EX-99.1 2 d608799dex991.htm PRESENTATION BEING MADE BY THE MOSAIC COMPANY ON OCTOBER 7, 2013 Presentation being made by The Mosaic Company on October 7, 2013
October 7, 2013
Mosaic Analyst Day 2013
Exhibit 99.1


Safe Harbor
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 numeric water quality standards for the
discharge of nutrients into Florida waterways or possible efforts to reduce the flow of excess nutrients into the Mississippi River basin
or the Gulf of Mexico; further developments in judicial or administrative proceedings, or complaints that Mosaic’s operations are
adversely impacting nearby farms, business operations or properties; 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; the ability of the Northern Promise
joint venture among Mosaic, Ma’aden and SABIC to obtain project financing in acceptable amounts and upon acceptable terms, the
future success of current plans for the joint venture and any future changes in those plans; adverse weather conditions affecting
operations in Central Florida or the Mississippi River basin or the Gulf Coast of the United States, and including potential hurricanes,
excess rainfall or drought; 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; brine inflows at Mosaic’s Esterhazy, Saskatchewan, potash mine or other potash shaft mines; other accidents and
disruptions involving Mosaic’s operations, including 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.
2


Speakers
James T. Prokopanko, President and Chief
Executive
Officer,
joined
Mosaic
as
Executive
Vice
President and Chief Operating Officer in 2006.
Previously, Prokopanko was a Corporate Vice
President at Cargill, Incorporated, where he had
executive responsibility for procurement and served as
a leader of the Cargill Ag Producer Services Platform.
After joining Cargill in 1978, he served in a wide range
of leadership positions, including Vice President of the
North American crop inputs business.
Joc
O'Rourke,
Chief
Operating
Officer,
joined
Mosaic as Executive Vice President, Operations in
2009. Previously, O'Rourke was President, Australia
Pacific for Barrick Gold, the largest gold producer in
Australia. He was responsible for the Australia Pacific
business unit, consisting of gold and copper mines in
Australia and Papua New Guinea. O'Rourke has more
than 25 years of experience in mining and processing
operations and has held senior management roles in
Canada, Papua New Guinea and Australia.
Larry W. Stranghoener, Chief Financial Officer,
joined The Mosaic Company in 2004. Prior to joining
Mosaic, Stranghoener served as Executive Vice
President and Chief Financial Officer at Thrivent
Financial for Lutherans. Before that, Stranghoener
spent 17 years at Honeywell, Inc. where he served in a
variety of positions in the United States and Europe,
including three years as Chief Financial Officer.
Stranghoener started his career as an Investment
Analyst at Dain Rauscher.
Rick N. McLellan, Senior Vice President,
Commercial,
held
several
roles
for
the
company,
including Vice President, North American Sales and
Country Manager for Mosaic Fertilizantes in Brazil.
Before serving as Country Manager, McLellan had
leadership responsibility for fertilizer distribution, import
and production in Brazil. Prior to the formation of
Mosaic, he held various roles in Cargill, Incorporated
Canadian and U.S. operations, including grain, retail
and wholesale fertilizer distribution.
Floris A. E. Bielders, Vice President,
International
Distribution,
joined
Mosaic
in
2004. He was responsible for Mosaic’s global
phosphate and potash product management
operations, with primary responsibility for pricing,
before moving into his current role in May 2012.
Before joining Mosaic, Bielders worked for Cargill 
in seven countries and in various capacities
in
grain and oilseeds origination , ocean
transportation and fertilizer.
3


Agenda
Mosaic’s Strengths & Strategy
Jim Prokopanko, Chief Executive Officer
Mosaic’s Operations Strategy
Joc O'Rourke, Chief Operating Officer
Mosaic’s Go-to-market Strategy and
Product Innovation at Mosaic
Floris Bielders, VP International Distribution
Rick McLellan, Senior VP Commercial
Financial Management & Implications
Larry Stranghoener, Chief Financial Officer
Concluding Remarks
Jim Prokopanko, Chief Executive Officer
Q&A
20 minutes
30 minutes
30 minutes
30 minutes
10 minutes
60 minutes
4


