PotashCorp Reports Fourth-Quarter Earnings of $0.26 per Share

Symbol: POT 
Listed: TSX, NYSE 
Key Highlights 


        --  Fourth-quarter earnings of $0.26 per share1; full-year 2013
            earnings of $2.04 per share
        --  Fourth-quarter results included $60 million in
            severance-related costs from workforce reductions
        --  Cash flow from operating activities totaled $3.2 billion for
            2013 - our third-highest total on record
        --  Earnings guidance of $0.30-$0.35 per share for first-quarter
            2014; $1.40-$1.80 per share for the year

SASKATOON, Jan. 30, 2014 /CNW/ - Potash Corporation of Saskatchewan Inc. 
(PotashCorp) today reported fourth-quarter earnings of $0.26 per share ($230 
million), a total which included a $60 million charge (approximately $0.05 per 
share) for severance-related costs associated with workforce reductions 
announced in December. This result was below the $0.48 per share ($421 
million) reported during the same period in 2012. Earnings for the year 
totaled $2.04 per share, compared to $2.37 per share in 2012.

Challenging fertilizer market conditions impacted our performance. Gross 
margins fell as lower prices in all three nutrients more than offset improved 
costs and higher sales volumes. Total gross margin for both the quarter ($460 
million) and the year ($2.8 billion) fell below 2012 same-period results of 
$586 million and $3.4 billion, respectively.

Fourth-quarter earnings before finance costs, income taxes, depreciation and 
amortization(2) (EBITDA) of $544 million brought our total for the year to 
$3.3 billion. The company generated $656 million in cash from operating 
activities during the fourth quarter, bringing our full-year result to $3.2 
billion, slightly below the record achieved in 2012.

Earnings from our offshore investments were similarly affected by fertilizer 
market conditions. For the quarter, contributions from our investments in Arab 
Potash Company Ltd. (APC) in Jordan, Israel Chemicals Ltd. (ICL) in Israel and 
Sociedad Quimica y Minera de Chile S.A. (SQM) in Chile added $25 million to 
earnings. Total contributions for the year, including a dividend from Sinofert 
Holdings Limited (Sinofert) in China, were $276 million. Both totals trailed 
those of the previous year. The market value of our investments in these 
publicly traded companies was approximately $5.2 billion, or $6 per share, at 
market close on January 29, 2014.

"This past quarter was a difficult one," said PotashCorp President and Chief 
Executive Officer Bill Doyle. "Pricing headwinds - most notably in potash - 
weighed on our performance, although there were signs as the quarter came to a 
close that the uncertainty in global markets was beginning to abate. Our focus 
remained on those things we can influence and we took important steps to 
enhance our competitive position across all three nutrients and prepare the 
company to deliver better performance."

Market Conditions

Following a period of limited purchasing activity, potash demand improved 
during the fourth quarter of 2013. This was most notable in North America 
where favorable crop economics and the need to replenish soil nutrients after 
a record harvest led to robust demand as farmers sought to meet their fall 
application needs. Shipments from North American producers climbed 30 percent 
above the same period in 2012 - totaling 2.3 million tonnes, which nearly 
surpassed the fourth-quarter record.

Offshore potash shipments from North American producers improved sharply 
during the quarter (up 38 percent) compared to the same period in 2012, when 
demand was especially weak. While buyers continued to move cautiously in an 
uncertain pricing environment, strong seasonal demand resulted in greater 
purchasing activity in spot markets like Brazil and Southeast Asia. 
Conversely, shipments to key contract markets continued to be limited, 
although totals for the most recent quarter included movements to India (none 
in 2012's similar period). Increased supply capability combined with 
relatively constrained demand resulted in continued price erosion through the 
last three months of 2013.

In nitrogen, ammonia prices were relatively stable through much of the second 
half of the year, although well below the comparative period of 2012 due to 
increased supply availability from key exporting regions and higher US 
production. After weakening through much of the year, urea markets began to 
show improvement near the end of the fourth quarter as stronger demand, 
limited import activity and perceived product shortages pushed up key 
benchmark prices.

Rising export capability and weak Indian imports affected global phosphate 
markets for most of 2013. In North America, fourth-quarter shipments from 
domestic producers slowed as dealers drew down inventories to help meet fall 
fertilizer application requirements. This slowdown was partially offset by 
strong demand in Latin America and certain Southeast Asian countries, which 
was reflected in increased exports by US producers during the fourth quarter. 
Although markets started to strengthen as the year came to a close, prices for 
all phosphate products trailed those during the same period in 2012.

Potash

A challenging pricing environment - particularly during the second half of the 
year - led to weaker results in our potash segment in 2013. Gross margin for 
the quarter ($228 million) and year ($1.6 billion) trailed the comparative 
totals in 2012 ($281 million and $2.0 billion, respectively).

Fourth-quarter potash sales volumes surpassed the trailing quarter (up 13 
percent) and the comparative period of 2012 (up 34 percent). This rebound was 
most pronounced in North America, as our sales volumes to this market reached 
0.8 million tonnes, outpacing the 0.6 million tonnes sold during the same 
period of 2012. Our offshore sales volumes of 0.9 million tonnes for the 
fourth quarter were above the historically low 0.7 million tonnes sold during 
the same period in 2012. The majority of Canpotex(3) shipments were to Latin 
America (29 percent) and Other Asia (41 percent), with those to India (17 
percent) and spot vessels to China (6 percent) accounting for a smaller 
percentage. PotashCorp's annual sales volumes reached 8.1 million tonnes, 
exceeding the 7.2 million tonnes shipped during full-year 2012. This reflected 
an overall improvement in global volumes.

Competitive pressures weighed on all potash markets and led to lower average 
realized prices for the fourth quarter ($282 per tonne) and full year ($332 
per tonne) relative to the same periods in 2012.

Our per-tonne costs of goods sold, including $32 million in severance-related 
costs, improved from last year's fourth quarter primarily due to higher 
production levels, a declining Canadian dollar and the absence of higher-cost 
Esterhazy tonnes.

Nitrogen

Fourth-quarter nitrogen gross margin totaled $188 million - compared to $206 
million generated during the same period in 2012 - as the positive impact of 
increased sales volumes was more than offset by lower average realized prices. 
For the year, gross margin reached $913 million, 7 percent below the record 
achieved in 2012. Favorable natural gas costs and higher production levels 
resulted in our US operations generating $126 million of gross margin for the 
quarter, while Trinidad contributed $62 million.

Our fourth-quarter sales volumes of 1.5 million tonnes exceeded the 1.1 
million tonnes sold during the same period of 2012 as we benefited from 
expanded capacity. Sales volumes for the year reached 5.9 million tonnes, 19 
percent higher than in 2012, primarily reflecting additional tonnage from our 
Geismar facility.

Our average realized price for the fourth quarter was $326 per tonne, well 
below the $461 per tonne in 2012's comparable period. Prices for all three 
major product categories declined from the historically high levels of 2012.

