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Key Performance Drivers

Each year we set corporate-level targets – key performance indicators (KPIs) – to advance our goals and drive desired results, always striving to maximize shareholder value. Throughout the organization and in the spirit of growth and continuing improvement, these indicators of performance are regularly measured and monitored, with timely feedback provided about progress toward achieving our goals. The following outlines our key corporate goals, targets and results.

Pathway to Success

 ACHIEVED      PARTIALLY ACHIEVED      DID NOT ACHIEVE

SHAREHOLDER Increase High-Margin Stable Sales, Reduce Cash Costs • To meet the needs and expectations of our providers of capital
2007 Targets	2007 Results
Exceed total shareholder return performance for our sector* and companies on the DJUSBM** for 2007.	We achieved total shareholder return in 2007 of 202 percent, exceeding the 141 percent generated by our sector and the 30 percent return of the DJUSBM.
Carry a higher multiple than the average of our sector on both earnings and cash flow.	Throughout 2007, our multiples were higher than the average of other fertilizer companies on both earnings and cash flow.
Achieve gross margin compound annual growth rate (CAGR) of 15 percent over next five years.	Achieved 88 percent growth in gross margin over 2006 and a five-year gross margin compound annual growth rate of 44 percent.
Potash gross margin to exceed $800 million, more than 40 percent above 2006.	Potash gross margin was $912 million, 63 percent higher than 2006 levels.
Phosphate gross margin to be up by 50 percent from 2006.	Phosphate gross margin rose 245 percent from 2006 levels.
Nitrogen gross margin to exceed $325 million.	Nitrogen gross margin was $536 million.
Achieve 3 percent reduction in per-tonne potash conversion costs on a Canadian dollar basis.	Excluding the impact of natural gas and brine inflow costs, per-tonne potash costs were 10 percent below 2006 levels.
Improve energy efficiency in Trinidad by 3 percent from 2006.	Trinidad energy efficiency improved by 2 percent from 2006 levels.
Achieve rock costs at Aurora and White Springs 1 percent below 2006.	Rock costs at these sites rose 4 percent from 2006 levels.
Maintain cash conversion costs for P2O5 at 2006 levels.	Cash conversion costs for P2O5 rose by 3 percent from 2006 levels.
Reduce/avoid transportation and distribution expenses to achieve a level 3 percent below market rates.	Our transportation and distribution costs were 8 percent below market rates.
Remain in the top quartile of governance practices as measured by external reviews.	Target achieved, including placing eighth among more than 270 S&P/TSX companies evaluated by Report on Business.
2008 Targets 1 Exceed total shareholder return for our sector and companies on the DJUSBM for 2008. 2 Remain in the top quartile of governance practices as measured by external reviews.

* Sector = Mosaic, Agrium, Yara, ICL, SQM and K+S
** Dow Jones US Basic Materials Index.