Still Growing and
Hard-Earned Resilience

This is a new era of accountability, of ownership, of aggressive competition – and we are shifting our culture around the globe to deliver on the promise we are creating.

Joc O'Rourke - President & CEO

2017

HIGHLIGHTS

Fortifying Our Financial Foundation

Our commitment to maximum efficiency contributed significant benefits to the bottom-line improvements.

Joc O'Rourke - President & CEO

Net Sales and

Operating Earnings

Dollars in Billions

  • Operating Earnings

Capital

Expenditures

Dollars in Billions

  • growth expenditures
  • sustaining expenditures

COST CONTROLS

(SG&A)

dollars in millions

Net Cash Provided by

Operating Activities

dollars in billions

Phosphate Cash

Conversion Costs**

dollars per tonne

Muriate of Potash

Cash Costs of Production***

dollars per tonne

* Unaudited due to change of year end from May 31 to December 31 in 2013.

**Phosphate cash conversion costs are reflective of actual costs, excluding realized mark-to-market gains and losses.These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period.

***MOP cash costs including brine management costs and royalties, excluding taxes and realized derivative gains/(losses). These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period.

We define sustainability in the simplest sense of the word: as the ability to sustain our business, to prosper and deliver value to our myriad stakeholders over many years.

Freshwater Intensity m3/Tonne
 20132014201520162017
Mosaic5.074.594.864.764.85

NOTE: “Intensity” refers to the volume of water (m3) used in making a single metric tonne of product. Production includes all crop nutrients and animal feed ingredients produced in the calendar year. “Freshwater” is defined as groundwater and surface water withdrawals and excludes reclaimed water, brine, seawater and once-through cooling and process water withdrawn from the Mississippi River in Louisiana.

Total Energy Per Tonne Finished Product GJ/FINISHED PRODUCT TONNES
 20132014201520162017
Mosaic2.632.592.602.682.31

NOTE: Total energy includes electricity, fuels and energy from waste heat consumed by Mosaic operations including mines, manufacturing plants, distribution facilities, offices, agricultural operations and our Streamsong Resort. In alignment with our sustainability targets and progress tracking, steam is excluded as a source of energy.

Direct and Indirect GHG Emissions Intensity MTN CO2e/PER TONNE OF FINISHED PRODUCT
 20132014201520162017
Mosaic0.270.260.260.260.22

NOTE: Direct emissions include Mosaic’s consumption of natural gas, diesel, other fuels, process-related activities, water treatment and refrigerants. Indirect emissions include electricity purchased from third-party utilities.

Energy produced through Cogeneration in the Phosphates segment Million GJ
 20132014201520162017
Mosaic5.25.86.26.56.3

NOTE: Figures represent virtually greenhouse gas emissions-free electricity produced internally by our Phosphates business segment. This process of waste heat recovery, called cogeneration, allows several of our plants and mines to significantly reduce the amount of third-party electricity required from utilities.

SUSTAINABILITY TARGETS

Delivering on Our Commitments

Mosaic’s 2020 sustainability targets were established as a way for Mosaic to stretch for meaningful and sustainable long-term improvement in safety and the environmental areas that are most significant to our business and stakeholders. While we did not anticipate many of the business and operational challenges that have impacted our performance since, we are delivering on our commitment to accountability.

Though our safety performance, measured by recordable injury frequency rate, increased compared to the significant reduction we achieved in 2016, we have made a 35 percent improvement since 2013 and are on track to achieve our target of 0.6 by 2020. We continue to focus on reducing risks to our workers and the environment in the key areas described in the table below.

Our performance toward our freshwater target fell short in 2017, with just over 2 percent reduction since 2012 and flat performance over 2016. Several of our phosphate mining facilities increased their withdrawals of water due to low rainfall and increased operational needs, and our New Wales production facility in Florida also increased its water use in line with regulatory requirements following the water loss incident at that facility in 2016. There were some bright spots in 2017, including improved performance in the Potash segment; a slight increase in reuse of alternative water sources across the company; and our entering agreements which will allow for additional use of alternative sources in 2018. We are also proud of our employees for continuing to execute water projects that improve our operating efficiency and offset or altogether reduce our withdrawals of freshwater.

