2007 Net Sales

33% of total

2007 Gross Margin

49% of total

Where it comes from

PotashCorp mines potash from underground deposits left behind millions of years ago by evaporated seas. The world's largest deposits are in Saskatchewan.

Applications

Fertilizer Strengthens plant roots and improves water retention, contributing to greater yields and disease resistance; enhances taste, color and texture

Feed supplements Aids animal growth and milk production

Industrial Used in TV screens, soaps, de-icers and water softeners

Competitive Strengths

• Few good global deposits, mostly private ownership and substantial barriers to entry, with high capital costs and long lead times
• Low-cost, flexible producer with almost one-quarter of world capacity and capability to substantially raise capacity in less time and at a significant discount to comparable greenfield capacity
• Access to key markets through Saskatchewan and New Brunswick operations and a global distribution network
• Strategic offshore potash-related investments add considerably to overall profitability

Strategies

• Maximize existing capability, raising our operational capacity from 10.8 million tonnes in 2008 to a potential 17.2 million tonnes by 2015 – to meet the expected growth in offshore potash demand
• Produce only enough to meet market demand
• Continue to look for opportunities to extend our global potash enterprise through strategic investments or acquisitions