IR-Date: 2014-10-22

0

22 October 2014

Yara International ASA

Third quarter results 2014

IR-Date: 2014-10-22

1

Strong result with record deliveries

Continued margin benefit from lower European gas prices

Strong fertilizer production; lower ammonia production in Pilbara and Lifeco

Record Industrial result

Summary third quarter

IR-Date: 2014-10-22

2

10.02

7.73

12.42 11.84

10.54 9.82

9.25

7.67

8.04 6.69

5.66

0.23

6.40

8.26

6.18

Earnings per share*

• Average number of shares for 3Q 2014: 276.2 million (3Q 2013: 277.6 million).

NOK 41.99 37.31 20.67 20.84

Annual 2011 2012 2013

EPS excluding currency and

special items

2014

IR-Date: 2014-10-22

3

Continued robust fertilizer demand

Higher urea prices; continued curtailments in China, Ukraine and Egypt

Western Europe nitrogen fertilizer industry deliveries 5% higher

Higher phosphate prices and upgrading margins than last year

Strong demand for value-added fertilizer products

Fertilizer market development

IR-Date: 2014-10-22

4

Food prices below 5-year average

Source: FAO

0

50

100

150

200

250

300

1/2004 1/2005 1/2006 1/2007 1/2008 1/2009 1/2010 1/2011 1/2012 1/2013 1/2014

Index

FAO price index

Cereals Price Index Cereals 5 year avg. Food Price Index Food 5 year avg.

IR-Date: 2014-10-22

5 Nitrogen deliveries in Europe and USA close

to normal

0.0

0.5

1.0

1.5

2.0

2.5

3Q10 3Q11 3Q12 3Q13 3Q14

Domestic Imports

Source: Yara estimate for fertilizer deliveries to selected West European countries.

Total nitrogen deliveries based on TFI, US Trade Commission, Blue-Johnson and Yara estimates

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

3Q10 3Q11 3Q12 3Q13 3Q14

Production Net imports

West Europe USA

+12%

+5%

Million tons N Million tons N

IR-Date: 2014-10-22

6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

13/14

Source: BOABC, CFMW

12/13

Chinese urea: production decline despite

significant capacity increase

14/15

0

50

100

150

200

250

300

350

400

450

500

550

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2 200

2 400

Black Sea

USD/t

Chinese exports

(kilotons)

Chinese production

(kilotons)

Jul-Aug 11.7 mt

(12.1 mt Jul-Aug last year)

Year-to-date 47.5 mt

(48.2 mt year-to-date last year)

Jul-Aug 2.4 mt

(2.8 mt Jul-Aug last year)

Year-to-date 6.6 mt

(4.1 mt year-to-date last year)

IR-Date: 2014-10-22

7

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

3Q10 3Q11 3Q12 3Q13 3Q14

CAGR 12%

Long-term growth in deliveries outside Europe

Kilotons

Yara fertilizer deliveries (by quarter)

Europe Overseas

IR-Date: 2014-10-22

8

Brazil: Yara benefiting both from Bunge

acquisition and increase in industry deliveries

Brazil fertilizer industry deliveries (Jan-Sep)

0

5 000

10 000

15 000

20 000

25 000

2011 2012 2013 2014

+7%

Kilotons

Yara Brazil fertilizer deliveries1 (Jan-Sep)

Kilotons

Source: ANDA, Yara 1) Excluding trade

0

1 000

2 000

3 000

4 000

5 000

6 000

2011 2012 2013 2014

Th

ou

san

ds

IR-Date: 2014-10-22

9

Earnings before interest, tax, depreciation and

amortization (EBITDA)

4 281

3 455

5 444

4 982

4 310

4 966

4 103

3 591

4 184 4 039

3 318

1 858

3 591

4 227

3 964

2011 2013 2012 2014

NOK

millions 18,163 16,970 13,399 11,782

Annual

EBITDA excluding special

items

NOK millions

IR-Date: 2014-10-22

10

EBITDA development

68 109

891

132

222151

EBITDA

3Q14

3,964

Currency Other EBITDA

3Q13

Special

items

Volume & mix Gas & oil

costs in

Europe

Price/margin

3,318

NOK millions

IR-Date: 2014-10-22

11

Improved earnings for all segments

1 094

1 463

304 420

1 797

2 293

Downstream Industrial Upstream

EBITDA excluding special items

3Q13 3Q14

EBITDA

(NOK millions)

IR-Date: 2014-10-22

12

0

100

200

300

400

500

600

700

3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14

USD/t

Nitrogen upgrading margins1 (monthly publication prices)

Urea CFR CAN (46% N) NH3 CFR (46% N)

Value

above gas

Value above

ammonia

Nitrate premium

above urea

Yara EU gas cost *20

Improved European nitrogen margins; nitrate

premium in line

0

20

40

60

80

100

120

140

160

180

3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14

European nitrate premium2 (quarterly Yara realized)

