2. 1
Downstream role and priorities
Our goal… …and what we prioritize to get there
Safe and productive operations
Knowledge leadership in sustainable
Be the crop nutrition agriculture and crop nutrition
provider adding the
most value after own Creating pull for Yara solutions working
costs to any fertilizer with food companies and other
product from plant stakeholders
gate to customer Farmer and distributor preference for
Yara solutions driven by engaging tools
Innovation a clear market differentiator:
Adapting to a water scarce world
Capital Markets Day 2012 – 4 December
3. 2
Yara Small Site Productivity System
Yara Small Site
Productivity
System
Product/
Engineering/
Productivity material Safety
maintenance
handling
Capital Markets Day 2012 – 4 December
4. 3
Strong financial performance last 12 months
EBITDA ex special items and CROGI
NOK millions CROGI
6 000 35 %
5 000 30 %
25 %
4 000
20 %
3 000
15 %
2 000
10 %
1 000 5%
0 0%
2008 2009 2010 2011 L12M
EBITDA ex sp. Items CROGI
Capital Markets Day 2012 – 4 December
5. 4
Increased OPP sales and sales overseas
Kilotons Kilotons
16 000 25 000
14 000 -1%
20 000
12 000
10 000 15 000
5%
8 000
6 000 10 000
4 000
5 000 -7%
2 000
0 0
OPP/OBL JV TPP 2010/11 2011/12
2010/11 2011/2012 Europe Outside Europe
Capital Markets Day 2012 – 4 December
6. 5
Strong NPK development
Yara-produced compound NPK volumes Realized prices on Yara-produced NPK compounds
Kilotons Index*
2,000 130 +5%
+1%
120
1,500
+15% 110
-2%
100
1,000
90
80
500
70
0 60
Europe Overseas Europe Overseas
Jan-Sep 2011 Jan-Sep 2012
* 100 = European price in YTD 2011
Capital Markets Day 2012 – 4 December
7. 6
Increased nitrate demand overseas, but
European presence remains important
Nitrate premiums* Nitrate sales
Kilotons
100 % 6 000
80 % 5 000
60 % 4 000
40 % 3 000
20 % 2 000
0% 1 000
-20 % 0
Jan July Jan July Jan July Jan July Jan July 08/09 09/10 10/11 11/12
2008 2009 2010 2011 2012
Outside Europe Europe
* CAN cif Germany premium above (Urea black sea + $35 freight) * 1.065 duty tax
Capital Markets Day 2012 – 4 December
8. 7
Operating capital discipline maintained
Gross operating capital days, 12 months rolling
Days
140
120
100
80
60
40
20
0
2008 2009 2010 2011 3Q 2012
Capital Markets Day 2012 – 4 December
9. 8
Innovation is progressing
Idea Scouting Active Development Industrialization Market Implementation
Fertigation Fertigation Semi-soluble
Tool & Service Portfolio -CN NPK
Water Sensor In-house KNO3
Growth in calcium and potassium nitrate identified
Leadership in Fertigation Plan software launched for data collection in major markets
fertigation In-house research project crop water sensor technologies
New process route for production of potassium nitrate
Leadership in Leadership in semi-soluble fertilizers
semi-soluble A new NPK-type commercially launched in Brazil
fertilizers New product offered together with direct injection technology
Market shaper for Market shaper for water scarce agriculture
water scarce R&D on the link between water use efficiency and crop nutrition
agriculture Water footprint calculator: focus on effect of crop nutrition
Capital Markets Day 2012 – 4 December
10. 9
Downstream develops Push and Pull for Yara’s
products and solutions
Capital Markets Day 2012 – 4 December
11. 10
Significant potential in shifting sales into value
added segments
Premium above global blend
USD/t
Kilotons
Capital Markets Day 2012 – 4 December
12. 11
We work in a systematic manner to identify the
crop segments with highest potential
CVI CVI and hectare grown of key crops
700
Strawberry
600
500
400
300
Apples
200
Oranges
100
Coffee Potato
Maize Wheat
0
0 50 100 million ha 150 200 250
Crop Value Index is sales price of the crop divided by cost of fertilizers and is used
as an indicator for the profitability of an investment in fertilizer to produce that crop
Capital Markets Day 2012 – 4 December
13. 12
Knowledge is developed and translated into
crop nutrition solutions for the farmer
External research
Segment and country specific
+
Crop Nutrition Program
Yara research and trials
=
Local
adaptation
Capital Markets Day 2012 – 4 December
14. 13
Yara’s Plantmaster series includes 14 crops
and 400 million ha of harvested land
Capital Markets Day 2012 – 4 December
15. 14
Yara’s crop nutrition solutions provide large
benefits for farmers
Citrus yield in Brazil Coffee yield in Vietnam
65
3,3
44% 3,0 12%
45
Current practice Yara Current practice Yara
Corn yield in Tanzania Sugarcane yield in Brazil
84
4,3 19%
71
83%
2,4
Current practice Yara Current practice Yara
Source: Yara trias
IR – Date: 2011-12-06
16. 15
To promote our solutions to the farmer we work
with different partners and channels
Demonstration
plots
Crop Clinics Farmer meetings
Value chain Web
partners
Social media
Distributors
Mobile apps
Research institutes
Advisors Precision farming tools
Capital Markets Day 2012 – 4 December
17. 16
ImageIT – fertilizer recommendations in the
farmers hand
Process images and Receive and display
Acquire and transmit images generate response recommendation
Central server
Smartphone with camera and
internet access
Capital Markets Day 2012 – 4 December
18. 17
Agronomic calibration
% of leaf cover into N uptake
N-Uptake [kg N/ha]
160
Predict N-uptake from:
140
Percentage leaf cover
120
Growth stage
100
Fraction of brown leaves
80
60
40
20
0
0% 20 % 40 % 60 % 80 %
Leaf cover [%]
Capital Markets Day 2012 – 4 December
19. 18
Downstream in 2013
Organic growth and growth through acquisitions utilizing existing platform
and strengths
Further improved safety and productivity through standardized processes
Innovation and agronomy leadership to sustain premium margins
Capital Markets Day 2012 – 4 December