Yara International Asa · OSL:YAR
Yara International Asa — Q1 2025 Earnings Presentation
35 slides from Yara International Asa's earnings presentation, Apr 25, 2025
Slide 1: Yara International ASA 2025 first quarter results
Yara International ASA 2025 first quarter results 25 April 2025
Slide 2: Cautionary note
Cautionary note This presentation contains forward-looking information and statements relating to the business, financial performance and results of Yara and/or industry and markets in which it operates. Forward-looking statements are statements that are not historical facts and may be identified by
Slide 3: Safety is our main priority
Safety is our main priority TRI1 (12-month rolling) 5 4 3 2 0,9 1 0 1Q 2016 1Q 2025 1) Total Recordable Injuries per 1 million working hours. 3
Slide 4: Strong volumes and margins in 1Q
Strong volumes and margins in 1Q 1Q 2025 EBITDA excl. special items1 up 47%, with strong deliveries and margins Cost reductions on track and continuous improvements through portfolio optimization Supportive nitrogen upgrading margins in the medium term Yara’s scale and global optimization provide fl
Slide 5: EBITDA improvement reflects increased volumes, strong price realization and cost reductions
EBITDA improvement reflects increased volumes, strong price realization and cost reductions EBITDA excl. special items (MUSD)1 ROIC2 39 34 70 Currency +25 60 Price/margin +160 Energy cost4 -90 638 435 1Q24 Volume/mix3 Margin Fixed Cost5 Other 1Q25 4.6% 8.6% 1) EBITDA excl. special items. For definit
Slide 6: Increased premium product deliveries in all regions
Increased premium product deliveries in all regions External deliveries 1Q 2024 vs 1Q 2025 (kt) 1Q24 1Q25 Comments +10% ▪ Increased deliveries of premium product in all regions 5,799 5,257 ▪ Main increase in Europe driven by strong volumes of nitrates Commodity +15% and NPK, reverting to pre-war +12
Slide 7: Safeguarding margins and premiums while delivering substantial premium product growth
Safeguarding margins and premiums while delivering substantial premium product growth Price realization above commodity price development Price/margin impact on EBITDA, MUSD Nitrates - Strong European orderbook management balancing volume growth while safeguarding margins 18% - Strong premiums at ti
Slide 8: Yara's strategic focus is improving return on invested capital
Yara’s strategic focus is improving return on invested capital Yara’s strategic focus Key priorities Status Drive operational performance and returns • Utilize scale and flexibility to increase margins • Reduce fixed cost Improve returns in ammonia and crop nutrition core Cash conversion and strict
Slide 9: Financial performance
Financial performance EBITDA excl. special items1 EPS excl. currency and special items1 ROIC1 (MUSD) (USD per share) (12-month rolling, %) 638 1.01 6.0% 435 2.5% 0.21 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 Change in net operating capital2 Cash from operations3 Investments (net)4 (MUSD) (MUSD) (MUSD) -162 -24
Slide 10: Segment returns with a positive trend, strong focus on improvements to reach target
Segment returns with a positive trend, strong focus on improvements to reach target EBITDA excl. special items1 (MUSD) ROIC1 1Q annualized ROIC1 L12M 28 -9.8% Europe -3.6% 159 2.7% 9.3% 144 7.9% 10.5% Americas 155 9.1% 10.2% 69 6.7% 2.9% Asia & Africa 87 9.5% 9.8% 123 11.0% 3.0% Global Plants 96 6.0
Slide 11: Strong results driven by European deliveries
Strong results driven by European deliveries Yara Europe nitrate and NPK deliveries back at 2021 levels 1 Fertilizer industry deliveries in Europe only slightly ahead of last year European NPK deliveries, kt Total nitrogen deliveries in core countries2, mt QTD STD 871 853 742 560 511 +2% 4.8 4.9 1Q2
Slide 12: Cost reductions are critical to increase returns, program is delivering according to plan
