Economic Performance

EC1

Direct Economic Vale Generated and Distributed Including Revenue, Operating Costs, Employee Compensation, Donations and Other Community Investments

Community Investments

Mosaic's fiscal 2012 community investments increased 103% versus the prior year. It is our goal to invest 1% of earnings before interest and taxes over a three-year rolling average into our communities.

The Mosaic Company, The Mosaic Company Foundation and The Mosaic Institute in Brazil make investments in our global communities through philanthropic funding, employee engagement and in-kind product donations. Combined contributions in fiscal 2012 reached $23.6 million.

Mosaic's global giving is tied to three focus areas:

1. Food security and agricultural development
2. Water security, conservation and protection
3. Local investments in the communities in which Mosaic has operations and offices.

The graph above reflects investments made in communities where targeted beneficiaries are external to the company. This may include contributions to research institutes unrelated to Mosaic's research and development activities, funds to support community infrastructure and other philanthropic efforts. We are currently improving our processes to allow us to more accurately capture and report this information in the coming years.

EC2

Financial Implications and Other Risks and Opportunities for the Organization's Activities Due to Climate Change

The potential financial implications with regard to the physical changes associated with climate change, as well as potential regulatory response changes, are discussed in Mosaic's CDP public response and in Mosaic's 10-K Report (pages 38-39). We evaluate whether, and to what extent, environmental issues and associated regulations could adversely impact our costs and operating activities, as well as the supply, demand, cost and location of grain production. This evaluation is part of a broader strategic business plan designed to help Mosaic meet or exceed production and profitability requirements. Other aspects of this plan include strategies for lowering purchased energy consumption through more efficient processes and maximizing the use of energy generated through the fertilizer manufacturing process.

Physical Changes Implications

Changes in temperature and precipitation, drought, floods, increased storm and hurricane activity, and a higher incidence of plant disease can affect agricultural production and the demand for fertilizer products. Rising sea levels could be potentially disruptive to key ports within Mosaic's transportation infrastructure. Mosaic has plans at all its facilities to deal with extreme weather events, including our coastal communities and port facilities with respect to storm surge.

Regulatory Change Implications

While there is uncertainty with regard to what final material regulatory provisions and targets applicable to Mosaic will be adopted in reducing greenhouse gases in the United States and Canada, the commitment by federal, province-based (Canada) and state-based (U.S.) regulatory bodies is in motion. These regulations could potentially seek to restrict our operating activities, require us to make changes in our operating activities (which could increase operating costs) reduce our efficiency or limit our output, require us to make capital improvements to our facilities, or increase costs for energy, raw materials and transportation. Any of these costs could be material to Mosaic. In order to manage the potential risks from changing regulations, Mosaic is taking a proactive approach with particular emphasis on improving energy efficiency and waste management. These initiatives will assist Mosaic in emission reduction.

Opportunity for The Mosaic Company to Address Climate Change Through its Product Line and Business: Opportunities for Mosaic to directly address climate change through emissions avoidance exist due to the following:

• Advances in high-yield agriculture over the latter part of the 20th century have prevented massive amounts of greenhouse gases from entering the atmosphere – the equivalent of 590 billion metric tons of carbon dioxide – according to a study led by two Stanford University Earth scientists.
• The yield improvements reduced the need to convert forests to farmland, a process that typically involves burning of trees and other plants, which generates carbon dioxide and other greenhouse gases.

With the world's population expected to reach nine billion by 2050, the global food security challenge looms large — and agriculture has taken center stage. To sustainably meet the world's ever-increasing need for food, the global agriculture industry must simultaneously increase crop yields and reduce negative environmental impacts. The crop nutrition industry is an important part of this equation.

The efficient use of fertilizers has the potential to significantly reduce global greenhouse gas emissions while contributing to higher yields per acre. Proportionally, the accrued benefit of fertilizer use substantially outweighs the emissions associated with fertilizer production. Emissions associated with crop nutrient production account for 0.8 to 3.2 percent of global greenhouse gas emissions and total greenhouse gas impacts associated with agriculture and land use change (including deforestation) are estimated at 17 to 32 percent of global emissions.

EC3

Coverage of the Organization's Defined Benefit Plan Obligation

Please refer to Mosaic's 10-K Report (page F18).

EC4

Significant Financial Assistance from Government

In FY2011, Mosaic did not receive significant government financial assistance, except for approximately $3.6 million in Canada related to investment, research and development or other grants. FY2012 amounts were not yet available at the time of reporting.

