IR – 21 April 2016
Yara International ASA
1Q 2016 roadshow
Thor Giæver, IR
IR – 21 April 2016
Integrated business model creates value through scale, flexibility
and value chain presence
2 IR – 01 March 2016
IR – 21 April 2016
Yara’s products, solutions and knowledge create value for
customers, shareholders and society
3
3Q2015 1Q2015
“The N-sensor together with the
N-tester ensures that the fertilizer is
applied exactly where it is needed”
“We need to make sure that our
product is the best they can get,
and to be certain of this, we need a
supplier like Yara that we can trust
throughout the entire value chain”
“Yara’s fertilizer increases
my yield by 20-30% and
improves the quality of my
products, my customers
have created a separate
quality category for my
product”
IR – 01 March 2016
IR – 21 April 2016
Safe operations is our first priority
4
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Mar-16
TRI1
2
1) TRI: Total recordable injuries, lost time (absence from work), restricted work and medical treatment cases per one million work hours
2) OFD and Galvani included in statistics from January 2016
IR – 21 April 2016
Summary first quarter
5
Strong results in a challenging market
Global fertilizer deliveries 5% lower, Brazil deliveries 15% higher
Negative price effects offset by lower energy prices and currency effects
Improved production reliability
Strong Industrial result
IR – 21 April 2016
Earnings per share*
6
8.04
6.69 5.66
0.23
6.40
8.26
6.18 6.74
2.65
10.59
14.56
1.58
10.22
8.52
7.97
5.62
2.65
7.03 7.74 7.62
8.17
10.51 9.58
7.41
3.97
9.14
NOK 20.67 27.59 29.38 10.22
Annual 2013 2014 2015 2016
*Average number of shares for 1Q 2016: 274.1 million (1Q 2015: 275.5 million).
EPS excluding currency and
special items
IR – 21 April 2016
EBITDA development
7
533
2,051
1,186
702
5,055
954
4,794
Other
3
Special
items
Currency Price/margin Volume EBITDA 1Q15 EBITDA 1Q16 Energy cost
NOK millions
IR – 21 April 2016
Improved production reliability
8
0
500
1,000
1,500
2,000
2,500
Kilotons
2016 2015 2013 2014
Ammonia1
* Including share of equity-accounted investees
0
1,000
2,000
3,000
4,000
5,000
6,000
Kilotons
Urea Nitrates NPK CN UAN SSP - based fertilizer
2015 2013 2014 2016
Finished fertilizer & industrial products1
IR – 21 April 2016
Brazil season-to-date fertilizer deliveries
Brazil: industry deliveries up 7%, Yara up 15%
9
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2012 2013 2014 2015 2016
Th
ou
san
ds
+15%
+7%
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Yara Brazil 1Q value-added product deliveries Kilotons Kilotons
Yara ex
Galvani Industry Galvani
Source: ANDA, Yara
IR – 21 April 2016 10
Rio Grande expansion and operational improvement
Consolidation of 3 sites reduces fixed
cost and maintenance investments
Increased fertilizer production and
blending capacity
Improved safety and lower unit cost
through:
– Improved material flows
– Automated bagging process
Increased product quality through
improved handling and storage
conditions
Million tons
0.9
1.6
0.8
2.6
1.21.1
Blending Granulation Acidulation
New capacity
“As is” capacity
RIG 3 RIG 1
RIG 2
IR – 21 April 2016
Lower exports from China, higher domestic price
11
180
200
220
240
260
280
300
320
340
360
380
400
USD/t
Urea price China (inland proxy price) Urea fob Black Sea
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
Chinese exports and urea price Declining urea pricing Black Sea
USD/t Kilotons
Source: BOABC, CFMW
IR – 21 April 2016
Stable European nitrate premium Based on Egypt granular urea reference, and excluding nitrate with sulphur
12
0
100
200
300
400
500
600
700
1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16
USD/t
Nitrogen upgrading margins1 (monthly publication prices)
CAN (46% N) NH3 CFR (46% N) Urea Egypt CFR proxy
Yara EU gas cost *20
Nitrate
premium
above urea Value above
ammonia
Value
above gas
0
20
40
60
80
100
120
140
160
1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16
European nitrate premium2 (quarterly Yara realized) USD/t
