Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q4 2015 Earnings Presentation
23 slides from Cf Industries's earnings presentation, Feb 17, 2016
Slide 1: Note Regarding Non-GAAP Financial Measures
2 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, a non-GAAP financial measure, provides additional meaningful information regarding the company's performanc
Slide 2: Safe Harbor Statement
Safe Harbor Statement All statements in this communication by CF Industries Holdings, Inc. (together with its subsidiaries, the “Company”), other than those relating to historical facts, are forward-looking statements. Forward-looking statements can generally be identified by their use of terms such
Slide 3: No Offer or Solicitation
4 No Offer or Solicitation This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction pursuant to o
Slide 4: Results and Accomplishments
5 The company entered into an amended agreement to combine with OCI N.V.'s (OCI) European, North American and global trading and distribution businesses under a new holding company domiciled in the Netherlands Continued progress on the capacity expansion projects at Donaldsonville, LA, and Port Neal
Slide 5: Nitrogen Market Outlook
Nitrogen Market Outlook 6 North America nitrogen fertilizer demand is expected to remain steady for the 2016 fertilizer year 2016 planted corn acres still estimated at 90.5 million acres, up 2.5 million acres from 2015, offset by a decrease in wheat area Projected farm returns for the 2016 crop, bas
Slide 6: Capacity Expansion Update
Capacity Expansion Update Donaldsonville Urea plant began production in November 2015 and has produced over 230,000 tons of granular urea through January 2016 UAN plant is mechanically complete and in the process of being commissioned Ammonia plant: welding and piping (majority of remaining work/cos
Slide 7: Nitrogen Capacity Per 1,000 Shares Outstanding
8 Annual Nitrogen Equivalent Tons per 1,000 Shares Outstanding Driving Increased Cash Flow Capacity Per Share Nitrogen Capacity Per 1000 Shares Upside from Potential Future Buybacks Increased cash flow capacity as measured by N/1000 shares by 173% since 2010 Capacity projects underway are expected t
Slide 8: International Energy Prices Have Declined Since Mid-2014
International Energy Prices Have Declined Since Mid-2014 Oil prices have declined significantly from around $115/barrel (Brent Front Month) in June 2014 to around $30/barrel recently Principal drivers: Tapering of China demand, U.S. supply growth (shale), removal of Iran economic sanctions, and no O
Slide 9: The global nitrogen cost curve reflects differences in feedstock and logistics costs
The global nitrogen cost curve reflects differences in feedstock and logistics costs The monthly shipment range is calculated using consuming regions that represent two-thirds of global demand The cost curve suggests seasonal urea floor prices in the range of $225 to $270 per ton, delivered to the U
Slide 10: North American Producers Remain Highly Profitable
Source: FERTECON, CRU, Integer, CF Urea Price/Production Cost In U.S. Dollars Per Ton 11 North American Producers Remain Highly Profitable Freight/Loading Other Cash North American natural gas cost assumed at an average price of $2.00 per MMBtu based on spot pricing as of 2/12/16. Assumes a market g
Slide 11: For more information, please visit www.cfindustries.com
For more information, please visit www.cfindustries.com 12
Slide 12: Financial Highlights
Financial Highlights In millions, except percentages, per MMBtu and EPS 2015 Q4 2015 Q4 2014 Q4 2014 Q4 2015 YTD 2015 YTD 2014 YTD 2014 YTD Net sales $ 1,115.8 $ 1,216.5 $ 4,308.3 $ 4,743.2 Gross margin $ 280.4 $ 444.3 $ 1,547.1 $ 1,778.5 - As percent of sales 25.1 % 36.5 % 35.9 % 37.5 % EBITDA(1) $
Slide 13: EBITDA Reconciliation
Three months ended December 31, Three months ended December 31, Twelve months ended December 31, Twelve months ended December 31, 2015 2015 2014 2014 2015 2015 2014 2014 (in millions) (in millions, except percentages) Net earnings attributable to common stockholders $ 26.5 $ 238.3 $ 699.9 $ 1,390.3
Slide 14: Reconciliation of Net Earnings to Adjusted Net Earnings
Three months ended December 31, Three months ended December 31, Twelve months ended December 31, Twelve months ended December 31, 2015 2015 After-tax EPS Impact 2014 2014 After-tax EPS Impact 2015 2015 After-tax EPS Impact 2014 2014 After-tax EPS Impact (in millions, except per share data) (in milli
Slide 15: Non-GAAP: Reconciliation of Net Earnings and Diluted Net Earnings Per Share (continued)
Non-GAAP: Reconciliation of Net Earnings and Diluted Net Earnings Per Share to Adjusted Net Earnings and Adjusted Net Earnings Per Share- (continued) 16 For the three months ended December 31, 2015 and 2014, and the twelve months ended December 31, 2015 and 2014, loss on mark-to-market—natural gas d
Slide 16: Donaldsonville Expansion Site Overview
17 Donaldsonville Expansion Site Overview Urea Warehouse 90K Tons UAN Tank 50K Tons Ammonia 3,640 TPD Ammonia Tank 30K Tons UAN 5,050 TPD Urea 3,850 TPD Urea Barge Dock
Slide 17: Donaldsonville Expansion Operating Urea Plant
Donaldsonville Expansion Operating Urea Plant Granulation Area Urea Melt Urea Granulation Urea Melt 18 Urea Granulation Urea Melt Urea Granulation Urea Melt Urea Granulation Urea Melt TO BE UPDATED
Slide 18: Donaldsonville Expansion Mechanically Complete Nitric Acid/UAN and Offsites
Donaldsonville Expansion Mechanically Complete Nitric Acid/UAN and Offsites, Commissioning In Progress CO2 Compression Package Boiler CO2 Compressor Package Boiler Cooling Tower Nitric Acid UAN 19 CO2 Compressor Nitric Acid Package Boiler UAN CO2 Compressor Cooling Tower
Slide 19: Donaldsonville Expansion Ammonia Plant
Donaldsonville Expansion Ammonia Plant CO2 Compression Package Boiler CO2 Compressor Package Boiler Cooling Tower Nitric Acid UAN 20 CO2 Compressor Nitric Acid Package Boiler UAN CO2 Compressor Cooling Tower
Slide 20: Port Neal Expansion Ammonia Plant
Port Neal Expansion Ammonia Plant 21
Slide 21: Port Neal Expansion Ammonia Plant
22 Port Neal Expansion Ammonia Plant
Slide 22: Port Neal Expansion Urea Plant- Granulation and Synthesis
23 Port Neal Expansion Urea Plant- Granulation and Synthesis Synthesis Granulation
Slide 23: Port Neal Expansion Urea Plant- Granulation and Synthesis
Port Neal Expansion @CFindustries Urea Plant- Granulation and Synthesis Synthesis
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