PotashCorp.com
West Coast Investor Meetings
August 2012Bill Doyle
President and CEO
This presentation contains forward-looking statements or forward-looking information (forward-looking statements). These statements can be identified by expressions of belief, expectation or intention, as well as those statements that are not historical fact. These statements are based on certain factors and assumptions including with respect to foreign exchange rates, expected growth, results of operations, performance, business prospects and opportunities and effective tax rates. While the company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Several factors could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to: variations from our assumptions with respect to foreign exchange rates, expected growth, results of operations, performance, business prospects and opportunities, and effective tax rates; fluctuations in supply and demand in the fertilizer, sulfur, transportation and petrochemical markets; costs and availability of transportation and distribution for our raw materials and products, including railcars and ocean freight; changes in competitive pressures, including pricing pressures; adverse or uncertain economic conditions and changes in credit and financial markets; the results of sales contract negotiations with major markets; the European sovereign debt crisis and the recent downgrade of US sovereign debt and political concerns over budgetary matters; timing and impact of capital expenditures; risks associated with natural gas and other hedging activities; changes in capital markets and corresponding effects on the company’s investments; unexpected or adverse weather conditions; changes in currency and exchange rates; unexpected geological or environmental conditions, including water inflows; imprecision in reserve estimates; adverse developments in new and pending legal proceedings or government investigations; acquisitions we may undertake; strikes or other forms of work stoppage or slowdowns; changes in and the effects of, government policies and regulations; security risks related to our information technology systems; and earnings, exchange rates and the decisions of taxing authorities, all of which could affect our effective tax rates. Additional risks and uncertainties can be found in our Form 10-K for the fiscal year ended December 31, 2011 under the captions “Forward-Looking Statements” and “Item 1A – Risk Factors” and in our other filings with the US Securities and Exchange Commission and the Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this presentation and the company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Forward-looking Statements
Slide#1
SQM
ICL
APC
Nitrogen
Phosphate
(Mining/Processing)
Potash
Investments
Sinofert
Source: Fertecon; CRU; Blue, Johnson & Associates; PotashCorp
A Global Crop Nutrient Company
PotashCorp Profile
Potash Phosphate Nitrogen
% of Global Capacity 20% 5% 2%
Global Position #1 #3 #3
% of Gross Margin (2011) 64% 15% 21%
Slide#2
2003 2004 2005 2006 2007 2008 2009 2010 20110%
10%
20%
30%
40%
50%PotashCorp CFR
Source: PotashCorp
* 2012F as at July 26, 2012
PercentageGross Margin - US$ Billions
2004 2005 2006 2007 2008 2009 2010 2011 2012F*
0
1
2
3
4
5
6Potash GM Phosphate GM Nitrogen GM
Unique Potash Position Drives Earnings Growth and Strong Cash Flow Returns
PotashCorp Profile
Slide#3
Agriculture Market Overview
Less Than Ideal Conditions Have Impacted 2012 Crop Production Potential
Global Crop Condition
Adverse conditions have reduced FSU crop
expectations
Brazil is gearing up for increased corn/soybean
planting for 2012/13
Imbalance in fertility is expected to impact crop yields; current monsoon
rains are about 14% below normal levels
Key Factors to Watch in 2012:How will corn and soybean demand be rationed
Uncertainty of FSU grain export supplyCrop production response in South America
China corn and soybean import demand
High rainfall and recent heat providing good crop potential in
Western Canada
Rapid deterioration of US corn and soybean conditions. Projected corn
yield is the lowest since 1995.
Source: USDA, World Commodity Analysis Corporation, Doane, Government of India, PotashCorp Slide#5
19701973
19761979
19821985
19881991
19941997
20002003
20062009
2012F0
5
10
15
20
25
30
35
40
45
50
Chart Title
2012F refers to the 2012/13 crop year.