2) Yara European realized nitrate prices compared with urea

publication prices with one month time lag. All numbers in USD

per ton of CAN equivalents. 1) All prices in urea equivalents

IR-Date: 2014-10-22

13

0

100

200

300

400

500

600

700

3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14

USD/t

Phosphate upgrading margins

DAP, fob USG

Rock, fob NA *1.4

Value above

raw material

0

100

200

300

400

500

600

700

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

USD/t

NPK premium over blend1

NH3, fob Black Sea *0.22

DAP, fob Morocco

MOP, cfr NWE

Urea, fob Black sea

Solid commodity phosphate margins and NPK

premiums

Weighted average global

premium above blend cost

1) Export NPK plants, average grade 19-10-13, net of

transport and handling cost.

Nitrate premium

IR-Date: 2014-10-22

14

(51) (36)

(660)

(891)

(650)

(500)

(1 000)

(900)

(800)

(700)

(600)

(500)

(400)

(300)

(200)

(100)

0

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

NOK millions

October 2014 estimate**

** Based on forward prices as of 14 October 2014

Lower natural gas cost in Europe

Source: Yara, World Bank, Platts

*Dotted lines denote forward prices as of 14 October 2014

Yara European gas & oil cost

Actual for quarter

Change in European energy cost

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

USD/ MMBtu

Zeebrugge (1-month lag) Yara Europe

IR-Date: 2014-10-22

15

1 305 1 390

1 009 1 009

1 402

1 713

1 112

1 296

258 274

569

941

3Q13 3Q14 3Q13 3Q14 3Q13 3Q14 3Q13 3Q14 3Q13 3Q14 3Q13 3Q14

Yara-produced deliveries Joint venture & third party sourced Total

Fertilizer deliveries by product and source

Nitrate NPK compounds NPK blends Urea UAN

Kilotons

Other

IR-Date: 2014-10-22

16

Net interest-bearing debt development

308549

248

4,963

Other Yara dividend Net debt

Sep 14*

Net operating

capital

change

Dividends

from equity-

accounted

investees

447

Investments

net

1,860

Cash

earnings**

3,194

Net debt

Jun 14*

3,347

FX loss

164

Share buy

backs &

redemption

2,743

* Included in net interest-bearing debt are external bank time deposits (4-12 months), this is part of other current assets in balance sheet

** Operating income plus depreciation and amortization, minus tax paid, net gain/loss on disposals, net interest expense and bank charges

NOK millions

IR-Date: 2014-10-22

17

Prospects

IR-Date: 2014-10-22

18

Incentives for nitrogen application remain supportive despite recent decline

in grain prices

Continued nitrogen curtailments in China, Ukraine and other export regions

Capacity outside China: limited greenfield additions next two years; and

gas availability uncertain for some locations

Strong European order book at start of fourth quarter

Expected further gas cost reduction of NOK 1.15 billion in Europe next two

quarters

OFD acquisition completed in October, and Galvani completion due in

fourth quarter

Prospects

IR-Date: 2014-10-22

19

Galvani acquisition (Brazil) improves raw

material and production integration

Current assets:

– Three mining operations with a total

production of ~500kt phosphate rock

– Two industrial sites with a total

granulation capacity ~1,000kt

Future additions (partly

replacement):

– ~2 million tons phosphate rock from

two new mines.

• Serra do Salitre (greenfield) 1,200 kt

• Santa Quiteria (greenfield) 800 kt

• Angico (brownfield) additional 150 kt

2013 Galvani EBITDA USD 48

million

Two existing fertilizer production sites

Three existing mining operations

Two new mining projects under development

Distribution terminal/Port import terminal

IR-Date: 2014-10-22

20

250 kt NPK and Calcium Nitrate expansion in

Porsgrunn, Norway

Strong Downstream demand for

additional value-added fertilizer

volumes

Brownfield investment of NOK

2,250 million

Project adds 200 kt calcium nitrate

and 50 kt compound NPK annual

capacity

Enables further 150 kt NPK and 35

kt calcium nitrate annual capacity

in Glomfjord and Uusikaupunki

through optimization

Completion during 2017

IR-Date: 2014-10-22

21

YaraLiva benefits cash crops in particular

YaraLiva provides soluble and

strength-building calcium,

alongside nitrate-N (15.5%)

Products containing calcium

nitrate as the key component

are sold under YaraLiva brand

Calcium used for good rooting,

stress-free growth, strong cell

walls, improved fruit quality and

better storage.

Stable pricing, typical range 400

– 600 USD/t1

Yara’s current annual capacity

approximately 1.1 million tons2

1) Prices are before freight, and other handling cost. Products sold

at different points in value chain, and reflects different types of product.

