Mosaic Company (the) · NYSE:MOS
Mosaic Company (the) — The Mosaic Company — 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: 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 MWSPC) and other proposed or pend
Slide 3: Background on New Wales Incident
Background on New Wales Incident 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 o
Slide 4: Mosaic's Competitive Positioning
Mosaic’s Competitive Positioning Increase competitiveness 4
Slide 5: Potash: Long Life, Low Cost Assets
Potash: Long Life, Low Cost Assets Potash Shipments Potash Sales 2012 - 2015 2012-15 North America Offshore 54% 46% Corporate Headquarters Business Unit Office Deep Shaft Mine Solution Mine Export Terminal and Shipping 4 5
Slide 6: Potash: Long Life, Low Cost Assets – Cash Costs by Mine
Potash: Long Life, Low Cost Assets Cash Costs by Mine (95% Operating Rate) $90 Cash costs including royalties, excluding resource taxes and $80 $18 average $70 $26 realized derivative gains/(losses) $60 $50 $40 $71 $66 $30 $53 $20 $10 $- Esterhazy Belle Plaine Enterprise Brine Cash costs including r
Slide 7: Phosphate: Vertically Integrated, Low Cost
Phosphate: Vertically Integrated, Low Cost U.S. Phosphate Operations Phosphate PhosphateShipments Sales 2012 - 2015 2012-15 North Offshore America 47% 53% 7 6
Slide 8: Effective Capital Management
Effective Capital Management Capital Allocation: Three Year Summary* ($ in billions) Total: $11.5 Billion Maintenance 18% Organic Growth 40% 13% Investment Commitments Return to Shareholders 29% (dividends & repurchases) * 2013 through 2015 A Balanced Approach to Capital Allocation 8
Slide 9: Opportunities We See
Opportunities We See Increase competitiveness 9
Slide 10: Managing Costs and Capital
Managing Costs and Capital • $500 million Expense Reduction • +$75 million from Support Functions • Asset Optimization • Lower Capital Spending 10
Slide 11: Esterhazy K3: Transformational Impact
Esterhazy K3: Transformational Impact US$/Tonne Future State: MOP Cost Curve fob Port (K3 Scenario) 325 Demand: Source: CRU and Mosaic ~70mmt 300 Notes: - fob Port for exporting producers, fob Mine for 275 those serving a domestic market - K3 Scenario: Full Esterhazy ore output from K3 250 225 200 1
Slide 12: Continue to Assess Trade-Offs: Dividend, CAPEX, OPEX and Credit Rating
Continue to Assess Trade-Offs: Dividend, CAPEX, OPEX and Credit Rating Dividend per Share ($ per share) $1.2 $1.0 $1.10 $0.8 $0.6 $0.4 $0.2 $0.0 2011 2012 2013 2014 2015 Absolute Dividend Payout: Less than $400M 12
Slide 13: Cautiously Optimistic
Cautiously Optimistic Market Mosaic’s Environment Actions Capital Stewardship Mosaic is Well Positioned to Weather the Cycle 13
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