A Powerful Portfolio of Assets
5


6
Mosaic: Global Operations


7
North American Phosphate Operations


8
Mosaic: Phosphate Operations


9
Phosphate Assets
Well positioned on the global cost curve
*Excludes all other high analysis finished phosphate products
2013 DAP Industry Cost Curve fob Tampa*
Million Tonnes
0
50
100
150
200
250
300
350
400
450
500
550
600
0
5
10
15
20
25
30
35
40
US$/Tonne
Source: CRU
and Mosaic


10
North American Potash Operations


11
Potash Operations


12
Potash Assets
Flat global cost curve minimizes advantages
Brine Mgt
0
25
50
75
100
125
150
175
200
225
250
275
300
0
10
20
30
40
50
60
70
US$/Tonne
Million Tonnes
2013 MOP Industry Cost Curve fob Port
Source:  CRU and Mosaic


13
China Distribution


14
India Distribution


15
Brazil Distribution


Mosaic’s Strengths
16


17
A Culture of Innovation


18
A Culture of Innovation


19
Excellent Execution


20
Financial Strength
Surplus Cash
Debt Capacity
Redeployment


21
Culture and Values


22
External Recognition of Mosaic’s Success


Mosaic’s Strategy
23


24
Our Strategic Priorities
People
Invest in talent and development so that
Mosaic is known as a company where
people want to work and grow
Growth
Grow our production of essential crop
nutrients and operate with increasing
efficiency
Market Access
Expand our reach and impact by
continuously strengthening our
distribution network
Innovation
Build on our industry-leading product,
process and sustainability innovation
Shareholder Value
Deliver strong financial performance
and provide meaningful return to our
shareholders


25
Feeding the World: Responsibility and Opportunity


26
The Drivers of Our Success: Growing Demand
Source: United Nations
Global Population Growth
Estimated
U.N. High
U.N. Medium
Actual


27
The Drivers of Our Success: Growing Demand
Region
1964-66
1997-99
2030
Developing
10.2
25.5
36.7
Near East and North Africa
11.9
21.2
35.0
Latin America
31.7
53.8
76.6
Asia
12.6
43.0
70.2
Per capita meat consumption, kg/year
Source: World Health Organization
Growing Demand for Protein


Based on long term population and GDP forecasts,
grain and oilseed demand is projected to increase from
2.74 billion tonnes in 2011/12 to 3.09 billion tonnes in
2020/21 and to 4.43 billion tonnes in 2050/51.
The 350 million tonne increase required by the end of
this decade is roughly equal to the combined (and
outstanding) harvests of Argentina, Brazil and Canada
in 2012!  (The ABCs)
The Food Story by the Numbers
The Challenge and Opportunity
Farmers will need to plant record area and reap record
yields year after year in order to meet the projected
demand for agricultural commodities.
And more planted area and steady yield increases will
require more plant nutrients.
The ABCs of the Food Story
1,000
1,500
2,000
2,500
3,000
3,500
80
85
90
95
00
05
10
20
30
Mil Tonnes
Source:  USDA and Mosaic
World Grain and Oilseed Use
Actual for Biofuels
Actual
Forecast for Biofuels
Forecast
1.75
2.00
2.25
2.50
2.75
3.00
3.25
3.50
3.75
775
800
825
850
875
900
925
950
975
80
85
90
95
00
05
10
15
20
25
30
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
28


29
Farm Economics: Strong Across the Globe
0.50
0.75
1.00
1.25
1.50
1.75
05
06
07
08
09
10
11
12
13
Plant Nutrient Affordability
Plant Nutrient Price Index / Crop Price Index
Affordability Metric
Average
Source: Green Markets, CME,
USDA, AAPFCO, Mosaic
0
20
40
60
80
100
120
140
80
83
86
89
92
95
98
01
04
07
10
13F
Bil $
U.S. Net Cash Income
Government Payments
Market
Source: USDA