2) Dry product equivalents

IR-Date: 2014-10-22

22

IR-Date: 2014-10-22

23

Additional information

IR-Date: 2014-10-22

24

NOK millions

Total Yara contribution

Value-added upgrading and distribution make

up larger part of Yara’s contribution

9,000

8,000

5,000

7,000

6,000

4,000

3,000

2,000

1,000

0

3Q14 1Q14 1Q10

Commodity Europe

Commodity overseas

Upgrade & distribution

Trade

1Q13 3Q13 3Q12 3Q11 1Q11 1Q12 3Q10

IR-Date: 2014-10-22

25

0.75

0.49

0.20

0.07

-0.04

0.05

0.63

0.38

0.22

0.08

0.01

0.06

0.57

0.32

0.12 0.06 0.06

0.08

0.56

0.27

0.12

0.02

0.06

2009 2010 2011 2012 2013 2014

Debt/equity ratio

Net interest-bearing debt / equity ratio (end of period)

IR-Date: 2014-10-22

26

4.0 4.4 4.2 4.4

4.1

3.3

2.5 2.3 2.9

3.4 3.5 4.0

3.6 3.9

5.2 4.6

3.9 3.9 3.9 4.0

4.8

5.7

7.6

8.3 8.3 8.6

7.9 7.7

8.1 8.3 8.3

8.5

7.5

7.8 8.1

6.1 6.7 7.1

4.7

6.6

9.0

9.5 9.2 9.0 9.3 9.1

9.1

10.3 11.1

10.3 10.1 10.7 9.7

7.6

7.0

8.39

8.99

6.6

7.6

10.1

11.1 10.9 10.8 11.0 11.0 10.8

11.4 11.5 11.9

10.8 11.2 11.3

9.2 7.5

8.7

9.5

0

2

4

6

8

10

12

14

2009 2010 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

US gas price (Henry Hub) Yara Global Zeebrugge day ahead Yara Europe

Gas & oil cost

USD per MMBtu

Source: Yara, World Bank, Platts

Yearly averages 2009 – 2010, quarterly averages for 2011-15 with forward prices* for 4Q14 and 1Q15

*Dotted lines denote forward prices as of 14 October 2014

IR-Date: 2014-10-22

27

Currency exposure affecting Profit & Loss

At the beginning of the fourth quarter 2014

1. The US dollar debt generating profit & loss exposure was USD 1,400

million

• Kept as hedge of future earnings and to finance inventories in emerging markets

• Around 60% towards BRL with the rest towards other emerging market currencies,

NOK and EUR

• The debt level in emerging markets will fluctuate with fertilizer seasons

2. Additional profit & loss exposure from internal currency positions vs.

NOK

• Payables mainly CAD (200 million)

• Receivables mainly EUR (320 million)

IR-Date: 2014-10-22

28

5 256 5 179

4 763

6 104 6 284

6 017

4 742

3 496

4 882

5 210 5 216

4 791

5 129

4 759

5 474

4 914

5,296

4 970 4 834

4 239

5 437 5 253

5 013 5 044

5 297

6 342

5 884

6 146

6 389 6 496

6 848

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

Europe Outside Europe Total

Fertilizer deliveries

Kilotons

2010 2007 2008 2009 2011 2012 2013 2014

IR-Date: 2014-10-22

29

Yara 3Q fertilizer sales by market and product

2 138 2 377

544 573 252

2 195

3 120

515 673

345

Europe Latin America Asia North America Africa

3Q13 3Q14

1 009

1 402 1 305 1 112

569

258 229

1 009

1 713

1 390 1 296

941

274 225

NPK compounds NPK blends Nitrate Urea Other products UAN CN

Kilotons

IR-Date: 2014-10-22

30

500

600

700

800

900

1 000

1 100

1 200

1 300

1 400

3Q10 3Q11 3Q12 3Q13 3Q14

NPK and nitrate deliveries

Kilotons

500

700

900

1 100

1 300

1 500

1 700

3Q10 3Q11 3Q12 3Q13 3Q14

Yara-produced nitrate deliveries

Kilotons

Yara-produced compound NPK deliveries

IR-Date: 2014-10-22

31

Industrial deliveries

876867843

896

837860

816

438455

382432

374368343 356342

313337346342

304

2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 3Q14

Other Environmental products Industrial N-chemicals

Kilotons

IR-Date: 2014-10-22

32

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

50

100

150

200

250

300

350

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Europe North America ROW % of total Industrial deliveries

Strong growth in Air1 deliveries

Kilotons

> 1 million tons of

product sold L12M

IR-Date: 2014-10-22

33

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

Kilotons

Urea Nitrates NPK CN UAN SSP - based fertilizer

2013 2010 2011 2012 2014

Yara production volume*

0

500

1 000

1 500

2 000

2 500

Kilotons

2014

* Including share of equity-accounted investees

Finished fertilizer and industrial products Ammonia

2013 2010 2011 2012

IR-Date: 2014-10-22

34

Production curtailments in Ukraine and Egypt

Ukraine urea exports (Jan-Jun)

