Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q1 2013 Earnings Presentation
14 slides from Cf Industries's earnings presentation, May 9, 2013
Slide 1: 2013 First Quarter Financial Results
2013 First Quarter Financial Results May 9, 2013 NYSE: CF
Slide 2: Forward-looking statements
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 are beyond our control,
Slide 3: Financial Highlights
Financial Highlights In millions, except percentages and EPS 2013 Q1 2012 Q1 Reported net sales $ 1,337 $ 1,528 Adjusted net sales (1) $ 1,337 $ 1,488 Reported gross margin 675 712 - As percent of reported sales 51% 47% Adjusted gross margin (1) 675 672 - As percent of adjusted sales (1) 51% 45% EBI
Slide 4: First Quarter Accomplishments
First Quarter Accomplishments Delivered first quarter record net earnings and EPS Solid fundamentals and operational excellence Strong spring planting expectations Favorable ammonia and UAN price realization First quarter record UAN shipments Execution of capital allocation plans Repurchased 2.5 mil
Slide 5: Earnings and Cash Flow
Earnings and Cash Flow 2009 2010 2011 2012 2013 Earnings per Share Operating Cash Flow (millions) 5 $6.47 First quarter record First quarter reporting periods
Slide 6: Q1 Nitrogen Segment Results
Q1 Nitrogen Segment Results (1) Graph source: Green Markets In millions, except as noted 2013 Q1 Reported H/(L) 2012 Q1 Reported H/(L) 2012 Q1 Adjusted Sales $ 1,098 $ (174) $ (134) Gross margin 648 (15) 25 - Percent 59% 7 pts 9 pts Volume (000 st) 2,996 (205) (205) Average selling prices ($/st) - A
Slide 7: Q1 Phosphate Segment Results
Graph source: Green Markets In millions, except as noted 2013 Q1 H/(L) 2012 Q1 Sales $ 239 $ (17) Gross margin 28 (22) - Percent 12% (8) pts Volume (000 st) 495 (21) - DAP 412 (12) - MAP 83 (9) - Domestic 382 57 - Export 113 (78) Average selling prices ($/st) - DAP $ 477 $ (17) - MAP 511 5 DAP Centr
Slide 8: Supplemental Information
Supplemental Information 8 Forward NYMEX Natural Gas Strip (as of May 6, 2013) Source: Bloomberg L.P. U.S. Farm Income (Billions of U.S. Dollars) Source: USDA Source: USDA, Green Markets, CF Returns calculated using average of March-April new crop futures prices U.S. Farmer Returns Over Variable Cos
Slide 9: Capital Allocation Impact: Volumes and Shares Outstanding
9 (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 amm
Slide 10: Outlook/Summary
Outlook/Summary Favorable agricultural market conditions Low stocks-to-use ratios and strong grain prices support high plantings Recent precipitation alleviates drought concerns Strong nitrogen demand near-term Potential demand shift benefits UAN and urea Corn planting requires annual nitrogen appli
Slide 11: EBITDA and Selected Items
EBITDA and Selected Items 11 (in millions) Three months ended March 31, 2013 2012 Net earnings attributable to common stockholders $ 406.5 $ 368.4 Interest expense (income) – net 37.0 30.5 Income taxes 107.4 207.0 Depreciation, depletion and amortization 107.1 103.1 Less: Other adjustments(1) (6.6)
Slide 12: CFL Selling Price Modifications
CFL Selling Price Modifications 12 As of March 31, 2013, CF Industries, Inc. (CF Industries or the Company) 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 purchased
Slide 13: CFL Selling Price Modifications: Consolidated Results
13 CFL Selling Price Modifications CONSOLIDATED RESULTS Three months ended March 31, 2013 2012 (in millions, except as noted) Net sales As reported $ 1,336.5 $ 1,527.6 Impact of selling price adjustment - (39.7) As adjusted $ 1,336.5 $ 1,487.9 Gross margin As reported $ 675.1 $ 711.8 Impact of selli
Slide 14: CFL Selling Price Modifications: Nitrogen Segment Data
14 Three months ended NITROGEN SEGMENT DATA March 31, 2013 2012 (in millions, except as noted) Net sales As reported $ 1,097.6 $ 1,271.7 Impact of selling price adjustment - (39.7) As adjusted $ 1,097.6 $ 1,232.0 Gross margin As reported $ 647.6 $ 662.1 Impact of selling price adjustment - (39.7) As
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