Real Client Managed Portfolio Presented on October 23 rd, 2012 Brian Mulvihill Leah Xu Mengyu Sun

RCMP’s Mosaic Holdings 2 December 18 th, 2009 Bought 200 Shares at $55.00 for total price of $11,000 October 22 rd, 2012 Close Price at $54.23 Unrealized Gain of $52.00 (0.48%)

Agenda 3 Industry AnalysisCompany AnalysisComparable AnalysisDCF ModelRecommendation

Agricultural Chemical Industry: Overview Simple productsCapital intensive Focused Cost Leadership (economies of scale)  The US agricultural chemicals industry includes:  700 companies  Combined annual revenue of about $32 billion Source: Bloomberg

Agricultural Chemical Industry: Products Agrichemicals Fertilizers (65%) NitrogenPotashPhosphateHerbicidesInsecticides 5 Sources: Potash Corp

Agricultural Chemical Industry: Porter’s Five Forces Rivalry within industry [Low] Bargaining power of Consumers [Moderate] Threat of Substitutes [Low] Bargaining power of Suppliers [Moderate] Threat of Entry [Low] 6

Agricultural Chemical Industry: Factors 7 Fertilizers Crops Raw Materials Population

Industry Factors—Raw Materials 8  Key raw material inputs  Ammonia: Natural Gas  Sulfur: Co-product of oil refining  Investments in sulfur transportation assets  Phosphate rock  Risks  Volatile pricing  Alternative transportation  Terminating facilities  insufficient capacity Fertilizers ` Crops PopulationRaw Materials

Industry Factors—Crops 9 Average annual growth rate: 1.97% Sources: Bloomberg

Macroeconomic Factors—Population 10

Macroeconomic Factors—Population 11 “This is a basic problem, to feed 6.6 billion people. Without chemical fertilizer, forget it. The game is over” Dr. Norman Borlaug Nobel Peace Prize Winner

Mosaic Overview Formed in 2004 by the combination of IMC Global and Cargill’s fertilizer business Leading producer of primary crop nutrients phosphate and potash Serves customers in more than 40 countries Vertically integrated Mining  Production  Distribution 12

Segments 13 Source: Form 10-K, Mosaic Co., FY 2012, Pg. 1 Two Primary Segments PotashPhosphate

Phosphate Segment Mining Own Mines and Production Facilities in Florida Operates four active mines with a combined annual capacity of 16.0 million tones Plan to develop two large mines to replace mines that will be depleted Production Crop nutrients produced with sulfur and ammonia: DAP & MAP Value Added product: Microessentials Animal Feed – Biofos and Multifos Operational Capacity: 9.7 million tones Production: 8.3 million tones Sales The largest integrated phosphate producer in the world 13% of estimated Global production 58% of estimated North American production 14

Potash Segment Mining Mining mainly in Canadian province Saskatchewan (73% leased) Leases are ‘generally renewable’ and last roughly 21 years  2 additional mines in Michigan and New Mexico (99% leased) Production Process Potash and produce MOP (Muriates of Potassium) Agricultural and Industrial Functions Capacity expansion plan  flexibility in timing to bring the additional capacity on line when market demand warrants Sales Sold to distributers, retail chains, cooperatives and government Domestic supply sold through own sales force Canpotex: Supply about 37.1% of total Largest Buyers: China, India, Japan and Latin America 15

16 Source: Global Presence Map, Mosaic Co., October 2012, p. 2 Largest integrated phosphate producer in the world Production (Fiscal 2012) 58% N. American 13% Global International sales offices and distribution centers Largest buyers with growing demand: Brazil, China and India Potash Phosphate Third largest producer of Potash globally Production (Fiscal 2012) 37% N. American 13% Global Source: Form 10-K, Mosaic Co., FY 2012, Pg Vertical Integration : Economies of Scale & Global Presence

Business Risk 17 Business and Economic Conditions Weather Patterns Field Conditions Corp Prices Intense Global Competition Little pricing power over the fertilizer products Oversupply by competitors Legal Proceedings and Governmental Policies EPA Clean Air Act Initiative Water Quality Regulations for Nutrient Discharges in Florida Nutrient Discharges into the Gulf of Mexico and Mississippi River Basin

Comparable Analysis 18 ew/ten_largest/

Comparable Analysis Foreign competitors may have cost advantages Cheaper raw materials/ low shipping expenses(especially for Asian Market) Less stringent regulatory requirements (Environmental Protection) State or State-related Corps Main public competitors Potash Corp. of Saskatchewan, Inc. Israel Chemicals Ltd. Agrium Inc. Chemical & Mining Co. of Chile Inc. CF Industries Holdings, Inc. K+S Aktiengesellschaft 19

Potash Corp. of Saskatchewan (POT) World’s largest fertilizer company by capacity 20% of global potash capacity three primary crop nutrients – potash (K), phosphate (P) and nitrogen (N) Potash is the core of the business China, India, Latin America, and North America (75% population + 80% total fertilizer consumption) 20

Agrium Inc. (AGU) Strategy Global growth and diversification Business operation Retail business unit Wholesale business unit Advanced Technologies business unit Agrium is the only publicly traded company that crosses the entire agricultural value-chain 21

Comparable Analysis: Company Performance 22 Source: Yahoo Finance, dates from 1/1/08 – 10/22/12

DCF Analysis 23

Comparable Analysis 24

Comparable Analysis 25

Ratios Analysis 26

Recommendation - HOLD Current Stock Price:$54.23 DCF Valuation:$55.36 Comparable Companies Valuation:$57.09 Recommendation: Hold 200 shares 27