Slide 1: Segment Reporting Changes March 2015
Segment Reporting Changes March 2015
Slide 2: Safe Harbor Statement
Click to edit Master title style 2 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 a
Slide 3: Summary
• Following acquisition of Archer Daniels Midland’s (ADM) fertilizer business Mosaic realigned management and reporting of results into four segments: – Potash – Phosphates – International Distribution – Corporate and Other • Expected outcomes/benefits: – Increased transparency – Improved peer bench
Slide 4: Summary of Changes
4 Summary of Changes • Potash, Phosphates and International Distribution Segments will no longer include mark-to-market gains/losses on derivatives. • Phosphates Segment now captures only manufacturing economics, with inter- segment transactions based on arms length transfer pricing methodology with
Slide 5: Business Drivers
5 Business Drivers: 101 • Realized prices are reported FOB mine. • Mix of domestic vs. international shipments impacts price realization. Price realizations reported exclude impact of intercompany sales to International Distribution. • Realized prices also lag spot market (supply chain length). • Ov
Slide 6: Potash Segment – More Detail
6 Potash Segment – More Detail • Accounting Review: • Continue to include domestic freight revenue in net sales. → Canpotex revenues exclude freight • Continue to include in costs of good sold (COGS): → Canadian resource taxes & royalties → Freight costs (associated freight revenues) • Depreciation,
Slide 7: Phosphates Segment – More Detail
7 Phosphates Segment – More Detail • Accounting Review: • Continue to include freight in both revenue and costs of goods sold. • Depreciation, depletion & amortization (DD&A) is historically higher than competitors as a result of a step up in asset values at inception of Mosaic formation. • Addition
Slide 8: International Distribution Segment
8 International Distribution Segment • Accounting Overview: • Prices and revenue include transportation costs. • All of the Selling, General and Administrative (SG&A) expenses are local. • Revenue and profit from products sold to International Distribution from the Phosphates and Potash segments tha
Slide 9: Guidance Update
9 Guidance Update Phosphates Guidance Q1 Sales volume 2.1 to 2.3 million tonnes Q1 DAP selling price $450 to $460 per tonne Q1 Gross margin rate in the high teens Q1 Operating rate in the 80 to 85 percent range 2015 Sales volume 9 to 10 million tonnes International Distribution Guidance Q1 Sales vol
Slide 10: Appendix: Select Metric Definitions
10 Appendix: Select Metric Definitions Metric: Potash Definition Cash COGS per sales tonne Cash COGS per sales tonne are calculated excluding resources taxes and royalties, freight and DD&A. Royalties are included in the calculation. MOP North America realized price Excludes non-agricultural product
Slide 11: Mosaic
Mosaic