graphs - nutrien€¦ · q2 q3 q4 source: potashcorp earnings per share ($) annual 2015 actual,...

GRAPHS 2015 Annual Integrated Report

2015 PotashCorp AIR Graphs

0

2

4

6

8

10

2050F2040F2030F2020F20102000

Source: United Nations

Global Population(billions of people)

0

1

2

3

4

5

2050F2040F2030F2020F20102000

Source: FAO, USDA

Global Crop Production(billion tonnes)

0 1 2 3 4 5 6 7 8

Potash

Phosphate

Nitrogen

* See Page 48 for cost assumptions.

Source: AMEC, Fertecon, CRU, PotashCorp

Minimum3 years

US$1.8-2.0 billion/1MMT NH3

Minimum3-4 years

US$5.1 billion/1MMT P2O5

Minimum7 years

CDN$5.2-6.8 billion/2MMT KCl

Greenfield Development Costs*(years to develop)

Why PotashCorp?

0

10

20

30

40

Feed/IndustrialFertilizer

* Excludes the impact of natural gas hedges

Source: PotashCorp

PotashCorp’s Combined Nitrogen/Phosphate Gross Margin Profile*2015 (percentage of net sales)

0

5

10

15

20

Potential Current

* Post-expansion; assumes fully staffed and ramped-up operations. Operational capability will be staffed and ramped up according to anticipated market demand and PotashCorp’s supply requirements.

Source: PotashCorp

Operational Capability Opportunity*(million tonnes KCl)

Other

Belaruskali

Uralkali

Mosaic

PotashCorp

* Refers to nameplate capacity, which may exceed operational capability (estimated annual achievable production)

Source: Fertecon, CRU, company reports, PotashCorp

Global Potash Capacity(percent KCl capacity*)

PotashCorpMosaicUralkaliBelaruskaliOther

20%


CEO Letter

0

1,000

2,000

3,000

4,000

2015201420132012201120102009200820072006

Source: PotashCorp

Cash Provided by Operating Activities($ millions)

0

20

40

60

80Forecasted Shipment Range

Shipments

2020F2018F2016F20142012201020082006

Source: Fertecon, CRU, IFA, PotashCorp

Global Potash Shipments(million tonnes KCl)

Shipments Forecast Shipment Range

Company Overview

Offshore

North America

North America Offshore

70%

30%Offshore

North America


16%

84%

Offshore

North America


26%

74%

Feed & Industrial

Fertilizer

Fertilizer Feed & Industrial

10%

90%

Feed & Industrial

Fertilizer


66%

34%Feed & Industrial

Fertilizer


40%

60%

Our Business Segments (2015) POTASH NITROGEN PHOSPHATE

Share of Global Capacity 1

Sales Volumes by Product Category

Contribution to Gross Margin

Sales Volumes by Region

20%

58%

2%

31%

3%

11%

K

K

N

N

P

P


0

1

2

3

4

PhosphateNitrogenPotash

Source: CRU, Fertecon, IFA, PotashCorp

2.5-3.0%

1.5-2.0%

1.5-2.5%

Fertilizer Consumption Growth Rate Forecast(percentage annual long-term global growth rate)

0

2

4

6

8

10

UkraineEurope SpotTrinidadUSRussia

Source: Fertecon, Bloomberg, PotashCorp

Global Natural Gas Costs2015E ($US/MMBtu)

0

20

40

60

80

Non-integratedIntegrated

Source: CRU, company reports, PotashCorp

Global Phosphate Production2015 (percentage of global production)

Operating Environment

Competitive Advantages

Feed & Industrial

Fertilizer

Feed & Industrial

Fertilizer

Feed & Industrial

Fertilizer

Feed & Industrial

Fertilizer

* Based on ammonia directed to each product category

Source: Fertecon, PotashCorp

Nitrogen ProfilePotashCorp focused on industrial markets


* Based on phosphoric acid directed to each product category

Source: CRU, IFA, PotashCorp

Phosphate ProfilePotashCorp significantly more diverse


90%

10%

40%

60%

Global Phosphoric Acid Use* (2015) PotashCorp Sales Volumes by Category (2015)

77%

23%

66%

34%

Global Ammonia Use* (2015) PotashCorp Sales Volumes by Category (2015)

Feed & Industrial

Fertilizer

Feed & Industrial

Fertilizer

Feed & Industrial

Fertilizer

Feed & Industrial

Fertilizer

* Based on ammonia directed to each product category


Nitrogen ProfilePotashCorp focused on industrial markets


* Based on phosphoric acid directed to each product category

Source: CRU, IFA, PotashCorp

Phosphate ProfilePotashCorp significantly more diverse


90%

10%

40%

60%

Global Phosphoric Acid Use* (2015) PotashCorp Sales Volumes by Category (2015)

77%

23%

66%

34%

Global Ammonia Use* (2015) PotashCorp Sales Volumes by Category (2015)


Source: PotashCorp

Our North American Distribution Points

North

CornbeltWest

Southeast

Northeast

31

14822

161

24

How We Approach Governance

0

20

40

60

80

100Cash

DSUs

201520142013201220110

3

6

9

12

15DSU

Stock held personally

1 Including Board nominees, except the CEO, at our upcoming annual general meeting in May 2016. As at February 22, 2016.

Note: All Board members meet the minimum ownership requirements.

