PotashCorp - 2014 Q3 Earnings

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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