Cost reductions are critical to increase returns, program is delivering according to plan Fixed cost1 reduction on track MUSD, including currency translation effect2 Status 1Q25 2,533 ▪ Cost program on track with close to full EBITDA impact – Includes ~30 MUSD from portfolio 98 ▪ 68 MUSD in restruct
Slide 13: Portfolio optimization is key to improving cash conversion and return on investment
Portfolio optimization is key to improving cash conversion and return on investment Actions taken on portfolio based on expected future returns, market Unchanged capex guidance attractiveness and strategic fit (non-exhaustive) BUSD Uncommitted growth Committed growth Maintenance Guidance: Montoir re
Slide 14: High ammonia import flexibility underlines the value of Yara's European assets
High ammonia import flexibility underlines the value of Yara’s European assets Urea plants mainly for European nitrate plants are well positioned vs European energy volatility Industrial use annual capacities1, million tons annual capacities1, million tons Future profitability of premium products to
Slide 15: Global scale in ammonia underpins Yara's flexibility and value creation potential in upstream US projects
Global scale in ammonia underpins Yara’s flexibility and value creation potential in upstream US projects Yara is the only player able to off-take a new Increased nitrate and NPK margins with Yara’s Equity investment in US ammonia can create ammonia project at sufficient scale ammonia and Europe set
Slide 16: Stronger nitrogen fundamentals
Stronger nitrogen fundamentals Key supply and demand drivers Urea price4 development, USD/t Supportive market fundamentals going into the second quarter Demand-driven urea market with pricing above historical averages 3.0 22/23 24/25 2.0 440 23/24 420 1.0 400 US net nitrogen Large carry-over 380 imp
Slide 17: Limited new capacity growth until end of decade implies increasing nitrogen upgrading margins
Limited new capacity growth until end of decade implies increasing nitrogen upgrading margins Currently demand driven nitrogen pricing with prices above Urea market balance expected to tighten further with limited European gas prices3 expected to decrease in the coming production cost for the margin
Slide 18: Driving sustainable performance with an integrated scorecard
Driving sustainable performance with an integrated scorecard People Planet Profit 2025 2025 2025 Yara KPI 2023 2024 L12M target Yara KPI 2023 2024 L12M target Yara KPI 2023 2024 L12M target Strive towards zero GHG emissions, Ammonia Production, mt1 7.5 7.9 7.8 8.3 1.1 0.9 0.9 <1.0 3.0 2.8 2.8 2.7 ac
Slide 19: Yara is well positioned to navigate volatility with its global scale and flexibility
Yara is well positioned to navigate volatility with its global scale and flexibility Geopolitical situation strengthens business case for operational flexibility and resilience Yara’s has limited imports to the US - A global asset footprint and downstream presence is Yara’s direct US exposure Yara’s
Slide 20: Progress to future-proof core operations and increase shareholder returns
Progress to future-proof core operations and increase shareholder returns Value- Current Reduce cost Portfolio accretive Premium Market baseline and capex optimization ammonia growth conditions growth Focus on core operations Asset portfolio review Premium over volumes Tightening nitrogen supply Low
Slide 21: Appendix
Appendix
Slide 22: Updated sensitivities and production capacities on www.yara.com
Updated sensitivities and production capacities on www.yara.com EBITDA USD million Previous New Urea sensitivity + 10USD/t 42 42 Main changes: … of which pure urea 36 36 • Nitrate and NPK sensitivities reduced with Montoir capacities … of which pure UAN 6 6 as the plant is no longer producing Nitrat
