Yara International ASA · OSL:YAR
Yara International ASA — Investor Day (November 2007)
14 slides from Yara International ASA's investor day presentation, Nov 20, 2007
Slide 1: A chemical company with fertilizer application as its biggest market
A chemical company with fertilizer application as its biggest market Yara strengths & track record Fertilizer Nitric acid Energy Ammonia Urea Industrial Yara converts energy, natural minerals and nitrogen from the air into useful products for farmers and industrial customers IR - Date: 2007-11-20 IR
Slide 2: Yara's 5-year average return significantly above cost of capital; achievements in 2007
Yara’s 5-year average return* significantly above cost of capital Yara achievements in 2007 Cash Return On Gross Investment** Kemira GrowHow acquisition Percent 16 HoA for Libya JV 14.1% 14.4% 14.2% 13.9% 14 Average = 12.7% First step in India 12 10.6% 10 9.2% JV with Wilhelmsen for maritime 8 deNOX
Slide 3: Yara has a unique business model; three segments mitigate cyclicality
Three segments mitigate cyclicality and Yara has a unique business model create value for Yara EBITDA, pro forma until 2005 . USD millions Knowledge Margin Business concepts that Local market knowledge 1,400 Downstream / Industrial exploit Upstream Strong customer relations combined Agronomic and ap
Slide 4: Unique global fertilizer sales and distribution network
Unique global fertilizer sales and distribution Global optimization creates value network Yara and Kemira GrowHow 2006 fertilizer and nitrogen chemicals volumes in million tons Product sourcing* Global Marketing and Sales ~80 optimization Fertilizer Europe Yara production 16.1 12.9 Europe Latin Amer
Slide 5: Yara is the global leader in ammonia trade and shipping
Yara is the global leader in ammonia Natural scale in ammonia trade and shipping 2006 volumes in million tons, excluding Kemira GrowHow Trade (2006) • Strong positions in all key regions: 6.0 5.1 Europe, Americas, Asia 5.0 Trinidad Million tons 4.0 External Burrup Trinidad Upstream 2.8 purchases & p
Slide 6: Profitable ammonia trade and shipping; upstream production growth
Profitable ammonia trade and shipping Upstream production growth EBITDA NOK million 600 Ammonia* Thousand Finished fertilizer* (excl. blends) 515 Thousand 506 495 tons tons 500 16,000 6,000 5,589 5,493 13,660 5,205 5,296 14,000 13,096 13,403 13,183 4,991 12,639 400 354 5,000 4,908 11,937 328 12,000
Slide 7: Upstream quality of operations; production base creates economies of scale
Upstream quality of operations Our production base - key for attracting JV partners creates economics of scale Fixed costs per ton (fully-owned plants) Global no 1 in NPK Global no 1 in ammonia Global no 1 in nitrates* complex fertilizer 100 Benchmarking LTI-rate Production capacity* (mill t) Produc
Slide 8: Sourcing flexibility; Yara the European low cost leader
Sourcing flexibility Yara – the European low cost leader Sales volumes last 12 months incl. Kemira GrowHow Production cost index: 100 = European EFMA average excl. Yara Million tons Ammonia cost position Nitrate cost position NPK cost position 12 100 100 100 10 102 100 97 96 80 91 90 93 89 80 87 87
Slide 9: Global trend and global drivers support our business
Global trend and global drivers support our business Yara is part of the solution Fertilizer demand drivers Feeding the world Environmental Care Bioenergy Production Population growth / hunger reduction Economic growth • Balanced fertilization • Energy-efficient plants • Adding biomass essential for
Slide 10: Fertilizer production and climate gases
50% of Yaras climate gas emissions come from Fertilizer production and climate gases ammonia production (CO2) Energy consumtion per ton of ammonia (relative index) 140 CO2 N2O 122 (carbon dioxide) (nitrous oxide) 120 108 109 China’s coal-fired 100 100 ammonia plants consume 70% more 80 energy and em
Slide 11: New technology reduces climate gas emissions from nitric acid production
New technology from Yara reduce climate gas emissions from nitric acid production (N2O) Fertilizer is a catalyst for solar energy Possible reduction: Yara Possible reduction: The industry Optimal use of fertilizer gives: 1) More biomass and and absorpsion of solar energy Mill. ton CO2-e pr. year Mil
Slide 12: Yara upgrades urea capacity in Sluiskil; Qafco-5 expansion
Yara upgrades urea capacity in Sluiskil Qafco-5 expansion Description: Letter of Intent signed for construction, total cost Increase urea capacity from 2,400 to USD 3.2 billion 3,500 tons/day Additional 4,600 tpd ammonia and 3,850 tpd urea Investment approx. EUR 300 million Operational by 2011 Total
Slide 13: Kemira GrowHow, an important strategic move; growth ambitions remain firm
Kemira GrowHow – an important strategic move Yara’s growth ambitions remain firm Kemira GrowHow Supporting Yara’s global growth strategy Revenues 2006 Reach 10% global market share Eastern nitrogen fertilizer over a business Phosphate: attractive complementary platform Europe cycle (from 2005) 11% s
Slide 14: Components in Yara's Growth Strategy
Components in Yara’s Growth Strategy Mature Markets North America Europe Distribution Growth Markets China India Brazil Other Industrial applications Competitive Sourcing Qatar Trinidad Libya Russia Other 5 IR - Date: 2007-11-20 The bulk of the organic growth in the fertilizer business is expected t