2020 Annual Report CF IndustrIes | 2020 sustaInabIlIty report 1 How We Performed in 2020 FINANCIAL OPERATIONAL ENVIRONMENTAL PERFORMANCE PERFORMANCE PERFORMANCE $317 Million – Net Earnings 0.14 – Year-end rolling recordable 1.90 - Emissions intensity * Attributable to Common average incident rate (tonnes of Scope 1 CO2e/tonnes Stockholders of gross ammonia) 10.4 million tons – Gross $1.35 Billion – Adjusted EBITDA(1) ammonia production* 41.73 - Energy intensity (gigajoules/tonnes of gross $1.23 Billion – Net Cash Provided 20.3 million tons – Sales volume* ammonia) by Operating Activities *company record 59,621 - Water consumption $748 Million – Free Cash Flow(2) (megaliters) For more information about our environmental, social and governance (ESG) agenda, please visit sustainability.cfindustries.com. About CF Industries At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With 3,000 employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our 9 manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. For additional information, please visit www.cfindustries.com. (1) EBITDA is defined as net earnings attributable to common stockholders plus interest expense — net, income taxes and depreciation and amortization. See reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures under “Reconciliation of Non-GAAP Financial Measures”. (2) Free cash flow is defined as net cash from operating activities less capital expenditures and distributions to noncontrolling interests. See reconciliation of free cash flow to the most directly comparable GAAP measure under “Reconciliation of Non-GAAP Financial Measures”. Letter to Shareholders Fellow CF Industries Shareholders: Your company delivered strong results in 2020 that reflect outstanding execution by the CF Industries team across all aspects of our business. In a year filled with unprecedented challenges, we operated safely, ran our network extremely well, delivered strong financial results despite a difficult pricing environment, and rolled out a new strategic direction linked with meaningful ESG commitments. I want to highlight a few of our more significant accomplishments in 2020. We achieved our lowest year-end recordable incident rate ever, ending the year with only four recordable injuries and zero lost CF Industries continued our longstanding time injuries across our network. As is typically the commitment to our communities during case, safe operations are also more productive. We the pandemic, donating personal protective produced a company record 10.4 million tons of equipment and supporting local food banks gross ammonia, and set records for shipping and with nearly $600,000 in donations. sales at over 20 million product tons for the first time. This level of performance would be considered was $1.32 billion and adjusted EBITDA was $1.35 outstanding in any year. But setting these records billion. We continue to efficiently convert EBITDA in the midst of a global pandemic is an amazing into free cash flow. Net cash from operating accomplishment and a testament to the focus and activities was $1.23 billion and free cash flow was commitment of our employees. approximately $750 million. Our free cash flow to adjusted EBITDA conversion of 55 percent(3) was the Throughout the COVID-19 pandemic, our team has highest rate among our peers. adapted how we work in order to protect the health (3) Represents LTM free cash flow divided by LTM adjusted EBITDA (or and well-being of employees and all those who enter EBITDA excluding special items); see “Reconciliation of Non-GAAP our locations. We are proud of our collective efforts Financial Measures” for the calculation of free cash flow and for the during this unprecedented time and are pleased to reconciliation of FY2020 adjusted EBITDA report that we have not experienced a single known transmission of the virus at any of our locations, nor have we experienced disruptions to our business from the pandemic. For the full year of 2020, our net earnings attributable to common stockholders were $317 million, EBITDA(1) CF IndustrIes | 2020 sustaInabIlIty report 1 CREATING LONG-TERM SHAREHOLDER VALUE At our core, CF Industries is a producer of ammonia. of the most efficient in the global industry, the For decades, we have used the Haber-Bosch production process of ammonia is energy intensive process to fix atmospheric nitrogen with hydrogen and therefore results in significant carbon emissions, from natural gas to produce anhydrous ammonia. a fact that is increasingly viewed unfavorably by the Up to this point, we have made a business of investment community. selling ammonia, and other derivative fertilizer products such as urea and UAN, for the nitrogen It became obvious that we had to significantly value of the molecule. reduce our carbon footprint. At the same time, we saw an incredible opportunity to help the broader Humankind’s ability to produce nitrogen fertilizer economy decarbonize as well. has had an undeniably positive effect on the world. Along with advancements in seed technology and farming practices, the growing use of nitrogen fertilizer and other nutrients dramatically increased food production in the second half of the 1900s and lifted countless people out of hunger. At the same time, because fertilizer increases yield, it allows more food to be grown on fewer acres. This reduces the amount of land cleared for agriculture, preserving carbon sequestering forests and important wildlife ecosystems. We have leveraged our unique asset base and capabilities to efficiently and cost-effectively produce and sell nitrogen fertilizer, enabling the Company to generate substantial free cash flow. Over the last four years, we have substantially strengthened our balance sheet, retiring $1.85 billion in debt, with an additional $250 million repaid in March 2021. We also have used $1.3 billion for share repurchases and growth initiatives as well as returned approximately $1.1 billion to shareholders through dividends. Despite our high level of financial performance, substantial free cash generation and significant capital deployment, our total shareholder return has lagged our expectations. As we considered the apparent disconnect between our operational and financial performance with that of our share price, we believed a key aspect of our business was constraining share price appreciation: our carbon footprint. Although our plants are some CF IndustrIes | 2020 sustaInabIlIty report 2 COMMITMENT TO THE CLEAN ENERGY ECONOMY The global focus on climate change and greenhouse more economic transport of energy compared to gas emissions has created a push to decarbonize liquid hydrogen, gaseous hydrogen and especially economies. To achieve global climate goals lithium batteries. Additionally, a global ammonia and reduce GHG emissions, the world needs to transportation and storage infrastructure already dramatically increase and scale clean energy exists at over 120 seaports. technology. Hydrogen, which can be produced with zero carbon emissions through the electrolysis of As a result, given the expected demand growth water, has emerged as a leading candidate for a for hydrogen as a clean energy source, we believe scalable clean energy source. that demand for green and net-zero-carbon (blue) ammonia as a storage and transport medium for The key to unlocking hydrogen as a clean fuel is the hydrogen, as well as a clean fuel in its own right, will ability to store and transport it for use – which is grow dramatically. In fact, if only a portion of the a challenge many renewable energy sources face. expected growth in hydrogen demand is supported This is what makes ammonia the key enabler for a by zero-carbon ammonia, ammonia demand will clean energy future. Ammonia is a highly efficient increase significantly over the current annual global and stable mechanism for the storage and transport ammonia capacity of 180 million tons. of hydrogen. Ammonia’s energy density allows for POTENTIAL LONG-TERM DEMAND FOR HYDROGEN Source: IEA, Wood Mackenzie, Bernstein: Hydrogen Highway 2020: Ready for Prime Time Deloitte: Australian and Global Hydrogen Demand Growth Scenario Analysis, prepared for COAG Energy Council – National Hydrogen Strategy Taskforce, November 2019 (1) Deloitte (DT) Scenarios: Energy of the Future –Hydrogen demand where all aspects of industry development are favorable for Hydrogen; Targeted Deployment – Countries adopt a targeted approach which aims to maximize economic value in the development of Hydrogen; (2) IRENA is the International Renewable Energy Agency; (3) Each ST of ammonia contains 17.65% hydrogen by mass. 5.67 ST of ammonia are required for each ST of hydrogen CF IndustrIes | 2020 sustaInabIlIty report 3 Therefore, the ability to produce green and blue enabling superior capacity utilization compared to ammonia at scale opens up a significant market our peers. opportunity in the coming years as countries and