Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — 2006 Goldman Sachs Agriculture Biotech Forum
32 slides from Cf Industries's conference presentation, Feb 14, 2006
Slide 1: CF Industries Holdings, Inc.
a ES iis CF Industries Holdings, Inc. NYSE: CF February 14, 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in this presentation may constitute “forward-looking statements” within the meaning of federal securities laws. All statements in this presentation, other than those relating to our historical information or current condition, are forward-looking st
Slide 3: Today's Presentation
Today’s Presentation = CF Industries will report Q4 and ’05 results on February 23; Conference Call on February 24 = ‘We're taking some extra time our first time around!’ = We have not released our year-end results yet, so today’s presentation will take a longer-term, strategic look at CF Industries
Slide 4: Leading manufacturer and distributor of nitrogen and phosphate fertilizer
Leading manufacturer and distributor of nitrogen and phosphate fertilizer Founded as a cooperative in 1946; new bottom line oriented business model in 2003 Market shares for fertilizer year 2004 were 22 percent nitrogen and 14 percent phosphate; Corn Belt 29 percent for nitrogen and 20 percent for p
Slide 5: The Fertilizer Market
The Fertilizer Market Fertilizer is a global worldwide commodity, and commodity prices don’t necessarily reflect cost of raw materials Three major nutrients — N, P and K — essential for improved crop yield, growth and durability No substitutes — and N, P and K not substitutable for each other Key va
Slide 6: CF Industries' Strategic Focus in a Volatile Industry
CF Industries’ Strategic Focus in a Volatile Industry... The assets, the financial strength, and the flexibility to adapt to changing market conditions and create long-term shareholder value We don't underestimate the near-term challenges... but we believe CF Industries is well positioned — strategi
Slide 7: Assets and Flexibility in Nitrogen Fertilizer
| GF Industries Nitrogen Assets and Flexibility in Nitrogen Fertilizer = Two of three largest North American nitrogen fertilizer complexes — Donaldsonville, Louisiana — Medicine Hat, Alberta
Slide 8: Donaldsonville Complex
onaldsonville Complex trie = North America’s jatnest: four ammonia plants, four urea plants and two UAN plants = Operational, product and transport flexibility TODAY: Flexibility, modularity and “make versus buy” capability to cope with high natural gas prices FUTURE: Modern, productive facility wit
Slide 9: Medicine Hat Complex
tries’ Medi Hat Complex » Joint venture is third largest nitrogen complex in North America: two ammonia plants and one urea plant = Access to lower-cost AECO natural gas, as well as to markets in northern-tier U.S. and western Canada = Average natural gas cost advantage $27 per ton of ammonia TODAY:
Slide 10: Phosphate facilities in Central Florida
Modern, competitive mining, processing and shipping facilities in Central Florida Newest U.S. phosphate rock mine (Hardee County) One of largest U.S. integrated DAP/MAP complexes (Plant City) Ammonia terminal and warehouse/shipping complex at Port of Tampa
Slide 11: CF Industries' Central Florida Phosphate Operations
CF Industries’ Central Florida Phosphate Operations = Strong (26 years) rock reserve position = Produce DAP and MAP: fastest growing phosphate fertilizer products = Access to domestic and export markets TODAY: Diversification from nitrogen market and access to export markets FUTURE: Benefit from val
Slide 12: Nitrogen and phosphate distribution facilities
49 nitrogen and phosphate distribution facilities, strategically located primarily in midwestern grain-producing states Most can access multiple modes of incoming transportation, including pipeline, barge, rail and truck Access — thanks to Donaldsonville “make versus buy” capability — to domestic an
Slide 13: Assets and Flexibility in Distribution
sets and Flexibility in Distributio = With 20 ammonia terminals, one of only three producers that can effectively provide ammonia (approximately one fourth of nitrogen fertilizer market) to Corn Belt = Locations are key advantage in regional markets " Good mix of new and old customers TODAY: Strong
Slide 14: Assets and Flexibility to Compete
ssets and Flexibility to Compete * World-scale assets in nitrogen fertilizer, phosphate fertilizer and product distribution " Significant flexibility / capability to anticipate changing market conditions = Strong financial position We have strategic options in a changing market 14
Slide 15: Additional Strengths
