IR-Date: 2013-07-19

0

19 July 2013

Yara International ASA

Second Quarter results 2013

IR-Date: 2013-07-19

1

Strong results

Record deliveries and low ending stocks

Lower commodity fertilizer margins

Increased nitrate and NPK premiums

Summary second quarter

IR-Date: 2013-07-19

2

5.27

12.86

6.68

5.42

10.02

7.73

12.42 11.84

10.54

9.82 9.25

7.67

8.04

6.68

Earnings per share*

* Average number of shares for 2Q 2013: 279.3 million (2Q 2012: 283.9 million).

NOK 30.23 41.99 37.31 14.72

Annual 2010 2011 2012

EPS excluding currency and

special items

2013

IR-Date: 2013-07-19

3

Solid farm economics support fertilizer demand

Strong global urea demand but increased export availability from China, at

lower prices than last year

Western Europe nitrogen fertilizer industry deliveries 14% higher than

second quarter last year, total 2012/13 season deliveries up 6%

Phosphate and potash markets negatively affected by reduced use in India,

but compound NPK markets running well globally

Strong demand for value-added fertilizer products, including nitrates and

NPKs

Fertilizer market development

IR-Date: 2013-07-19

4

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

Index

FAO price index

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

Solid farm economics support fertilizer demand

Source: FAO

IR-Date: 2013-07-19

5

Strong global urea demand, but increased

export availability from China

Global urea trade and Chinese urea exports (million tons) 1 Jul – 31 Mar

20.5

+5.2 28.7

09/10

24.2

08/09

32.0

12/13 11/12

26.8

10/11

Global urea trade

+4.4

7.4

12/13 09/10 11/12

3.0

10/11

6.1

08/09

1.2

3.9

Chinese urea exports

251 350 448 378 389

xxx Average urea price, fob Black Sea

IR-Date: 2013-07-19

6 Increased US and European industry deliveries

in 2012/13 season

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

07/08 08/09 09/10 10/11 11/12 12/13

Domestic Imports

Source: TFI, US Trade Commission, Blue-Johnson and Yara estimates

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

07/08 08/09 09/10 10/11 11/12 12/13

Production Net imports

Western Europe USA

+6%

Million tons Million tons

+7%

IR-Date: 2013-07-19

7

500

600

700

800

900

1,000

1,100

1,200

1,300

2Q09 2Q10 2Q11 2Q12 2Q13

Record NPK and nitrate deliveries

Kilotons

500

700

900

1,100

1,300

1,500

1,700

2Q09 2Q10 2Q11 2Q12 2Q13

Yara produced nitrate deliveries

Kilotons

Yara produced NPK deliveries

IR-Date: 2013-07-19

8

Earnings before interest, tax, depreciation and

amortization (EBITDA)

3,251

6,587

2,486 2,992

4,281

3,455

5,444

4,982

4,310

4,966

4,103

3,591

4,129 3,995

2010 2012 2011 2013

NOK

millions 15,315 18,163 16,970 8,124

Annual

EBITDA excluding special

items

NOK millions

IR-Date: 2013-07-19

9

EBITDA development

3,995

Volume EBITDA

2Q13

Currency

48

Other

188

Gas & oil

costs in

Europe

232

Price/margin

1,790

Special

items

158

EBITDA

2Q12

4,966

1,130

NOK millions

IR-Date: 2013-07-19

10

Strong earnings in all segments

1,221 1,196

303 288

3,534

2,468

Downstream Industrial Upstream

EBITDA excluding special items

2Q12 2Q13

NOK millions

IR-Date: 2013-07-19

11

Net income from equity-accounted investees

-99

GrowHow UK

7

158

Tringen

63

Lifeco

20

51

Qafco

342 356

44

72

Other

2Q13 2Q12

NOK millions

IR-Date: 2013-07-19

12

1,363

1,551

935

1,219

557 600

1,175

1,670

461 469

2Q12 2Q13 2Q12 2Q13 2Q12 2Q13 2Q12 2Q13 2Q12 2Q13

Yara-produced deliveries Joint venture & third party sourced Total

Increased fertilizer deliveries

Nitrate NPK compound NPK blends Urea UAN

Kilotons

IR-Date: 2013-07-19

13

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Kilotons Finished fertilizer