Source: PotashCorp

Remuneration(percentage)

Board 1 Ownership($ millions)

Stock held personally DSUDSU Cash

0

5

10

15

20

25

30

Target

Actual

20152014201320122011

0

20

40

60

80

100

20152014201320122011

0

5

10

15

20

25

30

WACC

CFR

20152014201320122011

0

20

40

60

80

100

2013 Vesting

2013-2015)

2012(Vesting

2012-2014)

2011(Vesting

2011-2013)

0

20

40

60

80

100

Strike priceVested options 2015 average share price

1 See reconciliation of non-IFRS measure on Page 88.

Source: PotashCorp

CFR 1

(percentage)Actual Target

Plan Payout(percentage of maximum)

63%

47% 50%

67%

47%

1 See reconciliation of non-IFRS measure on Page 88.

Source: PotashCorp

CFR 1 vs Weighted Average Cost of Capital (WACC)(percentage)

CFR WACC

Vested Options by Plan Year(percentage) ($ per share)

$52

$39

$28

$44


0 2 4 6 8 10 12 14

SecurityAboriginal

Safety/EnvironmentalCompensation/Human Resources

GovernancePublic Policy

General Business ManagementChemical Industry

Mining IndustryLegal

Global Senior Executive ManagementInvestment Banking

AccountingFinance

Information TechnologyAgricultural/Industrial Technology

Transportation IndustryGlobal/International Commerce

AgricultureGlobal AgricultureFertilizer Industry

Board Skills 1

(number of directors)

1 Skills of Board nominees at our upcoming annual general meeting in May 2016.

Source: PotashCorp

0

1

2

3

4

5

10-15 years5-9 years0-4 years

1 Tenure of Board nominees at our upcoming annual general meeting in May 2016.

Source: PotashCorp

Board Tenure 1

(number of director nominees and years on Board)

Financial OutlookPotashCorp’s Guidance2016 Guidance vs 2015 Actual Results

2015 Actual Results

Source: PotashCorp

8.3 MMT to 9.1 MMT

$0.8B to $1.1B

$0.90 to $1.20

$0.7B to $0.9B

$120M to $140M

$(210)M to $(220)M

22% to 24%

25% to 27%

$(240)M to $(250)M

Potash sales volumes (included in potash gross margin below)

Potash gross margin

Nitrogen and phosphate gross margin

Share of earnings of equity-accounted investees and dividend income

Selling and administrative expenses

Finance costs

Annual effective tax rate

Provincial mining and other taxes as a percentage of total potash gross margin

Earnings per share

2016 Guidance

8.8 MMT

$1.3B

$1.0B

$171M

$(239)M

$(192)M

26%

23%

$1.52


0.0

0.5

1.0

1.5

2.0

Annual upper guidance

Annual (2014 actual, 2015 guidance)

2016E20152016E20150.00

0.50

1.00

1.50

2.00



2016E2015

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Source: PotashCorp

Gross Margin by Nutrients ($ billions)

Annual 2015 actual, 2016 guidance Annual upper guidanceQ1Actual:

Potash Nitrogen & Phosphate

Q2 Q3 Q4

Source: PotashCorp

Earnings per Share ($)

Annual 2015 actual, 2016 guidance Annual upper guidanceQ1Actual: Q2 Q3 Q4

1.52

1.20

0.90

1.31.1

1.0 0.9

0.70.8

0.0

0.5

1.0

1.5

2.0



2016E20152016E20150.00

0.50

1.00

1.50

2.00



2016E2015

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Source: PotashCorp

Gross Margin by Nutrients ($ billions)

Annual 2015 actual, 2016 guidance Annual upper guidanceQ1Actual:

Potash Nitrogen & Phosphate

Q2 Q3 Q4

Source: PotashCorp

Earnings per Share ($)

Annual 2015 actual, 2016 guidance Annual upper guidanceQ1Actual: Q2 Q3 Q4

1.52

1.20

0.90

1.31.1

1.0 0.9

0.70.8

-60

-50

-40

-30

-20

-10

0

DXAGSector Average*PotashCorp0

5

10

15

20

25

30WACC

CFR

20152014201320122011

Source: Bloomberg, PotashCorp

Total Shareholder Return 2015 (percentage)

Source: PotashCorp

PotashCorp’s Cash Flow Return 1 (percentage)

CFR WACC

-60

-50

-40

-30

-20

-10

0

DXAGSector Average*PotashCorp0

5

10

15

20

25

30WACC

CFR

20152014201320122011

Source: Bloomberg, PotashCorp

Total Shareholder Return 2015 (percentage)

Source: PotashCorp

PotashCorp’s Cash Flow Return 1 (percentage)

CFR WACC

Strategic Priorities and Targets

Portfolio & Return OptimizationMaximize returns for our assets and explore other value creation opportunities

Operational ExcellenceImprove our competitive position through reliability, productivity and flexibility

0

30

60

90

120

150Depreciation and Amortization

Cash-related Cost of Goods Sold

2016 Target2015201420130

20

40

60

80

100

2016 Target

2015

TrinidadUS

* Cash-related cost refers to total cost of goods sold less depreciation and amortization; as compared to 2013 levels (not adjusted for inflation or changes to depreciation and amortization). Target assumes successful ramp-up of expansions at lower-cost facilities and excludes the impacts of foreign exchange and royalties.

Source: PotashCorp

PotashCorp’s Potash Cost of Goods Sold($ per tonne)

Cash-related cost of goods sold* Depreciation and amortization

Source: PotashCorp

PotashCorp’s Ammonia Operating Rates2015 (percentage)

2015 2016 Target

0

30

60

90

120

150Depreciation and Amortization

Cash-related Cost of Goods Sold

2016 Target2015201420130

20

40

60

80

100

2016 Target

2015

TrinidadUS

* Cash-related cost refers to total cost of goods sold less depreciation and amortization; as compared to 2013 levels (not adjusted for inflation or changes to depreciation and amortization). Target assumes successful ramp-up of expansions at lower-cost facilities and excludes the impacts of foreign exchange and royalties.

