David DelaneyExecutive VicePresident and COOPositioning PotashCorp forOperational Excellence        PotashCorp.com
Forward-Looking StatementsThis presentation contains forward-looking statements or forward-looking information (forward-lo...
Forward-Looking StatementsThis presentation contains forward-looking statements or forward-looking information (forward-lo...
PotashCorp Operational CapabilityExpanding Our Operational Capability to 17.1 Million Tonnes by 2015Million Tonnes KCl    ...
PotashCorp Potash Expansion Capital Spending ProfileApproximately 75 Percent Complete* Capital ExpendituresUS$ Billions   ...
PotashCorp Operational CapabilityPotash Expansions Expected to Enhance Supply AbilityMillion Tonnes KCl   18              ...
PotashCorp Mine ProfilePotash Expansions Expected to Provide Benefit Beyond Volume Potential   Operational Capability by M...
PotashCorp: Enhancing Our T&D Capabilities
PotashCorp: Investing in Logistics Infrastructure Enhancing Our Ability to Meet Customer DemandsRail Loading Capacity – % ...
PotashCorp: Investing in Logistics Infrastructure Enhancing Our Ability to Meet Customer NeedsHighlights• Purchased 1,000 ...
Canpotex: Investing in Logistics InfrastructureEnhancing Our Ability to Meet Customer Needs                               ...
Canpotex: Investing in Logistic Infrastructure Enhancing Our Ability to Meet Customer NeedsHighlights• Adding 18 new ocean...
Leveraging Our Phosphate Strengths
PotashCorp Phosphate ProfileLeverage Long-lived, High-quality Phosphate Rock SupplyRock Reserve Years*   35               ...
Phosphate Price and Sales VolumesEnhance Margin Stability With Diversified Product OfferingNetback – US$                  ...
Enhancing Our Nitrogen Position
PotashCorp Nitrogen ProfileLeverage and Enhance Existing World-Class PositionSales Volume (2011) - Thousand Tonnes 2,500  ...
PotashCorp Ammonia CapacityIncreasing US Ammonia Production Capability Through Quick Payback ProjectsMillion Tonnes       ...
Thank You There’s more online      PotashCorp.com      Visit us online      Facebook.com/PotashCorp      Find us on Facebo...
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PotashCorp - 2012 Analyst Meeting - David Delaney Presentation

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PotashCorp - 2012 Analyst Meeting - David Delaney Presentation