The total average cost of natural gas used in production for the fourth 
quarter, including the impact of our hedged position, was $4.83 per MMBtu, 31 
percent below the same period in 2012. This, plus the favorable impact of 
additional lower-cost production from Geismar, resulted in a 29 percent 
reduction in per-tonne cost of goods sold for the quarter.

Phosphate

Our fourth-quarter phosphate gross margin totaled $44 million, produced almost 
entirely by our feed and industrial businesses. This result was well below the 
$99 million earned during the same period in 2012 as difficult global 
phosphate fertilizer market conditions persisted. Additionally, the 
fourth-quarter 2013 total included $17 million in severance-related costs and 
$14 million in other non-cash charges, both of which were included in cost of 
goods sold. For the year, phosphate gross margin totaled $304 million, 
significantly below the $469 million earned in 2012.

Sales volumes reached 0.9 million tonnes, 11 percent above the comparative 
quarter in 2012 when rock supply challenges constrained our capability. This 
result brought our full-year 2013 total to 3.7 million tonnes, slightly above 
2012 levels.

For the fourth quarter, our average realized price of $455 per tonne trailed 
the $577 per tonne realized in the same period in 2012. Fertilizer products 
experienced the largest decline, with average realized prices down by 28 
percent, while prices for our more stable feed and industrial products were 
down 8 percent.

Higher production levels and lower input costs for sulfur and ammonia were the 
key contributors to our improved per-tonne cost of goods sold in phosphate 
(down 13 percent compared to fourth-quarter 2012).

Financial

Provincial mining and other taxes totaled $40 million (compared to $18 million 
in fourth-quarter 2012), largely due to the timing of annual potash production 
tax accruals.

Capital-related cash expenditures totaled $0.4 billion during the quarter, 
bringing our annual total to $1.6 billion. At the close of 2013, our estimated 
expenditures relating to our multi-year potash expansion program were 93 
percent complete.

Through our announced share repurchase program, we repurchased a total of 7.8 
million common shares during the fourth quarter. At the close of 2013, we had 
completed approximately 33 percent of the anticipated total buyback under the 
program at an average cost of $31.46 per share.

Market Outlook

Even as 2014 begins with a more tempered outlook for crop commodity prices, we 
believe the fundamental drivers of fertilizer demand remain supportive. Record 
crop production in 2013 has led to a significant agronomic need to replenish 
essential soil nutrients. We expect farmers, especially those in more 
developed agricultural economies, will strive to increase their soil 
productivity in order to maximize returns from each planted acre.

In potash, the uncertainty that persisted over the past six months appears to 
be subsiding and we expect global demand to improve. We enter 2014 with 
improved market engagement and believe global shipments for the year could be 
in the range of 55-57 million tonnes (an increase of approximately 5 percent 
from 2013 levels), with those during the first half expected to be 
particularly robust. Although we believe conditions are supportive for record 
potash demand, achieving such levels will largely depend on consistent buyer 
engagement and renewed commitment in key developing agricultural economies to 
address nutrient-deficient soils.

In North America, we expect potash demand to be strong entering the planting 
season as supportive economics and the need to replenish soil nutrients should 
increase requirements at the farm level. We have seen this play out in recent 
weeks as dealers with limited inventories seek to ensure tonnage is in place 
prior to the spring. We anticipate shipments through the first half of 2014 
will outpace those during the same period last year.

In China, we believe improved product affordability and a desire to increase 
domestic food production to help counterbalance rising grain imports will 
motivate consumption growth. We expect this to result in annual potash imports 
slightly above 2013 levels. First-half contracts with major offshore suppliers 
- including Canpotex - will likely meet a significant portion of China's 
anticipated annual seaborne requirements.

In India, potash shipments against previously contracted tonnage (through the 
end of March 2014) continue at revised pricing terms more reflective of 
current market conditions. We believe that India's potash requirements will 
improve after a prolonged period of deferral, although we do not expect a 
significant consumption response in 2014 without changes to the existing 
fertilizer subsidy program.

Buyers in key offshore spot markets in Latin America and other Asian countries 
continue to be active. We see positive signs that potash demand will remain at 
elevated levels in response to agronomic needs and favorable economic 
conditions. As a result, we anticipate shipments to these regions will meet or 
surpass previous-year levels.

Based on our expectation of improved demand and reduced operational capability 
(resulting largely from our operational and workforce changes announced in 
December), we believe industry operating rates will rise from 2013 levels 
(approximately 81 percent) and could be in the range of 86 percent to 89 
percent, contributing to a more stable global potash market.

Financial Outlook

Even as near-term pressure on potash prices appears to have subsided, its 
impact is expected to suppress our offshore realizations through the early 
part of 2014. In North America, new pricing levels of $350 per short ton ($385 
per metric tonne) announced with our winter-fill sales program will result in 
a lower realized price than during fourth-quarter 2013.

We expect our 2014 potash sales volumes to approximate 8.2-8.6 million tonnes. 
While this estimate assumes a benefit from higher anticipated global 
shipments, it will be partially offset by reduced sales from our New Brunswick 
facility (the result of a temporary reduction in operational capability) and a 
slightly lower Canpotex allocation for the first half of 2014 compared to the 
close of 2013 (due to a competitor's recent expansion run).

We believe we are well positioned to achieve our potash cost reduction targets 
of $15-$20 per tonne from 2013 levels as we maximize production at our lowest 
cost facilities. For 2014, our total will include an estimated $16 million 
increase in non-cash costs due to accelerated depreciation at our Penobsquis 
mine in New Brunswick along with transition costs of approximately $54 million 
related to the ramp-up at Picadilly and Rocanville. Total operational 
capability for 2014 is estimated at approximately 9.0 million tonnes with an 
ability to draw on inventory should customer demand surpass our current 
expectations. Our plans include a Canpotex allocation run at Allan, which 
should raise our entitlement for the second half of 2014 from the current 
level of approximately 49 percent.

In nitrogen, producers in North America and Trinidad continue to benefit from 
lower-cost natural gas relative to key exporting regions in China, Western 
Europe and Ukraine. Although recent pricing increases for urea and nitrogen 
solutions have improved the near-term outlook in nitrogen, we expect typical 
seasonal trends and weaker ammonia prices to result in margins trailing those 
of recent years. With a full year of production from Geismar, combined with 
the expectation of reduced natural gas curtailments at our operations in 
Trinidad, we expect our sales volumes to exceed 2013 levels.

In phosphate, fundamentals in the fertilizer business have improved in early 
2014 but continued strength will largely depend on consistent engagement in 
key consuming markets, particularly India. We expect margins, especially for 
industrial and feed products, to remain relatively stable compared to 2013 
levels as improved efficiencies and a shift to a more favorable product mix 
help counter potential pricing weakness. While the closure of one of our 
chemical plants at White Springs during the second half of 2014 will lower 
production slightly, the timing of the curtailment is unlikely to result in 
significant lost sales volumes for the year.  Our non-cash costs will be 
elevated in 2014 (estimated at $43 million) as we accelerate depreciation on 
assets impacted by our previously announced operational changes.

Capital expenditures are expected to approximate $1.1 billion in 2014, 
excluding capitalized interest.