Slide 23: Updated Fertilizer Industry Handbook
Updated Fertilizer Industry Handbook • Yara has published an updated Fertilizer Industry Handbook • The handbook can be found on yara.com • https://www.yara.com/investor-relations 23
Slide 24: Good underlying production performance
Good underlying production performance Ammonia production1 (mt) Finished product production1 (mt) GHG emission intensity (t CO2e/tN) Slight decline driven by turnaround delay and portfolio Performance negatively impacted by ammonia and portfolio Steady performance in recent months optimization optim
Slide 25: Free cash flow
Free cash flow Free cash flow before financing activities1,2 Divestment proceeds Investments Operations Free cash flow adjusted for divestment proceeds 1,973 2,104 1,669 1,442 1,560 1,142 1,246 1,091 863 1,298 777 532 619 532 284 288 206 105 123 -1,242 2018 2019 2020 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q
Slide 26: Strong cash earnings offset by seasonal operating capital build-up, maintenance investments and currency
Strong cash earnings offset by seasonal operating capital build-up, maintenance investments and currency Net interest-bearing debt: 1Q development (MUSD) +30 3,730 3,760 0 127 499 240 162 Net debt end Cash earnings1 Net operating Investments (net) Dividends Other2 Net debt end of of last quarter cap
Slide 27: Nitrate and NPK premiums
Nitrate and NPK premiums Nitrate premium above urea1 NPK premium above commodity blend2 USD/t (CAN27 equivalents) USD/t (NPK average grade equivalents) 1.000 Yara’s realized European nitrate price Urea Egypt CFR proxy 1M lag 1.000 Yara’s realized NPK price Commodity Blend 2M lag 500 500 0 0 1Q21 2Q2
Slide 28: Key product price development
Key product price development 1Q24 1Q25 Urea price development1 (USD/t) Spot gas prices1 (USD/MMBtu) Yara realized CAN2 and NPK price3 (USD/t) +14% +2% 419 599 610 -26% 368 -1% 327 12.9 12.8 +6% 242 316 333 -21% 2.8 2.2 Urea granular Urea inland Europe (TTF) US (Henry Hub) CAN 27 Compound NPK FOB Eg
Slide 29: Energy cost
Energy cost Quarterly averages for 2020 – 1Q 2025 with forward prices1 for 2Q 2025 and 3Q 2025 US gas price (Henry Hub) Yara Europe2 Yara Global TTF day ahead 13.3 14.4 11.8 14.3 11.0 11.0 10.5 10.2 9.4 4.3 3.3 3.5 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22
Slide 30: Details of energy cost actuals and estimate 2Q 2025 and 3Q 2025
Details of energy cost actuals and estimate 2Q 2025 and 3Q 2025 Europe 2Q25 estimations based on 3Q25 estimations based on 2Q24 3Q24 4Q24 1Q25 forward prices forward prices Average gas cost USD/MMbtu 9.7 11.2 13.2 14.3 13.3 11.8 Gas consumption1 Million MMBtu 34.2 35.3 31.5 30.2 34.2 35.3 European g
Slide 31: Yara inventories
Yara inventories Fertilizer - finished products inventory development in mt 8 7 6 5 Other 4 3 Compound 2 NPK 1 Nitrates Urea 0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 31
Slide 32: Peak of urea capacity additions is behind us
Peak of urea capacity additions is behind us Global urea capacity additions ex. China 1,2 (mt) India Russia Iran Algeria USA Nigeria Australia Others Uncertain completion year for several projects 6.7 between 2026 and 2029 with differing views from 5.9 publications. 5.5 4.5 4.4 4.3 4.3 4.2 3.1 1.9%
Slide 33: Farmer incentives: wheat example
Farmer incentives: wheat example Optimal nitrogen application1,2 kg/ha -3% 211 210 204 197 22/23 23/24 1 year ago current 22/23 23/24 1 year ago3 current3 Wheat price4 (USD/t) 309 242 216 239 CAN price5 (USD/t) 561 315 284 367 Optimal nitrogen application (kg/ha) 197 211 210 204 Grain yield (t/ha) 9
Slide 34: Alternative performance measures
Alternative performance measures Alternative performance measures are defined, explained and reconciled to the Financial statements in the APM section of the 1Q report on pages 22-30
Slide 35: Knowledge grows
Knogyledge grows