Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Southwestern Fertilizer Conference 2010
29 slides from Cf Industries's conference presentation, Jul 27, 2010
Slide 1: CF Industries Southwestern Fertilizer Conference
Corporate Development Supply Chain Sales Finance Legal Operations Human Resources Dv Sc Sa Fi Le Op Hr CF Industries Southwestern Fertilizer Conference Steve Wilson July 27, 2010
Slide 2: Topics: Fertilizer Industry Dynamics, The New CF Industries
Fertilizer Industry Dynamics The New CF Industries Topics
Slide 3: Global Fertilizer Dynamics
Global Fertilizer Dynamics
Slide 4: Total World Grains Harvested Acres & Production
Total World Grains Harvested Acres & Production Global Grain Production Source: USDA, FAS
Slide 5: World Coarse Grain Production by Source
World Coarse Grain Production by Source Source: USDA, CF (MM Tonnes)
Slide 6: Global Nitrogen Consumption & Consumers
Global Nitrogen Consumption & Consumers Source: Fertecon, CF Source: FERTECON
Slide 7: BRIC Countries and Global Nitrogen Supply/Demand
BRIC Countries and Global Nitrogen Supply/Demand BRAZIL 3rd Largest Importer CHINA Largest Producer and Consumer INDIA 2nd Largest Consumer RUSSIA Largest Exporter
Slide 8: Nitrogen Importing Countries
Nitrogen Importing Countries Source: FERTECON
Slide 9: Phosphate Consumption & Consumers
Phosphate Consumption & Consumers Source: Fertecon, CF Source: FERTECON
Slide 10: BRIC Countries and Global Phosphate Supply/Demand
BRIC Countries and Global Phosphate Supply/Demand BRAZIL 4th Largest Consumer CHINA 3rd Largest Exporter INDIA 2nd Largest Consumer RUSSIA 2nd Largest Exporter
Slide 11: Phosphate Exporting Countries
Phosphate Exporting Countries Source: FERTECON
Slide 12: U.S. Natural Gas Prices
U.S. Natural Gas Prices First-of-month price at Henry Hub in $/MMBtu Volatility in natural gas pricing has been reduced Supply in the U.S. has increased due to low-cost non-conventional drilling Storage remains near record levels and storage capacity has grown Gas is attractively priced in the U.S.
Slide 13: Cost Advantage Serving Principal Markets
Cost Advantage Serving Principal Markets ($ per tonne) High natural gas costs in both Eastern and Western Europe expected to force producers in those regions into the role of swing suppliers W. Europe Ukraine Russia U.S. Middle East Source: Fertecon U.S. Delivered Ammonia Supply Cost – U.S. Gulf $10
Slide 14: Fertilizer Demand by Nutrient
Fertilizer Demand by Nutrient Farm-Level Demand YOY Change in Demand After falling in 2008 and 2009, farm-level fertilizer demand rose for all three primary nutrients in Fertilizer Year 2010 Nitrogen demand is much more stable because it is not stored in the soil from year to year In 2011, applicati
Slide 15: Ethanol Update
Ethanol Update Advanced biofuel production of 1 billion gallons in 2010 expected to double every two years through 2016 Increase in ethanol blend rate for gasoline needed to meet RFS Corn-based ethanol will plateau by 2015 Advanced biofuels including cellulosic ethanol extend growth Like corn, cellu
Slide 16: Diesel Exhaust Fluid (DEF)
Diesel Exhaust Fluid (DEF) EPA-mandated NOx Reduction New emissions standard for commercial trucks effective Jan. 1, 2010 All manufacturers except one using SCR technology, which requires regular doses of DEF (urea based) U.S. demand expected to reach ~2.5 million tons of urea equivalent by 2018 CF
Slide 17: Outlook: Tight Supply/Demand Balance
Outlook: Tight Supply/Demand Balance Low producer and downstream inventories Continued buying from India, Pakistan and South America Heavy summer turnaround schedule Normal harvest followed by full fall window
Slide 18: The New CF Industries
The New CF Industries
Slide 19: The New Leader in Nitrogen Fertilizer
The New Leader in Nitrogen Fertilizer Global #2 in nitrogen and the clear leader in North America Third largest producer of phosphate fertilizer among public companies globally Strong balance sheet Committed to maintaining flexibility through deleveraging Favorable natural gas position and productio
Slide 20: A Global Leader in Nitrogen Fertilizers
A Global Leader in Nitrogen Fertilizers Nitrogen Production Capacity (Million Nutrient Tons in 2009) Source: Public Data, FERTECON, CF 7.3 6.3 3.1 3.1 2.3 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Yara CF Agrium Potash Koch
Slide 21: CF Export Sales
CF Export Sales Tons (000) Export capability provides flexibility Phosphates Nitrogen 5 Year Average Keytrade partnership provides access to global markets for both imports and exports
Slide 22: Rationale for Terra Acquisition
Rationale for Terra Acquisition Greatly enhanced scale and strategic platform Nearly doubles revenues More than doubles nitrogen manufacturing capacity Exposure to cost advantaged North American natural gas Significant synergy opportunity Complementary production footprint with overlapping distribut
Slide 23: Complementary Strengths In Nitrogen
Complementary Strengths In Nitrogen (000s Product Tons) Legacy Terra Capacity Nitrogen Production Capacities 2,415 1,164 2,490 3,833 1,839 280 6,248 3,003 2,770 1,437 1,437 0 2,000 4,000 6,000 8,000 UAN Ammonia Urea Ammonium Nitrate Legacy CF Capacity
Slide 24: Things that Won't Change
Things that Won’t Change Commitment to safety and environmental stewardship Commitment to agricultural markets Outstanding customer service and support Commitment to getting product to customer at right place and right time World class manufacturing and extensive distribution system Highest standard
Slide 25: Customer Segmentation
Customer Segmentation 2009 Product Tons
Slide 26: Better Able to Serve Customers
Better Able to Serve Customers A one-stop shop for nitrogen products, including Ammonium Nitrate Sales organization, including regional team, aligned with customers FPP and PROMISE customer interface for all customers In-market production and shortened supply lines The combination of two complementa
Slide 27: Brings CF Industries closer to you
Brings CF Industries closer to you Overlapping Distribution Points
Slide 28: Significant Cost Synergies
Significant Cost Synergies $105 million to $135 million annual rate achieved over the next 18 to 24 months
Slide 29: Summary
Summary Even more intense globalization Positive fundamentals in the near term It’s a good time to be a North American nitrogen producer (and a North American phosphate producer) We’re pleased with our position (post Terra acquisition) and eager to serve you from our new, bigger and more efficient p
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