CMD 2012: Track Record and Strategy (Jørgen Ole Haslestad)

708 views

Published on

Presentation on Yara's Capital Markets Day, December 4, 2012, held by CEO Jørgen Ole Haslestad

Published in: Investor Relations
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
708
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

CMD 2012: Track Record and Strategy (Jørgen Ole Haslestad)

  1. 1. Track record and strategyJørgen Ole Haslestad, President & CEO
  2. 2. 12011/12 season saw highest EBITDA so farNOK millions CROGI 25 000 30 % 25 % 20 000 20 % 15 000 15 % 10 000 10 % 5 000 5% 0 0% 06/07 07/08 08/09 09/10 10/11 11/12 EBITDA EBITDA ex sp. Items CROGI Capital Markets Day 2012 – 4 December
  3. 3. 2Our Upstream system benefitted from increasedfertilizer prices Yearly change in nitrogen prices EBITDA excluding special items, NOK billions 73 % 13,5 47 % 43 % 7,1 24 % 5,1 4,5 15 % 10 % 2,0 7% 1,0 Downstream Industrial Upstream -15 % 3Q11 4Q11 1Q12 2Q12 Ammonia Urea 10/11 11/12 Capital Markets Day 2012 – 4 December
  4. 4. 3Weaker European season compensated by ourability to export high value products OPP nitrate and NPK volumes kilotons 7 010 6 952 6 513 2 092 2 222 1 490 Europe Overseas 09/10 10/11 11/12 Capital Markets Day 2012 – 4 December
  5. 5. 4Asset optimization has contributed toearnings growthEBITDA(NOK Pilbaramillions) (increase)35 000 Kemira Rossosh Fertibras Belle Plaine GrowHow30 000 Yara Praxair Yara Praxair Lifeco Fosfertil (partial)25 000 (partial)20 00015 00010 000 5 000 0 06/07 07/08 08/09 09/10 10/11 11/12 Acquisitions Divestments Capital Markets Day 2012 – 4 December
  6. 6. 5Strong balance sheet gives significant flexibility Net interest-bearing debt / equity ratio (end of period) 0,75 0,63 0,57 0,56 0,49 0,38 0,32 0,27 0,20 0,22 0,12 0,12 0,08 0,07 0,06 2009 2010 2011 2012 Capital Markets Day 2012 – 4 December
  7. 7. 6Growth ambition remains firm Growth in OPP/JV volumes +8.0 32.5 24.5 2010 2016 Capital Markets Day 2012 – 4 December
  8. 8. 7We started up Qafco 5 & 6 and initiatedexpansions in Porsgrunn and Belle Plaine Capital Markets Day 2012 – 4 December
  9. 9. 8We took control in Yara Pilbara and decided toinvest USD 350 million in the TAN plant Capital Markets Day 2012 – 4 December
  10. 10. 9Strategic backdrop• Continued demand growth• New gas situation, with lower North American prices and new emerging gas regions• China continuing as swing exporter• Concern about supply additions, North America and others adding new capacity• Strong cash generation from all players in the next few years, competition for assets Capital Markets Day 2012 – 4 December
  11. 11. 10Securing competitiveness throughdifferentiationUsing the strength of Increasing innovation Creating impactour business model Capital Markets Day 2012 – 4 December
  12. 12. 11Both value-added and commodity productsimportant to strengthen competitive edge Million tons capacity* 12.9 6.5 Nitrates 7.5 1.3 Announced expansions UAN 1.2 5.7 NPK Urea** 5.0 Commodity Value add * Including equity share of non-consolidated investees’ capacity ** Including recently implemented expansions in Qafco and Sluiskil Capital Markets Day 2012 – 4 December
  13. 13. 12Growth ambition remains firm Growth in OPP/JV volumes +8.0 32.5 28.5 ~4.0 24.5 ~4.0 2010 Committed 2016 with New supply 2016 projects2 committed projects needed to achieve ambition 1) Excluding CO2 and industrial gases 2) Qafco V and VI, Sluiskil VII and Porsgrunn NPK, Pilbara TAN, Belle Plaine, capacity creep/smaller expansions Capital Markets Day 2012 – 4 December
  14. 14. 13Debottlenecking and regional M&Amost attractive Reconfiguration/expansion at existing sites, potential for 1 increased NPKs, nitrates and CN Pursue medium-size/regional M&A, likely highest probability 2 of success in current environment Secure longer term partnerships with access to low cost raw 3 materials for potential new builds Capital Markets Day 2012 – 4 December
  15. 15. 14We want to create impact through ourLeadership Agenda Drive profitable Leading revenue growth enterprise in agricultural Continuous development improvement to fine tune operations Industry Shaper Performance and positioning on environmental solutions Company-wide focus on corporate governance Capital Markets Day 2012 – 4 December 14
  16. 16. Conclusions and outlook
  17. 17. 16Prospects 2013 Strong demand amid tight global grain situation, strong food prices and farmer margins Capacity growth outside China likely to be below consumption growth China likely to keep a swing role during the second half of 2013 US capacity growth impacts markets mainly after 2015 Capital Markets Day 2012 – 4 December
  18. 18. 17Premium fertilizer margins linked to farmerprofitability, also at lower urea price levelsCAN price Wheat priceUSD/t USD/t 450 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 Adjusted urea* Nitrate premium, USD/t Wheat price Capital Markets Day 2012 – 4 December
  19. 19. 18Well positioned for profitableoperations and growth Need for sustainable improvements in agricultural productivity is as strong as ever Yara’s value-added products provide additional productivity, and provide sustainable premiums over and above commodity margins Committed to delivering sustained shareholder value generation, through profitable growth and cash returns Capital Markets Day 2012 – 4 December

×