Percent
Tightest Stocks Level Since 1973
World Corn Stocks-to-Use
Source: USDASource: USDA Slide#6
$4.00 $5.00 $6.00 $7.00 $8.00 0
2
4
6
8
10
12
14
16
18
10- year high
10- year low
$4.00 $5.00 $6.00 $7.00 $8.00 0
2
4
6
8
10
12
14
16
1810- year high
10- year low
$4.00 $5.00 $6.00 $7.00 $8.00 0
2
4
6
8
10
12
14
16
18
10- year high
10- year low
Source: USDA, DTN, PotashCorp
Percent
Potash
Percent
Phosphate
Percent
Nitrogen
Potash and Phosphate Costs Account for Small Percentage of Projected Corn Revenue
Fertilizer Cost Percentage of US Corn Revenue
Based on DTN reported retail fertilizer prices as of August 10, 2012.
US$/bushel US$/bushel US$/bushel
Slide#7
Fertilizer Market UpdateFertilizer Market Update
India China Latin America
Other Asia
North America
World0
1
2
3
4
5
6
7
2002 2004 2006 2008 2010 2012F0
5
10
15
20
25
30
35Latin America Other Asia China India North America
Other
Percent Annualized Growth (2001-2011)
Significant Consumption Growth in Large Developing Markets
World Potash Fertilizer Consumption Growth
Source: Fertecon, PotashCorp
Million Tonnes K2O
Slide#9
Source: USDA, IPNI, PotashCorp
Application estimate does not include nutrients received from manure which can reduce the deficit on a regional basis.
Corn 110 & Soybean 34 Corn 120 & Soybean 36 Corn 130 & Soybean 382.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5Crop Removal Scenarios 2012 Estimated Potash Application
Million Tonnes KCl Equivalent
Estimated Removal Exceeds Application Even in Low Yield Scenarios
2012 US Corn/Soybean Potash Application and Removal
Yield Scenarios – bushels per acre
Slide#10
Source: IPNI, USDA, PotashCorp
2012F assumes 135 bu/acre corn & 38 bu/acre soybean yields.
Application estimate does not include nutrients received from manure which can reduce the deficit on a regional basis.
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
E
2011
E
2012
F0
1
2
3
4
5
6
7
8Potash Application Crop Removal
Million Tonnes KCl Equivalent*
Application Rates Have Not Kept Pace With Nutrient Removal
US Corn/Soybean Potash Application and Removal
Slide#11
Source: USDA, AAPFCO
-40%
-30%
-20%
-10%
0%
10%
20%
30%
7%
-9%
3%
20%
0%7% 4%
Change in US Fertilizer use (in following fertilizer year)
Year-over-Year Corn Yield Decline
Percentage Change
Fertilizer Use Increased in Majority of Fertilizer Years Following a Major Yield Decline
US Fertilizer Use Following Major Yield Declines
1970 1974 1980 1983 1988 1993 1995
Slide#12
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12E
0
2
4
6
8
10
12Domestic Shipments Offshore Imports
Million Tonnes KCl
Anticipate Strong Demand Given Low Dealer Inventories Entering 2012/13 Fertilizer Year
North American Potash Shipments vs Consumption
Destocking of inventories
built in 2010/11
Source: Fertecon, AAPFCO, TFI, PotashCorp Slide#13
20022003
20042005
20062007
20082009
2010
2011F
2012F0
20
40
60
80
100
120
20022003
20042005
20062007
20082009
2010
2011F
2012F0
20
40
60
80
100
120
140
160
2012F refers to the 2012/13 crop year.