We made respectable progress toward our energy and GHG targets in 2017 – more than 18 percent and 17 percent, respectively – thanks, in part, to the efforts of our employees to complete fuel- and energy-saving projects across the business. As delighted as we are to report this move in the right direction, we cannot take credit for all of this progress. In 2017 we executed scheduled downtime at our Faustina ammonia plant in Louisiana, which reduced our annual consumption of natural gas considerably. We resumed ammonia production in late 2017 and we expect GHG and energy performance closer to what is “normal” for our operations next year.

SAFETY TARGET
Target
2017
Performance
Where We
Are Today
What We
Plan to Do Next
By 2020, reduce recordable injury frequency rate (RIFR) to 0.6.
0.78 RIFR, a 35% decrease from 2013
On track to achieve a 0.6 RIFR by 2020.Continue to focus on risk reduction in key areas:

  • Advancing Potentially Significant Incidents (PSI) identification and mitigation
  • Corrective action tracking and evaluation of effectiveness
  • Implementation of risk registers and risk reduction projects
  • Increasing the effectiveness of pre-job hazard assessments
  • Knowledge and best practice sharing
  • Gap assessments and establishing action plans to ensure life critical standards, those work activities that are especially hazardous to life, are fully implemented at the sites
environmental targets (freshwater)
Target
2017
Performance
Where We
Are Today
What We
Plan to Do Next
By 2020, reduce freshwater use by 10% per tonne of finished product.
4.85 m3 per tonne of finished product, a 2.2% reduction from 2012 baseline
Increased our withdrawals of water due to regulatory requirements following the water loss incident at our New Wales facility.

Increased our withdrawals at mining facilities in Florida due to low rainfall and charging of a clay settling area at our Four Corners mine.

Improved performance at Potash facilities with enhanced accountability and conservation efforts. 		Seek opportunities to reduce water use, and increase recycling at our facilities; explore additional opportunities to use alternative water sources.

Assess the performance of acquired sites in Brazil in anticipation of setting new companywide targets in 2019.
environmental targets (energy)
Target
2017
Performance
Where We
Are Today
What We
Plan to Do Next
By 2020, reduce total energy use by 10% per tonne of product.
2.31 GJ per tonne of finished product, a 15.4% reduction from 2012 baseline
Completed fuel and energy-saving projects across the company that improved energy efficiency and reduced GHG emissions.

Performed planned downtime at Faustina ammonia manufacturing operations, leading to significantly reduced natural gas consumption.		Leverage transformation efforts across the company to maximize GHG and energy saving opportunities.

Assess the performance of acquired sites in Brazil in anticipation of setting new companywide targets in 2019.
environmental targets (emissions)
Target
2017
Performance
Where We
Are Today
What We
Plan to Do Next
By 2020, reduce our combined Scope 1 (direct emissions) and Scope 2 (purchased electricity) GHG emissions by 10% per tonne of product.
0.22 tonnes CO2e per tonne of finished product, an 15.4% reduction from 2012 baseline
Completed fuel and energy-saving projects across the company that improved energy efficiency and reduced GHG emissions.

Performed planned downtime at Faustina ammonia manufacturing operations, leading to significantly reduced natural gas consumption.		Leverage transformation efforts across the company to maximize GHG and energy saving opportunities.

Assess the performance of acquired sites in Brazil in anticipation of setting new companywide targets in 2019.

Looking Ahead

Mosaic today is much larger than the Mosaic we were when we set these targets in 2015 for all the reasons outlined in this report, including the Vale Fertilizantes acquisition, which added major mines and production facilities in Brazil. We plan to issue targets in 2019 that appropriately reflect the performance – and ambitions – of the entire company.

Until then we continue to push toward our 2020 targets, striving for better safety performance and seeking 10 percent reductions in water and energy use and GHG emissions per tonne of finished product. Please see the second phase of our State of the Business Report launch, scheduled for mid-2018, for more information about our sustainability performance.