Attached files
| file | filename |
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| EX-99.2 - AVERAGE SELLING PRICE PER TONNE FOR MURIATE OF POTASH CROP NUTRIENTS - MOSAIC CO | dex992.htm |
| 8-K - FORM 8-K - MOSAIC CO | d8k.htm |
 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
-
3
Quarter
Fiscal
2011
Thursday, March 31, 2011
rd
Exhibit 99.1 |
 Mosaic
Named
to
Corporate
Responsibility
Magazine
12th
Annual
100
Best
Corporate
Citizens
List
Slide 2
The 100 Best Corporate Citizens List is based on over 360 data points of
publicly- available
information
in
seven
categories:
Environment,
Climate
Change,
Human
Rights,
Philanthropy, Employee Relations, Financial Performance, and Governance.
The 100 Best Corporate Citizens are selected from among the large-cap
Russell 1000 companies |
 Safe Harbor Statement
Slide 3
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 strategic plans and other statements about future financial and operating results,
including statements about the proposed split-off by Cargill, Incorporated of its equity interest in The Mosaic Company and related
transactions (the “Split-Off”), the terms and effects of the proposed Split-Off, the
nature and impact of the proposed Split-Off and benefits of the proposed
Split-Off. Such statements are based upon the current beliefs and expectations of The Mosaic Company’s management and
are subject to significant risks and uncertainties. These risks and uncertainties include but are not
limited to risks and uncertainties arising from the predictability and volatility of, and
customer expectations about, agriculture, fertilizer, raw material, energy and transportation
markets that are subject to competitive and other pressures and economic and credit market conditions;
the level of inventories in the distribution channels for crop nutrients; changes in foreign
currency and exchange rates; international trade risks; changes in government policy; changes
in environmental and other governmental regulation, including greenhouse gas regulation and implementation of the U.S.
Environmental Protection Agency’s numeric water quality standards for the discharge of nutrients
into Florida lakes and streams; further developments in the lawsuit involving the federal
wetlands permit for the extension of the Company’s South Fort Meade, Florida, mine into
Hardee County, including orders, rulings, injunctions or other actions by the court or actions by the
plaintiffs, the Army Corps of Engineers or others in relation to the lawsuit, or any actions
the Company may identify and implement in an effort to mitigate the effects of the lawsuit;
other difficulties or delays in receiving, or increased costs of, or revocation of, necessary
governmental permits or approvals; the effectiveness of the Company’s processes for
managing its strategic priorities; adverse weather conditions affecting operations in Central
Florida or the Gulf Coast of the United States, including potential hurricanes or excess rainfall;
actual costs of various items differing from management’s current estimates, including,
among others, asset retirement, environmental remediation, reclamation or other environmental
obligations, or Canadian resource taxes and royalties; accidents and other disruptions involving Mosaic’s operations,
including brine inflows at its Esterhazy, Saskatchewan, potash mine and other potential mine fires,
floods, explosions, seismic events or releases of hazardous or volatile chemicals; the
possibility that the expected timeline for the proposed Split-Off may be delayed or the
proposed Split-Off may not occur, or that there may be difficulties with realizing the benefits of
the proposed Split-Off; and other risks and uncertainties reported from time to time in The
Mosaic Company’s reports filed with the Securities and Exchange Commission. Actual results
may differ from those set forth in the forward-looking statements. |
 Important Information
Slide 4
In
connection
with
the
proposed
split-off
transaction,
GNS
II
(U.S.)
Corp.
(“M
Holdings”)
has
filed
with
the
SEC
a
Registration
Statement
on
Form
S-4
that
includes
a
proxy
statement
of
Mosaic
that
also
constitutes
a
prospectus
of
M
Holdings.
Mosaic
will
deliver
the
final
proxy
statement/prospectus
to
its
stockholders.
Investors
and
holders
of
Mosaic
securities
are
strongly
encouraged
to
read
the
proxy
statement/prospectus
(and
any
other
relevant
documents
filed
with
the
SEC)
when
it
becomes
available
because
it
will
contain
important
information
relating
to
the
proposed
transaction.
You
may
obtain
a
free
copy
of
the
proxy
statement/prospectus
(when
available)
and
other
related
documents
filed
by
Mosaic
and
M
Holdings
with
the
SEC,
without
charge,
at
the
SEC’s
website
at
www.sec.gov.