Based on these factors, PotashCorp forecasts first-quarter 2014 net income per 
share in the range of $0.30-$0.35 for the first quarter of 2014 and between 
$1.40 and $1.80 per share for full-year 2014. Other annual guidance numbers 
are provided in the table below:

Guidance Summary
     __________________________________________________________
    |                              Quarterly: Q1 2014          |
    |__________________________________________________________|
    |Earnings per share                 |        $0.30-$0.35   |
    |___________________________________|______________________|
    |                                  Annual: 2014            |
    |__________________________________________________________|
    |Potash sales volumes               |8.2-8.6 million tonnes|
    |___________________________________|______________________|
    |Potash gross margin                |   $1.0-$1.3 billion  |
    |___________________________________|______________________|
    |Nitrogen and phosphate gross margin|   $1.0-$1.2 billion  |
    |___________________________________|______________________|
    |Capital expenditures               |      ~$1.1 billion   |
    |___________________________________|______________________|
    |Effective tax rate                 |      26-28 percent   |
    |___________________________________|______________________|
    |Provincial mining and other taxes* |      16-18 percent   |
    |___________________________________|______________________|
    |Selling and administrative expenses|   $225-$235 million  |
    |___________________________________|______________________|
    |Finance costs                      |   $165-$175 million  |
    |___________________________________|______________________|
    |Income from offshore investments** |   $160-$180 million  |
    |___________________________________|______________________|
    |Earnings per share                 |        $1.40-$1.80   |
    |___________________________________|______________________|

* As a percentage of potash gross margin
** Includes income from dividends and share of equity earnings

Conclusion

"While unexpected events and market uncertainty undermined confidence in 
recent months, we are encouraged by the current trends in global fertilizer 
markets," said Doyle. "There remains a tremendous nutrient requirement in 
soils around the world and farmer economics continue to be supportive to 
addressing this need. We are confident in our ability to meet customers' 
requirements and remain focused on enhancing our competitive position. As a 
company, we are committed to delivering improved results to our stakeholders."

Notes

1. All references to per-share amounts pertain to diluted net income per share.
2.See reconciliation and description of non-IFRS measures in the attached 
section titled "Selected Non-IFRS Financial Measures and Reconciliations." 
3. Canpotex Limited (Canpotex), the offshore marketing company for 
Saskatchewan potash producers.

PotashCorp is the world's largest crop nutrient company and plays an integral 
role in global food production. The company produces the three essential 
nutrients required to help farmers grow healthier, more abundant crops. With 
global population rising and diets improving in developing countries, these 
nutrients offer a responsible and practical solution to meeting the long-term 
demand for food. PotashCorp is the largest producer, by capacity, of potash 
and among the largest in nitrogen and phosphate. While agriculture is its 
primary market, the company also produces products for animal nutrition and 
industrial uses. Common shares of Potash Corporation of Saskatchewan Inc. are 
listed on the Toronto Stock Exchange and the New York Stock Exchange.

This release contains forward-looking statements or forward-looking 
information (forward-looking statements). These statements can be identified 
by expressions of belief, expectation or intention, as well as those 
statements that are not historical fact. These statements are based on certain 
factors and assumptions including with respect to: foreign exchange rates, 
expected growth, results of operations, performance, business prospects and 
opportunities and effective tax rates. While the company considers these 
factors and assumptions to be reasonable based on information currently 
available, they may prove to be incorrect. Forward-looking statements are 
subject to risks and uncertainties that are difficult to predict. The results 
or events set forth in forward-looking statements may differ materially from 
actual results or events. Several factors could cause actual results or events 
to differ materially from those expressed in the forward-looking statements, 
including, but not limited to the following: risk and uncertainties related to 
operating and workforce changes made in response to our industry and the 
markets we serve; variations from our assumptions with respect to foreign 
exchange rates, expected growth, results of operations, performance, business 
prospects and opportunities, and effective tax rates; fluctuations in supply 
and demand in the fertilizer, sulfur, transportation and petrochemical 
markets; costs and availability of transportation and distribution for our raw 
materials and products, including railcars and ocean freight; changes in 
competitive pressures, including pricing pressures; adverse or uncertain 
economic conditions and changes in credit and financial markets; the results 
of sales contract negotiations within major markets; economic and political 
uncertainty around the world; timing and impact of capital expenditures; risks 
associated with natural gas and other hedging activities; changes in capital 
markets; unexpected or adverse weather conditions; changes in currency and 
exchange rates; unexpected geological or environmental conditions, including 
water inflows; imprecision in reserve estimates; adverse developments in new 
and pending legal proceedings or government investigations; acquisitions we 
may undertake; strikes or other forms of work stoppage or slowdowns; rates of 
return on and the risks associated with our investments; changes in, and the 
effects of, government policies and regulations; security risks related to our 
information technology systems; and earnings and the decisions of taxing 
authorities, which could affect our effective tax rates. Additional risks and 
uncertainties can be found in our Form 10-K for the fiscal year ended December 
31, 2012 under the captions "Forward-Looking Statements" and "Item 1A - Risk 
Factors" and in our other filings with the US Securities and Exchange 
Commission and the Canadian provincial securities commissions. Forward-looking 
statements are given only as at the date of this release and the company 
disclaims any obligation to update or revise the forward-looking statements, 
whether as a result of new information, future events or otherwise, except as 
required by law.

PotashCorp will host a Conference Call on Thursday, January 30, 2014 at 1:00 
pm Eastern Time.
    Telephone       Dial-in numbers:
    Conference:
                    - From Canada and the US: 1-877-881-1303
                    - From Elsewhere: 1-412-902-6719
    Live            Visit
    Webcast:        www.potashcorp.com
                    Webcast participants can submit questions to management
                    online from their audio player pop-up window.
                      Potash Corporation of Saskatchewan Inc.        
          Condensed Consolidated Statements of Financial Position        
               (in millions of US dollars except share amounts)        
                                           (unaudited)        
                                                                           
                                                December 31,   December 31,
    As at                                             2013           2012
                                                                           
           Assets                                                          
             Current assets                                                
               Cash and cash equivalents      $          628 $          562
               Receivables                               752          1,089
               Inventories                               728            762
               Prepaid expenses and other
               current assets                             81             83
                                                       2,189          2,496
             Non-current assets                                            
               Property, plant and equipment          12,233         11,505
               Investments in
               equity-accounted investees              1,276          1,254
               Available-for-sale investments          1,722          2,481
               Other assets                              401            344
               Intangible assets                         137            126
           Total Assets                       $       17,958 $       18,206
                                                                           
                                                                           
           Liabilities                                                     
             Current liabilities                                           
               Short-term debt and current
               portion of long-term debt
               (Note 2)                       $          967 $          615
               Payables and accrued charges            1,104          1,188
               Current portion of derivative
               instrument liabilities                     42             51
                                                       2,113          1,854
             Non-current liabilities                                       
               Long-term debt (Note 2)                 2,970          3,466
               Derivative instrument
               liabilities                               129            167
               Deferred income tax
               liabilities                             2,013          1,482
               Pension and other
               post-retirement benefit
               liabilities                               410            569
               Asset retirement obligations
               and accrued environmental
               costs                                     557            645
               Other non-current liabilities
               and deferred credits                      138            111
           Total Liabilities                           8,330          8,294
                                                                           