EC5

Range of Ratios of Standard Entry Level Wage Compared to Local Minimum Wage at Significant Locations of Operations

Mosaic offers different combinations of compensation elements to employees based on their role and responsibility within the organization. Benefits may vary by country and legal requirements. We offer competitive compensation and benefits in each of the company's significant locations of operation. As noted in local currency, the standard entry-level wage range is significantly higher than the prevailing local minimum wage.

Market Presence

EC6

Policy, Practices and Proportions of Spending on Locally Based Suppliers at Significant Locations of Operations

Mosaic does not have a written policy for preferring locally based suppliers, but we do encourage and support spend with local suppliers.

EC7

Procedures for Local Hiring and Proportion of Senior Management Hired From the Local Community at Significant Locations of Operations

Mosaic does not currently have a policy that requires local hiring. Mosaic's first priority is to find the talent required to operate our business at expected levels. If the top candidate requires relocation assistance, that is considered one of the costs of doing business. As a matter of practice, staff positions are often filled from the local workforce.

Indirect Economic Impacts

EC8

Development and Impact of Infrastructure Investment and Services Provided Through Commercial, In-Kind or Pro Bono Engagement

Disaster Relief:

In FY2012, The Mosaic Company Foundation donated $200,000 toward famine relief in Somalia, Africa.

Other Indirect Investments:

Mosaic has committed to preserving approximately 130 acres of land otherwise eligible to be mined by donating Peaceful Horse Ranch in DeSoto County, Florida for permanent conservation. Peaceful Horse Ranch is on the State of Florida's list of priority projects for its Florida Forever land conservation program. Mosaic will also provide up to $2 million for startup and recurring expenses to operate Peaceful Horse Ranch as a state park.

Mosaic is supporting a $250,000 grant for Electron Microscope at St. Paul's Hospital in Saskatoon which will support kidney care with the purchase of the first and only digital Transmission Electron Microscope (EM) in the province.

Mosaic agreed to donate $1 million to the Regina, Saskatchewan, Habitat for Humanity to build 68 new homes over a three-year period. Mosaic employees will be encouraged to participate in the building of the homes in their local communities.

Mosaic made a grant to Ducks Unlimited of $2 million over a 10-year period that will restore a minimum of 500 acres of wetlands in Saskatchewan.

Through the use of fertilizer and the construction of an irrigation infrastructure, Mosaic is working to create a model for sustainable agricultural practices in villages in India called "Krishi Jyoti" in partnership with the Institute for Rural Research and Development (IRRAD). Our current investment is over $130,000 and is supported by in-house management, contract help in each village and Mosaic sales managers. Farmers are enjoying better yields, higher crop quality and a sharp increase in understanding best farm practices. Additionally, the project has expanded and reached 11 villages, with two of those graduating from the program. This program also invested in the construction of a large check dam that will support 20,000 people, which was funded by a grant of $100,000 to IRRAD.

Through The Mosaic Institute in Brazil, Child is Life received funding of $99,000 for its children's health self-esteem and self-awareness program that works with schools and communities on four modules: health and nutrition, physiology and respect for the human body, health and the environment; and decisions for better living.

The Mosaic Company Foundation supported HELPS International with a $1.236 million grant to be paid over the next three years to support The Corn Project in Guatemala, which brings rural Latin American families out of generational poverty by using an integrated approach of development, from home transformation with water filters and stoves, to sustainable economic development with agronomic training and a revolving fertilizer loan fund. Mosaic agronomists provide soil fertility advice, conduct training the trainer sessions and provide Mayan seed bank advice.

Mosaic donated 2,520 metric tonnes (MT) of DAP fertilizer and all logistics expenses to transport the product to seven counties in Africa (Ghana, Mali, Nigeria, Tanzania, Ethiopia, Malawi, and Uganda) to support Millennium Promise's agricultural interventions which focus on providing a revolving loan fund for small holder farmers in rural communities and helping families achieve food security and self-sufficiency.

The Mosaic Company Foundation granted the Tampa Bay Estuary Program $175,000 for the new Tampa Bay Environmental Fund, a multi-entity public-private partnership to establish competitive grant fund that will support the highest priority conservation goals in Tampa Bay watershed. This includes Hillsborough and Manatee Counties, in partnership with the National Fish and Wildlife Foundation, and will provide long-term funding for Tampa Bay restoration, research and education initiatives, and serve as a national public-private partnership model.

The Mosaic Company Foundation provided a $225,000 grant to be paid over the next three years to Tampa Bay Watch for a comprehensive, community-based oyster habitat and water quality initiative that promotes watershed protection and supports youth education programs. Schools, community groups, corporations and individuals will be able to participate in hands-on oyster restoration activities as part of the initiative.

