PotashCorp sets long-term economic goals and annual targets. As the chart below shows, in almost all cases the 2007 economic targets were achieved.
| 2007 Economic Goals and Performance |
achieved
partially achieved
did not achieve |
| 1. Conduct annual surveys to monitor customer attitudes about quality and service. |
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PotashCorp again conducted an extensive third-party survey with each of its customer groups to gauge satisfaction. The results were reported to the Board of Directors, management and customers. |
| 2. Outperform competitors on quality and service as measured by customer surveys. |
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Based on results of 2007 customer surveys, we outperformed all our competitors in customer service in all four product groups, outperformed all competitors for product quality for two product groups, finished second of eight competitors in fertilizer quality ratings and third in purified phosphoric acid quality ratings. |
| 1. Exceed total shareholder return performance for our sector and companies on the Dow Jones US Basic Materials Index (DJUSBM) for 2007. |
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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. |
| 2. Carry a higher multiple than the average of other fertilizer companies on both earnings and cash flow. |
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Throughout 2007, our multiples were higher than the average of other fertilizer companies on both earnings and cash flow. |
| 3. Achieve gross margin compound annual growth rate (CAGR) of 15 percent over the next five years. |
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88 percent growth in gross margin over 2006 and a five-year gross margin compound annual growth rate of 44 percent. |
| 1. Sustain or improve local purchasing levels. |
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The percentage of purchases made locally was 58 percent, a 6.8 percent decrease from 2006 levels. A smaller amount of local purchasing was made at the potash and nitrogen facilities. This was partially due to the potash expansions. |
| 2. Review current philanthropic program against industry benchmarks and determine if changes are required. |
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We have set our commitment to charitable donations at 1 percent of after-tax earnings. We have also refined our philanthropic philosophy to ensure that donations achieve their strategic aim. |