           Shareholders' Equity                                            
             Share capital (Note 3)                    1,600          1,543
               Unlimited authorization of
               common shares without par
               value; issued and outstanding
               856,116,325 and 864,900,513 at
               December 31, 2013 and 2012,
               respectively                                                
             Contributed surplus                         219            299
             Accumulated other comprehensive
             income                                      673          1,399
             Retained earnings                         7,136          6,671
           Total Shareholders' Equity                  9,628          9,912
           Total Liabilities and
           Shareholders' Equity               $       17,958 $       18,206
    (See Notes to the Condensed Consolidated
    Financial Statements)                                                  
                                                                           
                                                                           
                          Potash Corporation of Saskatchewan Inc. 
                       Condensed Consolidated Statements of Income 
                (in millions of US dollars except per-share amounts) 
                                                (unaudited)
                                                                          
                                  Three Months Ended   Twelve Months Ended
                                       December 31           December 31
                                  2013        2012       2013       2012
                                                                          
    Sales (Note 4)              $ 1,541 $      1,642 $   7,305 $     7,927
    Freight, transportation
    and distribution              (137)        (113)     (572)       (494)
    Cost of goods sold            (944)        (943)   (3,943)     (4,023)
    Gross Margin                    460          586     2,790       3,410
    Selling and administrative
    expenses                       (66)         (53)     (231)       (219)
    Provincial mining and
    other taxes                    (40)         (18)     (194)       (180)
    Share of earnings of
    equity-accounted investees       21           58       195         278
    Dividend income                   7           38        92         144
    Impairment of
    available-for-sale
    investment                        -            -         -       (341)
    Other expenses                 (15)         (52)      (36)        (73)
    Operating Income                367          559     2,616       3,019
    Finance costs                  (37)         (25)     (144)       (114)
    Income Before Income Taxes      330          534     2,472       2,905
    Income taxes (Note 5)         (100)        (113)     (687)       (826)
    Net Income                  $   230 $        421 $   1,785 $     2,079
                                                                          
    Net Income per Share (Note
    6)                                                                    
      Basic                     $  0.27 $       0.49 $    2.06 $      2.42
      Diluted                   $  0.26 $       0.48 $    2.04 $      2.37
                                                                          
    Dividends Declared per
    Share                       $  0.35 $       0.21 $    1.33 $      0.70
    (See Notes to the
    Condensed Consolidated
    Financial Statements)                                                 
                                                                          
                                                                          
                                                                          
                           Potash Corporation of Saskatchewan Inc.
             Condensed Consolidated Statements of Comprehensive Income
                                    (in millions of US dollars)
                                                 (unaudited)
     
                                  Three Months Ended   Twelve Months Ended
                                       December 31           December 31
    (Net of related income
    taxes)                        2013        2012       2013       2012
                                                                          
    Net Income                  $   230 $        421 $   1,785 $     2,079
    Other comprehensive (loss)
    income                                                                
      Items that will not be
      reclassified to net
      income:                                                             
        Net actuarial gain
        (loss) on defined
        benefit plans (1)            14           22       164        (62)
      Items that may be
      reclassified
      subsequently to net
      income:                                                             
        Available-for-sale
        investments (2)                                                   
          Net fair value
          (loss) gain during
          the period               (22)           47     (759)         216
          Reclassification to
          income of unrealized
          loss on impaired
          investment                  -            -         -         341
      Cash flow hedges                                                    
          Net fair value loss
          during the period
          (3)                         -          (4)         -        (20)
          Reclassification to
          income of net loss
          (4)                         8           14        33          50
      Other                         (1)          (2)         -         (4)
    Other Comprehensive (Loss)
    Income                          (1)           77     (562)         521
    Comprehensive Income        $   229 $        498 $   1,223 $     2,600
                                                                          
    (1) Net of income taxes of $(5) (2012 - $(17)) for the three months
    ended December 31, 2013 and $(92) (2012 - $31) for the twelve months
    ended December 31, 2013.
    (2) Available-for-sale investments are comprised of shares in Israel
    Chemicals Ltd. and Sinofert Holdings Limited.
    (3) Cash flow hedges are comprised of natural gas derivative
    instruments and were net of income taxes of $NIL (2012 - $(4)) for the
    three months ended December 31, 2013 and $NIL (2012 - $7) for the
    twelve months ended December 31, 2013.
    (4) Net of income taxes of $(4) (2012 - $(8)) for the three months
    ended December 31, 2013 and $(18) (2012 - $(32)) for the twelve months
    ended December 31, 2013.
    (See Notes to the Condensed Consolidated Financial Statements)
     
                                                                   Potash Corporation of Saskatchewan Inc.
                                                        Condensed Consolidated Statement of Changes in Equity
                                                                            (in millions of US dollars)
                                                                                        (unaudited)
                                                                                                                        
       
                                                              Accumulated Other Comprehensive Income                    
       
                                                 Net
                                             unrealized          Net         Net                   Total                
       
                                                gain on       loss on    actuarial            Accumulated               
       
                                             available-    derivatives      gain                   Other                
       
                                                           designated       on


                  Share    Contributed     for-sale        as         defined            Comprehensive   Retained   
 Total 
                                                        cash flow     benefit 
                 Capital      Surplus    investments     hedges      plans(1)    Other        Income     Earnings   
Equity 


                                                                                                                        
       
    Balance -
    December 31,


2012           $   1,543 $         299 $       1,539 $       (138) $         - $   (2) $         1,399 $    6,671 $ 
  9,912 
Net income             -             -             -             -           -       -               -      1,785   
  1,785 


    Other
    comprehensive


(loss) income          -             -         (759)            33         164       -           (562)          -   
  (562) 


    Share
    repurchase


(Note 3)            (25)          (82)             -             -           -       -               -      (338)   
  (445) 
Dividends 
declared               -             -             -             -           -       -               -    (1,146)   
(1,146) 


    Effect of
    share-based
    compensation                                                                                                        
       
      including
      issuance of
      common
      shares              52             2             -             -           -       -               -          -   
     54
    Shares issued
    for dividend                                                                                                        
       
      reinvestment
      plan                30             -             -             -           -       -               -          -   
     30
    Transfer of
    net actuarial
    gain on                                                                                                             
       
      defined
      benefit
      plans                -             -             -             -       (164)       -           (164)        164   
      -
    Balance -
    December 31,


2013           $   1,600 $         219 $         780 $       (105) $         - $   (2) $           673 $    7,136 $ 
  9,628 


                                                                                                                        
       
    (1) Any amounts incurred during a period were closed out to retained
    earnings at each period-end. Therefore, no balance exists at the
    beginning or end of period.
    (See Notes to the Condensed Consolidated Financial Statements)
                            Potash Corporation of Saskatchewan Inc.
                      Condensed Consolidated Statements of Cash Flow
                                     (in millions of US dollars)
                                                 (unaudited)
                                                                           
