Yara International Asa · OSL:YAR

Yara International Asa — Shareholder Meeting (May 2017)

15 slides from Yara International Asa's shareholder meeting presentation, May 11, 2017

  1. Slide 1: Yara International ASA Annual General Meeting

    Yara International ASA Annual General Meeting 11 May 2017

  2. Slide 2: Safe operations is our first priority

    Safe operations is our first priority 4.5 TRI (Total recordable injuries 12-month rolling)1 4.0 3.5 3.0 2.5 2.0 1.5 Jan '15 Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan '16 Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Jan '17 Feb Mar Apr 1) TRI: Total recordable injuries, lost time (absence from

  3. Slide 3: Capacity additions outside China exceed consumption growth

    Capacity additions outside China exceed consumption growth… Capacity additions, excl. China 8.2 (mill. tonnes urea1) Nigeria 0.7 Russia 0.1 Iran 1.8 Egypt 0.9 India 0.7 Indonesia 0.8 Bolivia 0.5 Saudi Arabia 0.5 Azerbaijan 0.4 Malaysia 0.3 5.1 Turkmenistan 0.3 Bangladesh 0.1 Indonesia 0.3 Argentina

  4. Slide 4: Higher costs have reduced Chinese urea production and exports

    …but higher production and logistical costs have significantly reduced Chinese urea production and exports Chinese urea production Chinese exports and urea price Black Sea Million tons Kilotons USD/t 7.0 2,400 550 15/16 2,200 500 6.5 14/15 2,000 450 1,800 400 1,600 350 6.0 1,400 300 1,200 250 5.5 1,

  5. Slide 5: Earnings impacted by supply-driven market

    Earnings impacted by supply-driven market Earnings per share1 36.3 34.9 35.3 30.7 31.4 25.0 20.7 20.7 15.9 11.5 9.8 8.8 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 Excluding special items and currency IR – 11 May 2017 5

  6. Slide 6: EBITDA development 2016

    EBITDA development 2016 NOK millions 21,361 1,041 9,829 1,203 1,327 15,563 428 3,543 2015 Volume Price/margin Energy cost Currency Special Other 2016 items IR – 11 May 2017 6

  7. Slide 7: Highlights 1Q 2017

    Highlights 1Q 2017 NOK millions 5,055 95  Weaker results reflecting lower 784 margins 738 9  Strong finished fertilizer production, 124 279 3,216 but lower ammonia production  Strong Industrial result  Improvement program on track EBITDA Volume Price/Margin Energy Currency Special Other EBITDA 1

  8. Slide 8: Yara Improvement Program: in early phase, but well on track

    Yara Improvement Program: in early phase, but well on track Program progress Financial benefits 2017 2018 2019 2020 Annualized EBITDA improvement, $MM, vs. 2015 baseline, at 2015 prices Start: Today End: 2016 2020 500  Program progressing according to plan:  Productivity system pilots rolled out 1

  9. Slide 9: Major improvement and growth investments in 2016-2017

    Major improvement and growth investments in 2016-2017; main earnings improvement from 2018-2020 Improvement and growth capex1 (BNOK) Improvement program EBITDA improvement (MUSD) Growth 12.2 1,100 950 1.4 500 700 Improvement program: 350 600 + 350 MUSD cost improvement 164 +150 MUSD volume improveme

  10. Slide 10: Brazil: focus on premium products and solutions drives growth

    Brazil: focus on premium products and solutions drives growth Yara premium product deliveries (ANNUAL) Yara premium product deliveries (1Q) Kilotons Kilotons 1,800 500 +8% 1,600 450 +57% 1,400 400 350 1,200 300 1,000 250 800 200 600 150 400 100 200 50 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015

  11. Slide 11: Rio Grande expansion and operational improvement

    Rio Grande expansion and operational improvement  Consolidation of 3 sites reduces fixed RIG 2 cost and maintenance investments  Increased fertilizer production and blending capacity RIG 3 RIG 1  Improved safety and lower unit cost through: – Improved material flows 2.6 Million tons New capacity

  12. Slide 12: Acquisition of Tata Chemicals' urea and distribution business in India

    Acquisition of Tata Chemicals’ urea and distribution business in India provides footprint to accelerate premium product growth Integrated world scale urea plant in Babrala, Uttar Pradesh • ~0.7 million tons ammonia production • ~1.2 million tons urea production • Commissioned in 1994 World-class ope

  13. Slide 13: Strong growth and profitability through the cycle

    Strong growth and profitability through the cycle Average cash return on gross investment (CROGI) Average annual shareholder return of 23%1 well above the Yara CROGI target of 10% NOK/share 400 0 160 22.8% 20.9% 350 140 0 300 17.4% 17.3% 120 16.1% 14.4% 100 250 0 14.1% 14.1% 13.3%14.0% 12.6% 80 200

  14. Slide 14: Growth and capex pipeline

    Growth and capex pipeline Capex plan1 NOK bn 18.8 1.9 Cost&capacity improvements 2) M&A 14.2 3.5 Committed growth 1.5 Maintenance 0.4 11.0 7.3 1.7 6.9 7.6 3.5 1.4 0.5 5.3 6.1 5.7 5.7 2016 2017 2018 2019 Committed growth projects: Porsgrunn 1.2 0.7 - Köping 0.4 0.7 0.2 Sluiskil 0.7 0.8 0.0 BASF JV 1.

  15. Slide 15: Proposed dividend NOK 10 per share

    Proposed dividend NOK 10 per share Dividend and buy-backs1 per share Share of net income 15.5 64% 0.5 14.1 13.8 57% 1.1 0.8 16% 53% 6% 11.9 48% 48% 48% 47% 6% 11.0 1.9 6% 1.0 41% 12% 6% 32% 25% 7.4 30% 15.0 0.4 7% 13.0 13.0 26% 5.4 5.5 23% 51% 5.3 21% 48% 47% 7% 19% 43% 4.5 0.8 10.0 10.0 6% 4.0 1.4

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