Yara International Asa · OSL:YAR
Yara International Asa — Kepler Cheuvreux Global Agriculture Forum 2023
16 slides from Yara International Asa's conference presentation, Nov 16, 2023
Slide 1: Yara International ASA
Yara International ASA Magnus Krogh Ankarstrand, EVP Corporate Development 16 November 2023 Kepler Cheuvreux Global Agriculture Forum
Slide 2: Our ambition is zero injuries
Our ambition is zero injuries TRI1 (12-month rolling) 5.0 4.0 3.0 2.0 1.0 1.0 0.0 1Q16 3Q23 1) Total Recordable Injuries per 1 million working hours 2
Slide 3: Continued strong cash conversion in lower margin environment
Continued strong cash conversion in lower margin environment 3Q 2023 EBITDA down 62% due to reduced margins Operating cash flow of 1 BUSD primarily due to operating capital release European nitrate price negatively impacted by long order book at start of 3Q Supportive fundamentals for full season bu
Slide 4: European nitrate price negatively impacted by long order book at start of 3Q
European nitrate price negatively impacted by long order book at start of 3Q Price development 3Q23 Comments: Nitrate premium USD/t Longer order book built ahead -10% of 3Q, to maintain deliveries and Urea 325 cash flow through off-season FOB Arab Gulf 291 summer period Order-taking fell as urea
Slide 5: Risk of new nitrogen curtailments if slow European demand continues
Risk of new nitrogen curtailments if slow European demand continues Slow start to the season in Europe Improved farmer incentives from last year1 Increasing European gas prices2 Kt N in Europe (all products, nutrient tonnes), 3Q Cereal-to-urea price index, 2014-2016=100 TTF, USD / MMBtu 0.87 25 Forw
Slide 6: Geopolitical situation strengthens business case for operational flexibility and resilience
Geopolitical situation strengthens business case for operational flexibility and resilience Key geopolitical risk drivers Europe: Energy crisis and Ukraine war, EU regulations Russia and Belarus: food, gas, raw materials US: Inflation reduction act China: trade policies Africa: Food system resilienc
Slide 7: Growing a Nature Positive Food Future
Growing a Nature Positive Food Future 7
Slide 8: Yara will prioritize strategic and value-creating investments in US clean ammonia
Yara will prioritize strategic and value-creating investments in US clean ammonia Type Project CO2 Capture Yara volume1 Type Yara capex3 Start of production Project YaREN2 50% stake North America, Texas, Ingleside ~95% 1.2 – 1.4 mt and full 1.3 – 1.45 bn 2027 – 2028 Partnership with Enbridge offtake
Slide 9: Our leading ammonia position presents significant opportunities
Our leading ammonia position presents significant opportunities Global #1 in traded ammonia with >20% market share1 YCA competitive advantages YCA global terminal and storage infrastructure Integration across the value chain Reliable, asset-backed supply and attractive offtaker Deep industry know-ho
Slide 10: Strong US clean ammonia project economics
Strong US clean ammonia project economics Strong federal incentives in the US for sequestering CO2 The accumulated 45Q credits benefit is substantial Ammonia cash cost1, USD/ton, illustrative USD billion, illustrative example2 190 2.6 – 2.9 140 1.5 – 1.8 80 30 Cash cost 45Q CCS Cash cost CapEx Accum
Slide 11: US ammonia investments are complimentary to Yara's European footprint
US ammonia investments are complimentary to Yara’s European footprint Yara current ammonia footprint is flexible Creating opportunities for Yara to: Europe • Norway • Netherlands • Finland 1) Fuel parts of the EU production with import of • Germany low-carbon ammonia at competitive cost • France • I
Slide 12: Strong value creation in European nitrate upgrade position
Strong value creation in European nitrate upgrade position Historical (past 10 years): nitrate premium above urea1 Future scenario: profitable decarbonization through US ammonia USD/t, Urea equivalents ~500 ~100 ~400 illustrative n- margin above ammonia cost3 With CBAM, importers have to pay carbon
Slide 13: Our ambition is to be carbon neutral by 2050
Our ambition is to be carbon neutral by 2050 Historic reductions1, MtCO2 per year Planned reductions 2025 2030 2050 Our climate roadmap -42% 2025 Intensity target: 10% reduction in 13 CO2e per ton N Scope 1 & 2 ~30% 1 2030 Reduce scope 1+2 2.5 32 Equivalent to -100% absolute emissions emissions of 3
Slide 14: Structural moves continuously considered to reallocate capital
Structural moves continuously considered to reallocate capital Asset portfolio YCA IPO evaluation • Increased focus on divesting non-core assets where • Viability of minority divestment of YCA confirmed Yara sees accretive conversion into prioritized growth segments • Timing postponed due to highly
Slide 15: Capital allocation - key messages
Capital allocation - key messages • Capital allocation policy maintained, based on BBB / Baa2 credit rating target • Annual average capex at 1.2 BUSD max in real 2022 terms, on a net basis including portfolio optimization and equity funding • Fixed cost target to beat inflation in core business (exc
Slide 16: Knowledge grows ; ae ee es : :
Knowledge grows ; ae ee es : :
Yara International — Kepler Cheuvreux Global Agriculture Forum 2023 on 6ix