Yara International Asa · OSL:YAR
Yara International Asa — Yara Clean Ammonia — Investor Day (June 2022)
80 slides from Yara International Asa's investor day presentation, Jun 30, 2022
Slide 1: Capital Markets Day
Capital Markets Day Date: 30 June 2022
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, THE UNITED KINGDOM, AUSTRALIA, NEW ZEALAND, CANADA OR JAPAN OR ANY OTHER JURISDICTION OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL OR
Slide 3: Today’s agenda
Today’s agenda Indicative time Section Presenter(s) Page number Hilde Steinfeld Opening and agenda 3 Lars Røsæg Introduction to YCA Magnus Ankarstrand 5 Magnus Ankarstrand Market outlook 13 Joacim Christiansen 9:00 – 11:15 Magnus Ankarstrand Business overview Csaba Laszlo 34 Murali Srinivasan Magnus
Slide 4: Today’s presenters
Today’s presenters 9 37 10 Magnus Krogh Ankarstrand Hallgeir Storvik Joacim Rød Christiansen CEO CFO Corporate Development & M&A 23 13 25 Murali Srinivasan Lise Winther Csaba László Commercial Projects & Technology VP, Ammonia Sales & Logistics # Years with Yara 4
Slide 5: Introduction to Yara Clean Ammonia (YCA)
Introduction to Yara Clean Ammonia (YCA) 5
Slide 6: YCA is a leading global ammonia platform well-positioned for clean ammonia
YCA is a leading1 global ammonia platform well- positioned to capture the market for clean ammonia YCA in brief Company highlights A key enabler of decarbonization of hard- to-abate industries, connecting upstream projects with new customer applications USD 3.0bn USD 159m >20% Q1 2022 LTM Revenues Q
Slide 7: YCA is the clear #1 in ammonia, built on a global integrated business model
YCA is the clear #1 in ammonia, built on a global integrated business model backed by Yara YCA integrated model YCA Yara Highly flexible upstream portfolio #1 global midstream platform Multiple downstream outlets Offtake Sales Yara and JV ammonia ~4.1mT transported Yara consuming plants production C
Slide 8: Integrated operations across the midstream ammonia value chain
Integrated operations across the midstream ammonia value chain YCA’s midstream definition YCA’s midstream position is defined differently from the use of the same term in some other contexts/sectors Sourcing Transportation In the context of YCA, it refers to a broad set of capabilities (i.e. key com
Slide 9: YCA combines a leading business with exceptional growth prospects and a value creating project portfolio
YCA combines a leading business with exceptional growth prospects and a value creating project portfolio Ammonia Sales and Logistics (ASL) Clean Ammonia Projects Conventional applications New applications and Production (CAPP) (ASL 1) (ASL 2) Integrated midstream Integrated mid and Upstream producti
Slide 10: Well-established foundation for a continued partnership between YCA and Yara
Well-established foundation for a continued and mutually beneficial partnership between YCA and Yara Clear scope of separation of A leading global ammonia production base, exclusively marketed by YCA1 YCA’s assets and business Included in YCA Large captive ammonia demand, exclusively served by Y
Slide 11: YCA is positioned to become a key enabler of the energy transition
YCA is positioned to become a key enabler of the energy transition By successfully delivering on its business plan, YCA expects to achieve 3mT 4mT 70% CO2 equivalents CO2 equivalents Reduction of existing Avoided emissions Reduction in GHG intensity emissions from ammonia of future conversion and ne
Slide 12: Key highlights
Key highlights Clean ammonia represents a massive opportunity on top of a 1 structurally robust market for conventional ammonia Supportive ammonia market dynamics expected to significantly 2 increase cross-regional trading activity The #1 global ammonia midstream platform1 with significant barriers
Slide 13: Market outlook
Market outlook 1 Market opportunity 2 Demand development 3 Supply side economics 13
Slide 14: Snapshot of the clean ammonia market opportunity
1 Market opportunity Snapshot of the clean ammonia market opportunity Grey ammonia Blue ammonia Green ammonia An important input for the agriculture and Key enabler for decarbonization and new Long-term fully renewable option, but will industrial end-markets segments as the low-carbon cost leader re
Slide 15: Several building blocks needed for the clean ammonia opportunity to reach its potential
1 Market opportunity Several building blocks needed to fit together for the clean ammonia opportunity to reach its full potential Regulatory environment Market Technology Infrastructure A global adoption of “fair” CO2 The technologies required to prices or subsidies supporting The required infrastru
