These examples illustrate company interaction with key stakeholder groups and how the information gleaned has shaped corporate decisions.

Investors

The company places high priority on strong relations with the investment community and consistently communicating objectives, strategies and progress toward these objectives. It engages with investors through one-on-one meetings and calls, analyst conference presentations, quarterly conference calls and surveys. Most conference presentations are webcast.

In 2006, PotashCorp hosted 179 investor meetings or calls, gave 13 large group presentations and held four quarterly conference calls to discuss its financial performance and future prospects. Conference calls averaged 375 participants.

Although a broad range of issues was discussed during these engagements, two distinct themes emerged. In the first half of 2006, investors were more concerned about market demand than potash supply. The extended contract negotiations between global potash producers and Chinese and Indian buyers were a significant issue for investors, given their negative implications for PotashCorp and other producers' financial results. At the same time, low crop prices and high fuel costs temporarily caused US and offshore buyers to step away from fertilizer markets.

The completion of negotiations with China and India in July and August respectively, the start of inventory restocking and the rapid increase in crop prices due to pressure from food consumption and biofuels resulted in stronger investor interest in PotashCorp's stock in the second half of 2006. Other issues of interest to investors were the impact of potential capacity expansions on global potash supply; whether Brazil's potash import volumes would increase; and how the company planned to use its substantial cash flow. These issues were addressed directly in meetings and presentations.

The company assesses the opinions of investors through an annual survey of buy-side and sell-side analysts. In 2006, survey results indicated strong support for its strategic direction, especially its Potash First strategy.

Other survey findings were:

• Potash is considered the biggest value driver for the company.
• Over three-quarters of analysts view the potash sector as a long-term investment while nitrogen and phosphate are seen as more cyclical.
• Most analysts place priority on growth and advocate the company's strategic investment in assets.

PotashCorp is responding to these findings by strengthening its investments in potash. Continuing expansion work at Allan and Lanigan, along with a minor increase gained through its share of The Mosaic Company's (Mosaic's) Esterhazy expansion, will provide an additional 2.2 million tonnes of operational capacity by mid-2008. Additional projects planned for Patience Lake will build the annual capacity to 13.7 million tonnes by the end of 2010.

Beyond this, the company is considering additional projects at its facilities in New Brunswick and Saskatchewan that could raise its potential capacity to 15.7 million tonnes by 2015.

During 2006, the company spent $353 million to increase its ownership interest in Arab Potash Company Ltd. and Sociedad Quimica y Minera de Chile S.A., and to raise its stake in China's Sinofert Holdings Limited, thereby enhancing its relationship with the major distributor in the world's largest fertilizer market.