Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q4 2011 Earnings Presentation
12 slides from Cf Industries's earnings presentation, Feb 16, 2012
Slide 1: 2011 Fourth Quarter Financial Results
2011 Fourth Quarter Financial Results February 16, 2012 NYSE: CF
Slide 2: Forward-looking statements
All statements in this presentation, 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 are beyond our control, whi
Slide 3: Financial Highlights
Financial Highlights In millions, except percentages and EPS 2011 Q4 2010 Q4 FY 2011 FY 2010 Net sales $ 1,718 $ 1,238 $ 6,098 $ 3,965 Gross margin 865 484 2,896 1,180 - As percent of sales 50% 39% 47% 30% EBITDA(1) $ 871 $ 500 $ 2,986 $ 1,127 Net earnings attributable to common stockholders 439 200
Slide 4: 2011 Accomplishments
2011 Accomplishments Record production, sales volume, sales, earnings and cash flow Solidified platform and ability to maximize margins of the larger company Grew through added UAN and UL capacity Announced up to $1.0 to $1.5 billion expansion plan in existing nitrogen plants Retired term loan and r
Slide 5: Record Profits and Cash Flow
Record Profits and Cash Flow 2006 2007 2008 2009 2010 2011 Earnings per Share Operating Cash Flow (millions) 5
Slide 6: Nitrogen Segment Results
Nitrogen Segment Results Graph source: Green Markets 2009 2010 2011 In millions, except as noted 2011 Q4 H/(L) 2010 Q4 H/(L) 2011 Q3 Sales $ 1,463 $ 461 $ 345 Gross margin 786 365 234 - Percent 54% 12 pts 4 pts Volume (000 st) 3,344 (6) 301 Average selling prices ($/st) - Ammonia $ 633 $ 181 $ 81 -
Slide 7: Phosphate Segment Results
Graph source: Green Markets In millions, except as noted 2011 Q4 H/(L) 2010 Q4 H/(L) 2011 Q3 Sales $ 255 $ 20 $ (31) Gross margin 79 16 (7) - Percent 31% 4 pts 1 pt Volume (000 st) 439 (38) (66) - DAP 367 13 (21) - MAP 72 (51) (45) - Domestic 240 (153) (25) - Export 199 115 (41) Average selling pric
Slide 8: EBITDA and Selected Items
EBITDA and Selected Items (in millions; includes Terra results from Apr. 5, 2010) Quarter ended Dec. 31, Twelve Months ended Dec. 31, 2011 2010 2011 2010 Net earnings attributable to common stockholders $ 438.9 $ 200.3 $ 1,539.2 $ 349.2 Interest expense (income) – net 32.0 50.2 145.5 219.8 Income ta
Slide 9: Capital Deployment
Capital Deployment Share Repurchases Q4: Repurchased 0.9 million shares for $198 million 2011: Repurchased 6.5 million shares for $1.0 billion 2011 repurchases constrained by credit agreement Available basket replenished, allowing repurchases to resume $500 million of authorization remains Brown Fie
Slide 10: Repurchase Impact on EPS
Repurchase Impact on EPS Share repurchase program reduced share count by 6.5 million shares Lower average share count compared to Q2 increased Q4 EPS by $0.60 10
Slide 11: Outlook/Summary
Outlook/Summary Tight grain stocks and high projected crop prices Forecast U.S. corn planting of 93.5 million acres Near-record level of nitrogen demand A moderate-sized order book Ability to benefit from potentially higher spring prices Some weakness in phosphate demand Supply response to help Lowe
Slide 12: Net debt definition and reconciliation
Net debt (net cash) is defined as total debt minus cash, cash equivalents and short-term investments, plus customer advances. We include customer advances in this calculation to reflect the liability associated with our obligations to supply fertilizer in the future, which offsets cash received in t
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