Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MOSAIC CO | d439056d8k.htm |
| EX-99.1 - PRESS RELEASE - MOSAIC CO | d439056dex991.htm |
 Exhibit 99.2
The Mosaic Company
Focused on Execution
November 2012 |
 2
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 future financial and operating results. 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 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, implementation of the U.S. Environmental Protection Agency’s
numeric water quality standards for the discharge of nutrients into Florida
lakes and streams or possible efforts to reduce the flow of excess nutrients into the
Gulf of Mexico; further developments in judicial or administrative proceedings;
difficulties or delays in receiving, increased costs of or challenges to
necessary governmental permits or approvals or increased financial assurance
requirements; resolution of global tax audit activity; 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 regulation, or Canadian resources 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, as well
as 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.
Safe Harbor |
 Limited
arable land
Mosaic’s Role in Feeding the World
Population
Growth
Need to
Improve
Yield
Long-Term
Sustainability
Optimum use of crop nutrients is essential
to growing the food the world needs today
and tomorrow
Crop nutrients directly account for 40 to 60
percent of crop yields
World population will reach 9 billion people
by 2050*
* Source: IHS Global Insight
3 |
 Near-term Outlook |
 Current Market Conditions
Critically low grain & oilseed
stocks-to-use
Near record affordability of
crop nutrients
Strong North America fall
application
Channel risk aversion
Low river levels
Delayed India and
China contracts
Impact to Mosaic:
Unchanged 2013 forecast for record global shipments of
both phosphate and potash
Near term pressure on results
5
Strong Fundamentals
Near-term Challenges |
 6
Segment
Category
Old Guidance –
Fiscal 2013
New Guidance –
Fiscal 2013
Potash
Q2 Sales volume
Q2 MOP selling price
Q2 Operating rate
1.6 -
1.9 million tonnes
$420-
$450 per tonne
Above 70 percent
1.3 -
1.4 million tonnes
$435 -
$450 per tonne
Above 70 percent
Phosphates
Q2 Sales volume
Q2 DAP selling price
Q2 Operating rate
3.0-3.4 million tonnes
$520-
$550 per tonne
Above 80 percent
2.9-
3.1 million tonnes
$535-
$550 per tonne
Above 80 percent
Consolidated
Effective Tax Rate
Upper 20 percent
range
Mid-teens, including
discrete tax benefit
Financial Guidance Summary
Capital Expenditures, Canadian Resource Taxes & Royalties and
SG&A guidance has not been changed |
 Mosaic’s Strategic Priorities |
 8
Focused on Phosphate & Potash
Mosaic is in great position to be the world’s leading
crop nutrition company
Agriculture
•
Attractive sector
Crop
Nutrition
•
Best business
within agriculture
Phosphate
& Potash
•
Most compelling
nutrients |
 Our
Strategic Priorities People
Growth
Market Access
Innovation
Total Shareholder
Return
9 |
 People
The foundation of
our success
Invest in talent and
development
Align incentives
with TSR
10 |
 Growth
11
Increase Cash Flow
Grow volumes
Expand Product
Margins |
 Market Access
Expand reach and
impact
Lower distribution
costs
Minimize working
capital
12 |
 Industry leading
innovation in:
Drive margin
improvement
Innovation
13
•
Product
•
Process
•
Sustainability |
 Our
Strategic Priorities People
Growth
Market Access
Innovation
Total Shareholder
Return
14 |
 Financial Policy Key Component of TSR
Dividend Growth
Net Cash
*see Net Cash reconciliation on slide 18
15
-$2.4
billion
5/31/06
$1.3
billion
5/31/09
$2.8
billion
5/31/12
$0.20
December
2011
$0.50
February
2012
$1.00
July 2012 |
 16
Strategic Priority: Shareholder Value
Our TSR goal:
Top 3 among 10 global crop nutrient peers
Execute our
strategy
Deliver
strong value
Return
capital to
shareholders |
 |
 18
Net Cash Reconciliation
Net Cash
May 31,
(in millions)
2006
2009
2012
Cash and cash equivalents
$ 173.3
$ 2,703.2
$ 3,811.0
Less: Short-term debt
152.8
92.7
42.5
Current maturities of long-term debt
69.3
43.3
0.5
Long-term debt, less current maturities
2,384.6
1,256.1
1,010.0
Long-term debt due to Cargill, Inc. and affiliates
3.5
0.4
-
Net Cash
$ (2,436.9)
$ 1,310.7
$ 2,758.0 |