Yara International Asa · OSL:YAR
Yara International Asa — Shareholder Meeting (May 2016)
17 slides from Yara International Asa's shareholder meeting presentation, May 10, 2016
Slide 1: Yara International ASA Annual General Meeting
Yara International ASA Annual General Meeting 10 May 2016
Slide 2: Safe operations is our first priority
Safe operations is our first priority 14.0 TRI1 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Mar-16 1) TRI: Total recordable injuries, lost time (absence from work), restricted work and medical treatment cases per one million work hours 2) OFD
Slide 3: Yara's products, solutions and knowledge create value
Yara’s products, solutions and knowledge create value for customers, shareholders and society 3Q2015 1Q2015 “Yara’s fertilizer increases “The N-sensor together with the “We need to make sure that our my yield by 20-30% and N-tester ensures that the fertilizer is product is the best they can get, imp
Slide 4: Knowledge grows: Lime success in Mexico
Knowledge grows: Lime success in Mexico Picture: Santa Margarita Agronomist and citrus Today: farm, municipality of Martinez specialist Alejandro Huesca Adopted full Yara Crop de la Torre, Mexico. Santos Solution for citrus 2005: 2011: Fertilizer: Fertilizer: ammonium sulfate Part-implementation of
Slide 5: Integrated business model creates value through scale, flexibility and value chain presence
Integrated business model creates value through scale, flexibility and value chain presence 5
Slide 6: Strong earnings despite supply-driven market
Strong earnings despite supply-driven market Earnings per share1 36.3 34.9 35.3 30.7 31.5 25.0 20.7 15.9 11.5 9.8 8.8 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1 Excluding special items and currency 6
Slide 7: EBITDA development 2015
EBITDA development 2015 NOK millions 2,577 2,032 21,361 5,189 16,407 786 4,208 2,641 2014 Volume Price/margin Energy cost Currency Special Other 2015 items 7
Slide 8: Highlights 1Q 2016
Highlights 1Q 2016 NOK millions 5,055 3 4,794 Strong results in a challenging market 533 954 702 Global fertilizer deliveries 5% lower, Brazil deliveries 15% higher 2,051 1,186 Negative price effects offset by lower energy prices and currency effects Improved production reliability Strong
Slide 9: Production impacted by maintenance stops and unplanned outages
Production impacted by maintenance stops and unplanned outages Ammonia1 Finished fertilizer & industrial products1 Kilotons Kilotons 2,500 6,000 5,000 2,000 4,000 1,500 3,000 1,000 2,000 500 1,000 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Urea Nitrates NPK CN UAN SSP - based fertilizer *
Slide 10: Lower commodity nitrogen prices, but stable nitrate and lower European gas cost
Lower commodity nitrogen prices, but stable nitrate and lower European gas cost Nitrogen upgrading margins1 European nitrate premium2 USD/t (monthly publication prices) USD/t (quarterly Yara realized) 700 160 600 140 120 500 100 Nitrate 400 premium above urea 80 Value above 300 ammonia 60 200 Value
Slide 11: Further growth in Brazil
Further growth in Brazil Volume (MM tons) 10 9 8 7 6 5 4 3 2 1 0 99 19 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Acquisition Acquisition Acquisition Divestment Acquisition 60% 11
Slide 12: Strong base, with further improvement potential
Strong base, with further improvement potential Strong base: Improvement opportunities: • Integrated business model • Safety • Strong unified brand • Production regularity • Dedicated and motivated • Employee alignment employees • Operational cost • Unrivalled knowledge base • Organizational set-up
Slide 13: Organizational adjustments shift emphasis towards operations
Organizational adjustments shift emphasis towards operations CEO Svein Tore Holsether CLO CFO Trygve Faksvaag Torgeir Kvidal Partner Production Supply Chain Crop Nutrition Industrial Brazil Operations Petter Østbø Tove Andersen Terje Knutsen Yves Bonte Alvin Rosvoll Lair Hanzen • Manufacturing • Pro
Slide 14: CEO priorities going forward
CEO priorities going forward Operations Profitable growth Positioning • Continue building culture where • Sharpen focus on growth in • Promote mineral fertilizer role in all accidents are preventable core business areas and solving global food challenges • Establish corporate geographies • Improve p
Slide 15: Yara generates robust earnings
Yara generates robust earnings Yara’s assets and product mix … ... generate robust CROGI1 over time BNOK 25% 140 • Production 22.8% 20.9% – Global ammonia production footprint 120 20% – Global scale and flexibility to optimize raw 17.4% 17.3% 14.4% 16.1% 100 material and product flows 15% 14.1% 14.1
Slide 16: Strong growth pipeline
Strong growth pipeline 17.9 Capex plan1 Production growth 2015 - end 20185 NOK bn 2.4 Cost&capacity improvements 14.4 M&A Finished fertilizer Ammonia 0.4 0.9 Committed growth Maintenance Mill.tons 22.1 3.3 11.0 8.3 8.7 1.3 0.5 7.2 0.7 4.2 7.7 2.3 4.1 1.3 0.8 6.0 6.3 5.6 5.6 0.8 18.9 2015 2016 2017 2
Slide 17: Proposed dividend NOK 15 per share
Proposed dividend NOK 15 per share Dividend and buy-backs1 NOK per share Share of net income 15.5 64% 0.5 14.1 13.8 57% 1.1 16% 53% 0.8 6% 11.9 48% 48% 6% 47% 1.9 41% 12% 6% 32% 25% 7.4 30% 15.0 0.4 7% 26% 13.0 13.0 23% 51% 5.4 5.3 5.5 21% 48% 47% 7% 19% 4.5 0.8 10.0 1% 6% 4.0 1.4 5% 34% 35% 2.8 1.5