Yara International Asa · OSL:YAR
Yara International Asa — Shareholder Meeting (May 2014)
11 slides from Yara International Asa's shareholder meeting presentation, May 5, 2014
Slide 1: Yara International ASA Annual General Meeting
0 Yara International ASA Annual General Meeting 5 May 2014 IR-Date: 2013-04-22
Slide 2: Safe operations is our first priority
1 Safe operations is our first priority IR – Date: 2014-05-05
Slide 3: Safe operations is our first priority
2 Safe operations is our first priority 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 TRI LTI TRI: Total recordable injuries, lost time (absence from work), restricted work and medical treatment cases per one million work hour
Slide 4: Continued strong fertilizer demand…
3 Continued strong fertilizer demand… FAO price index Index 300 250 200 150 100 50 0 1/2004 1/2005 1/2006 1/2007 1/2008 1/2009 1/2010 1/2011 1/2012 1/2013 1/2014 Cereals Price Index Cereals 5 year avg. Food Price Index Food 5 year avg. Source: FAO IR – Date: 2014-05-05
Slide 5: …met by strong supply response from China
4 …met by strong supply response from China Chinese urea exports, Kilotons Urea price, USD/t 1,800 550 1,600 500 450 1,400 400 1,200 350 1,000 300 800 250 200 600 150 400 100 200 50 0 0 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Urea, fob Yuzhny Chines
Slide 6: Supply-driven urea market impacted results
5 Supply-driven urea market impacted results NOK per share1 Urea price, USD/t 40 600 36.28 34.94 35.34 35 500 30 24.80 400 25 20.69 20 300 15.91 15 11.54 200 9.80 10 8.82 100 5 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 1 Excluding currency and special items IR – Date: 2014-05-05
Slide 7: Continued strength for value-added fertilizers
6 Continued strength for value-added fertilizers Yara-produced compound NPK deliveries Yara NPK premium over blend1 Kilotons USD/t +1% 2,500 700 +9% 600 2,000 500 1,500 400 Weighted average global premium above blend cost Nitrate premium 300 1,000 Urea, fob Black sea 200 500 MOP, cfr NWE 100 DAP, fo
Slide 8: Strong cash generation and balance sheet
7 Strong cash generation and balance sheet NOK billion 0.6 3.4 1.0 1.0 4.6 7.6 4.4 2.1 4.3 2.2 0.7 NIBD Cash Dividends NOC Funding Acquisition Other Share FX gain/loss Other NIBD Dec 2012 earnings from Yara Pilbara of Bunge’s investments buy back/ Dec 2013 investees Nitrates fertilizer (net) Dividen
Slide 9: Latin America growth & integration progress
8 Latin America growth & integration progress OFD (Colombia): – Integration preparation underway, with resource transfer from Bunge work – Closing expected 3Q 2014 Bunge (Brazil): – Integration completed – Result improvement expected going forward – USD 50 million synergies effective 2014 IR – D
Slide 10: 2014 investments drive continued value-added product growth outside Europe
9 2014 investments drive continued value-added product growth outside Europe Total Hurdle rate for all NOK 13 billion • Smaller growth initiatives: investments is 7% - Plant expansions, “small M&A”, ammonia ships and downstream terminals real after tax 2.5 Apart from • Pilbara nitrate plant cons
Slide 11: Proposed dividend of NOK 10 per share improves capital efficiency
10 Proposed dividend of NOK 10 per share improves capital efficiency Dividend % of net income 37% 28% Above-target dividend 48% Overall target 40-45% 10% proposed, to improve capital efficiency 3% Minimum 30% dividend 34% 34% 10% 9% 11% Growth ambition remains in 7% 25% 23% place, but focus for