  1. 1. David DelaneyExecutive VicePresident and COOPositioning PotashCorp forOperational Excellence PotashCorp.com
  2. 2. Forward-Looking StatementsThis 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 thatare not historical fact. These statements are based on certain factors and assumptions including with respect to foreignexchange rates, expected growth, results of operations, performance, business prospects and opportunities and effectivetax rates. While the company considers these factors and assumptions to be reasonable based on information currentlyavailable, they may prove to be incorrect. Several factors could cause actual results to differ materially from thoseexpressed in the forward-looking statements, including, but not limited to: variations from our assumptions with respect toforeign exchange rates, expected growth, results of operations, performance, business prospects and opportunities, andeffective 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 oceanfreight; changes in competitive pressures, including pricing pressures; adverse or uncertain economic conditions andchanges in credit and financial markets; the results of sales contract negotiations with major markets; the Europeansovereign 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 incapital 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 governmentinvestigations; acquisitions we may undertake; strikes or other forms of work stoppage or slowdowns; changes in and theeffects of, government policies and regulations; security risks related to our information technology systems; andearnings, 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 thecaptions “Forward-Looking Statements” and “Item 1A – Risk Factors” and in our other filings with the US Securities andExchange Commission and the Canadian provincial securities commissions. Forward-looking statements are given onlyas at the date of this presentation and the company disclaims any obligation to update or revise the forward-lookingstatements, whether as a result of new information, future events or otherwise, except as required by law.
  3. 3. Forward-Looking StatementsThis 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 thatare not historical fact. These statements are based on certain factors and assumptions including foreign exchange rates,expected growth, results of operations, performance, business prospects and opportunities and effective tax rates. Whilethe company considers these factors and assumptions to be reasonable based on information currently available, theymay prove to be incorrect. Several factors could cause actual results to differ materially from those expressed in theforward-looking statements, including, but not limited to: variations from our assumptions with respect to foreignexchange rates, expected growth, results of operations, performance, business prospects and opportunities, andeffective 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 oceanfreight; changes in competitive pressures, including pricing pressures; adverse or uncertain economic conditions andchanges in credit and financial markets; the results of sales contract negotiations with major markets; the Europeansovereign 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 incapital 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 governmentinvestigations; acquisitions we may undertake; strikes or other forms of work stoppage or slowdowns; changes in and theeffects of, government policies and regulations; and earnings, exchange rates and the decisions of taxing authorities, allof which could affect our effective tax rates. Additional risks and uncertainties can be found in our Form 10-K for thefiscal 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 securitiescommissions. Forward-looking statements are given only as at the date of this presentation and the company disclaimsany obligation to update or revise the forward-looking statements, whether as a result of new information, future eventsor otherwise, except as required by law. PotashCorp: Enhancing Our Potash Position
  4. 4. PotashCorp Operational CapabilityExpanding Our Operational Capability to 17.1 Million Tonnes by 2015Million Tonnes KCl 18 16 17.1 MMT 14 12 11.8 MMT 10 2011 Production Level 8 6 4 2 0 2012F 2013F 2014F 2015F Total 2015F * Estimate for 2012 does not include inventory related shutdowns and unplanned downtime.Source: PotashCorp
  5. 5. PotashCorp Potash Expansion Capital Spending ProfileApproximately 75 Percent Complete* Capital ExpendituresUS$ Billions 8.0 $7.7 B 7.0 6.0 $5.8 B 5.0 4.0 3.0 2.0 1.0 0.0 2003-2011 2012F 2013F 2014F 2015F * As at December 31, 2011; does not include capitalized interestSource: PotashCorp
  6. 6. PotashCorp Operational CapabilityPotash Expansions Expected to Enhance Supply AbilityMillion Tonnes KCl 18 Highlights 16 • Greater flexibility to meet customer demands; provides “surge supply” ability 14 12 • Cory ramp-up progressing well and is expected to be complete by end of 2012 10 • Strong production results: 8 • Record production in Lanigan (2011) 6 • Company records for weekly, monthly 4 and quarterly production (2011) 2 0Source: PotashCorp
  7. 7. PotashCorp Mine ProfilePotash Expansions Expected to Provide Benefit Beyond Volume Potential Operational Capability by Mine (Estimated) Highlights 2012 2015 • Per-tonne production costs expected to Allan 14% 16% improve at higher operating rates Cory 17% 16% • Opportunity to source more production from lowest-cost Rocanville facility Esterhazy 9% - • Increases red product production relative to higher-cost white production Lanigan 28% 21% • Elimination of highest-cost Esterhazy New Brunswick 6% 11% product tonnes post-2012 Patience Lake 3% 3% Rocanville 23% 33%Source: PotashCorp
  8. 8. PotashCorp: Enhancing Our T&D Capabilities
  9. 9. PotashCorp: Investing in Logistics Infrastructure Enhancing Our Ability to Meet Customer DemandsRail Loading Capacity – % of Pre-expansion 250% Highlights • Nearly $300 million (of $7.7 billion capital 200% expansion program) being invested in mine load-out capabilities 150% • Constructed a 0.5 mmt product warehouse at Rocanville to allow greater flexibility to meet North American customer demand 100% • Enhancing railcar handling and loading times at all sites, supporting transportation 50% and distribution initiatives 0% Prior to Current Post Expansions Expansions Source: PotashCorp
  10. 10. PotashCorp: Investing in Logistics Infrastructure Enhancing Our Ability to Meet Customer NeedsHighlights• Purchased 1,000 new high-capacity railcars to upgrade rail fleet and increase product volume per train load• Constructing regional distribution center in Indiana to reduce delivery time and better serve key US Midwest markets• Set new targets to reduce domestic rail cycle times by 10 percent in 2014 compared to 2011 levels
  11. 11. Canpotex: Investing in Logistics InfrastructureEnhancing Our Ability to Meet Customer Needs Export Capacity - Million Tonnes KClHighlights 30• Export capacity expected to reach 15 mmt in 2012 with the completion of its 25 Vancouver terminal (Neptune) expansion 20• Evaluating plans to build new terminal capacity on Canada’s West Coast to increase its export capacity to 15 approximately 25 mmt 10 5 0 2011 Exports Current* Potential * Estimate based on completion of Neptune terminal Source: Canpotex
  12. 12. Canpotex: Investing in Logistic Infrastructure Enhancing Our Ability to Meet Customer NeedsHighlights• Adding 18 new ocean vessels between 2009 and 2014• Constructing a railcar maintenance and staging facility in Saskatchewan to enhance its fleet performance Could show map of main rail path to• Signed new long-term rail carrier US midwest … highlight congested area … and show our reroute? agreements with CP and CN Source: Canpotex
  13. 13. Leveraging Our Phosphate Strengths
  14. 14. PotashCorp Phosphate ProfileLeverage Long-lived, High-quality Phosphate Rock SupplyRock Reserve Years* 35 Segment Priorities • Leverage lower-cost, high-quality rock 30 30 supply; focused on maximizing the value of P2O5 production 25 • Enhance long-term sulfur and ammonia 20 supply position 15 17 • Sulfur – evaluating both domestic and international supply source options 10 • Ammonia – evaluating options to enhance internal supply capability 5 • Focus on land and water conservation 0 efforts Aurora NC White Springs FL * 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.Source: PotashCorp
  15. 15. Phosphate Price and Sales VolumesEnhance Margin Stability With Diversified Product OfferingNetback – US$ Sales Volumes – Thousand Tonnes Fertilizer Feed & Industrial Fertilizer Feed & Industrial1,200 1,2001,000 1,000 800 800 600 600 400 400 200 200 0 0 Q106 Q107 Q108 Q109 Q110 Q111 Q112 Q106 Q107 Q108 Q109 Q110 Q111 Q112Source: PotashCorp
  16. 16. Enhancing Our Nitrogen Position
  17. 17. PotashCorp Nitrogen ProfileLeverage and Enhance Existing World-Class PositionSales Volume (2011) - Thousand Tonnes 2,500 Industrial Fertilizer Segment Priorities • Maintain focus on industrial customers to 2,000 benefit from reduced volume volatility and better margins due to lower transportation and distribution costs 1,500 • Optimize or expand existing US nitrogen production facilities 1,000 • Maintain Trinidad’s margin position through long-term gas contracts linked to ammonia 500 prices • Focus on production efficiencies 0 Trinidad Geismar Augusta LimaSource: PotashCorp
  18. 18. PotashCorp Ammonia CapacityIncreasing US Ammonia Production Capability Through Quick Payback ProjectsMillion Tonnes 4.5 Column5 Column4 Geismar, LA* Lima, OH 4.0 16% Capacity Increase 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2011 2013F * Expect to resume ammonia production at Geismar in January 2013Source: PotashCorp
  19. 19. Thank You There’s more online PotashCorp.com Visit us online Facebook.com/PotashCorp Find us on Facebook Twitter.com/PotashCorp Follow us on Twitter PotashCorp.com

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