Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q3 2013 Earnings Presentation
17 slides from Cf Industries's earnings presentation, Nov 5, 2013
Slide 1: 2013 Third Quarter Financial Results
2013 Third Quarter Financial Results November 5, 2013 NYSE: CF
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 ar
Slide 3: Financial Highlights
Financial Highlights 3 In millions, except percentages and EPS 2013 Q3 2012 Q3 Net sales $ 1,097 $ 1,359 Gross margin 386 702 - As percent of sales 35% 52% EBITDA(1) $ 478 $ 729 Net earnings attributable to common stockholders 234 403 Earnings per diluted share 4.07 6.35 Cash flow provided by operat
Slide 4: Third Quarter Overview
Third Quarter Overview Q3 2013 demonstrates a “higher low” with $478 million EBITDA during difficult market conditions Weak nitrogen market led to delayed purchasing and lower selling prices Phosphate market marked by increased global supply and lower demand from India Flexible logistics system and
Slide 5: Recently Announced Strategic Transactions
Recently Announced Strategic Transactions Phosphate Business Sale Consistent with Company’s strategy to focus on nitrogen production and distribution $1.4 billion sale of phosphate business subject to certain closing adjustments Expected to close in 2014 Donaldsonville Ammonia Supply Agreement Stren
Slide 6: Earnings per Diluted Share: Higher Highs and Higher Lows
2009 2010 2011 2012 2013 Earnings per Diluted Share 6 Third quarter reporting periods $4.07 Higher Highs and Higher Lows
Slide 7: Q3 Nitrogen Segment Results
Q3 Nitrogen Segment Results In millions, except as noted 2013 Q3 H/(L) 2012 Q3 Sales $ 876 $ (219) Gross margin 358 (280) - Percent 40.9% (17) pts Volume (000 st) 2,781 (176) Average selling prices ($/st) - Ammonia $ 527 $ (95) - Urea 338 (132) - UAN 274 (22) - AN 231 (30) Gas cost $/MMBtu $ 3.54 $
Slide 8: Q3 Phosphate Segment Results
Graph source: Green Markets In millions, except as noted 2013 Q3 H/(L) 2012 Q3 Sales $ 221 $ (44) Gross margin 28 (36) - Percent 12.6% (11) pts Volume (000 st) 526 9 - Domestic 273 (87) - Export 253 96 Average selling prices ($/st) - DAP $ 422 $ (85) - MAP 416 (105) DAP Central Florida Price Q3 Phos
Slide 9: YTD Financial Highlights
YTD Financial Highlights 9 (1) 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 p
Slide 10: YTD Segment Results
YTD Segment Results In millions, except as noted YTD 2013 H/(L) YTD 2012 Reported H/(L) YTD 2012 Adjusted Sales $ 3,499 $ (372) $ (314) Gross margin 1,853 (440) (383) - Percent 53.0% (6) pts (6) pts Volume (000 st) 9,385 (305) N/A Average selling prices ($/st) - Ammonia $ 637 $ 18 $ 33 - Urea 380 (1
Slide 11: Supplemental Information
Supplemental Information 11 Forward NYMEX Natural Gas Strip (U.S. Dollars per MMBtu) Source: Bloomberg L.P. As of November 1, 2013. U.S. Corn Harvest Progress (Week Ending October 27, 2013) Source: USDA Source: USDA, Green Markets, CME, CF. As of November 1, 2013. Returns calculated using average of
Slide 12: Marketable Nitrogen Volumes and Shares Outstanding
12 (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 13: Outlook/Summary
Solid agricultural fundamentals Strong farmer profit potential from planting nitrogen-intensive crops Expect 2014 nitrogen demand of 13.3 million nutrient tons Nitrogen supply expected to constrain prices for the remainder of 2013 Reduced urea imports and low dealer inventory levels offer restocking
Slide 14: EBITDA and Selected Items
EBITDA and Selected Items 14 (in millions) Three months ended September 30, Nine months ended September 30, 2013 2012 2013 2012 Net earnings attributable to common stockholders $ 234.1 $ 403.3 $ 1,138.8 $ 1,378.0 Interest expense (income) – net 40.0 27.1 108.3 102.9 Income taxes 109.0 205.8 499.3 72
Slide 15: CFL Selling Price Modifications
CFL Selling Price Modifications 15 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 16: CFL Selling Price Modifications: Consolidated Results
16 CFL Selling Price Modifications CONSOLIDATED RESULTS Three months ended Nine months ended September 30, September 30, 2013 2012 2013 2012 (in millions, except as noted) Net sales As reported $ 1,097.0 $ 1,359.4 $ 4,148.4 $ 4,622.6 Impact of selling price adjustment - - - (57.9 ) As adjusted $ 1,0
Slide 17: Nitrogen Segment Data
17 Three months ended Nine months ended NITROGEN SEGMENT DATA September 30, September 30, 2013 2012 2013 2012 (in millions, except as noted) Net sales As reported $ 876.3 $ 1,095.2 $ 3,499.1 $ 3,871.0 Impact of selling price adjustment - - - (57.9 ) As adjusted $ 876.3 $ 1,095.2 $ 3,499.1 $ 3,813.1
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