                                   Three Months Ended   Twelve Months Ended
                                        December 31           December 31
                                   2013        2012       2013       2012
                                                                           
    Operating Activities                                                   
    Net income                   $   230 $        421 $   1,785 $     2,079
                                                                           
    Adjustments to reconcile net
    income to cash provided by
    operating activities                                                   
       Depreciation and
       amortization                  177          144       666         578
       Share-based compensation        2            3        27          24
       Net distributed
       (undistributed) earnings
       of equity-accounted
       investees                      47           23      (15)        (67)
       Impairment of
       available-for-sale
       investment                      -            -         -         341
       Realized excess tax
       benefit related to
       share-based compensation        3           23        18          30
       Provision for deferred
       income tax                     86           26       397         392
       Pension and other
       post-retirement benefits      (6)            3      (16)        (68)
       Asset retirement
       obligations and accrued
       environmental costs            14          (6)       (2)         (2)
       Other long-term
       liabilities and
       miscellaneous                  13           18        67          51
       Subtotal of adjustments       336          234     1,142       1,279
                                                                           
       Changes in non-cash
       operating working capital                                           
       Receivables                   114          272       276         188
       Inventories                   (1)         (70)        28         (7)
       Prepaid expenses and
       other current assets            3         (11)       (1)        (32)
       Payables and accrued
       charges                      (26)           26      (18)       (282)
       Subtotal of changes in
       non-cash operating
       working capital                90          217       285       (133)
    Cash provided by operating
    activities                       656          872     3,212       3,225
                                                                           
    Investing Activities                                                   
    Additions to property, plant
    and equipment                  (414)        (628)   (1,624)     (2,133)
    Other assets and intangible
    assets                             8         (34)         -        (71)
    Cash used in investing
    activities                     (406)        (662)   (1,624)     (2,204)
                                                                           
    Financing Activities                                                   
    Repayment of and finance
    costs on long-term debt
    obligations                        -            -     (254)         (2)
    Proceeds from (repayment of)
    short-term debt obligations      357           41       101       (460)
    Dividends                      (297)        (174)     (997)       (467)
    Repurchase of common shares    (245)            -     (411)           -
    Issuance of common shares          8           24        39          40
    Cash used in financing
    activities                     (177)        (109)   (1,522)       (889)
    Increase in Cash and Cash
    Equivalents                       73          101        66         132
    Cash and Cash Equivalents,
    Beginning of Period              555          461       562         430
    Cash and Cash Equivalents,
    End of Period                $   628 $        562 $     628 $       562
                                                                           
    Cash and cash equivalents
    comprised of:                                                          
       Cash                      $   129 $         64 $     129 $        64
       Short-term investments        499          498       499         498
                                 $   628 $        562 $     628 $       562
                                                                           
    Supplemental cash flow
    disclosure                                                             
       Interest paid             $    68 $         95 $     191 $       209
       Income taxes paid         $    76 $         93 $     189 $       676
    (See Notes to the Condensed
    Consolidated Financial
    Statements)                                                            

Potash Corporation of Saskatchewan Inc.
Notes to the Condensed Consolidated Financial Statements
For the Three and Twelve Months Ended December 31, 2013 
(in millions of US dollars except as otherwise noted)  
(unaudited)

1. Significant Accounting Policies

With its subsidiaries, Potash Corporation of Saskatchewan Inc. ("PCS") - 
together known as "PotashCorp" or "the company" except to the extent the 
context otherwise requires - forms an integrated fertilizer and related 
industrial and feed products company. The company's accounting policies are in 
accordance with International Financial Reporting Standards, as issued by the 
International Accounting Standards Board ("IFRS"). The accounting policies 
used in preparing these unaudited condensed consolidated financial statements 
are consistent with those used in the preparation of the company's 2012 annual 
consolidated financial statements except as described in Note 1 of the 
company's 2013 First Quarter Quarterly Report on Form 10-Q.

These unaudited condensed consolidated financial statements include the 
accounts of PCS and its subsidiaries; however, they do not include all 
disclosures normally provided in annual consolidated financial statements and 
should be read in conjunction with the company's 2012 annual consolidated 
financial statements. The company's 2013 annual consolidated financial 
statements will include additional information under IFRS in its Annual 
Integrated Report in February 2014.

In management's opinion, the unaudited condensed consolidated financial 
statements include all adjustments necessary to present fairly such 
information.

2. Long-Term Debt

During the first quarter of 2013, the company fully repaid $250 of 4.875 
percent 10-year senior notes at maturity. During the second quarter of 2013, 
the company classified as current the $500 aggregate principal amount of 5.250 
percent senior notes due May 15, 2014.

3. Share Capital

On July 24, 2013, the company's Board of Directors authorized a share 
repurchase program of up to $2,000 of PotashCorp's outstanding common shares 
(5 percent of its outstanding common shares) through a normal course issuer 
bid. Shares may be repurchased from time to time on the open market commencing 
August 2, 2013 through August 1, 2014 at prevailing market prices. The timing 
and amount of purchases under the program are dependent upon the availability 
and alternate uses of capital, market conditions, applicable US and Canadian 
regulations and other factors.

Under this program, the company had repurchased for cancellation 7,845,100 
common shares during the three months ended December 31, 2013, at a cost of 
$250 and an average price per share of $31.86. The repurchase resulted in a 
reduction of share capital of $14, and the excess of net cost over the average 
book value of the shares was recorded as a reduction of contributed surplus of 
$3 and a reduction of retained earnings of $233. During the twelve months 
ended December 31, 2013, a total of 14,145,100 common shares were repurchased 
at a cost of $445 and an average price per share of $31.46, resulting in a 
reduction of share capital of $25, a reduction of contributed surplus of $82 
and a reduction of retained earnings of $338.

4. Segment Information

The company has three reportable operating segments: potash, nitrogen and 
phosphate. Inter-segment sales are made under terms that approximate market 
value. The accounting policies of the segments are the same as those described 
in Note 1.
                                                                              
                                     Three Months Ended December 31, 2013
                                                          All
                        Potash    Nitrogen   Phosphate   Others   Consolidated
                                                                              
    Sales - third      
    party             $     564 $      494 $       483 $      - $        1,541
    Freight,
    transportation
    and
    distribution -
    third party            (60)       (23)        (54)        -          (137)
    Net sales -
    third party             504        471         429        -               
    Cost of goods
    sold - third
    party                 (276)      (298)       (370)        -          (944)
    Margin (cost)
    on
    inter-segment
    sales                     -         15        (15)        -              -
    Gross margin            228        188          44        -            460
    Depreciation
    and
    amortization           (52)       (40)        (80)      (5)          (177)
    Cash flows for
    additions to
    property, plant
    and equipment           279         72          60        3            414
                                                                              
                                     Three Months Ended December 31, 2012
                                                          All
                        Potash    Nitrogen   Phosphate   Others   Consolidated
                                                                              