Source: PotashCorp

PotashCorp’s Potash Cost of Goods Sold($ per tonne)

Cash-related cost of goods sold* Depreciation and amortization

Source: PotashCorp

PotashCorp’s Ammonia Operating Rates2015 (percentage)

2015 2016 Target


0

20

40

60

80

100

Peer AveragePotashCorp

Source: PotashCorp

Average Customer Survey Score vs Peers2015 (percentage)

0

1

2

3

4

5

201520142013201220110

10

20

30

40

20152014201320122011

Source: PotashCorp

Average Community Survey Score(score out of 5)

Source: PotashCorp

Community Investment($ millions)

Customer & Market DevelopmentEncourage product demand and support customer growth

Stakeholder Communications & EngagementEarn stakeholder trust through strong communications and engagement

0

1

2

3

4

5

201520142013201220110

10

20

30

40

20152014201320122011

Source: PotashCorp

Average Community Survey Score(score out of 5)

Source: PotashCorp

Community Investment($ millions)

People DevelopmentAttract, develop and retain engaged employees

0

20

40

60

80

100

20152014201320122011

Source: PotashCorp

Senior Staff Positions Filled Internally(percentage)


80

84

88

92

96

100

20152014201320122011

Source: The Globe and Mail

PotashCorp’s Corporate Governance Practice ScoreScore (out of 100)

Good GovernanceFoster a culture of accountability, fairness and transparency

Safety, Health & Environmental ExcellenceBe relentless in pursuit of the safety of our people and the environment

0.0

0.3

0.6

0.9

1.2Average

Lowest quartile

Best-in-Class Peer Group*PotashCorp0.0

0.3

0.6

0.9

1.2

1.5

20152014201320122011

1.5

Source: PotashCorp

Safety Performance vs Peers(total site recordable injury rate)

Source: PotashCorp

PotashCorp’s Safety Performance(total site recordable injury rate)

Lowest quartile Average

0.0

0.3

0.6

0.9

1.2Average

Lowest quartile

Best-in-Class Peer Group*PotashCorp0.0

0.3

0.6

0.9

1.2

1.5

20152014201320122011

1.5

Source: PotashCorp

Safety Performance vs Peers(total site recordable injury rate)

Source: PotashCorp

PotashCorp’s Safety Performance(total site recordable injury rate)

Lowest quartile Average

0

5

10

15

20

25

201520142013201220110.0

0.5

1.0

1.5

2.0

2.5

3.0

20152014201320122011

Source: PotashCorp

Reportable Environmental Incidents(number of incidents)

Source: PotashCorp

Greenhouse Gas (GHG) Emissions(CO2 equivalent tonnes per nitrogen product tonne)

0

5

10

15

20

25

201520142013201220110.0

0.5

1.0

1.5

2.0

2.5

3.0

20152014201320122011

Source: PotashCorp

Reportable Environmental Incidents(number of incidents)

Source: PotashCorp

Greenhouse Gas (GHG) Emissions(CO2 equivalent tonnes per nitrogen product tonne)


0

500

1,000

1,500

2,000

2,500

3,000

3,500Greenfield (Including infrastructure and reserve costs)

Greenfield (Excluding infrastructure and reserve costs)

Brownfield

SK Greenfield*Agrium ProjectMosaic ProjectsPotashCorp Projects

* Based on 2 MMT conventional greenfield mine constructed in Saskatchewan. PotashCorp project costs exclude infrastructure outside the plant gate.

Source: AMEC, company reports, PotashCorp

Potash Expansion Costs(Capital cost per tonne – CDN$)

Brownfield Greenfield (including infrastructure and reserve costs)Greenfield (excluding infrastructure and reserve costs)

1%

6%

5%

14%

3%

1%

1%10%

0.5%

3%

15%39%

* Capacity totals based on year-end 2015. Other countries total 1.5 percent.

Source: CRU, Fertecon, company reports, PotashCorp

World Potash Capacity by Region*

0

500

1,000

1,500

2,000

2,500

3,000

3,500Greenfield (Including infrastructure and reserve costs)

Greenfield (Excluding infrastructure and reserve costs)

Brownfield

SK Greenfield*Agrium ProjectMosaic ProjectsPotashCorp Projects

* Based on 2 MMT conventional greenfield mine constructed in Saskatchewan. PotashCorp project costs exclude infrastructure outside the plant gate.

Source: AMEC, company reports, PotashCorp

Potash Expansion Costs(Capital cost per tonne – CDN$)

Brownfield Greenfield (including infrastructure and reserve costs)Greenfield (excluding infrastructure and reserve costs)

1%

6%

5%

14%

3%

1%

1%10%

0.5%

3%

15%39%

* Capacity totals based on year-end 2015. Other countries total 1.5 percent.

Source: CRU, Fertecon, company reports, PotashCorp

World Potash Capacity by Region*

0

5

10

15

20

PotentialNew BrunswickOther SK MinesRocanville2016

* Post-expansion; assumes fully staffed and ramped-up operations. Operational capability will be staffed and ramped up according to anticipated market demand and PotashCorp’s supply requirements. Cost and time required to restart operational capability will vary by location. Refer to existing operational capability on Page 59.

