Lawrence W. Stranghoener

The Mosaic Company set ambitious financial goals for fiscal 2008 and exceeded all of them! We delivered exceptional financial results, across all metrics. We generated $2.5 billion in cash flow from operations compared to $707.9 million in fiscal 2007. Net earnings rose to $2.1 billion from $419.7 million during fiscal 2008. Return on invested capital was 30% for the fiscal year.

Our strong cash flow enabled us to pre-pay $1 billion in long-term debt since May 2007. This June, rating agencies recognized our strengthened balance sheet and our significantly improved results and prospects with an investment grade rating. We have worked relentlessly toward this goal since Mosaic's inception in 2004 and the ability to achieve it within a four-year period demonstrates the Company’s willingness to set and exceed ambitious goals.

Improving internal financial controls also has been a priority since day one. During fiscal 2008, we successfully addressed one remaining material control weakness, which involved accounting for income taxes. Today, Mosaic has well-established processes in place and is operating in a control environment that is healthy, robust and well qualified to ensure the integrity of our financial reports.

Discipline Guides Investments

We begin fiscal 2009 in an entirely new posture than previous years, namely a large net cash position and strong cash flow. As you have read in this report, robust agricultural demand is providing excellent opportunities to make sound investments in our business. Capital spending is expected to more than double to a range of $900 million to $1.1 billion in fiscal 2009, with spending split between projects to reduce costs and ensure peak operating performance, and exciting growth opportunities. Be assured that every dollar spent will be approved only after thorough and disciplined analysis.

We expect a portion of capital spending to be financed by the divestiture of our 50 percent interest in Saskferco Products ULC, a world-class nitrogen plant in Saskatchewan. Saskferco is an excellent business, but our strategic planning process led us to the decision to focus on our potash and phosphate holdings going forward.

Significant Market Appreciation

Our view of the industry suggests that secular demand trends will result in a new type of sustained market cycle for agricultural commodities, one that is likely characterized by higher peaks and higher valleys. Nevertheless, ours will continue to be a cyclical business, and, as such, we will continue to manage the balance sheet in a conservative manner and remain focused on execution and cost competitiveness.

As fellow shareholders, we are all aware of the extraordinary increase in market value that Mosaic shares have enjoyed over the past year. Market capitalization rose to approximately $56 billion from $15 billion during fiscal 2008. We do not take your support of Mosaic and its management for granted and it is gratifying to see your support rewarded so well. In addition, we are pleased to begin returning cash to our shareholders through a quarterly dividend program.

As Mosaic begins its fifth year as a publicly traded company, we remain committed to maintaining an open disclosure environment, producing strong financial results and building further value for you, our shareholders.

Sincerely,

Lawrence W. Stranghoener
Executive Vice President and Chief Financial Officer