30
Helping the World Grow the Food it Needs


31
Mosaic’s Operations Strategy
Mosaic Analyst Day 2013


32
32
Free Cash Flow Growth
Strategic
Investments
P
Expansions
Underway
K
Margins
Expansions via:
Cost Management
Premium Products
Both
and sustaining capital expenditure reductions


Grow Phosphates Volume
Miski Mayo
Saudi Arabia JV
33


0%
5%
10%
15%
20%
25%
30%
35%
0
500
1,000
1,500
2,000
2,500
FY 09
FY 10
FY 11
FY 12
FY 13
Margin $
Margin %
34
Phosphates Margin History
Phosphate manufacturing margin history


Grow Phosphates Margins
Mined rock cost trends
Conversion cost trends
35
$36
$35
$37
$39
$33
$46
$45
$50
$52
$44
$20
$25
$30
$35
$40
$45
$50
$55
FY 09
FY 10
FY 11
FY 12
FY 13
2018
$/Tonne
Fiscal Year Ending May 31
Mosaic Rock Production Costs
Cash Cost
Total Cost
$77
$67
$66
$74
$79
$50
$55
$60
$65
$70
$75
$80
FY 09
FY 10
FY 11
FY 12
FY 13
2018
$/Tonne
Fiscal Year Ending May 31
Mosaic Chemical Plant Conversion Costs


Phosphates Sustaining Capital Expenditure
36
Sustaining CapEx
0
50
100
150
200
250
300
350
400
FY 09
FY 10
FY 11
FY 12
FY 13
FY 18
Depreciation Expense


Grow
Potash
Volumes
Expansion
Update
37


Grow Potash Volumes –
Esterhazy K3 Update
38


Grow Potash Volumes –
Esterhazy K3 Optionality
39


Potash Margin History
MOP realized price 
fob plant, $/tonne
$ 521
$ 352
$ 359
$ 448
$ 405
Operating Rate
65%
57%
80%
81%
79%
Potash Gross Margin Rate
40
53%
48%
48%
49%
46%
30%
35%
40%
45%
50%
55%
2009
2010
2011
2012
2013


Potash Margin Leverage
*Actual operating rate of 79%
41
Esterhazy
Belle
Plaine
Colonsay
Carlsbad
Mosaic
$100
$140
$180
$220
$260
$80
$100
$120
$140
$160
$180
$200
Cash Costs (including royalties, excluding resource taxes)
Production Costs by Mine -
Fiscal 2013*
$/Tonne


Potash Margin Leverage
*Actual operating rate of 95%
**Production costs are reflective of actual costs during the quarter. These costs are captured in inventory and are not  
necessarily reflective of costs included in costs of goods sold for the period
Esterhazy
Belle
Plaine
Colonsay
Carlsbad
Mosaic
$100
$140
$180
$220
$260
$80
$100
$120
$140
$160
$180
$200
Cash Costs (including royalties, excluding resource taxes)
Production Costs by Mine -
FY13 Q4*
$/Tonne
42


Potash Cost Curve
43
Well positioned to deliver value today
Brine Mgmt
2013 MOP Industry Cost Curve
Delivered Midwest Retailer


Potash Cost Curve
Brine Mgmt
2013 MOP Industry Cost Curve Delivered China
44


Esterhazy K3 Optionality
Brine management costs = $0
K3 scenario results in $30 per
tonne reduction in average
costs/tonne.
Mosaic moves from third quartile
to near lowest cost producer
Impact
Future MOP Industry Cost Curve fob Port
45


Manage Sustaining Capital Expenditure
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
FY 09
FY 10
FY 11
FY 12
FY 13
FY 18
Sustaining CapEx
Farfield CapEx Inflow
Depreciation Expense
46