Slide 16: Clean ammonia
1 Market opportunity Different “colors” indicate different production processes for hydrogen and related carbon intensity Input/feedstock Hydrogen production Ammonia production4 Feedstock H2 from SMR5 or ATR5 Grey ammonia Grey ammonia H CO2 emissions1: N 1.9-2t CO2/t NH32 H H CO2 Storage CCS Blue am
Slide 17: Significant expected ammonia demand driven by conventional and new applications
1 Market opportunity Significant expected ammonia demand driven by a mix of conventional and new applications Ammonia market growth to 2050E 2050E ammonia demand by application 2050E ammonia supply by type mT 470 8% 4% 30% 238 238 43% 49% 184 48 39% 232 27% New Clean applications ammonia Agriculture
Slide 18: Decoupling historical captive consumption will increase importance of YCA’s midstream position
1 Market opportunity Decoupling historical pattern of captive consumption will increase the importance of YCA’s midstream position Global traded ammonia volumes are expected to grow exponentially 2021 2050E Geographically separated supply and demand centers ~10% ~50% Driven by production cost diff
Slide 19: The ammonia market is highly specialized, fitting YCA’s competitive edge
1 Market opportunity The ammonia market is highly specialized/complex, providing a strong fit with YCA’s competitive edge Merchant ammonia market requires a … which is expected to remain high in the YCA uniquely positioned across key high degree of specialization… coming years success criteria Compl
Slide 20: Demand from new applications is expected to come exclusively from clean ammonia
Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier 2 Demand development Demand from new applications is expected to come exclusively from clean ammonia Demand focused on key applications Shipping fuel Ammonia is the most promising scalable clean fuel solution Today Regulation
Slide 21: Rapid growth in ammonia as shipping fuel expected to create USD 87bn market by 2050
Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier 2 Demand development Rapid growth in the use of ammonia as a shipping fuel is expected to create a USD 87bn market by 2050 Ammonia demand outlook in the shipping fuel segment Key drivers Ammonia fueled <0.1 0.9 3.7 7.8 12.8 18.3
Slide 22: The IMO has set targets to reduce GHG emissions by 40% and 50%
Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier 2 Demand development The IMO has set targets to reduce GHG emissions by 40% and 50% by 2030 and 2050, respectively Current decarbonization toolbox IMO CO2 emission reduction targets CO2 emissions (mT) Business as usual IMO target
Slide 23: Maritime transport likely to be included in the EU ETS from 2024
Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier 4 Demand development 2 Maritime transport likely to be included in the EU ETS from 2024, introducing a carbon quota for the sector Key milestones Draft law (22 June 2022) July 2021: The legislation was first introduced by the Eur
Slide 24: Ammonia is the most promising solution for clean fuel in deep-sea shipping
Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier 2 Demand development Ammonia is the most promising solution for clean fuel in deep-sea shipping Comparison of shipping fuel alternatives Hydrogen E-Methanol Ammonia E-Methanol Overall assessment as a clean fuel E-Methanol is no
Slide 25: Fuel cost parity between ammonia and MGO requires CO2 pricing of USD ~250 per tonne
Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier 4 Demand development 2 Fuel cost parity between ammonia and MGO requires CO2 pricing of USD ~250 per tonne1 Shipping fuel cost comparison Cost comparison between Ammonia and MGO requires several aspects: Shipping fuel cost compar
Slide 26: Ammonia fueled engines expected ready 2024–2025, commercialization 2028–2029
Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier 4 Demand development 2 Ammonia fueled engines expected to be ready from 2024–2025 with commercialization in 2028–2029 Timeline for expected availability of ammonia as a shipping fuel 2022 2025 2030 2035 Technological readiness 20
Slide 27: Ammonia co-firing in power generation can support a USD 10bn market in Asia
Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier 2 Demand development Ammonia co-firing in power generation can support the emergence of a USD 10bn market in Asia by 2050 Ammonia demand outlook in the power generation segment Benefits of ammonia co-firing mT Base case 62 Provid
Slide 28: Conventional applications expected to support a USD 111bn market by 2050
Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier 2 Demand development Demand from conventional applications is expected to support a traded and captive market of USD 111bn by 2050 Ammonia demand outlook in the agriculture/industrial segment Key drivers mT Conventional applica
Slide 29: Ammonia as a hydrogen carrier expected to emerge as a USD 17bn market by 2050
Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier 2 Demand development The use of ammonia as a hydrogen carrier is expected to emerge as a USD 17bn market by 2050 Ammonia demand outlook in the hydrogen carrier segment Alternatives for hydrogen transport Global hydrogen demand 20
Slide 30: Blue ammonia will be the key immediate focus before green improves
3 Supply side economics Blue ammonia will be the key immediate focus before relative competitiveness of green ammonia improves Blue ammonia Green ammonia “Low-carbon” cost leader throughout the long-term; Brief Green ammonia projects could breach the blue cost curve competitive access to natural res
Slide 31: Blue ammonia cost competitive with grey by 2035; green over time
3 Supply side economics Blue ammonia to be cost competitive with grey by 2035 and green ammonia becoming cost competitive over time Ammonia production cost Key assumptions and trends 1 200 Ammonia production cost (LCOA) USD/t (2021 real prices)2 Blue ammonia with high capture rates (90%+) expected
Slide 32: Differences in regional competitiveness of blue ammonia
3 Supply side economics Differences in regional competitiveness of blue ammonia driven by gas, CO2 storage costs and incentive mechanisms Relative regional competitiveness Scoring on key cost drivers Sweet spot for blue hydrogen – lowest gas prices and only 16 North place with existing CO2 value cha
Slide 33: Summary of the market outlook
Summary of the market outlook Demand: Demand expected to increase significantly in the future Driven by usage of clean ammonia in key industries: shipping fuel, power generation, agriculture/industrial and hydrogen carrier These end-markets are expected to create demand of USD 224bn1, or 470mT, for
Slide 34: Business overview
Business overview 1 Introduction to YCA 2 Deep-dive on the current YCA platform 3 Business model 4 Competitive dynamics and positioning 34
Slide 35: YCA has an established global network with access to asset-backed supply
1 Introduction to YCA YCA has an established global network with access to asset-backed supply Overview of YCA’s global footprint Overview of YCA’s global footprint asset-backed supply and attractive Reliable, offtaker Deep industry know-how, market insight and track record of safe handling Sp
Slide 36: Lean organizational setup rigged for growth and vertical expansion
1 Introduction to YCA Lean organizational setup rigged for growth and vertical expansion Organizational setup Key highlights 8 • Highly competent organization with significant industry experience and employees with long tenure from Yara Management and administration • Employees are located across Eu
Slide 37: YCA is fully integrated across the ammonia midstream segment
A Sourcing and 2 Deep-dive on the current YCA platform planning YCA is fully integrated across the ammonia C Shipping and B Commercial terminals activities midstream segment End-to-end operations across the midstream value chain Selected scale benefits for YCA A Sourcing and planning Diversificati
Slide 38: Dynamic planning approach ensures efficient operations and flexibility
A Sourcing and 2 Deep-dive on the current YCA platform planning Dynamic planning approach ensures efficient C Shipping and B Commercial terminals activities operations and high level of flexibility Business logic Long-term planning Operational planning Yara’s asset-backed Production facility produ
Slide 39: Attractive value proposition to both suppliers and consumers
A Sourcing and 2 Deep-dive on the current YCA platform planning Attractive value proposition to both suppliers C Shipping and B Commercial terminals activities and consumers Suppliers (upstream) Consumers (downstream) YCA can provide selected suppliers with highly YCA is asset-backed with multiple s
Slide 40: YCA acts as preferred offtake partner for Yara and third-party producers
A Sourcing and 2 Deep-dive on the current YCA platform planning YCA acts as preferred offtake partner for Yara C Shipping and B Commercial terminals activities and third-party producers Yara ammonia production Yara JV partner production External ammonia production Typical locations Typical locations
Slide 41: YCA is a reliable supplier of ammonia to Yara and third-party consumers