Source: PotashCorp

Operational Capability Opportunity*(million tonnes KCl)

1

23

Incremental Operational Capability*From 2016F (tonnes)

1

Rocanville

+2.4 MMT

2

Other SK Mines

+3.7 MMT

3

New Brunswick

+1.8 MMT

Potash – Overview and Strategy

900

1,200

1,500

1,800

2,100

2015OtherOffshoreNorthAmerica

2014OtherOffshoreNorthAmerica

2013900

1,200

1,500

1,800

2,100

2015OtherCost ofGoodsSold

NetSalesPrices

SalesVolumes


NetSalesPrices

SalesVolumes

2013

Source: PotashCorp

($ millions)

1,573 (52) (76) (10) 1,435 (215)

94 8 1,322 1,322

1,573

308 (590)

154 (10) 1,435 (112)

(50) 841

($ millions)

Potash – Performance


0

100

200

300

400

Net Sales Prices

Gross Margin

151413 Annual

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

0

2

4

6

8

10Inventory

Production

North America Sales

Offshore sales

151413 Annual

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

Source: PotashCorp

Potash Gross Margin and Net Sales Prices($ per tonne)

Gross margin Net sales prices

Potash Sales Volumes, Production and Inventory(million tonnes)

Offshore sales North America sales InventoryProduction

Source: PotashCorp

0

100

200

300

400

Net Sales Prices

Gross Margin

151413 Annual

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

0

2

4

6

8

10Inventory

Production

North America Sales

Offshore sales

151413 Annual

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

Source: PotashCorp

Potash Gross Margin and Net Sales Prices($ per tonne)


Potash Sales Volumes, Production and Inventory(million tonnes)

Offshore sales North America sales InventoryProduction

Source: PotashCorp

Nitrogen – Overview and Strategy

0

100

200

300

400

500

600

Freight and Handling to US Midwest

Freight to US Gulf

Cash Costs

UkrainePort Plant

Russia –Yuzhnyy

TrinidadMiddle EastUS GulfProducer

US MidwestProducer

* Includes related handling costs


US Midwest Delivered Ammonia Cost2015 ($ per tonne)

Cash costsAmmonia

11%

27%

UreaFreight to US Gulf Freight* to US Midwest


Global Trade in Ammonia and Urea(percentage)

Percent traded

2015 2015

0

100

200

300

400

500

600

Freight and Handling to US Midwest

Freight to US Gulf

Cash Costs

UkrainePort Plant

Russia –Yuzhnyy

TrinidadMiddle EastUS GulfProducer

US MidwestProducer

* Includes related handling costs


US Midwest Delivered Ammonia Cost2015 ($ per tonne)

Cash costsAmmonia

11%

27%

UreaFreight to US Gulf Freight* to US Midwest


Global Trade in Ammonia and Urea(percentage)

Percent traded

2015 2015

US

Trinidad

Source: PotashCorp

PotashCorp’s Ammonia Production Profile(percentage)

TrinidadUS

46% 54%

0.0

0.5

1.0

1.5

2.0

2.5Fertilizer

Feed & Industrial

LimaGeismarAugustaTrinidad

Source: PotashCorp

PotashCorp’s Sales by Nitrogen Plant(million tonnes)

Feed & Industrial Fertilizer


0.0

0.1

0.2

0.3

0.4

0.5

0.6

201520142013201220110

300

600

900

1,200

1,500

Cost Range

Competitor 2PotashCorp

Source: PotashCorp

Nitrogen Safety Performance(total site recordable injury rate)

1 Calculation based on projected costs per tonne of ammonia capacity and required infrastructure2 Based on publicly available information for approved US brownfield and greenfield ammonia projects

Source: Company reports, PotashCorp

Estimated Ammonia Expansion Costs 1

($ per tonne)Cost range

0.0

0.1

0.2

0.3

0.4

0.5

0.6

201520142013201220110

300

600

900

1,200

1,500

Cost Range

Competitor 2PotashCorp

Source: PotashCorp

Nitrogen Safety Performance(total site recordable injury rate)

1 Calculation based on projected costs per tonne of ammonia capacity and required infrastructure2 Based on publicly available information for approved US brownfield and greenfield ammonia projects

Source: Company reports, PotashCorp

Estimated Ammonia Expansion Costs 1

($ per tonne)Cost range

500

700

900

1,100

1,300

2015Hedge,Other

Solutions/NA/AN

UreaAmmonia2014Hedge,Other

Solutions/NA/AN

UreaAmmonia2013500

700

900

1,100

1,300


NetSalesPrices

SalesVolumes


NetSalesPrices

SalesVolumes

2013

Source: PotashCorp

($ millions)

91350 4

37 6 1,010 (154)

(49)(60)

(41)706 706370

(311)913

113 (18) 1 1 1,010 (66)

($ millions)

0

100

200

300

400

500

Net Sales Prices

Gross margin

151413 Annual

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

0

2

4

6

8NA/AN/Solutions

Urea

Ammonia

151413 Annual

Q4 Q3 Q2Q1 2015

Q4 Q3 Q2Q1 2014

Q4 Q3 Q2Q1 2013

3

4

5

6

7

8

Average natural gas costs

* In production, including hedge

Source: PotashCorp

Nitrogen Gross Margin, Net Sales Prices and Natural Gas Costs($ per tonne) ($ per MMBtu)

Gross margin Net sales prices Average natural gas costs*

Source: PotashCorp

Nitrogen Sales Volumes(million tonnes)

Ammonia Urea Solutions, nitric acid, ammonium nitrate

0

100

200

300

400

500

Net Sales Prices

Gross margin

151413 Annual

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

0

2

4

6

8NA/AN/Solutions

Urea

Ammonia

151413 Annual

Q4 Q3 Q2Q1 2015

Q4 Q3 Q2Q1 2014

Q4 Q3 Q2Q1 2013

3

4

5

6

7

8

Average natural gas costs

* In production, including hedge

Source: PotashCorp

Nitrogen Gross Margin, Net Sales Prices and Natural Gas Costs($ per tonne) ($ per MMBtu)