    Sales - third      
    party             $     554 $      546 $       542 $      - $        1,642
    Freight,
    transportation
    and
    distribution -
    third party            (41)       (21)        (51)        -          (113)
    Net sales -
    third party             513        525         491        -               
    Cost of goods
    sold - third
    party                 (232)      (334)       (377)        -          (943)
    Margin (cost)
    on
    inter-segment
    sales                     -         15        (15)        -              -
    Gross margin            281        206          99        -            586
    Depreciation
    and
    amortization           (34)       (35)        (73)      (2)          (144)
    Cash flows for
    additions to
    property, plant
    and equipment           395        118          73       42            628
                                                                              
                                    Twelve Months Ended December 31, 2013
                                                          All
                        Potash    Nitrogen   Phosphate   Others   Consolidated
                                                                              
    Sales - third      
    party             $   2,963 $    2,275 $     2,067 $      - $        7,305
    Freight,
    transportation
    and
    distribution -
    third party           (256)      (101)       (215)        -          (572)
    Net sales -
    third party           2,707      2,174       1,852        -               
    Cost of goods
    sold - third
    party               (1,134)    (1,316)     (1,493)        -        (3,943)
    Margin (cost)
    on
    inter-segment
    sales                     -         55        (55)        -              -
    Gross margin          1,573        913         304        -          2,790
    Depreciation
    and
    amortization          (196)      (161)       (294)     (15)          (666)
    Cash flows for
    additions to
    property, plant
    and equipment         1,151        184         238       51          1,624
                                                                              
                                    Twelve Months Ended December 31, 2012
                                                          All
                        Potash    Nitrogen   Phosphate   Others   Consolidated
                                                                              
    Sales - third      
    party             $   3,285 $    2,350 $     2,292 $      - $        7,927
    Freight,
    transportation
    and
    distribution -
    third party           (206)       (97)       (191)        -          (494)
    Net sales -
    third party           3,079      2,253       2,101        -               
    Cost of goods
    sold - third
    party               (1,116)    (1,341)     (1,566)        -        (4,023)
    Margin (cost)
    on
    inter-segment
    sales                     -         66        (66)        -              -
    Gross margin          1,963        978         469        -          3,410
    Depreciation
    and
    amortization          (169)      (138)       (261)     (10)          (578)
    Cash flows for
    additions to
    property, plant
    and equipment         1,424        379         245       85          2,133

5. Income Taxes

A separate estimated average annual effective tax rate was determined for each 
taxing jurisdiction and applied individually to the pre-tax income of each 
jurisdiction.
                                     Three Months Ended Twelve Months Ended
                                          December 31         December 31
                                       2013      2012     2013       2012
    Income tax expense               $  100 $       113 $  687 $        826
    Actual effective tax rate           25%         19%    26%          25%
    on ordinary earnings            
    Actual effective tax rate           30%         21%    28%          28%
    including discrete items        
    Discrete tax adjustments         $   18 $        10 $   55 $         27
    that impacted the tax rate      

Significant items to note include the following:

• The actual effective tax rate on ordinary earnings for the fourth quarter 
of 2013 increased compared to the same period last year due to a different 
income weighting between jurisdictions.

• In 2013, a tax expense of $8 (recovery of $1 in the fourth quarter) was 
recorded to adjust the 2012 income tax provision to the income tax returns 
filed for that year.

• In fourth-quarter 2013, a net tax expense of $13 was recorded to adjust 
the deferred tax asset related to foreign tax loss carryforwards to the amount 
expected to be realized upon utilization.

• In fourth-quarter 2013, a deferred tax expense of $10 was recorded as a 
result of a planned distribution of earnings from a foreign jurisdiction.

• In second-quarter 2013, a deferred tax expense of $11 was recorded as a 
result of a Canadian income tax rate increase.

• In 2012, a tax expense of $17 ($NIL in the fourth quarter) was recorded to 
adjust the 2011 income tax provision to the income tax returns filed for that 
year.

• In second-quarter 2012, a non-tax deductible impairment of the company's 
available-for-sale investment in Sinofert Holdings Limited was recorded. This 
increased the 2012 actual effective tax rate including discrete items by 3 
percent for the year.

6. Net Income Per Share

Net income per share was calculated on the following weighted average number 
of shares:

Diluted net income per share was calculated based on the weighted average 
number of shares issued and outstanding during the period, incorporating the 
following adjustments. The denominator was: (1) increased by the total of the 
additional common shares that would have been issued assuming exercise of all 
stock options with exercise prices at or below the average market price for 
the period; and (2) decreased by the number of shares that the company could 
have repurchased if it had used the assumed proceeds from the exercise of 
stock options to repurchase them on the open market at the average share price 
for the period. For performance-based stock option plans, the number of 
contingently issuable common shares included in the calculation was based on 
the number of shares, if any, that would be issuable if the end of the 
reporting period were the end of the performance period and the effect were 
dilutive.

7. Operating and Workforce Changes

The company implemented operating and workforce changes in the US, Canada and 
Trinidad which resulted in the following for the year ending December 31, 2013:

• Termination benefit costs of $60 and a provision of $56 at December 31, 
2013.  The provision is expected to be settled in 2014.

• Curtailment gains of $11 in the company's US defined benefit plans due to 
significant reductions in plan participants.
                               Potash Corporation of Saskatchewan Inc.
                                       Selected Financial Data
                                                (unaudited)
     
                                Three Months Ended     Twelve Months Ended
                                     December 31             December 31
                                2013        2012         2013       2012
                                                                          
    Potash Sales (tonnes -
    thousands)                                                            
         Manufactured
         Product                                                          
           North America          836          588       3,185       2,590
           Offshore               929          729       4,915       4,640
         Manufactured
         Product                1,765        1,317       8,100       7,230
                                                                          
    Potash Net Sales                                                      
         (US $ millions)                                                  
           Sales              $   564 $      $ 554   $ $ 2,963 $     3,285
           Freight,
           transportation
           and distribution      (60)         (41)       (256)       (206)
           Net Sales          $   504 $      $ 513   $ $ 2,707 $     3,079
                                                                          
         Manufactured
         Product                                                          
           North America      $   287 $        263   $   1,210 $     1,231
           Offshore               211          247       1,482       1,835
         Other
         miscellaneous and
         purchased product          6            3          15          13
         Net Sales            $   504 $        513   $   2,707 $     3,079
                                                                          
    Manufactured Product                                                  
         Average Realized
         Sales Price per MT                                               
           North America      $   343 $        447   $     380 $        475
           Offshore           $   227 $        339   $     302 $       396
           Average            $   282 $        387   $     332 $        424
         Cost of Goods Sold
         per MT               $ (150) $      (172)   $   (136) $     (152)
         Gross Margin per
         MT                   $   132 $        215   $     196 $       272
                                                                  
                                                                  
                                                                  
                           Potash Corporation of Saskatchewan Inc.
                                      Selected Financial Data 
                                               (unaudited) 
                                                                          
                                Three Months Ended     Twelve Months Ended
                                     December 31             December 31
                                2013        2012         2013       2012
                                                                          