47
Summary
A track record of successful strategic investments
Cost competitive and focused on further improving
margins in both businesses
Building optionality within potash operations
Optimizing sustaining capital spending across
enterprise


48


Mosaic’s Go-to-Market Strategy
Mosaic Analyst Day 2013
49


50
Product destinations
Mosaic’s access-to-market strategy
Highlight two examples
North America
Brazil
Market Access: Agenda


Phosphates: Destinations
Phosphates: Destinations
Deliberate destination shift
63%
77%
Million Tonnes
Optimizing logistics
51


Phosphates: Product Mix Shift
Million tonnes
52
42%
62%


Potash: Primary Destinations
FY13 in million tonnes
53


54
Mosaic Uses Four Complementary Channels to Market


55
Focus on logistics
Strong customer relationships with
long-term agreements
Exclusive space
Premium product differentiation
Portfolio approach
Mosaic’s Access to Market Strategy


North America: Home Court Advantage
56


North America: Home Court Advantage
57


International Distribution
Alignment with upstream production
Excellent premium products channel 
Value capture of premium products
Market intelligence
Advantages of owned market access
Quick facts
4.5 million tonnes (FY13)
Two-thirds from Mosaic production
Owned port facilities in Brazil, India
and Argentina
Brazil
India
Argentina
China
Chile
58


Brazil Distribution: Why Invest in Brazil?
59
Brazil 2012 Global Production Rank
Coffee 1
Oranges 1
Soybeans 2
Sugar Cane 1
Corn 3
Source: USDA
0
20
40
60
80
100
120
140
160
180
200
0
10
20
30
40
50
60
60/61
70/71
80/81
90/91
00/01
10/11
Million
tonnes
Million
hectares
Brazil Grain and Oilseed Harvested Area and Production
Harvested Area
Production
st
st
nd
st
rd


60
Brazil Distribution: Why Invest in Brazil?
Million tonnes
Brazil Fertilizer Supply           


61
Brazil Distribution: Why Invest in Brazil?
MOP Supply           
Phosphate Products Supply
Million tonnes
Million tonnes


Mosaic Brazil 5-Year Growth Strategy
62
Uberaba
Passo Fundo
Rio Verde
Sorriso
Rio Grande
Current Mosaic
facilities
Approved projects
Candeias
$300 million planned investment
in blend capacity / port access
Focus on phosphate and potash
Grow owned blend capacity by
more than 3 million tonnes by
2018
Attractive standalone returns plus
upstream benefits
Paranaguá
Fospar


Passo Fundo
Rio Verde
Sorriso
Rio Grande
São Luiz
Miritituba
Current
Mosaic
facilities
Logistics driven opportunities: 
Imports shift from South to North
Shift from less truck to more river / rail
Small bags to big bags to bulk
Reduce vessel demurrage
Fospar port in Paranagua:
capacity growth project
Fospar
Paranaguá
Uberaba
Logistics Opportunities
63


64
Mosaic has…
Many channels for distribution
Strong positions in growing geographies
Excellent customer relationships
A clear strategy for growth in Brazil
Summary


65


Product Innovation at Mosaic
Mosaic Analyst Day 2013
66


67
Premium Products


Innovation: Growing Demand
Crop nutrients drive up to 60 percent of grain yields
68


Innovation: Mosaic’s Growing Portfolio
More in the pipeline…
69


Premium Products Strategy
70


MicroEssentials
®
: Differentiators
71


MicroEssentials
®
Incremental Value (estimated)
2% Yield
Gain
4% Yield
Gain
Assumes $5.50/bu corn price
*MicroEssentials
®
SZ™
72
$17
$36
$147
$376


Premium Products: Value Sharing
Creating value is important.
Sharing
value is critical to long-term success.
73
Mosaic & Retail
~40%
Farmer
~60%


Volume Growth
74
Expectations
Historical
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
FY09
FY10
FY11
FY12
CY13
CY15
CY17
Historical
2013 10
-
yr Plan (MID)
2013 10-yr Plan (HIGH)
MicroEssentials ®
Capability