The
proxy
statement/prospectus
(when
it
is
available)
and
the
other
documents
may
also
be
obtained
for
free
by
accessing
Mosaic’s
website
at
www.mosaicco.com
under
the
tab
“Investors”.
This
communication
shall
not
constitute
an
offer
to
sell
or
the
solicitation
of
an
offer
to
buy
securities,
nor
shall
there
be
any
sale
of
securities
in
any
jurisdiction
in
which
such
solicitation
or
sale
would
be
unlawful
prior
to
registration
or
qualification
under
the
securities
laws
of
such
jurisdiction.
Such
an
offer
may
be
made
solely
by
a
prospectus
meeting
the
requirements
of
Section
10
of
the
U.S.
Securities
Act
of
1933,
as
amended.
Accordingly,
the
proxy
solicitation
for
the
merger
described
in
this
communication
has
not
commenced.
The
distribution
of
this
communication
may,
in
some
countries,
be
restricted
by
law
or
regulation.
Accordingly,
persons
who
come
into
possession
of
this
document
should
inform
themselves
of
and
observe
these
restrictions.
Participants in this Transaction
Mosaic
and
M
Holdings
and
their
respective
directors,
executive
officers
and
certain
other
members
of
management
and
employees
may
be
deemed,
under
SEC
rules,
to
be
participants
in
the
solicitation
of
proxies
from
Mosaic’s
stockholders
with
respect
to
the
proposed
transaction.
Information
regarding
the
persons
who
may,
under
the
rules
of
the
SEC,
be
considered
participants
in
the
solicitation
of
the
Mosaic
stockholders
in
connection
with
the
proposed
transaction
is
set
forth
in
the
proxy
statement/prospectus
filed
with
the
SEC.
You
can
find
information
about
the
executive
officers
and
directors
of
Mosaic
in
its
Annual
Report
on
Form
10-K
for
the
fiscal
year
ended
May
31,
2010
filed
with
the
SEC
on
July
23,
2010
and
in
its
definitive
proxy
statement
filed
with
the
SEC
on
August
24,
2010.
You
can
obtain
free
copies
of
these
documents
from
Mosaic
using
the
website
information
above.
More
detailed
information
regarding
the
identity
of
potential
participants,
and
their
direct
or
indirect
interests,
by
securities
holdings
or
otherwise,
will
be
set
forth
in
the
final
proxy
statement/prospectus
and
other
material
to
be
filed
with
the
SEC
in
connection
with
the
proposed
transaction. |
 Net Sales
$2,214.3
$1,731.9
$7,077.4
$4,898.8
Gross Margin
$853.6
$476.5
$2,126.6
$1,005.7
% of net sales
39%
28%
30%
21%
Net Earnings
$542.1
$222.6
$1,865.4
$431.0
% of net sales
24%
13%
26%
9%
Diluted EPS
$1.21
$0.50
$4.17
(a)
$0.97
Effective Tax Rate
24%
35%
23%
32%
Cash Flow Provided by Operations
$365.9
$476.7
$1,453.8
$823.9
Cash and Cash Equivalents as of Feb 28, 2011 & Feb 29, 2010
$3,352.1
$2,291.8
Financial Results
Slide 5
(a)
Includes an after tax gain of $570 million, or $1.27 per share, on the sale of our
interest in Fosfertil S.A. Three Months Ended
Nine Months Ended
In millions, except per share amounts
2/28/2011
2/29/2010
2/28/2011
2/29/2010 |
 Phosphates Segment Highlights
Slide 6
Q3 FY11
Q2 FY11
Q3 FY10
IN MILLIONS, EXCEPT DAP PRICE
Net sales
$1,458.0
$1,974.0
$1,020.7
Gross Margin
$454.2
$476.3
$114.0
% of net sales
31%
24%
11%
Operating earnings
$371.8
$402.3
$52.9
Sales volumes
2.4
3.7
2.5
NA production volume
(a)
2.0
2.1
1.9
Avg DAP selling price
$543
$461
$336
Third quarter year over year highlights:
•
Higher selling prices, partially offset by higher raw material costs
•
Finished product operating rate of 83% vs. 75% a year ago
•
Exceptional mining performance
(a)
Includes crop nutrient dry concentrates and animal feed ingredients
OPERATING EARNINGS BRIDGE
$ IN MILLIONS
0
100
200
300
400
500
600
Q3 FY10 OE
