Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q2 2013 Earnings Presentation
16 slides from Cf Industries's earnings presentation, Aug 7, 2013
Slide 1: 2013 Second Quarter Financial Results
2013 Second Quarter Financial Results August 7, 2013 NYSE: CF
Slide 2: Forward-Looking Statements
All statements in this communication, other than those relating to historical facts, are “forward-looking statements.” These forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control,
Slide 3: Financial Highlights
Financial Highlights In millions, except percentages and EPS 2013 Q2 2012 Q2 Reported net sales $ 1,715 $ 1,736 Adjusted net sales (1) $ 1,715 $ 1,717 Reported gross margin 865 1,043 - As percent of reported sales 50.5% 60.1% Adjusted gross margin (1) 865 1,025 - As percent of adjusted sales (1) 50.
Slide 4: Second Quarter Accomplishments
Second Quarter Accomplishments Overcame difficult weather and market conditions Solid execution produced excellent financial results Robust nitrogen demand to support 97.4 million acres of corn Strong forward order book at the beginning of the quarter captured attractive ammonia and UAN prices Flexi
Slide 5: Historical Earnings Per Share
Historical Earnings Per Share 2009 2010 2011 2012 2013 Earnings per Share 5 Second quarter reporting periods $8.38
Slide 6: Q2 Nitrogen Segment Results
Q2 Nitrogen Segment Results (1) Graph source: Green Markets In millions, except as noted 2013 Q2 Reported H/(L) 2012 Q2 Reported H/(L) 2012 Q2 Adjusted Sales $ 1,525 $ 21 $ 39 Gross margin 847 (146) (128) - Percent 55.5% (11) pts (10) pts Volume (000 st) 3,608 76 76 Average selling prices ($/st) - A
Slide 7: Q2 Phosphate Segment Results
Graph source: Green Markets In millions, except as noted 2013 Q2 H/(L) 2012 Q2 Sales $ 190 $ (42) Gross margin 18 (32) - Percent 9.5% (12) pts Volume (000 st) 421 (72) - Domestic 179 (23) - Export 242 (49) Average selling prices ($/st) - DAP $ 447 $ (25) - MAP 459 (5) DAP Central Florida Price Q2 Ph
Slide 8: YTD Financial Highlights
YTD Financial Highlights 8 Adjusted to exclude the impact of a retroactive modification to the selling price calculation methodology used for products sold by Canadian Fertilizers Limited (CFL). This modification impacts the comparability of the financial results between the 2012 and 2013 time perio
Slide 9: YTD Segment Results
YTD Segment Results In millions, except as noted YTD 2013 H/(L) YTD 2012 Reported H/(L) YTD 2012 Adjusted Sales $ 2,623 $ (153) $ (95) Gross margin 1,495 (160) (102) - Percent 57.0% (3) pts (2) pts Volume (000 st) 6,604 (129) (129) Average selling prices ($/st) - Ammonia $ 674 $ 56 $ 76 - Urea 397 (
Slide 10: Supplemental Information
Supplemental Information 10 Forward NYMEX Natural Gas Strip (U.S. Dollars per MMBtu) Source: Bloomberg L.P. As of July 30, 2013. U.S. Farm Income (Billions of U.S. Dollars) Source: USDA Source: USDA, Green Markets, CME, CF. As of July 27, 2013. Returns calculated using average of March-April new cro
Slide 11: Marketable Nitrogen Volumes and Shares Outstanding
11 (1) Excludes 34% of Canadian Fertilizers Limited (CFL) that was owned by Viterra. CFL operations were treated as a consolidated variable interest entity in CF Industries Holdings, Inc. financial statements. (2) Acquisition of all outstanding interests in CFL closed April 30, 2013. (3) Approved am
Slide 12: Outlook/Summary
Outlook/Summary Long-term earnings growth drivers Global population growth and shift to higher protein diets Projected 2% annual growth rate for global nitrogen market Solid agricultural fundamentals Attractive farmer profitability provided by current corn prices 92 million acres of corn projected f
Slide 13: EBITDA and Selected Items
EBITDA and Selected Items 13 (in millions) Three months ended June 30, Six months ended June 30, 2013 2012 2013 2012 Net earnings attributable to common stockholders $ 498.2 $ 606.3 $ 904.7 $ 974.7 Interest expense (income) – net 31.3 45.3 68.3 75.8 Income taxes 282.9 309.1 390.3 516.1 Depreciation,
Slide 14: CFL Selling Price Modifications
CFL Selling Price Modifications 14 Prior to April 30, 2013, CF Industries, Inc. (CF Industries) owned 49% of the voting common shares and 66% of the non-voting preferred shares of Canadian Fertilizers Limited (CFL), an Alberta, Canada based nitrogen fertilizer manufacturer and had the right to purch
Slide 15: CFL Selling Price Modifications: Consolidated Results
15 CFL Selling Price Modifications CONSOLIDATED RESULTS Three months ended Six months ended June 30, June 30, 2013 2012 2013 2012 (in millions, except as noted) Net sales As reported $ 1,714.9 $ 1,735.6 $ 3,051.4 $ 3,263.2 Impact of selling price adjustment - (18.2) - (57.9) As adjusted $ 1,714.9 $
Slide 16: Nitrogen Segment Data
16 Three months ended Six months ended NITROGEN SEGMENT DATA June 30, June 30, 2013 2012 2013 2012 (in millions, except as noted) Net sales As reported $ 1,525.2 $ 1,504.1 $ 2,622.8 $ 2,775.8 Impact of selling price adjustment - (18.2) - (57.9) As adjusted $ 1,525.2 $ 1,485.9 $ 2,622.8 $ 2,717.9 Gro
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