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MOSAIC

2018 State of the business report

WHAT WE DO

Mosaic’s mission is to help the world grow the food it needs. As a world leader in the crop nutrient industry, Mosaic mines, produces and distributes millions of tonnes of high quality potash and phosphates products each year. Without fertilizers, the world’s crop yields would be cut in half, and farmers around the world look to Mosaic to help keep their soils healthy, to nourish their crops and to maximize their yields. We are committed to meeting these needs responsibly and sustainably—with deep respect for the land and genuine concern for those who depend on its output.

WHERE WE ARE

Mosaic is well positioned to serve the world’s most promising agricultural regions with long-lived reserves and strategically placed, efficient production assets. Our extensive distribution network is a highly effective and agile platform to serve our customers well—delivering the products they need, when promised, at a cost-competitive rate. We accomplish this critical work safely and sustainably—making responsible decisions at every step in the process, from mine to market.

WHO WE ARE

Mosaic is a larger, stronger, safer and more efficient company than at any point in our 15-year history. Our three businesses—Phosphates, Potash and Mosaic Fertilizantes—contribute to the success of Mosaic and the communities in which we live and work. Whether working in our mines, distribution facilities or offices, our more than 12,000 employees are part of a global Mosaic team that is richly diverse in skills, experiences and backgrounds. Together, we are responsible, innovative, collaborative and driven.

Phosphates

2018 Business Unit Overview
ENVIRONMENTAL IMPACT

Reclaiming Wetlands and Streams

Mosaic’s Phosphates business has pioneered reclamation techniques in Florida to create high-quality habitats ranging from prairies and forests to wetlands and lakes. In some cases, even past environmental damage unrelated to mining can be corrected, such as wetland draining and filling. In 2018, Mosaic reclaimed nearly 250 acres of wetlands and constructed approximately 3,250 linear feet of streams.

OPERATIONAL EXCELLENCE

Improving Productivity While Reducing Safety Risks

Creative solutions and new technology continued to contribute to improved safety and operational efficiencies for our U.S. phosphates operations in 2018. The Four Corners Mine team implemented remote and automation technologies and 3D modeling to increase dragline and pit productivity while reducing safety risks. The Geographic Information Systems (GIS) team developed mobile applications to provide our workforce with access to spatial data and analytics where and when they need it, which is especially critical for efficient mine and reclamation design.

BY THE NUMBERS*
MINES
4
PRODUCTION FACILITIES
6
TONNES PRODUCED
8.4M
TONNES CAPACITY
11.7M
EMPLOYEES
+3,300

* Reflects North America operations only.

COMMUNITY IMPACT

Reaching Food Banks Through Sports Partnerships

The Phosphates business has provided more than 5 million meals for people in need through its six-year partnership with the Tampa Bay Lightning hockey team and their “Goals for Food” program. The longstanding partnership has been so successful, Phosphates recently started another joint effort with the Lakeland Magic called “Hoops for Hunger” to continue addressing food insecurity in Central Florida communities.

Potash

2018 Business Unit Overview
ENVIRONMENTAL STEWARDSHIP

Taking Action in Saskatchewan

With increased scrutiny in Canada and around the world regarding industrial greenhouse gas emissions, we are proud to say our potash operations took early action with initiatives that will reduce greenhouse gas emissions through energy management, renewable power and automation. For example, teams at our Esterhazy mine recently completed a project to convert the overland booster pump station from diesel power to electric. The conversion will not only save in fuel consumption and the associated emissions, but will also reduce potential environmental and safety incidents. Potash operations have reduced greenhouse gas emissions approximately 10% from 2012 levels.

potash-greenhouse-gas-statistic-graphic
OPERATIONAL EXCELLENCE

Improving Safety Through Automation

Automation is a significant step change in underground potash mining with benefits for improved safety, productivity, reliability and asset utilization. The Potash business’ new Miner Automation Program is a template for successful innovation, driven by leveraging strategic partnerships within our company. New technologies and proper application of proven systems combine to yield more consistent and reliable production at lower cost. Our vision is plant-wide integrated automated systems from mine to loadout.

BY THE NUMBERS*
MINES**
6
TONNES PRODUCED
9.2M
TONNES CAPACITY
10.5M
EMPLOYEES
+2,500

* Reflects North America operations only.

** Includes three mines in Esterhazy, SK.

The Potash business achieved an Indigenous recruitment rate of 17% of new hires in 2018—making strong progress toward the target of 15% by 2025.

COMMUNITY IMPACT

Investing in Local Organizations

In Saskatchewan, we invest more than $5 million in grants and sponsorships annually to local organizations important to the people of the province. In 2018, the Potash business continued to partner with surrounding Indigenous communities on important ventures such as the training center renewal project at Cowessess First Nation. This initiative allows the reserve to do on-site job training and skill-development for its members. We continued with our goal of increasing food security in the communities where we operate through projects like the Wakamow Valley Mosaic Food Farm and the Regina Food Bank’s Four Season Greenhouse Growing Program—helping serve more than 2.2 million meals every year.

Mosaic Fertilizantes

2018 Business Unit Overview
ENVIRONMENTAL STEWARDSHIP

Preserving Wildlife and Forests

The Mosaic Fertilizantes business is committed to environmental stewardship with a focus on biodiversity. In 2018 we spent more than $4.1 million to implement wildlife and forest preservation programs in the southwest region of the State of Minas Gerais. As part of those efforts, teams planted more than 214,000 trees in 2018 and contributed to efforts to preserve and monitor at-risk avian species, including the Brazilian merganser and crowned solitary eagle.

BY THE NUMBERS
MINES
6
PRODUCTION FACILITIES*
4
TONNES PRODUCED
3.8M
TONNES CAPACITY
4.4M
EMPLOYEES
+6,000

The Mosaic Fertilizantes business also includes 14 blending and bagging facilities in Brazil and Paraguay.

COMMUNITY IMPACT

Fighting Hunger in Brazil

Mosaic Fertilizantes recognized World Food Day by organizing Hunger Action Month—a collective volunteer action resulting in distributing more than 180 tonnes of food to people in economically sensitive regions near our operations. The program also provided cooking training for nearly 100 cafeteria employees in 40 public schools with an aim of improving the quality of meals provided to students. The Mosaic Institute in Brazil invested more than $450,000 in local communities in 2018.

OPERATIONAL EXCELLENCE

2018 Results Exceeding Expectations

Mosaic Fertilizantes delivered financial results that exceeded expectations, and the pace at which the team is realizing synergies is the driving force.

OPERATING EARNINGS
$227M
ADJUSTED EBITDA
$410M
NET SYNERGIES*
$179M