Gross margin Net sales prices Average natural gas costs*

Source: PotashCorp

Nitrogen Sales Volumes(million tonnes)

Ammonia Urea Solutions, nitric acid, ammonium nitrate

0

20

40

60

80

100North America

O�shore

UreaSolutions and OtherAmmonia

Source: PotashCorp

PotashCorp’s Nitrogen Shipment Profile2015 sales volumes (percentage)

Offshore North America

Nitrogen – Performance


Phosphate – Overview and Strategy

0

200

400

600

800

1,000

Non-Integrated

Integrated

2015E20142013201220110

1

2

3

4

5

Other

India

2015E2014201320122011

Source: CRU, Fertilizer Week, PotashCorp

Cash Cost of Phosphoric Acid Production($ per tonne)

Integrated Non-integrated

Source: CRU, PotashCorp

World Phosphoric Acid Imports(million tonnes P2O5)

India Other

0

200

400

600

800

1,000

Non-Integrated

Integrated

2015E20142013201220110

1

2

3

4

5

Other

India

2015E2014201320122011

Source: CRU, Fertilizer Week, PotashCorp

Cash Cost of Phosphoric Acid Production($ per tonne)

Integrated Non-integrated

Source: CRU, PotashCorp

World Phosphoric Acid Imports(million tonnes P2O5)

India Other

Third-party purchased

PotashCorp produced

Source: PotashCorp

PotashCorp’s Phosphate Rock Profile2015 (percentage)

PotashCorp producedThird-party purchased

Other

Latin America

India

North America

Source: PotashCorp

PotashCorp’s Phosphate Profile2015 sales volumes (percentage)

North AmericaIndiaLatin AmericaOther

0

5

10

15

20

25

White SpringsAurora

* Based on average annual production rate of approximately 4.06 million tonnes and 2.20 million tonnes of 30.66 percent P2O5 concentrate over the three-year period ended December 31, 2015 for Aurora and White Springs, respectively

Source: PotashCorp

PotashCorp’s Phosphate Mine Reserve Life*(years)

0.0

0.3

0.6

0.9

1.2

1.5

201520142013201220110

5

10

15

20

25

Total PhosphateFeed & IndustrialLiquid Fertilizer

Source: PotashCorp

Phosphate Safety Performance(total site recordable injury rate)

Source: PotashCorp

Phosphate Gross Margin by Product Category2015 (percentage of net sales)

0.0

0.3

0.6

0.9

1.2

1.5

201520142013201220110

5

10

15

20

25

Total PhosphateFeed & IndustrialLiquid Fertilizer

Source: PotashCorp

Phosphate Safety Performance(total site recordable injury rate)

Source: PotashCorp

Phosphate Gross Margin by Product Category2015 (percentage of net sales)


0

100

200

300

400

500

600

Net Sales Prices

Gross Margin

151413 Annual

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

0

1

2

3

4Feed & Industrial

Fertilizer

151413 Annual

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

Source: PotashCorp

Phosphate Gross Margin and Net Sales Prices($ per tonne)


Source: PotashCorp

Phosphate Sales Volumes(million tonnes)


0

100

200

300

400

500

600

Net Sales Prices

Gross Margin

151413 Annual

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

0

1

2

3

4Feed & Industrial

Fertilizer

151413 Annual

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

Source: PotashCorp

Phosphate Gross Margin and Net Sales Prices($ per tonne)


Source: PotashCorp

Phosphate Sales Volumes(million tonnes)


0

1

2

3

4

5Long-term debt

Short-term debt

201520142013

* Includes current portion

Source: PotashCorp

Weighted Average Debt Obligations Outstanding and Effective Interest Rates($ billions) (percentage)

Short-term debt

5.2% 4.9%

0.3% 0.3%

4.7%

0.4%

Long-term debt* Short-term rate Long-term rate

0

2

4

6

8

10

Long-term rate

Short-term rate

0

100

200

300

400

2015OtherFeed &Industrial

Fertilizer2014OtherFeed &Industrial

Fertilizer20130

100

200

300

400


NetSalesPrices

SalesVolumes


NetSalesPrices

SalesVolumes

2013

Source: PotashCorp

($ millions)

304 (72)

(36)6 202

59 (18) (2) 241 (2) 241

304

202 (44)

102 (17)

(62) 41 (87)

6

($ millions)

Phosphate – Performance

Other Expenses and Income


0

200

400

600

800Phosphate

Nitrogen

Potash

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Source: PotashCorp

Segment Gross Margin($ millions)

Potash Nitrogen Phosphate

0 3 6 9 12 15 18

Liabilities and Equity, December 31, 2015

All other liabilities and equity

Accumulated other comprehensive (loss) income

Deferred income tax liabilities

Long-term debt

Short-term debt and current portion of long-term debt

Liabilities and Equity, December 31, 2014

Assets, December 31, 2015

All other assets

Investments

Property, plant and equipment

Receivables

Cash and cash equivalents

Assets, December 31, 2014

Source: PotashCorp

Changes in BalancesDecember 31, 2014 to December 31, 2015($ billions)

Quarterly Results

Financial Condition Review


Opportunity capital

Mine development

Health & Safety

Plant turnaround

Environment

Routine

1 Includes capitalized interest and is based on a forecast exchange rate of 1.37 Canadian dollars per US dollar.2 To sustain operations at existing levels and for major repairs and maintenance, including plant turnarounds.