Other NPK Nitrates Urea

Low Yara stocks

IR-Date: 2013-07-19

14

Value

above

ammonia

0

100

200

300

400

500

600

700

2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13

USD/t

Nitrogen upgrading margins

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

Nitrate premium

above urea

Yara EU gas cost *20

Value above gas

Farmer yield benefits justify nitrate premium

0

20

40

60

80

100

120

140

160

2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13

Nitrate premium, USD/t CAN

IR-Date: 2013-07-19

15

0

100

200

300

400

500

600

700

4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13

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

4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13

USD/t

NPK blend premium

NPK T17, del France

NH3, fob Black Sea *0.22

DAP, fob Morocco

MOP, cfr NWE

Urea, fob Black sea

Stable NPK premiums

Margin above

blend cost

IR-Date: 2013-07-19

16

NOK millions

Total Yara contribution

Value-added upgrading and distribution make

up larger part of Yara’s contribution

9,000

8,000

4,000

3,000

2,000

1,000

0

7,000

6,000

5,000

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

Commodity Europe

Commodity overseas

Fertilizer upgrade & distribution

Industrial upgrade & distribution

Trade

4Q11 3Q11 4Q10 3Q10

IR-Date: 2013-07-19

17

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

50

100

150

200

250

300

1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13

Air1 deliveries % of total Industrial deliveries excl. industrial gases

Solid growth in Air1 deliveries

Kilotons

IR-Date: 2013-07-19

18

Strong cash flow

Dividends

from equity

accounted

investees

29

Cash

earnings**

1,527

Net debt

Mar 13*

1,984

Yara Dividend

3,418

72

Other

741

Net debt

Jun 13*

FX loss

409

Net investments

1,204

Net operating

capital

679

* 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: 2013-07-19

19

Continued strong farm economics support fertilizer demand

Urea market likely dominated by China in 3Q due to increased supply; from

4Q production rates and 1 November tax change enforcement are key

Capacity outside China: unclear timing for new projects

Positive situation in Europe, with continued strong farm margins stimulating

demand

Continued strong demand for premium products

Prospects

IR-Date: 2013-07-19

20

16

76

Q2 2012 Q2 2013

Yara Brazil EBITDA (NOK millions)

Improvement in Brazil and Bunge closing in 3Q

Positive volume and margin

improvement compared with 2Q12

(Yara Brazil)

Bunge closing during third quarter

Transaction value will be adjusted

for net operating capital value at

time of closing

– USD 750 million based on

normalized USD 385 million net

operating capital

780 863

xxx Yara Brazil deliveries (kt) excl. trade

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21

More information can be found on www.yara.com

IR-Date: 2013-07-19

22

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

5,438 5,253

5,013 5,045

5,300

6,339

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Europe Outside Europe Total

Fertilizer volumes

Kilotons

2010 2007 2008 2009 2011 2012 2013

IR-Date: 2013-07-19

23

Yara 2Q fertilizer sales by market and product

2013: 6.3 million tons (2012: 5.3 million tons)

2,254

1,174

544

987

294

2,771

1,446

644

1,117

361

Europe Latin America Asia North America Africa

2Q12 2Q13

935

557

1,363 1,175

489 461 272

1,219

600

1,551 1,670

515 469 314

NPK compounds NPK blends Nitrate Urea Other products UAN CN

Kilotons

IR-Date: 2013-07-19

24

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

2012 2009 2010 2011 2013

Yara production volume*

0

500

1,000

1,500

2,000

2,500

Kilotons

2013

* Including share of equity-accounted investees

Finished fertilizer and industrial products Ammonia

2012 2009 2010 2011

IR-Date: 2013-07-19

25

4.8

5.7

7.6

8.3 8.3 8.6

7.9 7.7

8.1 8.3 8.3 8.5

7.6 7.8 6.6

7.6

10.1

11.1 10.9 10.8 11.0 11.0 10.8

11.4 11.5 11.9

10.7 10.9

0

2

4

6

8

10

12

14

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

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 2011-13 with forward prices* for 3Q13 and 4Q13