    Average Natural Gas
    Cost in Production per
    MMBtu                     $  4.83 $       7.01   $    5.38 $      5.91
    Nitrogen Sales (tonnes
    - thousands)                                                          
         Manufactured
         Product                                                          
           Ammonia (1)            543          425       2,163       2,033
           Urea                   270          235       1,070       1,105
           Solutions/Nitric
           acid/Ammonium
           nitrate                685          437       2,663       1,808
         Manufactured
         Product                1,498        1,097       5,896       4,946
                                                                          
         Fertilizer sales
         tonnes (1)               472          304       1,833       1,521
         Industrial/Feed
         sales tonnes           1,026          793       4,063       3,425
         Manufactured
         Product                1,498        1,097       5,896       4,946
                                                                          
    Nitrogen Net Sales                                                    
         (US $ millions)                                                  
           Sales (2, 3)       $   523 $        590   $   2,417 $     2,503
           Freight,
           transportation
           and distribution      (24)         (21)       (104)        (97)
           Net Sales          $   499 $        569   $   2,313 $     2,406
                                                                          
         Manufactured
         Product                                                          
           Ammonia (2)        $   244 $        287   $   1,143 $     1,152
           Urea                    96          112         443         568
           Solutions/Nitric
           acid/Ammonium
           nitrate                149          107         638         445
         Other
         miscellaneous and
         purchased product
         (3)                       10           63          89         241
         Net Sales            $   499 $      $ 569   $   2,313 $     2,406
                                                                          
         Fertilizer net
         sales (2)            $   156 $        142   $     722 $       738
         Industrial/Feed
         net sales                333          364       1,502       1,427
         Other
         miscellaneous and
         purchased product
         (3)                       10           63          89         241
         Net Sales            $   499 $        569   $   2,313 $     2,406
                                                                          
    Manufactured Product                                                  
         Average Realized
         Sales Price per MT                                               
           Ammonia            $   449 $        675   $     529 $       566
           Urea               $   356 $        475   $     414 $       514
           Solutions/Nitric
           acid/Ammonium      $   218 $        247   $     240 $       247
           nitrate
           Average            $   326 $        461   $     377 $       438
           Fertilizer
           average price
           per MT             $   331 $        467   $     396 $       485
           Industrial/Feed
           average price
           per MT             $   325 $        458   $     370 $       417
           Average            $   326 $        461   $     377 $       438
         Cost of Goods Sold
         per MT               $ (204) $      (288)   $   (225) $     (254)
         Gross Margin per
         MT                   $   122 $        173   $     152 $       184
                                                                          
    (1)Includes
    inter-segment ammonia
    sales (tonnes -
    thousands)                     48           30         184         139
    (2) Includes
    inter-segment ammonia
    net sales of              $    27 $         23   $     106 $        94
    (3) Includes
    inter-segment other
    miscellaneous and
    purchased
    product net sales of      $     1 $         21   $      33 $        59
                                                                  
                                                                  
                                                                  
                          Potash Corporation of Saskatchewan Inc. 
                                      Selected Financial Data 
                                               (unaudited) 
                                                                          
                                Three Months Ended     Twelve Months Ended
                                     December 31             December 31
                                2013        2012         2013       2012
                                                                          
    Phosphate Sales (tonnes
    - thousands)                                                          
         Manufactured
         Product                                                          
           Fertilizer             637          541       2,496       2,473
           Feed and
           Industrial             297          297       1,184       1,170
         Manufactured
         Product                  934          838       3,680       3,643
                                                                          
    Phosphate Net Sales                                                   
         (US $ millions)                                                  
           Sales              $   483 $        542   $   2,067 $     2,292
           Freight,
           transportation
           and distribution      (54)         (51)       (215)       (191)
           Net Sales          $   429 $        491   $   1,852 $     2,101
                                                                          
         Manufactured
         Product                                                          
           Fertilizer         $   244 $        287   $   1,079 $     1,291
           Feed and
           Industrial             181          197         749         778
         Other
         miscellaneous and
         purchased product          4            7          24          32
         Net Sales            $   429 $        491   $   1,852 $     2,101
                                                                          
    Manufactured Product                                                  
         Average Realized
         Sales Price per MT                                               
           Fertilizer         $   383 $        529   $     433 $       522
           Feed and
           Industrial         $   608 $        663   $     632 $       665
           Average            $   455 $        577   $     497 $       568
         Cost of Goods Sold
         per MT               $ (401) $      (463)   $   (415) $     (444)
         Gross Margin per
         MT                   $    54 $        114   $      82 $       124
     
                            Potash Corporation of Saskatchewan Inc.
                                       Selected Additional Data
                                                 (unaudited)
                                                                           
    Exchange Rate
    (Cdn$/US$)                                                             
                                                    2013             2012
                                                                           
    December 31                                     1.0636           0.9949
    Fourth-quarter
    average
    conversion
    rate                                            1.0399           0.9875
                                                                           
                       Three Months Ended            Twelve Months Ended
                            December 31                    December 31
                       2013          2012           2013             2012
                                                                           
    Production                                                             
    Potash
    production
    (KCl Tonnes -
    thousands)         1,940        1,763            7,792            7,724
    Potash
    shutdown weeks
    (1)                   10           22               42               77
    Nitrogen
    production (N
    Tonnes -
    thousands)           798          573            2,952            2,602
    Phosphate
    production
    (P2O5Tonnes -
    thousands)           505          504            2,058            1,983
    Phosphate P2O5
    operating rate       85%          85%              87%              84%
                                                                           
    Shareholders                                                           
    PotashCorp's
    total
    shareholder
    return                6%          -6%             -16%               0%
                                                                           
    Customers                                                              
    Product tonnes
    involved in
    customer
    complaints
    (thousands)           27           10               43               64
                                                                           
    Community                                                              
    Taxes and
    royalties ($
    millions)(2)          84          133              568              654
                                                                           
    Employees                                                              
    Annualized
    turnover rate
    (excluding
    retirements)
    (3)                   7%           3%               5%               5%
                                                                           
    Safety                                                                 
    Total site
    recordable
    injury rate
    (per 200,000
    work hours)(4)      0.86         1.22             1.06             1.29
                                                                           
    Environment                                                            
    Environmental
    incidents(5)           4            1               17               19
                                                                           
                                                                           
                                              December 31,     December 31,
    As at                                           2013             2012
                                                                           
    Number of
    employees                                                              
      Potash                                         2,912            2,759
      Nitrogen                                         789              788
      Phosphate                                      1,637            1,792
      Other                                            449              440
      Total                                          5,787            5,779
    (1) Represents weeks of full production shutdown; excludes the impact
        of any periods of reduced operating rates and planned routine
        annual maintenance shutdowns.
    (2) Taxes and royalties = current income tax expense - investment tax
        credits - realized excess tax benefit related to share-based
        compensation + potash production tax + resource surcharge +
        royalties + municipal taxes + other miscellaneous taxes (calculated
        on an accrual basis).
    (3) Results in 2013 include a portion of the impact of our announced
        workforce reduction and the remaining impact will be reflected in
        2014.
    (4) As defined in our 2012 Annual Integrated Report. Total site
        includes PotashCorp employees, contractors and others on site.
    (5) Total of reportable quantity releases, permit excursions and
        provincial reportable spills (as defined in our 2012 Annual
        Integrated Report).
         

