2. 1
Supply & Trade - Global optimization Downstream
S&T
Industrial
Upstream
Biggest industrial buyer of Third single biggest buyer of Significant market
Global trade (mt)
natural gas in Europe P&K globally share on trade
Gas consumption, MMBtu 2011 raw material purchases (mt) Annual trade volumes (mt)
185 7.5 40
7.0
5.0
100
20
11
1.8
25 1.0
25% 10% 30%
Europe Canada RoW Potash, MOP Phosphate, rock Ammonia Urea NPK
China India Yara Yara share
Capital Markets Day 2012 – 4 December
3. 2
Converting Brunsbüttel feedstock to gas
USD/MMBtu
16
Cheaper feedstock
14
12
Improved efficiency
10
8
Lower emissions
6
4
Improved flexibility
2
0
2010 2011 2012
Brunsbüttel European spot price
Capital Markets Day 2012 – 4 December
4. 3
Reduced exposure to oil and European gas
Yara’s geographic energy exposure Yara’s feed-stock contract structure Europe
100 % NAT
GAS
90 %
15 %
80 % 25 %
70 %
60 % 90 %
80 %
70 % 65 %
50 %
55 %
40 %
30 %
20 % -10 %
-20 % -20 % -20 %
10 % -30 %
0% NON
2006 2007 2008 2009 2012 GAS 2006 2009 2010 2012 2013
Europe ROW Non gas*
Capital Markets Day 2012 – 4 December
5. 4
Profitable spot strategy on natural
gas in Europe
€/MWh
35
30
25
20
15
10
5
Q1 '06 Q4 '06 Q3 '07 Q2 '08 Q1 '09 Q4 '09 Q3 '10 Q2 '11 Q1 '12 Q4 '12
Quarter-Ahead: 21.1€/MWh Day-Ahead: 19.1€/MWh
Capital Markets Day 2012 – 4 December
6. 5
Neutral impact of ETS phase III introduction
Emissions from European ammonia plants N2O emission from European nitric acid plants
t CO2/ t kg N2O/t
NH3 HNO3
3,5 16
3,0 14
12
2,5
10
2,0
8
1,5
6
1,0
4
0,5 2
0,0 0
1 56 1 109
Number of ammonia plants Number of nitric acid plants
CO2 generated (feed,fuel,steam,electr) Benchmark benchmark data Benchmark
Capital Markets Day 2012 – 4 December
7. 6
Yara is long on ammonia but short in Europe
Europe
6.1
4.9
5.1
• Yara-operated ammonia fleet
unrivalled giving scale and
flexibility
Available Use
Americas Middle East / Africa
1.9 2.1 1.5
1.1
Asia
• Operate 15-18 ships
0.7
Available Use Available Use Available Use • Total shipping capacity of ~260
Australia kilotons
0.8
Marketing agreement 0.3
Yara production
External sales Available Use
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Capital Markets Day 2012 – 4 December
8. 7
Degree of vertical integration in
phosphate and potash
Phosphate rock supply and use (mt) Potash supply and use (mt)
1.9 1.9 1.9 1.9
1.0 1.1
1.4
0.9 0.8
0.5
Source Use Source Use
External sourcing Own production NPK plant Other
Capital Markets Day 2012 – 4 December
9. 8
Phosphate and potash strategy
redefined in 2009
NPK business heavily impacted in
2008/09 Capacity utilization 2009
97%
90%
Decided to intensify search for P & K
projects:
63%
– Hedging
– Finder’s fee
Not pursuing fully developed and fully
priced mines
Urea Nitrates NPK
Control of phosphate rock sourcing
especially important due to quality
and productivity aspects
Capital Markets Day 2012 – 4 December
10. 9
Yara mining established to create more focus
on mining activities
Operations of existing mine in Finland Siilinjärvi
has brought important competence to
Yara in the field of mining
Dallol
Currently working on four projects,
important decisions regarding all four
expected during 2013
Considered unlikely that all four will
materialize
No commitment from Yara at this
stage to execute any of the projects
Capital Markets Day 2012 – 4 December