2012 Annual Report: The Roots of Our Success

The products Mosaic delivers help meet the global demand for food by increasing crop yields and farmer productivity. Potash and phosphates are essential in their simplest forms, but at Mosaic, we know that good science can provide farmers with higher and more economic production. That’s why we’re committed to innovation.

At the core of our product innovation is the “4Rs” concept: applying the right combination of nutrients, at the right time, in the right place and in the right amount. The concept drives much of our innovation, including the development of MicroEssentials^®, our unique combination of vital nutrients in one nutritionally balanced granule. We are investing to increase MicroEssentials^® production capacity — because farmers are discovering its matchless benefits, and because it generates compelling returns for our shareholders. Product innovation differentiates Mosaic, and we are devoted to further research and development of our product pipeline to drive crop yields and help meet the world’s growing demand for more and better quality food.

Innovation is just one of the qualities essential to Mosaic’s success. Over the coming years, we plan to build on each of them:

• Our scale: Mosaic is the world’s largest combined producer of potash and phosphates, and we intend to grow even larger. We expect to increase potash operating capacity by more than 40 percent, and in phosphates, we seek to diversify our rock assets through acquisitions or joint ventures.
• Our global reach: Mosaic has the industry’s most powerful distribution network and sales operations, and we will take advantage of this for the benefit of production efficiencies and our customers by getting our products to the right places at the right time.
• Our efficiency and operating effectiveness: In 2012, we continued our pursuit of aggressive cost-saving goals — while seeking to improve our safety performance. We are on track to achieve both.
• Our commitment to our stakeholders: At Mosaic, we are dedicated to serving our customers with superior product and effective advice; we are devoted to attracting and retaining great talent; we are committed to effective environmental stewardship and corporate responsibility; and we are driven to deliver enhanced shareholder value.
• Our culture: Mosaic employees live our values of integrity, excellence, sustainability and connectivity every day, and our commitment to these values will not waver.

The Mosaic team — 8,000 strong, all around the world — is energized to grow from the roots of our success. I am grateful and proud to be a part of this organization, and I deeply appreciate all the efforts of my colleagues at Mosaic.

I am also grateful for our customers, partners and suppliers and their enduring relationships with us. Please know that we intend to stay by your side as you grow your businesses and help feed the world.

And finally, thank you to our shareholders for your continued confidence and support in making Mosaic the best crop nutrition company in the world.

All of us who hold stakes in Mosaic also hold a stake in something much larger, and quite humbling: It is our responsibility to help the world grow the food it needs. Together, we can achieve this monumental goal.

Sincerely,

James T. Prokopanko
President and Chief Executive Officer
August 2012