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2013 2014

-60%

Kilotons

Egypt urea exports (Jan-Jun)

Kilotons

Source: IFA

0

100

200

300

400

500

600

700

800

900

1 000

2013 2014

-17%

IR-Date: 2014-10-22

35

Farm economics supportive, despite grain price

decline

Source: FAO

IR-Date: 2014-10-22

36

Source: USDA October 2014

For 2014/15, global grain production expected

to moderately exceed consumption

1 950

2 000

2 050

2 100

2 150

2 200

2 250

2 300

2 350

2 400

2 450

2 500

06 07 08 09 10 11 12 13 14E 15F

Million tons

Consumption Production

Grain consumption and production Days of consumption in stocks

55

60

65

70

75

80

85

06 07 08 09 10 11 12 13 14E 15F

Days

IR-Date: 2014-10-22

37

12.1

2.4 9.7 9.3

2.4

11.7

0

2

4

6

8

10

12

14

Pro

du

ctio

n

Expo

rt

Dom

estic

Dom

estic

Expo

rt

Pro

du

ctio

n

Million tons

4.8

5.0

5.2

5.4

5.6

5.8

6.0

6.2

6.4

6.6

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Million tons

13/14

Source: BOABC, CFMW

12/13

Production not increasing

Chinese urea production Domestic urea balance

Jul-Aug 13/14 Jul-Aug 14/15

-5%

14/15

IR-Date: 2014-10-22

38

Source: CRU urea update September 2014 . Consumption data source is IFA.

Year Driving regions Urea capacity growth relative

to nitrogen capacity

Excluding China Excluding China

2014 Algeria 16%

Egypt 15% 1.5%

2015 Saudi Arabia 20%

USA 19% 2.1%

2016 USA 42%

India 11% 2.3%

2017 Nigeria 32%

USA 24% 2.2%

2018 Nigeria 55%

Russia 17% 1.3%

Gross annual addition 2014-2018 ~1.9%

Assumed annual closures ~0.5%

Net annual addition 2014-2018 ~1.4%

Trend consumption growth from 2002 2.1%

Projected nitrogen capacity additions outside

China

IR-Date: 2014-10-22

39

-

1 000

2 000

3 000

4 000

5 000

6 000

Kilotons Finished fertilizer

Urea Nitrates Compound NPK Other

Yara stocks: normal level, adjusted for Bunge

Bunge Fertilizer

included from 3Q 2013

IR-Date: 2014-10-22

40

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Index June 2007=1

13/14 08/09 09/10 10/11 11/12 12/13 14/15

Source: Fertilizers Europe, Yara estimate for September

European producer nitrate stocks ending the

season close to average

IR-Date: 2014-10-22

41

-200

-100

0

100

200

300

400

500

Jan-07Jul-07 Jan-08Jul-08 Jan-09Jul-09 Jan-10Jul-10 Jan-11Jul-11 Jan-12Jul-12 Jan-13Jul-13 Jan-14Jul-14

Thousand contracts

Source: US Commodity Futures Trading Commission

Non-commercials’ net long position in corn

IR-Date: 2014-10-22

42

Key value drivers – quarterly averages

308 314 338

299 320 336 354

414

358 358

3Q13 4Q13 1Q14 2Q14 3Q14

Urea prilled fob Black Sea (USD/t)/Urea granular fob Egypt (USD/t)

294 291

345 354

309

3Q13 4Q13 1Q14 2Q14 3Q14

CAN cif Germany (USD/t)

3.6 3.8

5.2

4.6

3.9

3Q13 4Q13 1Q14 2Q14 3Q14

US gas price Henry Hub (USD/MMBtu)

10.1 10.7

9.7

7.6 7.0

3Q13 4Q13 1Q14 2Q14 3Q14

Zeebrugge day ahead (USD/MMBtu)

6.0

6.1 6.1

6.0

6.3

3Q13 4Q13 1Q14 2Q14 3Q14

NOK/USD exchange rate

430 417 438 485 488

3Q13 4Q13 1Q14 2Q14 3Q14

Ammonia fob Black Sea (USD/t)

Source: Fertilizer Market Publications, CERA, World Bank, Norges Bank

IR-Date: 2014-10-22

43

10-year fertilizer prices – monthly averages

Source: Average of international publications

0

200

400

600

800

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

USD/t Urea prilled fob Black Sea/Urea granular fob Egypt

Average prices 2004 - 2013

0

200

400

600

800

1 000

1 200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

USD/t DAP fob US Gulf/MOP granular fob Vancouver

0

100

200

300

400

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

USD/t CAN cif Germany

0

200

400

600

800

1 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

USD/t Ammonia fob Black Sea