Selling price
Raw materials
Other
Q3 FY11 OE |
 Potash Segment
Highlights Slide 7
Q3 FY11
Q2 FY11
Q3 FY10
IN MILLIONS, EXCEPT MOP PRICE
Net sales
$757.7
$699.0
$730.0
Gross Margin
$411.6
$285.2
$352.0
% of net sales
54%
41%
48%
Operating earnings
$413.9
$251.5
$326.0
Sales volumes
1.9
1.8
1.9
Production volume
2.0
1.7
1.3
Avg MOP selling price
$358
$331
$356
Third quarter year over year highlights:
•
Operating
earnings
improvement
due
to
favorable
effect
of
higher
production
volume,
increased
selling
prices
and insurance recoveries
•
Operating rate 90% vs. 59% a year ago
•
Lean producer inventories
(a) Includes insurance recoveries of $38.2 million
OPERATING EARNINGS BRIDGE
$ IN MILLIONS
0
50
100
150
200
250
300
350
400
450
Q3 FY10 OE
Production costs
Sales price
Other(a)
Q3 FY11 OE |
 Category
Guidance
Phosphates
Record demand in 2011
Higher sulfur and ammonia costs
Q4
Sales
volume
2.5
–
2.9
million
tonnes
Q4
DAP
selling
price
$560
-
$590
per
tonne
Q4 Operating rate above 85%
Potash
Record demand in 2011
North American producer inventories to remain low
Q4
Sales
volume
1.9
–
2.2
million
tonnes
Q4
MOP
selling
price
$385
-
$415
per
tonne
Q4 Operating rate above 90%
Capital Expenditures
$1.2
-
$1.4
billion
Canadian Resource Taxes and Royalties
$250
–
$300
million
SG&A
$360
–
$380
million
Effective Tax Rate
(a)
Mid to upper 20 percent range
Financial Guidance –
Fiscal 2011
Slide 8
(a)
Effective tax rate excludes items related to the Fosfertil sale.
|
 The Mosaic Company
Earnings
Conference
Call
-
3
rd
Quarter
Fiscal
2011
Thursday, March 31, 2011 |
 Factors We Are Watching
•
Commodity prices
–
Outstanding underlying fundamentals
–
Sensitive to weather and geopolitical developments
–
Tight stock to use ratios
•
Weather and North American planting conditions
•
Supply uncertainties
–
Ma’aden timing
–
Raw material uncertainty
–
China export duties
–
Political unrest
–
South Fort Meade litigation
–
Timing of potash brownfield projects
Slide 10 |
 Have We Been Here Before?
Slide 11
Key differences between 2008 and
now:
Less
raw
material
price
pressure
Lean
distribution
pipeline,
cautious
buying
behavior
Relative
cost
of
nutrients
well
within
historic
norms
Crop Nutrient Price Index: NPK weighting based on US nutrient use from
2005/06 through 2007/08, indexed to average prices in 2000 = 100 Crop Price
Index: Crop price weighting based on US Corn/Wheat/Soybean acreage in 2007, indexed to average prices in 2000 = 100
Source: Mosaic
CROP NUTRIENT AFFORDABILITY IN THE U.S.
CROP NUTRIENT PRICE INDEX/CROP PRICE INDEX
0.5
1.0
1.5
2.0
2.5
2000
2002
2004
2006
2008
2010
CALENDAR YEAR |
 Mosaic: An Agricultural
Leader
Successful execution of our strategic
priorities is paying off:
•
•
Strong
cash
flow
and
balance
sheet
•
Potash:
–
Growing volume through expansions
•
Phosphates:
–
Operational excellence
–
Global scale and reach
–
Premium products
Slide 12
Phosphate
and
Potash
Balanced
portfolio
– |
 The Mosaic Company
Earnings
Conference
Call
-
3
rd
Quarter
Fiscal
2011
Thursday, March 31, 2011 |
 Appendix
Change
Estimated Change in
Pre-Tax Earnings
($ in millions)
Estimated
Change in Annual
EPS
MOP Price ($/tonne)
$50
$381
$0.61
Potash Volume (000 tonnes)
500
$124
$0.20
DAP Price ($/tonne)
$50
$417
$0.67
Phosphates Volume (000 tonnes)
500
$114
$0.18
Sulfur ($/lt)
$25
$90
$0.15
Ammonia ($/tonne)
$25
$45
$0.07
Natural Gas ($/mmbtu)
$0.25
$9
$0.01
(a)
These factors do not change in isolation; actual results could vary from the above
estimates Earnings Sensitivity to Key Drivers
(a)
Slide 14 |