Brownlee. President and CFO. May 17, 2011

Transcription

1 Wayne Brownlee Executive Vice President and CFO Growing with Saskatchewan May 17, 2011 PotashCorp.com

2 PotashCorp Company Overview: A Global Fertilizer Leader

3 PotashCorp A Global Company ICL APC Sinofert Potash Phosphate (Mining/Processing) Nitrogen SQM Investments

4 World s Ten Largest Fertilizer Companies Leader in Meeting World Need for Fertilizer Million Tonnes Primary Product Capacity * Based on PotashCorp nameplate capacity Source: Blue, Johnson & Associates; Fertecon; PotashCorp; Public Filings

5 Sources of PotashCorp Income Global Company Built From a Saskatchewan Base Breakdown of Gross Margin & Other Income (2010) Investment & Other Income Net Earnings Generated in SK vs Total PotashCorp Earnings (2010) US $ Billions Phosphate Nitrogen NB Potash SK Potash Source: PotashCorp

6 The Global Development Story: Need For More Food and Fertilizer

7 World Grain Production and Consumption Grain Production Shortfall in 7 of past 11 Years Billion Tonnes Based on crop year data. For example, 2010F refers to the 2010/11crop year. Source: USDA

8 Global Crop Prices Tight Supplies Have Supported Higher Prices For Major Crops $US/Bushel $US/lbs $US/tonne Source: Bloomberg

9 Crop Production Factors and Grain Yield Balanced Fertilization Is Essential to Achieving Higher Yields in Developing Countries Production Factors Effect on Yield Grain Yield MT per Hectare* Irrigation Seed Technology Pest Control Planting Density Cultivation Practices Fertilizer 40-60% * Average Source: IPNI, USDA

10 Potash Industry Overview: A Unique Nutrient with a Promising Outlook

11 World Potash Reserves* Economically Mineable Deposits are Geographically Concentrated Canada 46% US 1% Germany 2% Israel 0.5% Jordan 0.5% Belarus 8% Russia 35% China 2% Brazil 3% Chile 1% * Share of world s potash reserves; reserves as defined by the US Geological Survey Other countries total 1 percent Source: US Geological Survey 11

12 World Potash Production and Demand Major Consuming Markets Are Dependent on Imports Million Tonnes KCl 2010E Europe FSU 3.7 North America Middle East Asia Latin America Africa Domestic Sales 0.5 Oceania Production Demand Potash Trade Source: Fertecon, PotashCorp

13 Greenfield Development Timeline Building New Potash Capacity Requires Significant Investment of Time and Capital Years to Develop US$ 1.6 billion* / 1MMT NH 3 3 years US$ 1.6 billion** / 1 MMT P years CDN$ 4.1 billion*** / 2 MMT KCl Minimum 7 years * Cost of ammonia/urea complex ** Includes phosphate rock mine, sulfuric acid plant, phosphoric acid plant and DAP/MAP granulation plant *** Estimated costs for conventional greenfield mine in Saskatchewan, excluding infrastructure outside plant gate (rail, road networks, utility systems, stems port facilities, etc.) and, if applicable, cost of deposits/reserves. es Factoring this in, total estimated costs could be between CDN $4.7-$6.3 billion Source: Fertecon, CRU, PotashCorp

14 World Potash Shipments* New Capacity Required to Meet Growing Demand Million Tonnes KCl Equivalent * Includes imports plus domestic producer sales Source: Fertecon, PotashCorp

15 World Potash Producer Profile PotashCorp Growth Potential is Unmatched Million Tonnes KCl 2010 to 2015 PotashCorp * PotashCorp investments: ICL (14%), APC (28%), SQM (32%) and Sinofert (22%) Note: PotashCorp based on operational capability while competitor capacity is stated nameplate, which may exceed operational capability. Source: Fertecon, CRU, IFA, PotashCorp 15

16 PotashCorp s Investments: Investing in Saskatchewan; Creating Opportunities

17 $5.6 billion Investment in Saskatchewan projects

18 PotashCorp s Saskatchewan Potash Capital Projects Importance of a Stable and Progressive Tax Policies CDN $ Billions * Potash expansion projects announced in 2003, 2005, 2007 and 2008 Source: PotashCorp

19 32,526 Person years of employment during construction Source: SJ Research Services

20 14,583 Jobs created once operational (direct and indirect)

21 Allan Cory Lanigan Rocanville Patience Lake Saskatoon Creating Opportunities For Saskatchewan Workers: Number of New Jobs in Saskatchewan ( )

22 PotashCorp s Saskatchewan Workforce Profile Requiring a Skilled and Trained Workforce Number of Saskatchewan Permanent Workers Source: PotashCorp

23 Building with Saskatchewan: Strong Workforce, Suppliers and Progressive Tax Structure

24 $3.2 billion in new cumulative construction GDP

25 $3.8 billion in annual GDP upon completion

26 Allan $0.4B Cory $0.9B Rocanville $1.0B Expansions Creating Opportunities For Local Vendors: Estimated Spending with Saskatchewan Vendors

27 Percentage Local Spending at Saskatchewan Operations* Ongoing Requirement for Strong Local Suppliers Percentage Target = 60% * Excludes purchases for major expansions, energy, transportation and raw materials Source: PotashCorp

28 Breadth of PotashCorp Project Spending Rocanville Local Suppliers Are Playing a Vital Role In Expansions Number of Vendors Utilized to Date *Other includes 13 jurisdictions including 10 US states, Nigeria, Poland and the UK Source: PotashCorp

29 PotashCorp Saskatchewan Tax Contributions Building Saskatchewan s Tax Base CDN $ Billions Source: PotashCorp

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