Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q3 2012 Earnings Presentation
13 slides from Cf Industries's earnings presentation, Nov 6, 2012
Slide 1: 2012 Third Quarter Financial Results
2012 Third Quarter Financial Results November 6, 2012 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: Third Quarter Accomplishments
Third Quarter Accomplishments Delivered record 3rd quarter EBITDA, net earnings and EPS Strong domestic demand and continued operational cost advantages Robust summer fill purchasing activity Higher domestic phosphate demand Low natural gas costs Operational execution overcame logistical challenges
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights In millions, except percentages and EPS 2012 Q3 2011 Q3 Net sales $ 1,359 $ 1,404 Gross margin 702 638 - As percent of sales 52% 45% EBITDA(1) $ 729 $ 641 Net earnings attributable to common stockholders 403 331 Earnings per diluted share 6.35 4.73 Cash flow provided by opera
Slide 5: Profit and Cash Flow
Profit and Cash Flow 2007 2008 2009 2010 2011 2012 Earnings per Share Operating Cash Flow (millions) 5
Slide 6: Q3 Nitrogen Segment Results
Q3 Nitrogen Segment Results Graph source: Green Markets In millions, except as noted 2012 Q3 H/(L) 2011 Q3 H/(L) 2012 Q2 Sales $ 1,095 $ (23) $ (409) Gross margin 639 87 (354) - Percent 58% 9 pts (8) pts Volume (000 st) 2,957 (86) (575) Average selling prices ($/st) - Ammonia $ 622 $ 70 $ (13) - Ure
Slide 7: Q3 Phosphate Segment Results
Graph source: Green Markets In millions, except as noted 2012 Q3 H/(L) 2011 Q3 H/(L) 2012 Q2 Sales $ 264 $ (22) $ 33 Gross margin 63 (23) 13 - Percent 24% (6) pts 2 pts Volume (000 st) 517 12 24 - DAP 395 7 27 - MAP 122 5 (3) - Domestic 360 95 158 - Export 157 (83) (134) Average selling prices ($/st
Slide 8: YTD Financial Highlights
YTD Financial Highlights In millions, except percentages and EPS YTD 2012 YTD 2011 Net sales $ 4,623 $ 4,380 Gross margin 2,457 2,030 - As percent of sales 53% 46% EBITDA(1) $ 2,485 $ 2,115 Net earnings attributable to common stockholders 1,378 1,100 Earnings per diluted share 21.19 15.41 Cash flow
Slide 9: YTD Segment Results
YTD Segment Results In millions, except as noted YTD 2012 H/(L) YTD 2011 Sales $ 3,871 $ 322 Gross margin 2,294 516 - Percent 59% 9 pts Volume (000 st) 9,690 32 Average selling prices ($/st) - Ammonia $ 619 $ 56 - Urea 484 88 - UAN 308 1 - AN 259 (1) Gas cost $/MMBtu $ 3.32 $ (1.04) 9 In millions, e
Slide 10: Supplemental Information
Supplemental Information 10 Source: USDA, CF *Market Year **USDA Season Average U.S. Stocks-to-Use Ratio Bcf/day U.S. Lower-48 States Dry Gas Production and Price $/MMBtu Source: PIRA, IFERC Source: NOAA U.S. Drought Monitor (As of October 23, 2012) U.S. Corn Harvest Progress (Percent as of Week End
Slide 11: Capacity Expansion Projects
Capacity Expansion Projects Authorized expenditure of $3.8 billion $2.1 billion at Donaldsonville $1.7 billion at Port Neal Combined annual production: 2.1 million tons of gross ammonia 2.0 – 2.6 million tons of urea Up to 1.8 million tons of UAN Selected ThyssenKrupp Uhde for procurement and engine
Slide 12: Outlook/Summary
Outlook/Summary High expected corn plantings for 2013 Tight projected stocks-to-use ratio of 5.6% High crop prices Conditions for good fall application season Early harvest Recent precipitation alleviated moisture concerns Attractive fertilizer market fundamentals Strong ammonia and UAN demand Good
Slide 13: EBITDA and Selected Items
EBITDA and Selected Items 13 (in millions) Quarter ended September 30, Nine months ended September 30, 2012 2011 2012 2011 Net earnings attributable to common stockholders $ 403.3 $ 330.9 $ 1,378.0 $ 1,100.3 Interest expense (income) – net 27.1 31.8 102.9 113.5 Income taxes 205.8 185.3 721.9 625.6 D
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