Slide 1: Earnings Conference Call - 2nd Quarter Fiscal 2011
The Mosaic Company Jim Prokopanko, President and Chief Executive Officer Larry Stranghoener, Executive VP and Chief Financial Officer Christine Battist, Director - Investor Relations Earnings Conference Call - 2nd Quarter Fiscal 2011 Wednesday, January 5, 2011 Exhibit 99.2
Slide 2: Forward-looking statements
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 beliefs and expectati
Slide 3: Financial Results
Financial Results (a) The second quarter fiscal year 2011 results include an after tax gain of $570 million, or $1.28 per share, on the sale of our interest in Fosfertil S.A. (b) Subsequent to the quarter end, we announced the redemption of the remaining $455.4 million aggregate principal amount of
Slide 4: Phosphates Segment Highlights
Q2 FY11 Q1 FY11 Q2 FY10 Phosphates Segment Highlights IN MILLIONS, EXCEPT DAP PRICE Net sales $1,974.0 $1,581.1 $1,328.0 Gross Margin $476.3 $245.0 $113.2 % of net sales 24% 15% 9% Operating earnings $402.3 $178.0 $29.0 (b) Sales volumes 3.7 3.1 3.3 NA production volume 2.1 2.2 2.1 Avg DAP selling p
Slide 5: Potash Segment Highlights
Q2 FY11 Q1 FY11 Q2 FY10 Potash Segment Highlights IN MILLIONS, EXCEPT MOP PRICE Net sales $699.0 $621.9 $414.3 Gross Margin $285.2 $256.7 $179.9 % of net sales 41% 41% 43% Operating earnings $251.5 $218.0 $150.6 Sales volumes 1.8 1.7 1.0 Production volume 1.7 1.4 1.1 Avg MOP selling price $331 $331
Slide 6: Financial Guidance – Fiscal 2011
Category Guidance Phosphates Volumes constrained due to seasonality Expect record demand in 2011 Expect slightly higher sulfur and ammonia costs U.S. producer inventories at record lows Q3 Sales volume 2.4 – 2.7 million tonnes Q3 DAP selling price $510 - $540 per tonne Q3 Operating rate above 85% Po
Slide 7: Strategic Priorities and Market Outlook
Strategic Priorities and Market Outlook
Slide 8: Potash – Grow Volume
INVESTMENT ($ IN BILLIONS) CAPACITY (MILLION TONNES) ESTIMATED CONSTRUCTION COMPLETION (FISCAL YEAR) Potash – Grow Volume IN PROCESS Belle Plaine 0.5 0.6 2012 Colonsay 0.7 0.7 2014 Esterhazy 2.0 1.8 2011-17 FUTURE Belle Plaine 1.4 2016-19 Colonsay 0.6 2016 5.1 Tolling agreement 1.3 Capacity at May 3
Slide 9: Phosphates – Grow Value
Slide 9 Phosphates – Grow Value • Operational excellence – Cost savings and improved efficiency – Maintain low cost position • MicroEssentials ® – Improved yields – Higher margins – Finalizing expansions to two million tonnes capacity • Distribution – Aligned global distribution with North American
Slide 10: South Fort Meade Update
Slide 10 South Fort Meade Update • Successful mitigation efforts (so far) – Settlement that allows limited mining – Draw down existing rock and finished product inventories – Optimize mining at other Florida mines – Sourcing rock from Miski Mayo JV and third parties • Appeal of the injunction – Hear
Slide 11: Outstanding Market Fundamentals
High ag commodity prices – Exceptional farm economics – Corn/soybean battle for acres – Expect great North American spring Very low producer inventories Lean global distribution pipeline Supply uncertainties Focus on food security Record crop nutrient demand – Projected calendar 2011 phosphate shipm
Slide 12: Earnings Conference Call - 2nd Quarter Fiscal 2011
The Mosaic Company Earnings Conference Call - 2nd Quarter Fiscal 2011 Wednesday, January 5, 2011
Slide 13: Earnings Sensitivity to Key Drivers
Change Estimated Change in Pre-Tax Earnings ($ in millions) Estimated Change in Annual EPS Appendix MOP Price ($/tonne) $50 $372 $0.59 Potash Volume (000 tonnes) $106 $0.17 DAP Price ($/tonne) $50 $410 $0.65 Phosphates Volume (000 tonnes) $77 $0.12 Sulfur ($/lt) $25 $90 $0.15 Ammonia ($/tonne) $25 $