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 – 21 April 2016
Strong base, with further improvement potential
13
Strong base:
• Integrated business model
• Strong unified brand
• Dedicated and motivated
employees
• Unrivalled knowledge base
• Strong commercial acumen
• Complete product portfolio
• Global production and sales
footprint
Improvement opportunities: • Safety
• Production regularity
• Employee alignment
• Operational cost
• Organizational set-up
and productivity
• Positioning
IR – 01 March 2016
IR – 21 April 2016
CEO priorities going forward
14
Positioning Operations Profitable growth
• Sharpen focus on growth in
core business areas and
geographies
• Pursue transformational
profitable growth opportunities
• Build organizational growth
capability and capacity
• Continue building culture where
all accidents are preventable
• Establish corporate
improvement program and
targets
• Improve and standardize core
processes
• Promote mineral fertilizer role in
solving global food challenges
• Improve positioning towards key
stakeholders
• Take leading roles in key global
forums
IR – 21 April 2016
IR – 21 April 2016
Season-to-date Europe and US nitrogen fertilizer
industry deliveries at normal level Season-to-date deliveries (9 months ending 31 March)
16
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
11/12 12/13 13/14 14/15 15/16
Domestic production Imports
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
11/12 12/13 13/14 14/15 15/16
Domestic production Imports
West Europe US Million tons N Million tons N
-2% -4%
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
IR – 21 April 2016
Lower natural gas cost in Europe
17
2.0
3.0
4.0
5.0
6.0
7.0
8.0
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
USD/ MMBtu
TTF (1-month lag) Yara Europe
Yara European gas & oil cost Change in spot energy cost
(1,314)
(588)
(151)
(588)
(923)
(1,150)
(1,000)
(1,400)
(1,200)
(1,000)
(800)
(600)
(400)
(200)
0
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
NOK millions
April 2016 estimate* Actual
Source: Yara, World Bank, Argus/ICIS Heren *Dotted lines denote forward prices as of 12 April 2016
IR – 21 April 2016
Value above
raw material Weighted average global
premium above blend cost
Stable commodity phosphate margins and solid NPK
compound premiums
18
0
100
200
300
400
500
600
1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16
USD/t Phosphate upgrading margins
DAP, fob USG
0
100
200
300
400
500
600
700
1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16
USD/t NPK premium over blend1
1) Export NPK plants, average grade 19-10-13, net of
transport and handling cost.
Rock, fob North Africa *1.4
NH3, fob Black Sea *0.22
0
100
200
300
400
500
600
700
1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16
USD/t NPK premium over blend1
DAP, CIF inland Germany
MOP, CIF inland Germany
Urea, CIF inland Germany
Nitrate premium, CIF inland Germany
IR – 21 April 2016
Net interest-bearing debt development
19
1,002
3,8842,454
Net debt
Mar 16
8,465
Other
401
FX gain
349
Net operating
capital change
Dividends
from equity-
accounted
investees
315
Cash earnings* Share
buy/backs
93
Investments net Net debt
Dec 15
11,868
* Operating income plus depreciation and amortization, minus tax paid, net gain/loss on disposals, net interest expense and bank charges
NOK millions
IR – 21 April 2016
Stable earnings for Crop Nutrition and Industrial
20
1,843 1,778
414
423
2,884
2,845
1,868 1,778
414
423
3,808
2,840
1Q15 1Q16
EBITDA
(NOK millions)
EBITDA excluding special items
Crop Nutrition Industrial Production
IR – 21 April 2016
Strong growth pipeline
21
1) Yara’s share of capex
8.7
0.4
6.0
14.4
2015
2.4
2016
1.3
4.1
5.6
17.9
6.3
2017
11.0
0.8 1.3
7.7
5.6
2018
4.2
3.3
0.9
M&A
Cost&capacity improvements
Maintenance
Committed growth
NOK bn
Capex plan1
2) Finished fertilizer and industrial products, excl. bulk blends. Including Yara share of production in
JVs. 2015 numbers excl. Growhow UK (~300 kt)
3) Committed projects only. TAN Pilbara: 160 kt, Porsgrunn: 250kt, Glomfjord: 185kt, Uusikapunki:
