Slide 1: Earnings Conference Call – Third Quarter 2013
The Mosaic Company Earnings Conference Call – Third Quarter 2013 November 5, 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 the proposed acquisition of the Florida phosphate assets and certain related liabi
Slide 3: Third Quarter Financial Highlights
Third Quarter Financial Highlights $1,419 $523 $92 $58 $1.9 billion $144 million $0.29 diluted earnings per share Includes $0.22 negative impact of notable items Net Sales Phosphates Potash Operating Earnings
Slide 4: Third Quarter Strategic Focus
Third Quarter Strategic Focus The Company continues to execute well against its strategic priorities: Growth in phosphate cash flows through acquisitions, joint ventures, as well as cost and sustaining capital reductions Growth in potash cash flows through continued execution of our expansion and co
Slide 5: Strategic Portfolio Reshaping
Strategic Portfolio Reshaping Mosaic made several strategic decisions focusing and reshaping its asset portfolio: Argentina and Chile distribution exit; focus on Brazil Planned sale of Hersey, Michigan, salt operation and closure of potash operation Ammonia contract and subsequent expensing of ammon
Slide 6: Near-term Market Challenges to Continue
Near-term Market Challenges to Continue Soft pricing environment - Supply & demand driven - Lack of potash contracts and price discovery Late North American Fall season Cautious buyer behavior
Slide 7: Long-term Opportunity Remains Great
Long-term Opportunity Remains Great Yield growth required to keep up with demand 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 MT Ha Mil Ha Source: USDA and Mosaic World Harvested Area and Average Yield Actual Area Forecast Area Actual Yield Required Yield 1980 -10 Yield Trend
Slide 8: Near Record Affordability
Near Record Affordability 0.5 0.75 1.25 1.5 1.75 Plant Nutrient Affordability Plant Nutrient Price Index / Crop Price Index Affordability Metric Average Source: Green Markets, CME, USDA, AAPFCO, Mosaic
Slide 9: Stable Long-term Supply and Demand Outlook
Stable Long-term Supply and Demand Outlook Potash Production, Capacity and Operating Rate Forecast Capacity Production Operating Rate Source: Mosaic 40% 50% 60% 70% 80% 90% 100% 2000 2004 2008 2012 2016 2020
Slide 10: Positive Long-term Supply and Demand Outlook
Positive Long-term Supply and Demand Outlook Phosphate Production, Capacity and Operating Rate Forecast Source: Mosaic 65% 70% 75% 80% 85% 90% 95% 2000 2004 2008 2012 2016 2020 Capacity Production Op Rate
Slide 11: Financial Results Review
Financial Results Review
Slide 12: Mosaic Financial Performance
In millions, except per share amounts Three Months Ended September 30, 2013 September 30, 2012 Mosaic Financial Performance Net Sales $1,908.7 $2,645.7 Gross Margin $386.9 $774.6 % of net sales 20.3% 29.3% SG&A $94.4 $114.8 Net Earnings Attributable to Mosaic $124.4 $417.4 % of net sales 6.5% 15.8%
Slide 13: Cash from Operations
Cash from Operations Items impacting third quarter cash from operations: Lower earnings Higher final price deferred volumes Higher payments with vendors Lower customer prepayments Strong cash flow in June of 2013 Accounts receivable timing
Slide 14: Potash Segment Highlights
Potash Segment Highlights In millions, except MOP price Q3 2013 Q2 2013 Q3 2012 Third quarter highlights: Net sales $523 $974 $927 Gross Margin $184 $389 $441 Percent of net sales 35% 40% 48% Operating earnings $92 $346 $398 Sales volumes 1.4 2.4 1.8 Production volume 2.0 2.2 1.5 Production operatin
Slide 15: Phosphates Segment Highlights
Phosphates Segment Highlights In millions, except DAP price Q3 2013 Q2 2013 Q3 2012 Third quarter highlights: Net sales $1,419 $1,646 $1,741 Gross Margin $193 $279 $329 Percent of net sales 14% 17% 19% Operating earnings $58 $191 $246 Sales volumes 2.7 2.9 2.9 NA production volume (a) 2.1 2.1 2.1 Fi
Slide 16: Phosphate Raw Material Trends: Ammonia, Sulfur
Phosphate Raw Material Trends Ammonia Sulfur ($/tonne) ($/tonne)
Slide 17: Balance Sheet Update
Balance Sheet Update We continue to have substantial cash and capital to redeploy: No impact to shareholder distribution plans from announced phosphate acquisition Debt issuance expectations Share repurchase discussions
Slide 18: Financial Guidance Summary – Potash
Financial Guidance Summary Category Guidance – Calendar Q4 2013 Potash Q4 Sales volume 1.5 – 1.9 million tonnes Q4 MOP selling price $285 - $310 per tonne Q4 Gross margin rate in the mid 20 percent range Q4 Operating rate below 65% percent Canadian Resource Taxes and Royalties $40 - $60 million Brin
Slide 19: Financial Guidance Summary – Phosphates and Corporate
Financial Guidance Summary Category Guidance – Calendar Q4 2013 Phosphates Q4 Sales volume 2.5 – 2.9 million tonnes Q4 DAP selling price $370 - $400 per tonne Q4 Operating rate approximately 80% percent range Q4 Gross margin rate to be flat with 3rd quarter Corporate Total SG&A – Q4 $90 - $105 milli
Slide 20: Helping the World Grow the Food it Needs
Helping the World Grow the Food it Needs
Slide 21: Raw Material Cost Detail
Mosaic is currently implementing a new inventory valuation system. After implementation, Mosaic expects to include this information in its performance data disclosures. Q3 2013 Percent Ammonia ($/MT) Realized in COGS $486 Average Purchase Price $488 Sulfur ($/LT) Realized in COGS $167 Average Purcha
Slide 22: Earnings Sensitivity to Key Drivers
(a) These factors do not change in isolation; actual results could vary from the above estimates (b) Assumes no change to KMAG pricing CY13 Q3 Actual Change CY13 Q3 Margin % Actual % Impact on Segment Margin Pre-Tax Impact EPS Impact Marketing MOP Price ($/tonne) (b) $342 $50 35% 12% $64 $0.12 Potas