Yara International ASA · OSL:YAR

Yara International ASA — Investor Day (November 2007)

9 slides from Yara International ASA's investor day presentation, Nov 20, 2007

  1. Slide 1: Financial highlights 2007

    Financial highlights 2007 Strong financial results Significant volume growth, primarily Brazil Financial scenarios & sensitivities Robust demand-driven margin improvement US dollar depreciation Short-term financial gain Longer-term negative impact on European competitiveness IR - Date: 2007-11-20 IR

  2. Slide 2: Yara – a leading fertilizer company; energy prices reflected in 2006 returns

    Energy prices reflected in nitrogen players’ Yara – a leading fertilizer company 2006 returns Gross return on assets*, percent 2006 revenues* 2006 net income* Market cap 15 Nov 2007 2004 2005 2006 Yara** 21.4 Agrium 24.3 PCS 19.6 Yara 7.6 Yara 656 Yara 9.9 Agrium 20.2 PCS 22.3 Air Products 17.9 Air

  3. Slide 3: All segments have shown solid performance in the last five years

    All segments have shown Financial scenarios solid performance in the last five years • L12M EBITDA excluding special items and adjusted for Model concluded portfolio changes Average CROGI over last five years*: 13.4% assumptions • Kemira GrowHow included with full synergies • No growth assumed Indiv

  4. Slide 4: Increased European forward energy prices

    Increased European forward energy prices Quarterly averages for 2006 and 2007 with forward prices for 2008* Fuel oil and natural gas forward price increases USD/MMBtu 14 Yara Europe OIL PRODUCTS NATURAL GAS oil & gas cost (weighted average) 2008 average 11.4 11.3 11.6 600 100 14 12 11.4 2008 average

  5. Slide 5: Urea price required to motivate new capacity has increased substantially

    Financial scenarios Financial scenarios Urea price required to motivate new capacity Price and currency assumptions in scenarios has increased substantially Last 12 months Today’s prices Europe swing** ending 3Q 2007 + energy forward* USD/ton Construction costs are escalating Full-cost urea Qafco-5

  6. Slide 6: Simplified P&Ls for scenarios

    Financial scenarios Financial scenarios Simplified P&Ls for scenarios Today’s fertilizer prices more than offset forward energy cost increases L12M ending 3Q07 Today’s prices NOK millions Europe swing*** Incl. GrowHow* + energy forward** 12,000 EBITDA 8,230 9,300 5,500 1,670 6,360 Depreciation (1,73

  7. Slide 7: Swing scenario improved versus CMD 2006

    Financial scenarios Financial scenarios Swing scenario improved versus CMD 2006 Current price scenario improved from demand- driven scenario in CMD 2006* NOK millions EPS estimate NOK USD 12,000 6,360 1,670 • This year’s current prices 19 3.6 10,000 780 9,300 4,280 120 • Last years scenario with 40

  8. Slide 8: Yara sensitivities: updated to include Kemira GrowHow

    Financial scenarios Yara sensitivities: European swing earnings slightly improved vs. Updated to include Kemira GrowHow last year’s scenario in NOK, stronger in USD EBITDA EBITDA Op. Income EPS** USD million NOK million* NOK million* NOK EPS estimate NOK USD CAN + 10 USD/t 106 560 560 1.36 • This ye

  9. Slide 9: Yara capital expenditures; tax assumptions in scenarios

    Tax assumptions in scenarios Yara capital expenditures NOK millions 2004 2005 2006 Est. 07 The European swing scenario gives a tax rate of 15% Productivity and Organic growth 1,574 1,525 2,287 ~2,000 Most of the earnings in associated companies included in Yara’s income statement on an after-tax bas

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