Mosaic Company (the) · NYSE:MOS

Mosaic Company (the) — The Mosaic Company — Scotiabank Fertilizers & Chemicals Conference 2015

18 slides from Mosaic Company (the)'s conference presentation, Sep 22, 2015

  1. Slide 1: The Mosaic Company

    The Mosaic Company September 2015

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This document 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 the Wa’ad Al Shamal Phosphate Company (also known as the Ma’aden joint venture), the a

  3. Slide 3: Mosaic: High Quality Assets

    Mosaic: High Quality Assets ” S ee & e @ Phosphate Production e e @ Potash Production e°o e e © Distribution Facilities © Joint Ventures

  4. Slide 4: Mosaic: Operational Excellence

    Mosaic: Operational Excellence $160 MOP Cash Cost/Production Tonne $140 $150 $61 $120 Less/ Tonne $100 $80 $89 $60 $40 $20 $‐ Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015* * Q2 2015 includes $17 / tonne in brine management costs Source: Mosaic

  5. Slide 5: Mosaic: History of Innovation

    Mosaic: History of Innovation MicroEssentials® 1,800 18% 1,600 16% 1,400 14% Thousand Tonnes 1,200 12% 1,000 10% 800 8% 600 6% 400 4% 200 2% ‐ 0% 2011 2012 2013 2014 2015 YTD MicroEssentials® sales volume MicroEssentials® % of phosphate product volumes Source: Mosaic

  6. Slide 6: Mosaic: Effective Capital Management

    Mosaic: Effective Capital Management Capital Allocation: Three Year Summary* Maintenance ‐ $810M P Total: ‐ $1.0B K $10.9 Billion 18% ‐ $150M ID/Other Organic Growth Capital Priorities ‐ $430M P ‐ $930M K 42% ‐ $280M ID/Other 15% Investment Commitments ‐ $1B Ma’aden ‐ $1.4B CF Phosphates acquisition

  7. Slide 7: Mosaic: Seasoned Leadership Team

    Mosaic: Seasoned Leadership Team

  8. Slide 8: Industry: New Challenges

    Industry: New Challenges

  9. Slide 9: Agriculture: Lower Grain Prices

    Agriculture: Lower Grain Prices Indexed Fertilizer and Crop Prices 500 450 400 350 300 250 200 150 100 50 1/6/2005 1/6/2006 1/6/2007 1/6/2008 1/6/2009 1/6/2010 1/6/2011 1/6/2012 1/6/2013 1/6/2014 1/6/2015 DAP MOP Crop Index Source: Weekly Price Publications, CME, USDA, AAPFCO, Mosaic

  10. Slide 10: Agriculture: Declining Farm Income

    Agriculture: Declining Farm Income Billion $ U.S. Net Cash Farm Income Debt:Asset 140 24% Source: USDA 120 22% 100 20% 80 18% 60 16% 40 14% 20 12% 0 10% 80 85 90 95 00 05 10 15F Net Cash Farm Income Debt:Asset • Net Cash Income is the sum of crop and livestock receipts, direct government payments an

  11. Slide 11: Macro: Currency Volatility

    Macro: Currency Volatility 600 550 Brazil Delivered MOP Price in USD 500 Brazil Delivered MOP Price in CAD 450 400 350 300 24,000 22,000 20,000 Brazil Delivered MOP Price in Rubles 18,000 16,000 14,000 12,000 10,000 Source: FMB, Bloomberg and Mosaic

  12. Slide 12: Macro: Brazil Economy

    Macro: Brazil Economy Farm Credit History Soybean Prices BRL billion USD Bu Reais Bu 200 16% 18 36 180 160 Brazil: Credit + Stable Soybean Prices = 60 14% 12% 16 32 140 24 14 28 120 100 Strong H2 19 20 10% 8% 12 24 80 10 20 6% 60 133 128 116 4% 8 16 40 94 20 2% 6 12 0 0% 4 8 2012/13 2013/14 2014/15

  13. Slide 13: Macro: China RMB Devaluation and VAT

    Macro: China RMB Devaluation and VAT 13% VAT on all Fertilizer Sales Grace Period on Inventory K P • Higher at the farm price • Higher export prices • Watching demand implications • Net positive even with RMB devaluation Source: Mosaic

  14. Slide 14: Potash: New Capacity

    Potash: New Capacity 2014 2020F Capacity  20 million tonnes  29 million tonnes  87%  81% Op Rate New capacity from: K+S, MOS, POT, AGU Capacity  23 million tonnes  27 million tonnes  99%  93% Op Rate New capacity from: EuroChem, Uralkali, Belaruskali, Turkmenkhimija Capacity  66 million ton

  15. Slide 15: Phosphate: Balanced S&D

    Phosphate*: Balanced S&D 2014 2020F Capacity  29 million tonnes  31 million tonnes Op Rate  87%  87% Capacity  6 million tonnes  9 million tonnes Op Rate  81%  90% Capacity  3 million tonnes  6 million tonnes Op Rate  83%  87% Capacity  73 million tonnes  81 million tonnes Demand  61

  16. Slide 16: Long Term

    Long Term Mosaic ay

  17. Slide 17: And The Long-term Trend Is Up

    And The Long-term Trend Is Up World Harvested Area and Average Yield Mil Ha MT Ha 975 4.00 Source: USDA and Mosaic 950 3.75 925 3.50 900 3.25 875 3.00 850 2.75 825 2.50 800 2.25 775 2.00 750 1.75 80 85 90 95 00 05 10 15F 20F 25F 30F Actual Area Forecast Area Actual Yield Required Yield 1980-12 Yield

  18. Slide 18: My Role

    My Role • Build on Mosaic’s Track Record of Success: • Execution • Smart Investments • Environmental Stewardship & Safety • Prudently Manage Capital • Grow Value for Mosaic’s Shareholders

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