A Sourcing and 2 Deep-dive on the current YCA platform planning YCA is a reliable supplier of ammonia to Yara C Shipping and B Commercial terminals activities and third-party consumers Sales to Yara Sales to third-party consumers Porsgrunn Rostock Fertilizer companies Industrial companies Type of ~1
Slide 42: YCA has access to Yara owned terminals in key regions
A Sourcing and 2 Deep-dive on the current YCA platform planning YCA has access to Yara owned terminals in key C Shipping and B Commercial terminals activities regions YCA has access to Yara terminals in key regions YCA handles inventory management for Yara Evergreen agreement2 with Yara governing al
Slide 43: YCA has a fleet of 12 owned and leased vessels
A Sourcing and 2 Deep-dive on the current YCA platform planning YCA has a fleet of 12 owned and leased vessels C Shipping and B Commercial terminals activities to support its midstream operations Overview of YCA’s fleet of owned and leased vessels Key highlights Owned vessels 12 dedicated vessels wi
Slide 44: YCA benefits from a predictable and scalable economic model
3 Business model YCA benefits from a predictable and scalable economic model with strong value creation potential Margin Volume YCA EBITDA margin: Key volume Key margin drivers >30 USD/tonne characteristics1 Historically stable around Scale and scalability Offtake and supply 4mT2 YCA today access Co
Slide 45: Relatively stable underlying volume development underpinned by contracts
3 Business model Relatively stable underlying volume development underpinned by contracts YCA sales volume development Typical drivers of volume fluctuations1 mT 5.0mT Structural changes in connection 1 with closure of plants 3.5mT 2 Construction of new plants Start-up of Yara’s JV in Freeport Closu
Slide 46: A clear set of capabilities is required to succeed across the midstream value chain
4 Competitive dynamics and positioning A clear set of capabilities is required to succeed across the midstream ammonia value chain Key success criteria Reliability of supply Operational know-how Customer relationships Global infrastructure and network Efficient financing Track record of safe operati
Slide 47: YCA has a leading integrated midstream ammonia platform
4 Competitive dynamics and positioning YCA has a leading1 integrated midstream ammonia platform… Project execution and Sourcing, optimization Global distribution, Ammonia fuel Customers production2 and shipping storage and sales bunkering3 (existing MoUs) Integrated part of Yara Specialized skills a
Slide 48: …with a differentiated approach and a clear #1 position
4 Competitive dynamics and positioning …with a differentiated approach and a clear #1 position Est. traded volumes Number of vessels Company1 Number of terminals Asset-backed supply Global platform3 (mT) (owned + leased) YCA >4 182 12 2-2.5 0 9 () 1-2 6 0 1-2 4 4 () 1-2 1 7 1-2 4 4
Slide 49: Summary of the current YCA platform
Summary of the current YCA platform Market position: The #1 midstream player with >20% market share1, global footprint and integrated platform Infrastructure: Global network of 12 vessels and 18 strategically located terminals2, with deep-sea connection to key hubs Value proposition: A trusted partn
Slide 50: Growth and strategy
Growth and strategy 1 Ambition and clean ammonia strategy 2 Deep-dives across the value chain 3 Summary perspectives 50
Slide 51: YCA’s strategic ambition
1 Ambition and clean ammonia strategy YCA’s strategic ambition YCA aims to significantly grow its leading1 global position as the world’s largest ammonia platform, driving the development of clean ammonia globally: Enabling the energy transition by connecting low-carbon energy > sources to food, fue
Slide 52: YCA’s strategy builds on existing success factors and competitive edge
1 Ambition and clean ammonia strategy YCA’s strategy builds on existing success factors and competitive edge Key success factors YCA’s competitive edge YCA’s competitive edge Integrated Reliable and asset-backed supply Upstream Downstream midstream Handled by Yara today – Current presence Leverage c
Slide 53: Three-pronged strategy to capture a leading position in clean ammonia
1 Ambition and clean ammonia strategy Three-pronged strategy to capture a leading position in the clean ammonia market Scale integrated midstream platform while expanding into upstream and downstream segments Integrated midstream Scaled based on today’s setup Upstream Downstream Utilize existing s
Slide 54: Integrated midstream platform requires less than proportional capex to scale
Integrated midstream 2 Deep-dives across the value chain Upstream Downstream Integrated midstream platform requires less than proportional capex to scale Key assets Current platform Scalability Synergies Organization and systems 100’s of years of Existing capabilities in place that can handle comb