250kt, Köping: 90kt, Sluiskil: net 160kt, Galvani (Salitre - 60% of ~ 2 mill.tons)
4) Excl. Growhow UK (~200 kt). Including 100% ownership in Pilbara NH3 plant
5) Rio Grande expansion ads 0.5 million tons SSP and 1 million ton blends by 2020
0.8
2.3
Production
end 2018
22.1
Committed
growth3
Regularity
improvement
Production
20152
18.9
Production growth 2015 - end 20185
0.7
8.3
7.2
Production
end 2018
BASF JV
0.5
Regularity
improvement
Production
20154
Finished fertilizer Ammonia
Mill.tons
IR – 21 April 2016
Yara 1Q fertilizer sales by market and product
22
3,008
1,377
474 901
420 385
2,733
1,589
429 735
400 342
Europe Brazil Latin America North America Asia Africa
1Q15 1Q16
1,414
768
1,595 1,375
716 418 277
1,308
879
1,445 1,175
786
354 283
Nitrate Urea Other products UAN CNNPK compounds1 NPK blends1
1) Yara produced NPK compound and NPK blends
Kilotons
IR – 21 April 2016
YaraMila and YaraBela deliveries
23
0
200
400
600
800
1,000
1,200
1,400
1,600
1Q12 1Q13 1Q14 1Q15 1Q16
Yara-produced YaraMila deliveries
-
200
400
600
800
1,000
1,200
1,400
1,600
1Q12 1Q13 1Q14 1Q15 1Q16
Yara-produced YaraBela deliveries Kilotons
Outside Europe Europe Outside Europe Europe
Kilotons
IR – 21 April 2016
Strong premium product deliveries in Brazil; weaker
elsewhere
24
1) YaraBela, YaraMila and YaraLiva deliveries
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1Q12 1Q13 1Q14 1Q15 1Q16
263
203
123
81
240
292 296
199
33
188
225
401
197
30
172
Asia Brazil LatinAmerica excl.
Brazil
Africa NorthAmerica
Value-added fertilizer deliveries1 Value-added fertilizer deliveries1
CAGR
2%
Outside Europe Europe
1Q16 1Q15 1Q14
IR – 21 April 2016
Value-added and distribution make up larger part of Yaras contribution
25
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
Commodity Europe
Commodity overseas
Upgrade & distribution
Trade
1Q15 1Q13 3Q13 1Q14 3Q14 1Q16 3Q12 1Q12 3Q11 1Q11 3Q10 1Q10 3Q15
Total Yara contribution
IR – 21 April 2016
Fertilizer deliveries
26
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
Europe Outside Europe
Kilotons
2012 2009 2010 2011 2013 2014 2015 2016
IR – 21 April 2016
Fertilizer deliveries by product and source
27
1,595 1,445 1,414
1,308
768 879
1,375
1,175
418 354
993 1,068
1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16
Yara-produced deliveries Joint venture & third party sourced
NPK compounds NPK blends Urea UAN Other
Kilotons
Nitrate
IR – 21 April 2016
AdBlue deliveries
28
0
50
100
150
200
250
300
350
400
450
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Kilotons
IR – 21 April 2016
Industrial volume development
29
847829815
892859864852849
816866
819844
792
538577
541540
482511
438456
382432
308328
385364333346
380361339367364358
328
1Q16 4Q15 3Q15 2Q15 1Q15 4Q14 3Q14 2Q14 1Q14 4Q13 3Q13
374
2Q13
368
1Q13
343
Other Environmental products Industrial N-chemicals
Kilotons
IR – 21 April 2016
Debt/equity ratio
30
0.20
0.07
-0.04
0.05
0.13
0.11
0.22
0.08
0.01
0.06
0.15
0.12
0.06 0.06
0.08
0.06
0.12
0.02
0.06
0.17 0.16
2011 2012 2013 2014 2015 2016
Net interest-bearing debt / equity ratio (end of period)
IR – 21 April 2016
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Urea Nitrates Compound NPK Other
Yara stocks
31
Kilotons
Finished fertilizer Bunge Fertilizer
included from 3Q 2013
IR – 21 April 2016
European producers’ nitrate stocks
32
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
15/16 10/11 11/12 12/13 13/14 14/15
Source: Fertilizers Europe, Yara estimate for March
Index
June 2007 = 1
IR – 21 April 2016
Energy cost
33
4.0 4.4
4.0
2.8
3.7
5.2 4.6
3.9 3.8
2.9 2.7 2.7 2.1 2.0 2.0 2.0 2.2
4.8
5.7
8.2 8.0 8.0 8.1
6.9
6.1 6.5
5.9 5.7
5.3
4.1 3.7 3.7
4.7
6.6
9.2 9.4
10.5 9.8
7.6 7.0
8.1
7.0 6.8 6.5
5.4
4.2
3.7 3.8
6.6
7.6
10.7 11.0 11.4 11.3
9.2
7.5
8.5
7.6 7.5 7.0
6.2
5.0 4.4 4.3
2009 2010 2011 2012 2013 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16
US gas price (Henry Hub) Yara Global TTF day ahead (Zeebrugge 2009-2012) Yara Europe
Yearly averages 2009 – 2013, quarterly averages for 2014-16 with forward prices* for 2Q16 and 3Q16.
