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PotashCorp 2014 Q3 earnings conference call
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PotashCorp.com
Q3 2014 Conference CallOctober 23, 2014
Forward-looking Statements
Slide#2
Third-Quarter and 2014 Highlights
• Earnings of $0.38 per share1; nine-month total of $1.33 per share
• Third-quarter 2014 cash provided by operating activities of $574 million
• Higher potash sales volumes for both the quarter and first nine months
• Improved potash realizations (up $18 per tonne from second-quarter 2014)
• Record nine-month nitrogen gross margin of $776 million
• Market value of investments; approximately $4 billion, or $5 per PotashCorp share2
1 All references to per-share amounts pertain to diluted net income per share2 As of market close on October 22, 2014
Source: PotashCorp
Slide#3
Improving Potash Fundamentals and Solid Nitrogen Performance
Quarterly Gross Margin Comparison
Q3 2013
Potash Nitrogen Phosphate Q3 2014
0
100
200
300
400
500
600
700
$484
$589+$67
+$55 -$17
Gross Margin - US$ Millions
Potash Highlights:• Higher volumes, lower costs and improved North
American realizations more than offset lower offshore prices
Nitrogen Highlights:• Increased sales volumes, higher realized prices and
slightly lower per-tonne costs all contributed to improved gross margin
Phosphate Highlights:• Higher realized prices were more than offset by
increased per-tonne costs and lower sales volumes
Source: PotashCorp
Slide#4
Lower Potash Prices Primary Driver of Reduced Gross Margin
2014 Nine-Month Gross Margin Comparison
YTD 2013
Potash Nitrogen Phosphate YTD 2014
0
500
1,000
1,500
2,000
2,500 $2,330
$1,901
-$355
+$51 -$125
Gross Margin - US$ Millions
Potash Highlights:• Higher volumes and lower costs more than offset
lower prices
Nitrogen Highlights:• Increased sales volumes and lower per-tonne costs
more than offset lower prices
Phosphate Highlights:• Production challenges and Suwannee River closure
resulted in lower sales volumes and higher costs
Source: PotashCorp
Slide#5
Market 2013 (actual)
China 11.2
India 3.1
Other Asia 7.8
Latin America 10.1
North America 8.7
Other 12.4
Total 53.3
Source: Fertecon, CRU, Industry Publications, PotashCorp
Stronger Demand in All Key Markets
2014 Global Potash Demand
2012 2013 2014F0
10
20
30
40
50
60
70
Million Tonnes KCl
Slide#6
16%
2014F (current guidance)
~12.0
~4.0
~8.8
~11.0
~10.2
~13.0
58.0-60.0
2014 Forecast per PotashCorp
Source: PotashCorp
Anticipate Demand to be Similar to 2014 Levels
2015 Global Potash Demand Considerations
Slide#7
2014 Guidance*
Full Year
• Earnings per share: $1.75-$1.85
• Potash gross margin: $1.3-$1.4 billion
• Potash sales volumes: 9.0-9.2 million tonnes
• Nitrogen and phosphate gross margin: $1.2-$1.3 billion
* Guidance as at October 23, 2014
Source: PotashCorp
Slide#8
2014 Guidance*
Full Year
• Capital expenditures**: ~$1.1 billion
• Annual effective tax rate: 27-29 percent
• Provincial mining and other taxes: 16-18 percent of total potash gross margin
• Income from offshore investments***: $205-$215 million
• Selling and administrative expenses: $235-$245 million
• Finance costs: $175-$185 million
* Guidance as at October 23, 2014
** Does not include capitalized interest
*** Represents share of earnings in equity-accounted investees and dividend income from available-for-sale investments
Source: PotashCorp
Slide#9
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