The Mosaic Company Foundation supported the Florida Association of Food Banks with a $100,000 grant for its Farmers Feeding Florida program, which will enable it to collaborate with Florida produce growers, producers, packers and distributors to deliver more than 1.25 million pounds of fresh produce to Central Florida food banks.

The Mosaic Company Foundation provided a $90,000 grant to Fast Food Farm for its new Mosaic Kid's Kitchen, a new on-site trailer with a teaching kitchen for the farm-to-table project that shows youth the importance of agriculture in their daily lives and works with various community partners in Saint James Parish, Louisiana.

Mosaic supports the CTIC for its work in nutrient management programs, including the Upstream Heroes Network campaign in the Mississippi River Basin, conservation agriculture work in Indian Creek and the Conservation in Action Tour.

The Mosaic Company Foundation has chosen to partner with The Nature Conservancy to extend and expand work with farmers and partners to improve water quality in three key agricultural watersheds in the Upper Mississippi River Basin: at Minnesota's Root River, Iowa's Boone River and Illinois' Mackinaw River. The $720,000 grant to the Conservancy's Great River's Partnership (GRP) over the next two years will work with local partners and producers to address nutrient and sediment runoff in agricultural landscapes.

The Mosaic Company Foundation provided a $106,000 grant to the Fresh Water Society for its Minnesota FarmWise Program, a community-based farmer-to-farmer initiative designed to improve water quality through voluntary adoption of critical conservation practices that reduce sediment and nutrient flow in vulnerable watersheds, with a farmer-led mentoring program.

The Mosaic Company Foundation provided over $200,000 to Second Harvest Heartland for its innovative approaches to emergency food support and volunteer involvement in food recovery in the Twin Cities as the Upper Midwest's largest hunger relief organization.

EC9

Understand and Describe Significant Indirect Economic Impacts

Mosaic has a significant economic impact in several areas, although we have not undertaken an empirical measurement of indirect economic impacts:

• Impacts from improved access to food: Hungry, malnourished people are less able to contribute to the economic well-being of their families and their communities than those whose basic needs for food are met. Our fertilizers help farmers grow more food for more people. Our charitable community investments are also focused on supporting hunger relief in communities and providing access to emergency food systems. Studies show that children who have sustained hunger have reduced abilities and capacity to learn in school, access to regular food improves educational outcomes. Additionally, improved economics for families enable parents to invest in their children's health and education, ensuring that future generations are able to move from poverty to thriving in communities.
• Impacts from improved profitability for farmers and rural communities: Farmers who produce enough food to not only feed their families, but to support a profitable business, bring economic benefits through their hiring and spending practices. Likewise, the dealers who distribute our fertilizers and our vendors who support our operations are meaningful contributors to the economic vitality of the rural and regional communities where they operate. In Mosaic's operating communities—many of them rural, without significant employment opportunities in the region—we are able to employ thousands of community members with market-competitive wages, and invigorate local economies with well-paid, benefit-eligible employment.
• Impacts from improved health in areas where we have made significant health care investments: Mosaic has made significant community investments to improve the quality of health care available to the community near our operations in Saskatchewan. Healthier people, and people who are able to get high-quality care closer to home when they need it, are better able to take financial care of themselves and contribute to their communities. Additionally, the partnership with HELPS International in Guatemala improves family health through home-based Onil stove and water filtration system programs.
• Impacts to regional habitat and water conservation: Mosaic follows industry best practices in habitat reclamation projects and water conservation in operations. Additionally charitable community investments are focused on partnerships with environmental non-governmental organizations (NGOs) that work on habitat preservation and restoration projects and water quality and quantity improvements in the regions in which we operate.
• Impacts from community investment through our philanthropy efforts: Through our work with the United Way and other local charities, our contributions help families achieve greater economic independence and improve educational outcomes for children. From workforce development programs to K-through-12 education initiatives, communities receive significant support to advance results in our operating communities and in NGO partner programs globally.
• Impacts from the multiplier effect of the money we spend: As critical mineral resources, potash and phosphate mining, production and distribution contribute to global economies through the exports and imports of the minerals and the other products required to develop the final products of fertilizer, animal feed and industrial products. The multiplier effect of the money that our employees, suppliers, and other stakeholders spend is dramatic. For example, in 2009, TFI commissioned a study that found the phosphate fertilizer industry in the United States, of which Mosaic is the largest participant, provided a total economic contribution of $21.2 billion and almost 90,000 jobs.