ABOUT MOSAIC & FLORIDA PHOSPHATE
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 Northern Promise Joint Venture, the acquisition and assumption of certain related liabilities of the Florida phosphate assets of CF Industries, Inc. ( CF ) and Mosaic s ammonia supply agreements with CF; repurchases of stock; other proposed or pending future transactions or strategic plans and other 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 risks and uncertainties arising from the ability of the Northern Promise Joint Venture to obtain additional planned funding in acceptable amounts and upon acceptable terms, the future success of current plans for the Northern Promise Joint Venture and any future changes in those plans; difficulties with realization of the benefits of the transactions with CF, including the risks that the acquired assets may not be integrated successfully or that the cost or capital savings from the transactions may not be fully realized or may take longer to realize than expected, or the price of natural gas or ammonia changes to a level at which the natural gas based pricing under one of the long term ammonia supply agreements with CF becomes disadvantageous to Mosaic; customer defaults; the effects of Mosaic s decisions to exit business operations or locations; 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 and other risks associated with Mosaic s international operations and those of joint ventures in which Mosaic participates, including the risk that protests against natural resource companies in Peru extend to or impact the Miski Mayo mine; changes in government policy; changes in environmental and other governmental regulation, including greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; 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 Mosaic s processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States or Canada, and including potential hurricanes, excess heat, cold, snow, 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, Canadian resources taxes and royalties, the liabilities Mosaic assumed in the Florida phosphate assets acquisition, or the costs of the Northern Promise Joint Venture, its existing or future funding and Mosaic s commitments in support of such funding; reduction of Mosaic s available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund share repurchases, financial assurance requirements and strategic investments; 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
About The Mosaic Click Company to edit Master title style Our Work World s largest combined producer and marketer of concentrated phosphate and potash Our Mission We help the world grow the food it needs Our Formation Incorporated in 2004 through the combination of IMC Global Inc. and the fertilizer businesses of Cargill Our Global Presence 8,900 worldwide employees 4,000 Florida employees 3
Mosaic s Florida Operations FishHawk Headquarters 4 Phosphate Mines 4 Manufacturing Plants 2 Ammonia Terminals 2 Marine Terminals Several other support offices
Global Phosphate Rock Production Source: Source: IFA IFA Mosaic s Phosphate Mining Operations & Joint Ventures Known Phosphate Reserves
Global Phosphate Click Rock to edit Production Master title style Mosaic is one of the largest producers of phosphate crop nutrients, with 14% of global, and 79% of North American concentrated phosphate annual production. Mosaic Phosphates is vertically integrated we own and operate the different production stages in phosphate production..from Mine to Market. Mosaic mined 17.2 million tons of phosphate from the four active mines in Florida in 2015. We also have joint ventures sourcing phosphate rock in Peru and Saudi Arabia. The Streamsong Resort in Florida was once a phosphate mining site for Mosaic. Mosaic developed the resort as part of its strategy to optimize its land ownership of finished mines. 6
Phosphate Product Click Production to edit Master title style It takes about 1.6-1.7 tons of phosphate rock to produce one ton of Di-Ammonium Phosphate (DAP). The mined phosphate rock is combined with sulfuric acid to produce phosphoric acid. The phosphoric acid is then combined with ammonia to produce phosphate concentrates. As of the end of 2015, Mosaic has phosphate reserves of 160 million metric tons. We have an additional 408 million metric tons in planned mine expansions Which would bring total phosphate reserves to 568 million metric tons. These reserves should last the company 33 more years. 7
Mosaic Economic Impact in Florida A recent study released by the Tampa Port Authority determined that phosphate accounts for two-thirds of the Port s $15.1 billion annual economic activity. In addition, the phosphate industry supports more than half of the Port s 80,000 direct, indirect and related jobs. With the acquisition of the phosphate operations of CF Industries, Mosaic now employs approximately 4,000 Floridians and supports tens of thousands of additional jobs in related fields such as manufacturing, maintenance, engineering, horticulture, environmental science, and transportation. During the 2015 calendar year, Phosphates combined economic impact in Florida included: $418 million payroll $403 million in capital expenditures $60 million in land reclamation $23 million in county tangible and real estate taxes $31 million in state severance taxes $2.3 million to United Way organizations
2016 Capital Program Phosphate Business Unit Over 480 Projects Underway 190 Projects in Planning Stage $280 +/- Million Project Categories 6% Regulatory 78% Sustaining 16% Opportunity 9
RCRA Consent Decree In September 2015, Mosaic reached accord with Governmental Agencies for environmental compliance requirements in Florida and Louisiana facilities. This RCRA (Resource Conservation and Recovery Act) agreement started the clock on 5 years worth of compliance and associated capital projects. The forecast spend for RCRA projects is in excess of $150M over the next 5 years. As part of the agreement, contractors working on RCRA projects must undergo RCRA-specific orientation prior to working on RCRA projects. 10
2016 Major Capital Projects 11 DAP 2 MicroEssentials Conversion Clay Settling Area F-9 Replace 13.8 Switchgear East/West Uncle Sam, LA Clay Settling Area L3 Construction Big Holding Tank RCRA Projects TG #3 Uncle Sam, LA SFM-6 Clay Settling Area Replace Ammonia MCC - Faustina, LA Faustina Primary Reformer Emissions Reduction Cogeneration to South Pasture Vertical Expansion- Stacking Phase2, Uncle Sam, LA Faustina 13.8 Switchgear Upgrade Gyp Stack Expansion Phase 3, New Wales Phosphoric Acid Plant Soil Heaving - Uncle Sam, LA Active Water Return Flume Liner/Pipe - Uncle Sam LA Project totals in the range of $5 Million to $220 Million each
Mosaic Invests Beyond Florida Phosphate Ma aden Wa ad Al Shammal Phosphate Company; a joint venture between Mosaic, Ma aden* and SABIC* to build and operate a new phosphate mine and manufacturing facility in Saudi Arabia (forecast to be operational in 2016) Miski Mayo joint venture with Vale and Mitsui on a phosphate mine in Bayovar, Peru Two phosphate fertilizer manufacturing facilities operating in Louisiana since 1968 Other Operations Potash facilities in Canada and New Mexico Offices, warehouses, blending facilities, and marine terminals in North America, South America, Australia and Asia We research advanced technologies to extend the life of phosphate resources and operate sustainably. *The Saudi National Mining Company (Ma aden) *Saudi Basic Industries Corporation (SABIC)