions Short Term Debt $ Long Term Debt 1,011 Unfunded Pension Obligations Lease Obligations (Annual Rental Expense x 6) Total Adjusted Debt * 1,623 $ * Estimated based on written description o
Slide 14: Mosaic
Mosaic