Slide 55: Value accretive growth plan builds on existing infrastructure and co-investments
Integrated midstream 2 Deep-dives across the value chain Upstream Downstream Value accretive growth plan builds on existing infrastructure and co-investments with partners Terminals Vessels Bunkering solutions YCA’s mid- and down- stream investment principles Selective capacity investments to scal
Slide 56: Clear prioritization of key end-use applications
Integrated midstream 2 Deep-dives across the value chain Upstream Downstream Clear prioritization of key end-use applications, leveraging YCA’s partnerships and market access Timing Development and roll-out to 2030 After 2030 Shipping fuel Power generation Agriculture/Industrial Hydrogen carrier Seg
Slide 57: YCA will primarily focus on commercial operations in the downstream segment
Integrated midstream 2 Deep-dives across the value chain Upstream Downstream YCA will primarily focus on commercial operations in the downstream segment Key principles of YCA’s downstream focus YCA investments Commercial operations Shipping fuel Bunkering solutions Customer interface + last mile
Slide 58: MoU with NorSea to establish a secure ammonia bunkering supply chain
Integrated midstream 2 Deep-dives across the value chain Upstream Downstream MoU with NorSea to establish a new, secure supply chain for ammonia bunkering Overview of the NorSea network Key highlights NorSea and YCA have signed an MOU for to establish Example of a NorSea base ammonia bunkering inf
Slide 59: Upstream roadmap builds on a flexible approach to select robust projects
Integrated midstream 2 Deep-dives across the value chain Upstream Downstream Upstream roadmap builds on a flexible approach to select and develop the most robust projects YCA’s upstream investment principles Upstream investment roadmap Short-term Mid-term Long-term Upstream perimeter: Hydrogen pro
Slide 60: Mix of project structures with varying commercial and capital exposure
Integrated midstream 2 Deep-dives across the value chain Upstream Downstream Mix of different project structures with varying levels of commercial and capital exposure for YCA Blue ammonia project structures and YCA involvement Green ammonia project structures and YCA involvement Model 1: Model 2: M
Slide 61: Project pipeline to 2030 weighted towards blue projects in North America
Integrated midstream 2 Deep-dives across the value chain Upstream Downstream Project pipeline to 2030 weighted towards blue projects in North America Framework Indic. start of Type Project names in place Volume (kT)1 Type YCA capex production Grey to blue (CCS) North America ~600 Offtake - 2026 –
Slide 62: Robust certification schemes required to enable transition
Integrated midstream 2 Deep-dives across the value chain Upstream Downstream Robust certification schemes required to enable transition and expected to strengthen YCA’s edge Clear rationale for certification Yara’s certification scheme is based on multi- Benefits for customers and the schemes site m
Slide 63: Three-pronged strategy to capture profitable growth opportunities
3 Summary perspectives Three-pronged strategy to capture profitable growth opportunities as the clean ammonia market develops ILLUSTRATIVE ASL Stable EBITDA 2021 Grow with the market for Expand into new applications ASL EBITDA Expand into clean ammonia conventional applications (ASL 2, mid- and down
Slide 64: Integration across the value chain has clear benefits
3 Summary perspectives Integration across the value chain has clear benefits and will remain an important pillar going forward YCA value chain presence Selected YCA integration benefits Integrated Upstream Midstream Downstream Logic Value creation Integrated business coupled with a certification Sup
Slide 65: Growth investments of USD 2.0–2.3bn + HEGRA to capture leading share
3 Summary perspectives Growth investments of USD 2.0 – 2.3bn1 + HEGRA2 to capture leading share in clean ammonia by 2030 Integrated midstream Upstream Downstream Investments in blue and green ammonia Capacity investments to scale platform to Selective investments in targeted end- production capacity
Slide 66: Financials and financial targets
Financials and financial targets 1 Historical financials 2 Financial targets 66
Slide 67: YCA’s reporting structure is based on 2 reporting segments
1 Historical financials YCA’s reporting structure is based on 2 reporting segments Ammonia Sales and Logistics (ASL) Clean Ammonia Projects and Production (CAPP) 170 EBITDA, USDm EBITDA, USDm 133 122 110 2019 2020 2021 Q1 2022 LTM 2019 2020 2021 Q1 2022 LTM -3 -6 -10 -11 CAPP segment reflects YCA’