Source: PotashCorp

2016 Forecast Capital Expenditures 1

($ millions)

Opportunity capital $240Sustaining capital 2 $655

RoutineEnvironmentPlant turnaroundHealth & SafetyMine development

-3

-2

-1

0

1

2

3

4

2015Other

Repurchase of common shares

Long-term debt obligations2014

2015

Additions to PP&E and other

20142015

Other

Inventories

Receivables

Net income

2014

-3

-2

-1

0

1

2

3

4

2014Other



2014


20132014

Other

Receivables

Net income

2013

Source: PotashCorp

Changes in Cash Flows 2015 vs 2014($ billions)

Cash provided by operating activities

3.21

2.61 (0.26)0.48 (0.17)

(0.32) 2.34

(1.16) (1.28) (1.87) (1.18)

(0.24)

1.06 (0.13)(0.12)

(0.25)(0.50)

0.15 2.61

(1.62)

0.46

(1.16) (1.52) (1.87)

0.49 (0.66)

(0.18)

Cash used in investing activities Cash used in financing activities

Source: PotashCorp


Cash provided by operating activities Cash used in investing activities Cash used in financing activities

Liquidity and Capital Resources

-3

-2

-1

0

1

2

3

4

2015Other



2015


20142015

Other

Inventories

Receivables

Net income

2014

-3

-2

-1

0

1

2

3

4

2014Other



2014


20132014

Other

Receivables

Net income

2013

Source: PotashCorp



3.21

2.61 (0.26)0.48 (0.17)

(0.32) 2.34

(1.16) (1.28) (1.87) (1.18)

(0.24)

1.06 (0.13)(0.12)

(0.25)(0.50)

0.15 2.61

(1.62)

0.46

(1.16) (1.52) (1.87)

0.49 (0.66)

(0.18)

Cash used in investing activities Cash used in financing activities

Source: PotashCorp


Cash provided by operating activities Cash used in investing activities Cash used in financing activities


0

20

40

60

80

100

Other

Phosphate

Nitrogen

Potash

201520142013-0.5

0.0

0.5

1.0

1.5

2.0

2.5Working capital

Current liabilities

Current assets

201520142013

0.0

0.5

1.0

1.5

2.0

2.5

Working capital ratio

Working capital

Current liabilities

Current assets

Source: PotashCorp

Cash Additions to Property, Plant and Equipment(percentage)

Potash

$1.6B $1.1B $1.2B

Nitrogen Phosphate Other

Source: PotashCorp

Working CapitalAs at December 31 ($ billions) (ratio)

Current assets Current liabilities Working capital Working capital ratio

0

20

40

60

80

100

Other

Phosphate

Nitrogen

Potash

201520142013-0.5

0.0

0.5

1.0

1.5

2.0

2.5Working capital

Current liabilities

Current assets

201520142013

0.0

0.5

1.0

1.5

2.0

2.5

Working capital ratio

Working capital

Current liabilities

Current assets

Source: PotashCorp

Cash Additions to Property, Plant and Equipment(percentage)

Potash

$1.6B $1.1B $1.2B

Nitrogen Phosphate Other

Source: PotashCorp

Working CapitalAs at December 31 ($ billions) (ratio)

Current assets Current liabilities Working capital Working capital ratio

(blank)

Amount available

Amount outstanding and committed

(blank)

Amount available

Amount outstanding and committed

1 The authorized aggregate amount under the company’s commercial paper programs in Canada and the US is $2,500 million. The amounts available under the commercial paper programs are limited to the availability of backup funds under the credit facility. Included in the amount outstanding and committed is $517 of commercial paper.2 Letters of credit committed. We also have an uncommitted $100 million letter of credit facility against which $40 million was issued at December 31, 2015.

Source: PotashCorp

As at December 31, 2015($ millions)

Amount outstanding and committed Amount available

Credit Facility 1 Line of Credit

$0 $3,500

$2,983

$517 $0 2

$75

$0 $75

Capital Structure and Management

11 Year Data

0

2

4

6

8

10

EBITDA 1

Net Income

2015201420132012201120102009*2008*2007*2006*2005*0

20

40

60

80

100

Adjusted EBITDA Margin (1)

Net Income as a Percentage of Sales

-1

0

1

2

3

4Free Cash Flow (1)

Cash Provided by Operating Activities

2015201420132012201120102009*2008*2007*2006*2005*

1 See Page 90 for non-IFRS reconciliation.* Figures were prepared in accordance with previous Canadian GAAP.

Source: PotashCorp

Net income Net income as a percentage of sales

($ billions) (percentage)

EBITDA1 Adjusted EBITDA margin 1


Source: PotashCorp

Cash provided by operating activities Free cash flow 1

($ billions)

0

2

4

6

8

10

EBITDA 1

Net Income

2015201420132012201120102009*2008*2007*2006*2005*0

20

40

60

80

100

Adjusted EBITDA Margin (1)

Net Income as a Percentage of Sales

-1

0

1

2

3

4Free Cash Flow (1)

Cash Provided by Operating Activities

2015201420132012201120102009*2008*2007*2006*2005*


Source: PotashCorp

Net income Net income as a percentage of sales

($ billions) (percentage)

EBITDA1 Adjusted EBITDA margin 1


Source: PotashCorp

Cash provided by operating activities Free cash flow 1

($ billions)


0.00

0.50

1.00

1.50

2.00

2.50

Dividends declared per share

Net income per share - diluted

Net income per share - basic

201520142013

Source: PotashCorp

0

1

2

3

4


Net Income

201520142013

0

1

2

3

Phosphate

Nitrogen

Potash

201520142013

Net Income per Share Unaudited ($ per share)