Building on Our Success
2205: increasing yields and return on
investment
Uniform nutrient distribution in one
granule
Improved operational efficiency
Coming soon: A new potash product
75


Why a Premium Potash Product?
Meeting another customer need
Without 2205
With 2205
One extra row of kernels equals 8 extra bushels, or $44 per acre
Assumes $5.50/bu corn price
76


2205: Benefits for the Retailer
Creates value through higher yields
Mosaic relationship support
Convenient storage, blending and
application
Differentiation builds lasting
relationships
77


Customers –
Selective Distribution Strategy
Real growth—in both volume and value
78
0
50
100
150
200
250
FY08
FY09
FY10
FY11
FY12
FY13
MicroEssentials®
-
Retailer A
MicroEssentials®
-
Retailer B


79
Promoting Our Innovation


80


Financial Outlook
Mosaic Analyst Day 2013
81


Our Strategic Priorities
82


Growing Global Demand
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
80
85
90
95
00
05
10
20
30
40
50
World Grain and Oilseed Use
Source: USDA and Mosaic
Actual for Biofuels
Actual
Forecast for Biofuels
Forecast
83


Phosphates Near Term Outlook
Global Phosphate Shipments
51
47
52
59
62
63
63-64
64-66
30
35
40
45
50
55
60
65
70
00
01
02
03
04
05
06
07
08
09
10
11
12
13F
14F
Narrowed 2013 range. Expect continued growth in 2014.
84
Source: Fertecon and Mosaic


Phosphate Production,
Capacity and Operating Rate
85
65%
70%
75%
80%
85%
90%
95%
0
20
40
60
80
100
120
2000
2004
2008
2012
2016
2020
Capacity
Production
Op Rate
Phosphates Medium Term Supply and Demand


2018 Phosphates Cost Curve
*Excludes all other high analysis finished phosphate products
2018 DAP Industry Cost Curve fob Port
Likely Demand
0
50
100
150
200
250
300
350
400
450
500
550
600
0
5
10
15
20
25
30
35
40
US$/Tonne
Million Tonnes
Likely
Demand Scenario:
38.4 million tonnes
Source:  CRU and Mosaic
86


Phosphates Manufacturing Scenarios
1. Assumes ammonia plant benefit
2. Difference between gross margin and cash margin includes deductions for depreciation, depletion and amortization, Ma’aden
which would be treated as equity investment under US GAAP and not included in operating earnings, and other non cash charges.
Assumptions
1.
All Scenarios
1.
Mosaic weighted average DAP
cash costs = $225/tonne
2.
Mosaic own DAP/MAP/MES
volumes = 7.9 million
tonnes/year
3.
Ma’aden JV offtake = 750k
tonnes/year
4.
MicroEssentials®
volumes =
40-50% of total
2.  Low (marginal cost)
3.  Medium
4.  High
87
$ 2.7 B
$2.1 B
$1.5 B
High
Medium
Low
2018 Phosphate Cash Margin
Cash Margin
Ma'aden + MicroEssentials®
1.
DAP Market price =
$380/tonne fob Plant
1.
DAP Market price =
$450/tonne fob Plant
1.
DAP Market price =
$520/tonne fob Plant


Potash Near Term Outlook
88
Lowered and narrowed 2013 range. Modest growth in 2014.
Source: Fertecon and Mosaic
Global Potash Shipments


Potash Medium Term Supply and Demand
89
Capacity
Production
Operating Rate
40%
50%
60%
70%
80%
90%
100%
0
10
20
30
40
50
60
70
80
90
2000
2004
2008
2012
2016
2020
Potash Production, Capacity and Operating Rate


2018 Potash Cost Curve Position
90
Source: Fertecon and Mosaic
US$/Tonne
2018 MOP Industry Cost Curve fob Port
0
25
50
75
100
125
150
175
200
225
250
275
300
0
10
20
30
40
50
60
70
Million Tonnes


