Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Non-Deal Roadshow (September 2021)
21 slides from Cf Industries's roadshow presentation, Sep 20, 2021
Slide 1: London Roadshow September 2021
London Roadshow September 2021 NYSE: CF
Slide 2: Safe harbor statement
2 Safe harbor statement All statements in this presentation by CF Industries Holdings, Inc. (together with its subsidiaries, the “Company”), other th an those relating to historical facts, are forward - looking statements. Forward - looking statements can generally be identified by their use of term
Slide 3: Note regarding non-GAAP financial measures
3 Note regarding non - GAAP financial measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that EBITDA, adjusted EBITDA and free cash flow, which are non - GAAP financial measures, provide additional meaningfu
Slide 4: Company Overview
CF Company Overview a | —_
Slide 5: Strengthening global nitrogen outlook
5 Strengthening global nitrogen outlook Global nitrogen price dynamics Global nitrogen demand Global energy differentials Low global coarse grains stocks - to - use ratio, excluding China, increased economic activity, and higher energy prices in Europe and Asia have significantly tightened the globa
Slide 6: Low stocks-to-use ratio drives higher grain values
6 Low stocks - to - use ratio drives higher grain values, expected to require at least two more growing seasons to replenish Global Coarse Grains Stocks - to - Use Ratio vs Corn Futures Prices* Percent 0 1 2 3 4 5 6 7 0 2 4 6 8 10 12 14 16 World-ex China Crop Futures Price (RHS) USD per Bushel Globa
Slide 7: Natural gas prices in Europe and Asia have increased
7 Natural gas prices in Europe and Asia have increased, creating a wide shelf at the high end of the cost curve Global Energy Price 2019 - 2021F USD/ tonne North American Production Advantage (1) 0 5 10 15 20 25 2019 2020 2021 Henry Hub natural gas TTF natural gas Chinese anthracite coal - lump JKM
Slide 8: India and Brazil have consistent long-term growth, rising import demand
8 India and Brazil have consistent long - term growth, which has led to rising import demand (1) Brazil domestic production in 2020 is comprised solely of 2019 inventory carryover Source: CRU Urea Market Forecast as of August 31, 2021, India DOF, FAI, industry publications 0 2 4 6 8 10 12 2010 2012
Slide 9: Ammonia as a fuel: clean energy strategy initiatives
9 Ammonia as a fuel Clean energy strategy initiatives Blue Ammonia Green Ammonia Announced MOU with Mitsui & Co., Inc., one of the leading ammonia marketers in the world, to explore jointly the development of blue ammonia projects in the U.S. Completed engineering design study at the Donaldsonville
Slide 10: Financial Results and Capital Allocation
Financial Results and Capital Allocation
Slide 11: First half highlights
11 First half highlights (1) Average cost of natural gas excludes the $112 million gain on net settlement of certain natural gas contracts with suppliers in February 2021 (2) See appendix for reconciliation of EBITDA and adjusted EBITDA (3) Represents cash provided by operating activities (cash from
Slide 12: Capital management
12 Capital management Capital structure and allocation Clean energy initiatives Capital expenditures Recently upgraded to investment grade at 2 of 3 agencies In September 2021 redeemed $250 million principal amount of the Company’s 3.450% Senior Notes due June 2023; reducing gross debt to $3.5 billi
Slide 13: CF Industries EBITDA sensitivity table
13 CF Industries EBITDA sensitivity table Table illustrates the CF Industries business model across a broad range of industry conditions $25/ton ureal realized movement implies ~$375M change in EBITDA on an annual basis (1) Based on 2019 sales volumes of approximately 19.5 million product tons, 2019
Slide 14: Environmental Stewardship and Governance
Environmental Stewardship and Governance
Slide 15: ESG goals: emissions, climate, water
15 Dimension Material Issue Goal UN Sustainable Development Goals GHG Emissions; Energy Management; Climate Change Reduce carbon emissions • During 2021, develop and prioritize a list of viable GHG reduction capital projects • Reduce total CO 2 equivalent emissions by 25% per ton of product by 2030
Slide 16: ESG goals: workforce safety, diversity and inclusion
16 Dimension Material Issue Goal UN Sustainable Development Goals Workforce Health & Safety Strengthen and improve behavioral safety practices that support the commitment to safety excellence • At least 95% of the aggregated safety grades of all employees at manufacturing and distribution sites must
Slide 17: ESG goals: food security, stewardship, ethics
17 Dimension Material Issue Goal UN Sustainable Development Goals Food Security; Environmental Compliance Be a driving force to increase adoption of enhanced conservation practices and nutrient management practices that promote sustainable agriculture • Reach 90,000 farmers with 4R Plus program by 2
Slide 18: Board of Directors
18 Robert C. Arzbaecher Former Chairman and CEO, Acutant Corporation Deborah L. DeHaas Former Vice Chairman and Managing Partner Center for Board Effectiveness, Deloitte Stephen A. Furbacher Former President and COO, Dynergy Chairman of the Board Stephen J. Hagge Former President and CEO, AptarGroup
Slide 19: Appendix
Appendix
Slide 20: Reconciliation of net earnings to EBITDA and adjusted EBITDA
20 Non - GAAP: reconciliation of net earnings to EBITDA and adjusted EBITDA (1) Loan fee amortization is included in both interest expense – net and depreciation and amortization (2) Represents costs written off upon the cancellation of a project at one of our nitrogen complexes (3) Represents proce
Slide 21: Reconciliation of operating cash flow to free cash flow
21 Reconciliation of net cash provided by operating activities to free cash flow In millions Twelve months ended June 30, 2021 Cash provided by operating activities $ 1,219 C apital expenditures (371) Distributions to noncontrolling interest (150) Free cash flow $ 698
CF Industries Holdings — Non-Deal Roadshow (September 2021) on 6ix