dditional Strengt = Innovative program to manage margin risk it's much more than simply a forward pricing program = Strong customer relationships Multi-year contracts with previous owners, plus new relationships with major agricultural suppliers = Leading market position Unlike many IPOs, we're esta
Slide 16: The Natural Gas Issue
The Natural Gas Issue North America’s position as high-cost nitrogen fertilizer producer worsened post-Katrina Large percentage of capacity (including much of CF Industries’ Donaldsonville complex) idled in Q4 Phosphate less sensitive to natural gas (approximately 7 mmBTU versus 33 mmBTU for ammonia
Slide 17: The Natural Gas Issue
GF Industries The Natural Gas Issue Clearly a challenge today, although lower natural gas and current fertilizer prices permit resumed North American nitrogen production Long-term factors offer promise, including alternative feed stocks and increased exploration in U.S. LNG also an option, as increa
Slide 18: CF Industries' Strategic Priorities
CF Industries’ Strategic Priorities To capitalize on our assets and flexibilities Reduce dependence on North American natural gas — Proposed Trinidad joint venture — Alternative feedstock at Donaldsonville Expand usage and duration of margin risk management program Identify next generation of cost-r
Slide 19: CF Industries' Investable Idea
CF | stries ‘Investable Idea’ A business model transformation that has effectively positioned CF Industries as a profit-driven company focused on building shareholder value The assets, the financial strength, and the flexibility to adapt to changing market conditions and create long-term shareholder
Slide 20: Slide 20
Slide 21: Addendum
| GF Industries Addendum 2
Slide 22: Industry Overview
ee Industry Overview = Three key nutrients: — Nitrogen (N) — Phosphate (P) — Potash (Kk) CF Industries Nitrogen (N) 59% - d “a Potash (K) - Phosphate (P) =
Slide 23: World Population and Meat Consumption Increasing
World Population is --While World Meat Consumption, Is Increasing... «Requiring More Corn to Feed More Livestock... j Developed Developing Global Fertilizer Consumption —aEaes =) Exchdes former Sov Un courbes
Slide 24: Competitive Strengths
Competitive Strengths = World-Scale Manufacturing Facilities = Strategically Located, Flexible Distribution System = Long-Standing Customer Relationships = Leading Market Positions = Innovative Risk Management = Strong Financial Position = Experienced Management Team
Slide 25: Competitive Strengths
Competitive Strengths as a0 25
Slide 26: World-Scale Manufacturing: Donaldsonville, LA
GF Industries World-Scale Manufactu aldsonville, L 1 #1 nitrogen fertilizer complex in North America Significant production flexibility Access to low cost transportation by barge, pipeline and rail Deep-water dock pacity Ammonia 23 Urea a7 UAN 27 26
Slide 27: World-Scale Manufacturing: Medicine Hat, AB
World-Scale Manufacturin Medicine Hat, AB » #1 nitrogen fertilizer complex in Canada, #3 in North America « Access to attractive markets of western Canada and northern U.S, = Supplied by lower-priced natural gas from Alberta — Average advantage of $27/ton ammonia = Annual Gross MM . Capacity Tons am
Slide 28: World-Scale Manufacturing: Central Florida
World-Scale Manufacturing — Central Florida Hardee Rock Mine — newest U.S. phosphate rock mine — 27 years of reserves = Plant City Complex — one of the largest, integrated DAP/MAP complexes in U.S. = Port of Tampa — access to domestic and international markets Phosphate Rock 3.5 Sulfuric Acid 26 Pho
Slide 29: Low High
Low High 29
Slide 30: Forward Pricing Program: Challenge, Solution, Benefits
Challenge | ‘Solution j nefits j = Natural gas and \ = Customers purchase | + Margincertainty nitrogen fertilizer price| product forward A are highly volatile } + Improved production * CF locks in margin scheduling by fixing natural gas costs ) 5s cupatarcatcus + Reduced substantial customer invento
Slide 31: Leading Market Positions in North America
Leading Market Positions in North America Market Share (2004) Nitrogen Phosphate %) %) 38, oe 6 wom 30 5 28 cs 14% 20 a6 16 10 10 = 6 0 0 Total US. Ten Core States Total US. Ten Core States ™ Key Driver: Strategically located network of terminals and warehouses 31
Slide 32: Searchable text section of graphics
Searchable text section of graphics shown above [LO GO] CF Industries [GRAPHIC] CF Industries Holdings, Inc. 2006 Goldman Sachs Agriculture Biotech Forum CF Industries Holdings, Inc. NYSE: CF February 14, 2006 Sa fe Harbor Statement Certain statements contained in this presentation may constitute “f
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