Net income per share – basicNet income per share – dilutedDividends declared per share

Source: PotashCorp

Net Income and Cash Provided byOperating Activities Unaudited($ billions)

Net income Cash provided by operating activities

Source: PotashCorp

Gross Margin by Segment Unaudited($ billions)


Consolidated Financial Statements

0.00

0.50

1.00

1.50

2.00

2.50




201520142013

Source: PotashCorp

0

1

2

3

4


Net Income

201520142013

0

1

2

3

Phosphate

Nitrogen

Potash

201520142013



Source: PotashCorp



Source: PotashCorp



0.00

0.50

1.00

1.50

2.00

2.50




201520142013

Source: PotashCorp

0

1

2

3

4


Net Income

201520142013

0

1

2

3

Phosphate

Nitrogen

Potash

201520142013



Source: PotashCorp



Source: PotashCorp



Cash and cash equivalents

Cash used in financing activites

Cash used in investing activites

Cash provided by operating activites

-4

-2

0

2

4Cash and cash equivalents

Cash used in financing activities

Cash used in investing activities


201520142013

Source: PotashCorp

Cash Flow Unaudited($ billions) Year ended December 31 As at December 31

Cash provided by operating activities Cash and cash equivalentsCash used in investing activitiesCash used in financing activities

All other non-current assets

Current assets

Investments

Property, plant and equipment

Source: PotashCorp

Total Assets As at December 31 – Unaudited (percentage)

Property, plant and equipmentInvestmentsCurrent assetsAll other non-current assets

2015

0

1

2

3

4

5Total Debt

2015201420130

10

20

30

40

50

Total debt to capital

Source: PotashCorp

Total Debt and Total Debt to Capital As at December 31 – Unaudited($ billions) (percentage)

Total debt Total debt to capital

All other shareholders' equity

All other non-current liabilities

Current liabilities

Share capital

Deferred income tax liabilities

Long-term debt

Retained earnings

Source: PotashCorp

Total Liabilities and Shareholders’ Equity As at December 31 – Unaudited(percentage)

Retained earningsLong-term debtDeferred income tax liabilitiesShare capitalCurrent liabilitiesAll other non-current liabilitiesAll other shareholders’ equity

2015


0

200

400

600

800Current income tax

Deferred income tax

2015201420130

10

20

30

40

Actual e�ective tax rate including discrete items

Source: PotashCorp

Income Tax Expense Unaudited($ millions) (percentage)

Current income taxDeferred income tax

Actual effective tax rateincluding discrete items

0.0

0.9

1.8

2.7

3.6

4.5

Sales

151311151311151311

Gross Margin

All others

India

Canada

Latin America

Canpotex

United States

Sales and Gross Margin by Segment Unaudited($ billions)

Sales


Gross margin

Source: PotashCorp

Sales to Customers Unaudited(percentage)

United StatesCanpotexLatin America

CanadaIndiaAll others

Source: PotashCorp

Year

2015

0.0

0.9

1.8

2.7

3.6

4.5

Sales

151311151311151311

Gross Margin

All others

India

Canada

Latin America

Canpotex

United States

Sales and Gross Margin by Segment Unaudited($ billions)

Sales


Gross margin

Source: PotashCorp

Sales to Customers Unaudited(percentage)

United StatesCanpotexLatin America

CanadaIndiaAll others

Source: PotashCorp

Year

2015

Note 3 Segment Information

Note 8 Income Taxes

Note 9 Net Income per Share

0.00

1.00

2.00

3.00

4.00Net income per share - diluted


20152014201320122011

Source: PotashCorp

Net Income per Share Unaudited($ per share)

Basic Diluted


Phosphate

Nitrogen

Potash

Phosphate

Nitrogen

Potash

Source: PotashCorp

Finished Product Inventories by Segment As at December 31 – Unaudited($ millions)


$267 $302

2014 2015

Land and improvements

Mine development costs

Assets under construction

Buildings and improvements

Machinery and equipment

10

11

12

13

14

(Base)

2015

Other

Depreciation

Additions

2014

Other

Depreciation

Additions

2013

Source: PotashCorp

Carrying Amounts of Property, Plant and Equipment As at December 31 – Unaudited(percentage)


12.2

1.1 (0.7)

1.2 (0.7)

>(0.1) 13.2

<0.1 12.7

Buildings and improvementsAssets under constructionMine development costsLand and improvements

Source: PotashCorp

Reconciliation of Changes in Property, Plant and Equipment Carrying Amount As at December 31 – Unaudited($ billions)

2015

Note 12 Inventories

Note 13 Property, Plant and Equipment

Land and improvements

Mine development costs

Assets under construction

Buildings and improvements


10

11

12

13

14

(Base)

2015

Other

Depreciation

Additions

2014

Other

Depreciation

Additions

2013

Source: PotashCorp

Carrying Amounts of Property, Plant and Equipment As at December 31 – Unaudited(percentage)


12.2

1.1 (0.7)

1.2 (0.7)

>(0.1) 13.2

<0.1 12.7

Buildings and improvementsAssets under constructionMine development costsLand and improvements

Source: PotashCorp

Reconciliation of Changes in Property, Plant and Equipment Carrying Amount As at December 31 – Unaudited($ billions)

2015

Note 14 Investments

0

1

2

3

4

5Purchased cost

Market value

151311151311151311151311

Source: PotashCorp

Significant Investments – Market Value and Purchase CostAs at December 31 – Unaudited($ billions)