Potash Corporation of Saskatchewan Inc.
Selected Non-IFRS Financial Measures and Reconciliations
(in millions of US dollars except percentage amounts)
(unaudited) 


The following information is included for convenience only. Generally, a 
non-IFRS financial measure is a numerical measure of a company's performance, 
financial position or cash flows that either excludes or includes amounts that 
are not normally excluded or included in the most directly comparable measure 
calculated and presented in accordance with IFRS. EBITDA, adjusted EBITDA, 
adjusted EBITDA margin, cash flow prior to working capital changes and free 
cash flow are not measures of financial performance (nor do they have 
standardized meanings) under IFRS. In evaluating these measures, investors 
should consider that the methodology applied in calculating such measures may 
differ among companies and analysts. 
The company uses both IFRS and certain non-IFRS measures to assess 
performance. Management believes these non-IFRS measures provide useful 
supplemental information to investors in order that they may evaluate 
PotashCorp's financial performance using the same measures as management. 
Management believes that, as a result, the investor is afforded greater 
transparency in assessing the financial performance of the company. These 
non-IFRS financial measures should not be considered as a substitute for, nor 
superior to, measures of financial performance prepared in accordance with 
IFRS. 
A. EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN 
Set forth below is a reconciliation of "EBITDA" and "adjusted EBITDA" to net 
income and "adjusted EBITDA margin" to net income as a percentage of sales, 
the most directly comparable financial measures calculated and presented in 
accordance with IFRS. 
                                  Three Months Ended           Twelve Months Ended
                                       December 31                  December 31
                                              
                                   2013        2012            2013          2012
    Net income                   $   230     $   421       $   1,785     $   2,079
    Finance costs                     37          25             144           114
    Income taxes                     100         113             687           826
    Depreciation and
    amortization                     177         144             666           578
    EBITDA                       $   544     $   703       $   3,282     $   3,597
    Termination
    benefit costs                     60           -              60             -
    Impairment of
    available-for-sale
    investment                         -           -               -           341
    Adjusted EBITDA              $   604     $   703       $   3,342     $   3,938

EBITDA is calculated as net income before finance costs, income taxes and 
depreciation and amortization. Adjusted EBITDA is calculated as net income 
before finance costs, income taxes, depreciation and amortization, termination 
benefit costs and certain impairment charges. PotashCorp uses EBITDA and 
adjusted EBITDA as supplemental financial measures of its operational 
performance. Management believes EBITDA and adjusted EBITDA to be important 
measures as they exclude the effects of items which primarily reflect the 
impact of long-term investment and financing decisions, rather than the 
performance of the company's day-to-day operations. As compared to net income 
according to IFRS, these measures are limited in that they do not reflect the 
periodic costs of certain capitalized tangible and intangible assets used in 
generating revenues in the company's business, or the charges associated with 
impairments. Management evaluates such items through other financial measures 
such as capital expenditures and cash flow provided by operating activities. 
The company believes that these measurements are useful to measure a company's 
ability to service debt and to meet other payment obligations or as a 
valuation measurement. 
                                    Three Months Ended             Twelve Months Ended
                                          December 31                   December 31
                                     2013        2012              2013          2012
    Sales                        $   1,541     $   1,642       $   7,305     $   7,927
    Freight,
    transportation
    and
    distribution                     (137)         (113)           (572)         (494)
    Net sales                    $   1,404     $   1,529       $   6,733     $   7,433
                                                                                      
    Net income as
    a percentage
    of sales                           15%           26%             24%           26%
    Adjusted
    EBITDA margin                      43%           46%             50%           53%

Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net sales 
(sales less freight, transportation and distribution). Management believes 
comparing EBITDA to net sales earned (net of costs to deliver product) is an 
important indicator of efficiency. In addition to the limitations given above 
in using adjusted EBITDA as compared to net income, adjusted EBITDA margin as 
compared to net income as a percentage of sales is also limited in that 
freight, transportation and distribution costs are incurred and valued 
independently of sales; adjusted EBITDA also includes earnings from equity 
investees whose sales are not included in consolidated sales. Management 
evaluates these items individually on the consolidated statements of income. 

Potash Corporation of Saskatchewan Inc.
Selected Non-IFRS Financial Measures and Reconciliations
(in millions of US dollars)
(unaudited) 


B. CASH FLOW 
Set forth below is a reconciliation of "cash flow prior to working capital 
changes" and "free cash flow" to cash provided by operating activities, the 
most directly comparable financial measure calculated and presented in 
accordance with IFRS. 
                           Three Months Ended             Twelve Months Ended
                               December 31                      December 31
                          2013          2012             2013            2012
    Cash flow
    prior to
    working
    capital
    changes           $     566     $     655       $     2,927     $     3,358
    Changes in
    non-cash
    operating
    working
    capital                                                                    
      Receivables           114           272               276             188
      Inventories           (1)          (70)                28             (7)
      Prepaid
      expenses
      and other
      current
      assets                  3          (11)               (1)            (32)
      Payables
      and accrued
      charges              (26)            26              (18)           (282)
    Changes in
    non-cash
    operating
    working
    capital                  90           217               285           (133)
    Cash provided
    by operating
    activities        $     656     $     872       $     3,212     $     3,225
    Additions to
    property,
    plant and
    equipment             (414)         (628)           (1,624)         (2,133)
    Other assets
    and
    intangible
    assets                    8          (34)                 -            (71)
    Changes in
    non-cash
    operating
    working
    capital                (90)         (217)             (285)             133
    Free cash
    flow              $     160     $     (7)       $     1,303     $     1,154

Management uses cash flow prior to working capital changes as a supplemental 
financial measure in its evaluation of liquidity. Management believes that 
adjusting principally for the swings in non-cash working capital items due to 
seasonality or other timing issues assists management in making long-term 
liquidity assessments. The company also believes that this measurement is 
useful as a measure of liquidity or as a valuation measurement. 
The company uses free cash flow as a supplemental financial measure in its 
evaluation of liquidity and financial strength.  Management believes that 
adjusting principally for the swings in non-cash operating working capital 
items due to seasonality or other timing issues, additions to property, plant 
and equipment, and changes to other assets assists management in the long-term 
assessment of liquidity and financial strength.  Management also believes that 
this measurement is useful as an indicator of its ability to service its debt, 
meet other payment obligations and make strategic investments.  Readers should 
be aware that free cash flow does not represent residual cash flow available 
for discretionary expenditures. 



SOURCE  Potash Corporation of Saskatchewan Inc. 
Investors Denita Stann Vice President, Investor and Public Relations Phone: 
(306) 933-8521 Fax: (306) 933-8844 Email:ir@potashcorp.com  Media Bill 
Johnson Senior Director, Public Affairs Phone: (306) 933-8849 Fax: (306) 
933-8844 Email:pr@potashcorp.com 
Website:www.potashcorp.com    
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/January2014/30/c5526.html 
CO: Potash Corporation of Saskatchewan Inc.
ST: Saskatchewan
NI: MNG CHM ERN  
-0- Jan/30/2014 11:00 GMT
 
 
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