Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q4 2010 Earnings Presentation
11 slides from Cf Industries's earnings presentation, Feb 18, 2011
Slide 1: 2010 Fourth Quarter Financial Results
Corporate Development Supply Chain Sales Finance Legal Operations Human Resources Dv Sc Sa Fi Le Op Hr CF Industries NYSE: CF 2010 Fourth Quarter Financial Results February 18, 2011
Slide 2: Forward-looking statements
Certain statements contained in this communication may constitute "forward-looking statements." All statements in this communication, other than those relating to historical information or current condition, are forward-looking statements. These forward-looking statements are subject to a number of
Slide 3: Financial Highlights
Financial Highlights In millions, except percentages and EPS 2010 Q4 2009 Q4 2010 Year 2009 Year Net sales $ 1,238 $ 507 $ 3,965 $ 2,608 Gross margin 484 126 1,180 839 - As percent of sales 39% 25% 30% 32% Net earnings attributable to common $ 200 $ 51 $ 349 $ 366 Earnings per diluted share 2.78 1.0
Slide 4: Nitrogen Segment Results
Nitrogen Segment Results Source: Green Markets 09 10 In millions, except as noted 2010 Q4 H/(L) 2009 Q4 H/(L) 2010 Q3 Sales $ 1,003 $ 651 $ 268 Gross margin 421 311 280 - Percent 42% 11 pts 23 pts Volume (000 st) 3,350 1,880 369 Average selling prices ($/st) - Ammonia $ 452 $ 144 $ 58 - Urea 323 51
Slide 5: Weak Natural Gas Prices
Weak Natural Gas Prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CF Industries has avoided locking in gas costs without forward sales Peak cash price at Henry Hub in Q4 was $4.54, despite cold weather Gas production and storage expected to remain at/near record levels Source: Bloomberg
Slide 6: Phosphate Segment Results
Phosphate Segment Results Source: Green Markets 09 10 In millions, except as noted 2010 Q4 H/(L) 2009 Q4 H/(L) 2010 Q3 Sales $ 235 $ 80 $ 53 Gross margin 63 47 35 - Percent 27% 16 pts 11 pts Volume (000 st) 477 (74) 26 - DAP 354 (136) 25 - MAP 123 62 1 - Domestic 393 116 133 - Export 84 (190) (107)
Slide 7: EBITDA and Selected Items
EBITDA and Selected Items (in millions; includes Terra results from Apr. 5, 2010) Quarter ended December 31, Year ended December 31, 2010 2009 2010 2009 Net earnings attributable to common stockholders $ 200.3 $ 51.4 $ 349.2 $ 365.6 Interest expense (income) – net 50.2 - 219.8 (3.0) Income taxes 172
Slide 8: 2010 Accomplishments
2010 Accomplishments Acquired Terra, closing and completing financing in 45 days Demonstrated integration progress ahead of target Identified synergies beyond $105-$135 million target Accelerated achievement ($110 million run rate by year-end) Succeeded to make transition seamless to customers Deliv
Slide 9: Outlook/Summary
Outlook/Summary High crop prices and farm profitability support strong plantings and fertilizer prices Tight supply of fertilizers, especially UAN and phosphates Subdued natural gas costs Recent strong fertilizer prices not yet fully reflected in income statement High cash flow expected to continue
Slide 10: U.S. Corn Demand and Stocks
U.S. Corn Demand and Stocks (Billion Bushels) Source: USDA, CF
Slide 11: Non-GAAP Reconciliation
Non-GAAP Reconciliation (in millions) Reconciliation of debt to net debt (net cash): December 31, 2010 December 31, 2009 Total Debt $ 1,959.0 $ 4.7 Less: cash, cash equivalents and short-term investments 800.8 882.1 Plus: customer advances 431.5 159.5 Net debt (net cash) $ 1,589.7 $ (717.9) Net debt
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