Slide 1: Yara Improvement Program
Yara Improvement Program Investor and analyst visit to Sluiskil 12 December 2017
Slide 2: Agenda
Agenda Timing Agenda Presenter 08:00 AM – 08:15 AM Welcome & introductions Thor Giæver / Svein Tore Holsether 08:15 AM – 08:30 AM Introduction to Model Factory Hannah Paulson 08:30 AM – 09:15 AM Model Factory: Round One 09:15 AM – 09:55 AM YPS Overall (inc. debrief of model factory) Kristin Kaggerud
Slide 3: Safety
Safety Emergency exit Evacuation meeting point Safety station location Personal protective equipment (PPE) expectations
Slide 4: Productivity video
Productivity video
Slide 5: Overview of JLW Industries
Overview of JLW Industries Context • JLW Industries is a mid-size producer of beverages within the JLW group • Its main products are different variations of lemonade and cola which require different additional ingredients, e.g. vanilla essence • These goods are produced in one batch production line
Slide 6: Participants for JLW Industries
Participants for JLW Industries • We need eight volunteers to run the factories. • In each factory, there will be three operators and one supervisor. • Please put on the coats and PPE provided if you are operating in the factory. • Those who are not operating the factory will need to act as observer
Slide 7: Mining video
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Slide 8: Review of the first shift
Review of the first shift From your observation and/or experience in the last shift 1 What went well? 2 What challenges did you observe? 3 Which improvement ideas do you have? 4 How would you go about implementing them?
Slide 9: Yara Productivity System: A significant part of overall Yara Improvement Program target
Yara Productivity System (YPS): A significant part of overall Yara Improvement Program target USD million, vs. 2015 baseline and 2015 prices 500 ~450 ~30% Production volume Sustained EBITDA ~300 ~15% Consumption factor improve- ment ~150 ~30% Variable unit cost ~25% Fixed cost 2017 2018 2019
Slide 10: Yara Productivity System: Six interdependent and interlinked improvement workstreams
Yara Productivity System: Six interdependent and interlinked improvement workstreams Strategic response Description Address safety, customer responsiveness, reliability, cost, productivity and 1 YPS Rollout quality on our sites as well as the ability to assess and integrate acquired assets -Focus to
Slide 11: Selected highlights from the YPS roll-out
Selected highlights from the YPS roll-out YPS roll-out will have reached 50% of the sites by year end • YPS will be rolled out at 27 sites by completion • YPS roll-out completed at seven sites, eight sites are currently being transformed • First mining site being transformed • Diagnostic completed a
Slide 12: Yara Productivity System: Results being delivered in practice
Yara Productivity System: Results being delivered in practice Five out of seven plants since initial rollout completed, with 12MR In addition, several monthly production production RECORDS either in September or October ’17 records in November’18 TOTAL VOLUMES 12 month rolling - adjusted for Planned
Slide 13: YPS: One of the largest operational transformations in Norwegian industrial history
YPS: One of the largest operational transformations in Norwegian industrial history To date … By the time rollout complete … 350 change 3,700 man-days of rollout support leaders trained and active 1040 hours of bootcamps and 1,000 managers leadership training directly involved 800 man-days of diagno
Slide 14: YPS is our framework for continuous improvement
YPS is our framework for continuous improvement – Developed across three dimensions The way physical Technical assets and resources The formal structures, system Management are configured and processes, and optimized to create system Systems through which value and minimize the operating Systems los
Slide 15: YPS standard tool box to eliminate waste
For all dimensions we have a YPS standard tool box, all helping to eliminate waste How? Engaging all employees to identify improvement Performance management opportunities and eliminate waste Identifying the “best” way to execute a task, Standard operating procedures minimizing the impact of all was
Slide 16: Most transformation efforts fail to deliver full impact
Most transformation efforts fail to deliver full impact … mainly because culture change is not 70% of change programs fail … addressed fully Other obstacles 14 Inadequate resources or budget 14 % of Management efforts behavior failing to 33 does not 30 achieve 70 support change target Organizational
Slide 17: Mindset and cultural change is the real challenge
Mindset and cultural change is the real challenge, but is what ultimately determines success Denial Commitment Fear Acceptance Explore Mood Anger Depression Time Adapted from Elisabeth Kubler-Ross
Slide 18: YPS roll-out
Updated December 2017 YPS roll-out Sep Dec Jan Mar May Jul Oct Dec Jan Mar Apr Jun Aug Oct Dec ‘16 ‘16 ‘17 ‘17 ‘17 ‘17 ‘17 ‘17 ‘18 ‘17 ‘18 ‘18 ‘18 ‘18 ‘18 Sluiskil Rio Grande Porsgrunn transformations Big sites Uusikaupunki Trinidad & Tringen Galvani - Paulina I + II Belle Plaine Pilbara QAFCO Small
Slide 19: Belle Plaine Performance Review Video
Belle Plaine Performance Review Video 19
Slide 20: Performance management cycle
Performance management cycle Schedule “What we Standards “How we need to do” operate” Plan “Take action on “Produce the ideas to improve product” production” Act Do Check “Brainstorm ideas “Discuss how to improve” well we did”
Slide 21: An effective performance management system is driven by 3 interlinked elements
An effective performance management system is driven by 3 interlinked elements 1 Measure performance (KPI) 2 Effective Visualize performance performance management 3 Review performance 21
Slide 22: Frontline performance reporting is visibly displayed and easy to maintain
Frontline performance reporting is visibly displayed and easy to maintain Accessible Clear Pilbara Target driven Simple Recordable Kokkola
Slide 23: Performance is reviewed with the mindset of continuous improvement
Performance is reviewed with the mindset of continuous improvement Review 1 Are any KPIs off target? 2 What is causing this? Improve Brunsbuttel 3 How can we fix this? 4 Who will do it? Implement When will 5 they complete it by? Pilbara
Slide 24: Siilinjärvi: Taking a step back prior to SOP definition cuts cool down time
Silinjarvi: Taking a step back prior to standard operating procedure definition cuts time to cool down of hot electrostatic precipitator by up to 65% Performance board at Silinjarvi Sulphuric Acid plant 24
Slide 25: BCF-in-a-box video
BCF-in-a-box video 25
Slide 26: Review of the second shift
Review of the second shift From your observation and/or experience in the last shift 1 What went well? 2 What challenges did you observe? 3 Which improvement ideas do you have?