Million Tonnes
Corn
Million Tonnes
Soybeans
Expect a Large Production Response from South America in 2012/13
South America Soybean and Corn Production
Source: USDASource: USDA Slide#14
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F0
5
10
15
20
25
30
35
2012 YTD fertilizer deliveries are up 4 percent yr/yr as of July
Million Product Tonnes
Expect Record Fertilizer Use in 2012
Brazil Fertilizer Deliveries to Final Consumer
Source: Potafertz, ANDA, PotashCorp Slide#15
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012F
0
100
200
300
400
500
600Production Consumption
Million TonnesHarvest Area – Million Hectares
19921994
19961998
20002002
20042006
20082010
2012F100
104
108
112
116
120
Despite Increased Acreage, Production Has Not Kept Pace With Demand
China Grain and Oilseed Profile
Source: USDASource: USDA Slide#16
2004 2005 2006 2007 2008 2009 2010 2011 2012F0
5
10
15
20
25
30
35
40Soybeans KCl
Source: Bloomberg, Industry Publications, PotashCorp
US$ Billions
Higher Prices and Demand Driving Up Food Import Costs; KCl Cost Fraction of Soybeans
China Soybean and KCl Import Cost
Slide#17
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12F0
10
20
30
40
50
60Million tonnes N Million tonnes P2O5 Million tonnes K2O
Source: Fertecon
Million Tonnes Nutrient
Consumption Rising But Nutrient Application Balance is an Issue
China Fertilizer Consumption
Million tonnes P2O5 Million tonnes K2O
Source: Fertecon Slide#18
00 01 02 03 04 05 06 07 08 09 10 11 120
20
40
60
80
100
120
Source: Fertecon, India Meteorological Department
Percentage of Normal Monsoon Rain (as of mid-August)N:K Application Ratio
2010 2011 2012F0
1
2
3
4
5
6
7
Unbalanced Fertilizer Application and Weak Monsoon Increases Crop Production Risk
India Market Situation
Rains less than 90 percent considered to be a drought.
Slide#19
20022003
20042005
20062007
20082009
20102011
2012F0
4,000
8,000
12,000
16,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000MOP Imports MOP Retail Prices
Rice Wheat0
2
4
6
8
10
12
142010 Potash Prices 2012 Potash Prices
Source: Fertecon, CRU, FAI, PotashCorp
Return on Potash FertilizerRs/tonne of MOP
Changes to India’s Subsidy System Have Impacted Potash Demand
India Potash Situation
Thousand Tonnes of MOP
Slide#20
Nov 19, 2010 Mar 9, 2011 May 5, 2011 April 1, 20120
50
100
150
200
250
300
350
400
450
500
69%
20%
11%
Source: Fertecon, India Department of Fertilizers
Note: Rupee to US$ conversion is at the rate of 46 Rupees per US$ for 2010-11 and 50 for 2012
Percentage of Indian Fertilizer Subsidy
US$ Subsidy per product tonne
Government Actions Counter to Agronomic Needs
Indian Fertilizer Subsidies
DAP
Potash
Urea
Nitrogen
Phosphate
Potash
Slide#21
Potash Market Overview
Source: Fertecon, CRU, IFA, PotashCorp
* PotashCorp investments: ICL (14%), APC (28%), SQM (32%) and Sinofert (22%)
Note: PotashCorp based on operational capability (estimated annual achievable production) while competitor capacity is stated nameplate, which may exceed operational capability.
Vale (Brazil)
Intrepid (US)
SQM (Chile)*
APC (Jordan)*
Agrium (Canada)
China*
K+S (Germany)
ICL (Israel,Spain,UK)*
Belaruskali (Belarus)
Mosaic (Canada,US)
Uralkali (Russia)
0 2 4 6 8 10 12 14 16 18 20
PotashCorp (Operational Capability)
PotashCorp Investments (Capacity)
Other Producers (Capacity)
Announced Expansions Through 2016
Million Tonnes KCl
PotashCorp Has Greatest Capability and Significant Offshore Equity Investments
World Potash Producer Profile
PotashCorp
Slide#23
Source: AMEC, Company Reports, PotashCorp
* New Brunswick cost per tonne based on new 2MMT mine (net addition totals 1.2MMT).
** Based on 2MMT conventional greenfield mine constructed in Saskatchewan.
PotashCorp project costs exclude infrastructure outside the plant gate.
