Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Merger or Acquisition (July 2015)
8 slides from Cf Industries's merger presentation, Jul 1, 2015
Slide 1: GrowHow Acquisition Announcement
GrowHow Acquisition Announcement July 1, 2015 NYSE: CF
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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
Slide 3: Transaction Overview
Transaction Overview Acquiring remaining 50% equity interest in GrowHow UK from Yara Cash purchase price of $580 million compares favorably to CF’s current valuation Debt free, cash free GrowHow balance sheet at closing To be funded through cash on hand and revolver borrowings UK’s largest nitrogen
Slide 4: Compelling Financial & Strategic Rationale
Compelling Financial & Strategic Rationale Attractive valuation along with synergies returns lead to expected mid-teens International expansion in stable political and economic region Favorable natural gas pricing dynamics and trends UK requires over 40% imports to meet total nitrogen demand Largest
Slide 5: GrowHow is the Largest UK Fertilizer Manufacturer
GrowHow is the Largest UK Fertilizer Manufacturer Gross Annual Production Capacities (million short tons) UK AN Consumption (million short tons) Total 2014 Ammonia (gross) AN NPK 0.9 1.2 0.4 GH Production Imports Total 0.9 0.7 1.6 Sales Volume Agricultural sales (70%) - ammonium nitrate fertilizer -
Slide 6: Favorable Gas Cost Trends
Favorable Gas Cost Trends National Balancing Point Calendar Year Gas Price International Energy Prices by Commodity ($/MMBtu) $7.60 el $20 $7.40 $7.20 $15 $7.00 $10 $6.80 $6.60 $5 $6.40 $6.20 $-2015 2016 2017 2018 2019 1/2/2013 7/2/2013 1/2/2014 7/2/2014 1/2/2015 6/29/2015 Crude Oil (Brent Front Mon
Slide 7: Attractive Valuation Profile
Attractive Valuation Profile (in millions except per MMBtu amounts) (1) EBITDA is defined as net earnings attributable to common stockholders plus interest expense (income)-net, income taxes, and depreciation and amortization. We have presented EBITDA because management uses the measure to track per
Slide 8: For more information, please visit www.cfindustries.com
® For more information, please visit www.cfindustries.com
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