Slide 27: YPS standard tool box – All helping to eliminate waste
For all dimensions we have a YPS standard tool Management system Technical system box – All helping to eliminate waste People system How? Engaging all employees to identify improvement Performance management opportunities and eliminate waste Identifying the “best” way to execute a task, Standard ope
Slide 28: Yara Sluiskil
Yara Sluiskil General presentation
Slide 29: History
History A company with a rich history, rooted in the region
Slide 30: Yara Sluiskil 1929 - 2016
Yara Sluiskil 1929 - 2016 1929 Start production Ammoniumsulphate 1940 During World War II huge destructions by bombings. Restart 1950 1966 Switch from cokes gas to natural gas 1979 Development and practice of fluidized bed granulator technology 1979 Aquisition by Norsk Hydro ’80 –’90 Big investments
Slide 31: Key-indicators
Key-indicators Knowledge grows…
Slide 32: Yara Sluiskil TRI-rate 12 months rolling
Yara Sluiskil. TRI-rate 12 months rolling. 10 9 8 7 6 5 4 3 2 1 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 32
Slide 33: Key-indicators
Key-indicators 677 575 5,027 2.0 million euro FTE kiloton product in BCM Yara Turnover in 2016 loaded in 2016 natural gas/yr Ammonia World record in Nitrates reliability 80% Industrial products as feedstock 15% TOTAL PRODUCTION VOLUME OF YARA
Slide 34: Products and processes
Products and processes ° ° ° ° ° les °o ¢ e ° ° e ° e ‘ e ° 6 e ? eo Or Oo) Ee. .° eed) e @ OC wm Poe Seo ° 0 © £90005 0 9.9 ) ° o © 0008 oo ° e o00°* Oey e CAAT ° iS Be 00 ° ° e ° ° ee ° Oo e @o
Slide 35: Our production system at Yara Sluiskil
Our production system at Yara Sluiskil 35
Slide 36: Modal split (2016)
Modal split (2016) Rail Truck 799.186 ton (16%) 91.837 ton (2%) Barges Seagoing 1.145.626 ton (23%) vessels 2.990.579 ton (59%) 947 barges 627 seagoing vessels 1.232 rail wagons 31.087 trucks 36
Slide 37: Innovation and sustainability
Innovation and sustainability
Slide 38: WarmCO2, Smart Delta Resources and Algae Biocleaning
WarmCO2 -55.000.000 Nm3 natural gas/yr -135.000 ton CO2/yr 1.000 New jobs created Smart Delta Resources (SDR) Cooperation DOW, ICL, national authorities and Yara 40.000 ton CO2 reduction Strong industrial clustering Algae Biocleaning Pilot installation for cleaning of waste water. Cooperation with l
Slide 39: Urea 7 solution, 2011 and Urea 8, 2017
Urea 7 solution, 2011 420 mEuro investment 4.200 t/d (20% above design) -35%energy consumption Urea 8, 2017 240 mEuro investment S-urea specialities -50% dust emission 39
Slide 40: Urea 8 expanding value-add production capacity in Sluiskil
Urea 8 expanding value-add production capacity in Sluiskil New urea granulator with capacity of 660 kt per year, replacing old prilling unit with capacity of 400 kt per year Granulator will produce urea with sulphur, a product sold with a premium to regular urea Granulation will be done in a f
Slide 41: YPS implementation and status
YPS implementation and status
Slide 42: Plant visit
Plant visit Safety introduction for visitors
Slide 43: Do's and don'ts
Do’s and don'ts (only allowed in (where indicated) specific smoking room/area) Obligated on whole plant area Extra during works Extra PPE needed when pass by (wear also long sleeves) production zones indicated by ‘blue lines’ 43
Slide 44: Alarm
Alarm • Be calm and stay with your yara guide • Tuesday 10:00 o’clock weekly test 44
Slide 45: Many thanks for your attention
Many thanks for your attention More information: www.yara.com or www.yara.nl