Slide 68: Strong historical financial performance with positive EBITDA momentum
1 Historical financials Strong historical financial performance with positive EBITDA momentum Income statement and selected APMs1 Comments USDm 20192 2020 2021 Q1 2022 LTM All revenue currently generated in the ASL Revenue and other income 1,248 1,015 2,292 3,009 segment Finished goods sold and co
Slide 69: YCA’s EBITDA is impacted by movements in ammonia prices
1 Historical financials YCA’s EBITDA is impacted by movements in ammonia prices Robust business with attractive Fluctuation in ammonia prices and lag-impact on YCA’s EBITDA/t1 earnings even at low ammonia prices, EBITDA per NH3 FOB Black illustrated by the “EBITDA margin tonne (USD) Sea price (USD/t
Slide 70: EBITDA sensitivity to changes in ammonia price and sales volumes
1 Historical financials EBITDA sensitivity to changes in ammonia price and sales volumes Type of sensitivity Scenario Illustrative EBITDA impact Basis Underlying price USD 100/t in NH3 ~USD 12m sensitivity Annual market price (Positive impact) (“Direct price effect”) Price Short-term USD 100/t in NH
Slide 71: No net interest bearing debt and working capital above normalized levels
1 Historical financials No net interest bearing debt and working capital significantly above normalized levels Balance sheet Comments USDm 2019 2020 2021 Q1 2022 PPE and right-of-use assets Intangible assets 55 55 55 55 Property, plant and equipment 240 227 221 218 Fixed assets mainly comprise YCA
Slide 72: Strong cash generation impacted by NWC build-up from high ammonia prices
1 Historical financials Generally strong cash generation is currently impacted by NWC build-up from high ammonia prices Key cash flow items Comments USDm 2019 2020 2021 Q1 2022 LTM Operating cash flow pre change in net Income before tax 80 81 88 126 working capital has increased gradually Deprecia
Slide 73: Segment financial targets: Ammonia Sales and Logistics (1/2)
2 Financial targets Segment financial targets Ammonia Sales and Logistics (ASL) (1/2) Conventional applications (ASL 1) New applications (ASL 2) Considerably higher driven by YCA’s upstream projects (~2.5mT)1 2 >20% Stable >20% YCA market share in traded ammonia 2021 Mid to long term Mid term Long t
Slide 74: Segment financial targets: Ammonia Sales and Logistics (2/2)
2 Financial targets Segment financial targets Ammonia Sales and Logistics (ASL) (2/2) Conventional applications (ASL 1) New applications (ASL 2) >30 Stable Profitability (EBITDA USD/tonne) 2021 Mid to long term Mid term Long term (Up to 2030) (After 2030) For new applications (i.e. excluding the fer
Slide 75: Segment financial targets: Clean Ammonia Projects and Production
2 Financial targets Segment financial targets Clean Ammonia Projects and Production (CAPP) Selected upstream projects (to 2030) Ambitions and targets Framework Volume Indic. start of Type Project names in place (kT)1 Type YCA capex production Attractive returns Grey to blue (CCS) North America ~60
Slide 76: Group financial targets and outlook
2 Financial targets Group financial targets and outlook Ammonia Sales and Logistics (ASL 1 and 2): YCA expects to invest up to USD 400m in infrastructure related to mid- and downstream until 20301 Capex Clean Ammonia Projects and Production (CAPP): Current project pipeline with total capex of US
Slide 77: Additional material
Additional material P4 Yara Clean Ammonia 7 YARA
Slide 78: Combined financials show lower results vs. segment financials
Combined financials shows somewhat lower results vs. segment financials due to the following factors EBITDA impact Basis of preparation Q1 2022 LTM Segment financials as presented for Yara’s Clean Ammonia segment, reflecting core Yara segment financials activities of YCA today (primarily related to
Slide 79: YCA and Yara will cooperate in developing clean ammonia production and sourcing
YCA and Yara will cooperate extensively in developing clean ammonia production and sourcing Governance structure/framework Key principles YCA will be Yara’s preferred supplier of clean ammonia and/or clean ammonia certificates for fertilizer and industrial use ‒ YCA will be entitled to have a Last
Slide 80: In the US, the 45Q tax credit supports blue ammonia economics
In the US, the 45Q tax credit is already in place, supporting economics of blue ammonia production Equipment placed in service before Feb-2018 Equipment placed in service on Feb-2018 or later USD/t of CO2 captured and sequestered Geologically sequestered USD 23.82 in 20201 USD 31.77 in 2020 increa