Potash Cash Margin Scenarios
Assumptions
1.
All Scenarios
1.
Mosaic costs = $102/tonne*
2.
Later K3 Optionality not
included
2.  Low
3.  Medium
4.  High
*
Assumes
constant
costs/tonne.
Higher volumes will improve per tonne
productivity
Difference between gross margin and cash margin includes deductions for depreciation, depletion
and amortization, Canadian Resource Taxes and other non cash charges.
91
$ 3.5 B
$2.3 B
$1.0 B
High
Medium
Low
2018 Potash Cash Margin
1.
Market price = $199/tonne 
fob mine
2.
Mosaic  MOP volumes = 9.3
million tonne/year
1.
Market price = $334/tonne
fob Mine
2.
Mosaic  MOP volumes = 9.0
million tonne/year
1.
Market price = $437/tonne
fob mine
2.
Mosaic MOP volumes = 9.8
million tonne/year
Later K3 Optionality = $30 costs/tonne reduction


Difference between gross margin and cash margin includes deductions for depreciation, depletion and
amortization, Canadian Resource Taxes,  Ma’aden  which would be treated as equity investment under US
GAAP and not included in operating earnings, and other non cash charges.
92
$6.4 B
$4.5 B
$2.7  B
High
Medium
Low
Cash Margin
Consolidated View –
Cash Margin


Consolidated View –
Operating Income
93
Assumptions
1.
SG&A expenses = $380
million
2.
Resource Taxes = 15%
of gross margin before
CRT
3.
DD&A = $850 million
FY 2013 = $2.2 billion
$4.7 B
$3.0 B
$1.4 B
High
Medium
Low
Pre Tax Operating Earnings


Investments/Capital Allocation
Hurdle Rates
WACC               
Country/External Risk          0%
-
4.8%
Project Risk                        1.0%
-
9.7%
Required Return             10.3%
-
23.8%
Probability of meeting or
exceeding required return
94
9.3%
Rigorous process to evaluate and prioritize investments


Investment Proofs
95
Plant
Planned
Expansion
Tonnes
Estimated
Capital
Costs/Tonne
Estimated ROI
Esterhazy K2
800,000
$807
19.9%
Belle Plaine
570,000
$932
16.2%
Colonsay
500,000
$1,448
14.4%
Economic Assumptions
1.
2.
$335 per metric tonne netback
75% operating rate


Estimated Future Capital Investments:
Sustaining and Growth
in billions
* Not fully approved investments
Calendar year
Estimated Future Capital Investments
96
$0.0
$0.5
$1.0
$1.5
$2.0
2013
2014
2015
2016
Sustaining
Potash Mines
Ma'aden JV
International & Supply Chain*
Ammonia Plant*


Unchanged Balance Sheet Targets
97
Our primary objective is to maintain a solid investment
grade rating and financial flexibility
Contingent
Capital
Long term
Target
Cash
Committed
Lines
$ in billions
multiple
0
1
2
Liquidity
0
1
2
Adjusted
Debt / EBITDA


Current Balance Sheet Strength
Surplus Cash
Debt Capacity
Redeployment
98


Cash Use Priorities
99


Returns to Shareholders
100
Disciplined approach to return meaningful capital via share repurchases
Capital Return History
in billions
Calendar year
Favor share repurchases
Able to execute after November 26,
2013
Favor share repurchases over
special dividends
Mix of opportunistic buy-back and
time-period averaging
Per share growth correlated to
business growth
$0.0
$0.5
$1.0
$1.5
$2.0
2008
2009
2010
2011
2012
2013
Dividends
Repurchases
Near-Term
Post A-Share Resolution
Dividend Growth Expectations


101
Implications for Total Shareholder Return
TSR
Share Price
Dividends
Profitability
(ROI)
Growth
(Investments)
Free Cash
Flow


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