Assuming US$/CDN$ at par
POT Projects Completed
POT Projects in Progress*
MOS Projects in Progress
AGU Project SK Green-field**
0
500
1,000
1,500
2,000
2,500
3,000
3,500Greenfield (Excluding infrastructure and reserve costs)
Greenfield (Including infrastructure and reserve costs)
Capital Cost per Tonne
New Projects Are Increasingly Expensive and Complex to Complete
Saskatchewan Brownfield & Greenfield Potash Costs
Slide#24
20022003
20042005
20062007
20082009
2010
2011E
2012F
2013F
2014F
2015F
2016F0
10
20
30
40
50
60
70
80
40
50
60
70
80
90
100
ShipmentsShipment RangeOperational CapabilityOperating Rate
* Based on percentage of operational capability (estimated annual achievable production level).
Shipment range based on 3-3.5% annualized demand growth rate (2002-2016).
Operating rate forecast based on mid-point of shipment range divided by operational capability (including announced projects; assuming typical ramp-up period for new capacity).
Operating Rate* - PercentMillion Tonnes KCl
Balanced to Tight Market Expected in the Coming Years
World Potash Supply/Demand
Source: Fertecon, CRU, IFA, PotashCorp Slide#25
Phosphate and Nitrogen OverviewPhosphate and Nitrogen Overview
05 06 07 08 09 10 11F0
200
400
600
800
1000
1200Rock Sulfur Ammonia OtherTampa DAP
Source: Fertecon, PotashCorp
US$/Tonne
Non-Integrated Producer
05 06 07 08 09 10 11F0
200
400
600
800
1000
1200Rock Sulfur Ammonia Other
Tampa DAP
Significant Advantage for Integrated Producers
DAP Production Costs
US$/Tonne
Integrated Producer
Slide#27
Aurora NC White Springs FL0
5
10
15
20
25
30
35
30
17
34%
35%
14%
17%
Source: PotashCorp
* Proven and probable reserves permitted and to be permitted as of December 31, 2011.
Including deposits classified as resources, the mine life at Aurora would be about 49 years.
Mine life is based on average annual production rate for the past three years.
Percentage of Sales by Product Category
Rock Reserve Years*
Long-lived, High-quality Phosphate Rock Supports Diverse Product Mix
PotashCorp Phosphate Profile
Industrial
Liquid
Fertilizer
Solid
Fertilizer
Feed
Slide#28
Source: Fertecon; Blue, Johnson & Associates; PotashCorp
Ukraine Port Plant
Russia - Yuzhnyy
Trinidad
Middle East
US Gulf Producer
US Midwest Producer
0 100 200 300 400 500 600 700
Cash Costs
Freight to US Gulf
Freight and Handling to US Midwest
US$/Tonne – 2012F
Interior Plants Have Significant Delivered Cost Advantage
US Midwest Delivered Ammonia Cost
Slide#29
Source: PotashCorp
* Expect to resume ammonia production at Geismar in January 2013
2011 2013F0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5Trinidad Augusta, GA Lima, OH Geismar, LA*
Million Tonnes
Increasing US Ammonia Production Capability Through Quick Payback Projects
PotashCorp Ammonia Capacity
16% Capacity Increase
Slide#30
Deploying Cash: Historical Perspective and Future Priorities
* Excluding capitalized interest and major repairs and maintenance
2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000Capital Expenditures Estimates* Cash Provided by Operating Activities
US$ Millions
Cash Flow Expected to Remain Strong
PotashCorp Capital Spending and Cash Flow
Source: PotashCorp Slide#32
Source: PotashCorp
Focused on Using Free Cash Flow to Drive Long-Term Shareholder Value
Historical Cash Flow Deployment
Opportunity Capital
$6.6 Billion since 2003
5-Year Average CFR = 24.3%
Equity Investments
$2.0 Billion since 1998
Current Market Value = $8.2 billion
Share Repurchases
$6.3 Billion since 1999
Average purchase price = $26/share
Dividend Payments
$0.9 Billion since 2002
Doubled dividend twice since January 2011
Slide#33
Source: PotashCorp
Focused on Using Free Cash Flow to Drive Long-Term Shareholder Value
Future Cash Flow Priorities
2012 2013 2014 2015 2016
Potential: Dividend Increases / Share Buybacks / M&A
Potash Brownfield Projects (Existing)
Phosphate & Nitrogen Brownfield Projects
Slide#34
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