Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — Scotiabank Fertilizer & Chemicals Conference 2016
13 slides from Mosaic Company (the)'s conference presentation, Sep 20, 2016
Slide 1: Scotiabank Fertilizer & Chemicals Conference
Scotiabank Fertilizer & Chemicals Conference Rich Mack, Executive Vice President and Chief Financial Officer September 20, 2016
Slide 2: Forward-looking statements
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 MWSPC) and other proposed or pending future transaction
Slide 3: Background on New Wales Incident
Background on New Wales Incident 3 Background: • In August, Mosaic experienced a process water loss in its New Wales phosphogypsum stack, caused by a sinkhole • Incident was reported to federal, state and local officials immediately • Little to no impact to production at New Wales Next Steps: • Pump
Slide 4: Mosaic's Competitive Positioning
Increase competitiveness Mosaic’s Competitive Positioning 4
Slide 5: Potash: Long Life, Low Cost Assets
Potash: Long Life, Low Cost Assets 5 46% 54% Potash Sales 2012-15 North America Offshore Corporate Headquarters Business Unit Office Deep Shaft Mine Solution Mine Export Terminal and Shipping Potash Shipments 2012 - 2015 4
Slide 6: Potash: Long Life, Low Cost Assets
Potash: Long Life, Low Cost Assets 6 *Production costs are reflective of actual costs, excluding realized mark‐to‐market gains and losses. These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period. *Assumes 1.30: 1 CAD to USD. $5
Slide 7: Phosphate: Vertically Integrated, Low Cost U.S. Phosphate Operations
Phosphate: Vertically Integrated, Low Cost 7 U.S. Phosphate Operations 53%47% Phosphate Sales 2012-15 North America Offshore Phosphate Shipments 2012 - 2015 6
Slide 8: Effective Capital Management
Effective Capital Management 8 * 2013 through 2015 18% 13% 29% 40% Capital Allocation: Three Year Summary* Maintenance Organic Growth Investment Commitments Return to Shareholders (dividends & repurchases) ($ in billions) Total: $11.5 Billion A Balanced Approach to Capital Allocation
Slide 9: Opportunities We See
Increase competitiveness Opportunities We See 9
Slide 10: Managing Costs and Capital
Managing Costs and Capital 10 • $500 million Expense Reduction • +$75 million from Support Functions • Asset Optimization • Lower Capital Spending
Slide 11: Esterhazy K3: Transformational Impact
Esterhazy K3: Transformational Impact 11 0 25 50 75 100 125 150 175 200 225 250 275 300 325 0 10 20 30 40 50 60 70 US$/Tonne Million Tonnes Future State: MOP Cost Curve fob Port (K3 Scenario) Source: CRU and Mosaic Demand: ~70mmt Notes: ‐ fob Port for exporting producers, fob Mine for those serving
Slide 12: Continue to Assess Trade-Offs: Dividend, CAPEX, OPEX and Credit Rating
Continue to Assess Trade-Offs: Dividend, CAPEX, OPEX and Credit Rating 12 ($ per share) $1.10 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 2011 2012 2013 2014 2015 Dividend per Share Absolute Dividend Payout: Less than $400M
Slide 13: Mosaic is Well Positioned to Weather the Cycle
Cautiously Optimistic 13 Market Environment Mosaic’s Actions Capital Stewardship Mosaic is Well Positioned to Weather the Cycle
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