Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q4 2018 Earnings Presentation
16 slides from Cf Industries's earnings presentation, Feb 13, 2019
Slide 1: 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 2: Note regarding non-GAAP financial measures
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 and adjusted EBITDA which are non-GAAP financial measures, provide additional meaningful information regarding
Slide 3: Fourth quarter and full year 2018 results
Fourth quarter and full year 2018 results Q4 net earnings of $49 million; EBITDA(1) of $349 million and adjusted EBITDA(1) of $341 million Full year net earnings of $290 million; EBITDA(1) of $1,429 million and adjusted EBITDA(1) of $1,403 million Completed $500 million share repurchase authorizatio
Slide 4: Financial results - fourth quarter and full year 2018
Financial results - fourth quarter and full year 2018 465 290 358 49 common stockholders (1)(2) 234.1 233.8 233.9 230.6 outstanding (3) (13) 61 (2) natural gas derivatives (1) (3) (4) (5) Depreciation and amortization was $221 million and $888 million for the three and twelve months ended December 3
Slide 5: $1.5B cash from operations; $780M returned to shareholders
$1.5B cash from operations; $780M returned to shareholders ($780 million comprised of $280 million cash dividends, $467 million share repurchases, and $33 million of shares repurchased in 2018 which were cash settled in January 2019) Investment to sustain CF Cash & Cash Equivalents ($ millions) and
Slide 6: Superior capacity utilization compared to North American peers
Superior capacity utilization compared to North American peers demonstrates significant operational advantage North America Ammonia Percent of Capacity Utilization (1) 4 yr Rolling Avg. Percent of Capacity(4) 100% • CF’s four year rolling average North American capacity utilization of 96% is signifi
Slide 7: Capital Allocation
Capital Allocation • Pursue growth within our strategic fairway, where returns exceed the risk-adjusted cost of capital Consistently return excess cash to shareholders in a timely fashion through dividends and share repurchases • • Repurchased 10.9 million shares for $500 million completing the shar
Slide 8: Share repurchase drives per share nitrogen participation ~5% higher in 2018
Completion of share repurchase authorization drives per share nitrogen participation ~5% higher in 2018 CF Industries’ Nitrogen Volumes and Shares Outstanding as of Year-end 2009 – 2018 Nitrogen per share CAGR: 14.7% Million shares Outstanding (6) Annual Nitrogen Equivalent Tons per 1,000 Shares Out
Slide 9: CF EBITDA sensitivity table
CF EBITDA sensitivity table Table illustrates the resiliency of CF Industries’ business model across a broad range of industry conditions EBITDA Sensitivity to Natural Gas and Urea Prices(1)(2) $ billions CF Realized North American Natural Gas Cost ($/MMBtu) Source: CF Industries (1) The table was c
Slide 10: 2019 Planning Assumptions
2019 Planning Assumptions compared to 2018 increase by 3.5 million tons during 2019 up delays given sanctions Sources: Fertecon, CRU, CFMW, Baiinfo, Fert.cn, Industry Publications, CF analysis 11 2019 CF Market Assumptions •North American corn acres planted expected to increase by 4 million to appro
Slide 11: Global market overview
Global market overview • Global nitrogen prices reached in-year highs early in Q4 2018 then declined due to seasonally low demand in the Northern Hemisphere and moderating energy prices in Asia and Europe As demand in the Northern Hemisphere materializes, industry fundamentals should be supportive o
Slide 12: Expected net new urea capacity additions below historic global demand growth
Expected net new urea capacity additions below historic global demand growth of ~2% through 2022 CF Projected Global Net Urea Capacity Additions(1) Thousand Product Metric Tons 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 2019 2020 2021 2022 (1)See appendix for details of the 2019-2022 proj
Slide 13: Appendix
DEF loading at Donaldsonville Appendix 14
Slide 14: Non-GAAP: reconciliation of Net Earnings to EBITDA and Adjusted EBITDA
Non-GAAP: reconciliation of Net Earnings to EBITDA and Adjusted EBITDA (46) (38) (138) (92) interests (21) (23) (87) (101) interests(1) (2) (3) (13) 61 natural gas derivatives (6) - (5) 2 including intercompany loans(3) (1) (4) (5) For the three months ended December 31, 2018, amount relates only to
Slide 15: Projected new global urea plants (2019-2022)
Projected new global urea plants (2019-2022) Russia Russia China PJSC Metafrax TogliattiAzot Xiaoyi Nongmei Perm Togliatti Shanxi Natural Gas Natural Gas Coke-oven gas 580 730 300 2022 2022 2022 2,900 Subtotal 20,600 Grand Total Urea plants in permanent shutdown Brazil Brazil China China China China
Slide 16: Projected new global urea plants (2019-2022)
Projected new global urea plants (2019-2022) Capacity ~ Country Company _ CityiProvince Feedstock K Metric Product Tons'')__ Year of Addition ro retina SOO pay ent om he Promega — tones moe oe “aneone tee la peat ts = = ier sm = fs om ‘tics ne res ton im ms = Sata ieregce Sher Orme S&S oo ented Resc
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