*Dotted lines denote forward prices as of 12 April 2016 Source: Yara, World Bank, Argus/ICIS Heren
IR – 21 April 2016
Global grain balance
34
1,950
2,000
2,050
2,100
2,150
2,200
2,250
2,300
2,350
2,400
2,450
2,500
2,550
07 08 09 10 11 12 13 14 15 16E
Million tons
Consumption Production
Grain consumption and production Days of consumption in stocks
55
60
65
70
75
80
85
90
07 08 09 10 11 12 13 14 15 16E
Days
Source: USDA April 2016
IR – 21 April 2016
Non-commercials’ net long position in corn
35
-200
-100
0
100
200
300
400
500
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16
Thousand contracts
Source: US Commodity Futures Trading Commission
IR – 21 April 2016
Weaker farm economics in USD, affecting particularly P
and K demand
36
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 1/2015 1/2016
Index
FAO price index
Cereals Price Index Cereals 5 year avg. Food Price Index Food 5 year avg.
Source: FAO
IR – 21 April 2016
Projected nitrogen capacity additions outside China
37
Year Driving regions Urea capacity growth relative
to nitrogen capacity
Excluding China Excluding China
2015 Algeria 26%
Saudi Arabia 24% 1.8% (1.8%)
2016 USA 22%
Algeria 15% 3.0% (3.1%)
2017 USA 33%
Iran 15% 2.5% (2.3%)
2018 USA 34%
Turkmenistan 19% 1.1% (1.5%)
2019 Nigeria 36%
Russia 29% 1.2% (1.2%)
Gross annual addition 2015-2019 ~2.0%
Assumed annual closures ~0.5%
Net annual addition 2015-2019 ~1.5%
Trend consumption growth from 2004 2.0%
Source: CRU urea update March 2016 (December 2015 in brackets) . Consumption data source is IFA.
IR – 21 April 2016
Key value drivers – quarterly averages
38
295 277 268 250 207
337 297 281 270
233
1Q15 2Q15 3Q15 4Q15 1Q16
Urea prilled fob Black Sea (USD/t)/Urea granular fob Egypt (dotted line, USD/t)
295 273 257 255 249
1Q15 2Q15 3Q15 4Q15 1Q16
CAN cif Germany (USD/t)
2.9 2.7 2.7
2.1 2.0
1Q15 2Q15 3Q15 4Q15 1Q16
US gas price Henry Hub (USD/MMBtu)
7.0 6.8 6.4
5.5
4.1
1Q15 2Q15 3Q15 4Q15 1Q16
TTF day ahead (USD/MMBtu)
7.7 7.8
8.2
8.5 8.7
1Q15 2Q15 3Q15 4Q15 1Q16
NOK/USD exchange rate
413 393 388 355
270
1Q15 2Q15 3Q15 4Q15 1Q16
Ammonia fob Black Sea (USD/t)
Source: Fertilizer Market Publications, CERA, World Bank, Norges Bank
IR – 21 April 2016
10-year fertilizer prices – monthly averages
39
0
200
400
600
800
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
USD/t Urea prilled fob Black Sea/Urea granular fob Egypt
Average prices 2006 - 2015
0
200
400
600
800
1,000
1,200
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
USD/t DAP fob US Gulf/MOP granular fob Vancouver
0
100
200
300
400
500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
USD/t CAN cif Germany
0
200
400
600
800
1,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
USD/t Ammonia fob Black Sea