Market value

Equity-accounted investmentsSQM APC ICL Sinofert

Year

Available-for-sale investments

Purchase cost


0

200

400

600

800Amount

4036252420191817160

2

4

6

8

Interest rate

Source: PotashCorp

Senior Notes Outstanding at December 31, 2015 Unaudited($ millions) (percentage)

Amount Interest rate

Maturity Year

Note 20 Long-Term Debt

Note 21 Pension and Other Post-Retirement Benefits

Cash, cash equivalents and other

International balanced fund

Debt securities

Equity securities

Source: PotashCorp

Fair Value of Plan Assets by Category As at December 31 – Unaudited(percentage)

Equity securitiesDebt securitiesInternational balanced fundCash, cash equivalents and other

2015

0

20

40

60

80

100

De�ned Contribution Plans

De�ned Bene�t Other Post-Retirement Plans

De�ned Bene�t Pension Plans

2015201420130

20

40

60

80

100

Contributions (US$ millions)

2015201420130

25

50

75

100

125

Funded status

Source: PotashCorp

Annual Pension and Other Post-Retirement Benefit Plan Contributions Unaudited ($ millions)

Defined benefit pension plansDefined benefit other post-retirement plans Defined contribution plans

Source: PotashCorp

Defined Benefit Pension Plans’ Funded Status and Contribution Levels UnauditedYear ended December 31 As at December 31($ millions) (percentage)

Contributions Funded status

0

20

40

60

80

100

De�ned Contribution Plans

De�ned Bene�t Other Post-Retirement Plans

De�ned Bene�t Pension Plans

2015201420130

20

40

60

80

100

Contributions (US$ millions)

2015201420130

25

50

75

100

125

Funded status

Source: PotashCorp

Annual Pension and Other Post-Retirement Benefit Plan Contributions Unaudited ($ millions)

Defined benefit pension plansDefined benefit other post-retirement plans Defined contribution plans

Source: PotashCorp

Defined Benefit Pension Plans’ Funded Status and Contribution Levels UnauditedYear ended December 31 As at December 31($ millions) (percentage)

Contributions Funded status


0

350

700

1,050

1,400

1,750Repurchased

Issued for dividend reinvestment plan

Issued under option plans

Total share capital

Baseline

2015 201420132012

Source: PotashCorp

Issued for dividend reinvestment plan

Share Capital Consideration Unaudited ($ millions) As at December 31 Year ended December 31

Total share capital Issued under option plans

Repurchased

0.00

0.20

0.40

0.60

0.80Earnings per share

Dividends paid per share

Q4Q3Q2Q1 2015

Q4Q3Q2Q1 2014

Q4Q3Q2Q1 2013

Source: PotashCorp

Dividends and Earnings per Share Unaudited ($)

Dividends paid per share Earnings per share

0

10

20

30

40

Aggregate grant-date fair value

2015201420130

200

400

600

800

1,000Stock options

Number of common shares

2015201420130

15

30

45

60

Weighted average exercise price

Source: PotashCorp

Stock Options Granted Unaudited($ millions) ($ per share)

Aggregate grant-date fair value Weighted average exercise price

Source: PotashCorp

Total Shares and Stock Options Outstanding As at December 31 – Unaudited(millions)

Number of common shares Stock options

Note 23 Share Capital

Note 24 Share-Based Compensation

0

10

20

30

40

Aggregate grant-date fair value

2015201420130

200

400

600

800

1,000Stock options

Number of common shares

2015201420130

15

30

45

60

Weighted average exercise price

Source: PotashCorp

Stock Options Granted Unaudited($ millions) ($ per share)

Aggregate grant-date fair value Weighted average exercise price

Source: PotashCorp

Total Shares and Stock Options Outstanding As at December 31 – Unaudited(millions)

Number of common shares Stock options

Note 25 Financial Instruments & Related Risk Management

Past due

Current

Source: PotashCorp

Aging of Trade Receivables As at December 31 – Unaudited(percentage)

CurrentPast due

2015


0

1

2

3

4

5Net debt

201520140

10

20

30

40

50

Net debt to adjusted capital

Source: PotashCorp

Net Debt and Net Debt to Adjusted Capital As at December 31 – Unaudited($ billions) (percentage)

Net debt Net debt to adjusted capital

Note 26 Capital Management

Note 29 Guarantees

0

100

200

300

400

500

600

Letters of creditTrust fund (CDN$)Subsidiary bankborrowings

Future (undiscounted)payments under

significant guaranteesprovided to third parties

Source: PotashCorp

Guarantees As at December 31 – Unaudited($ millions)


0

10

20

30

40

50

60

70

80

90

Close

Low

High

201520142013201220112010200920082007200620052004200320022001200019991998199719961995199419931992199119901989

* Data are adjusted for a two-for-one stock split in August 2004, a three-for-one stock split in May 2007 and a three-for-one stock split in February 2011.

Source: FactSet

Yearly POT Stock Price Since Inception* – NYSE Composite (dollars)

HighCloseLow

0.850.69

0.810.60

1.050.74

1.251.01

1.421.01

2.341.24

4.391.80

4.833.33

4.993.94

5.402.69

4.122.36

4.452.33

4.272.90

3.842.76

4.853.05

9.334.06

8.09

12.79

8.68

16.35

14.68

50.63

15.85

80.54

21.22

27.95

41.37

51.68

38.44 36.73

63.97

48.00

28.55

44.13

30.09

38.58

16.65

37.60

2015 Monthly POT Stock Price – NYSE Composite (dollars)

HighCloseLow

Shareholder Information

PotashCorp2015AR.com

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graphs - nutrien€¦ · q2 q3 q4 source: potashcorp earnings per share ($) annual 2015 actual,...

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