*Dotted lines denote forward prices as of 12 July 2013

IR-Date: 2013-07-19

26

Yara European gas cost closer to hub price

Spread between Yara and Zeebrugge

Source: Yara, World Bank, Platts *Dotted lines denote forward prices as of 12 July 2013

2.0

1.7

2.1

1.4

1.1

0.9

0.8 0.7

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

USD/ MMBtu

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

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

USD/ MMBtu

Zeebrugge (1-month lag) Yara Europe

European energy cost

IR-Date: 2013-07-19

27

0.75

0.49

0.20

0.07

-0.04

0.63

0.38

0.22

0.08

0.01

0.57

0.32

0.12 0.06

0.56

0.27

0.12

0.02

2009 2010 2011 2012 2013

Debt/equity ratio

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

IR-Date: 2013-07-19

28

At the beginning of the third quarter 2013

1. The US dollar debt generating p&l exposure was USD 1,150 million

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

• Around 50% towards EUR with the rest towards NOK and emerging market currencies

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

2. Additional p&l exposure came from internal currency positions vs. NOK

• Payables mainly EUR (720 million) and CAD (460 million). The effects of these positions

correspond to offsetting translation effects in equity and the net economic effect for Yara is

neutral.

• Receivables mainly GBP (40 million) and AUD (30 million) as intercompany funding of

subsidiaries. The accounting effect on internal loans does not express the net economic

effect for Yara.

Main currency positions affecting

financial items

IR-Date: 2013-07-19

29

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 13E 14F

Million tons

Consumption Production

Source: USDA, July 2013

Grain consumption and production Days of consumption in stocks

55

60

65

70

75

80

85

06 07 08 09 10 11 12 13E 14F

Days

Continued strong price incentives necessary to

match consumption growth

IR-Date: 2013-07-19

30

55.6

3.0

52.6 55.3

7.9

63.2

0

10

20

30

40

50

60

70

Pro

du

ctio

n

Exp

ort

Dom

estic

Dom

estic

Exp

ort

Pro

du

ctio

n

Million tons

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

Million tons

10/11

Source: BOABC, CFMW

12/13

Strong Chinese urea production

Chinese urea production Domestic urea balance

Jul-May 11/12 Jul-May 12/13

5.1% 11/12

IR-Date: 2013-07-19

31

Strong export increase from China

Chinese urea exports, Kilotons

Source: BOABC

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

Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13

Urea price, USD/t

Chinese urea exports Urea, fob Yuzhny

IR-Date: 2013-07-19

32

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

Index June 2007=1

Source: Fertilizers Europe, Yara estimate for June

European producer nitrate stocks

IR-Date: 2013-07-19

33

-100

0

100

200

300

400

500

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

Thousand contracts

Source: US Commodity Futures Trading Commission

Non-commercials’ net long position in corn

IR-Date: 2013-07-19

34

Key value drivers – quarterly averages

471

383 385 400

342

2Q12 3Q12 4Q12 1Q13 2Q13

Urea prilled fob Black Sea (USD/t)

331 314

343 351 322

2Q12 3Q12 4Q12 1Q13 2Q13

CAN cif Germany (USD/t)

2.3

2.9

3.4 3.5

4.0

2Q12 3Q12 4Q12 1Q13 2Q13

US gas price Henry Hub (USD/MMBtu)

9.1 9.1

10.3 11.1

10.3

2Q12 3Q12 4Q12 1Q13 2Q13

Zeebrugge day ahead (USD/MMBtu)

5.9

5.5

5.7 5.6

5.8

2Q12 3Q12 4Q12 1Q13 2Q13

NOK/USD exchange rate

536

619 627

562 500

2Q12 3Q12 4Q12 1Q13 2Q13

Ammonia fob Black Sea (USD/t)

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

IR-Date: 2013-07-19

35

10-year fertilizer prices – monthly averages

Source: Average of international publications

0

200

400

600

800

1,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

USD/t Ammonia fob Black Sea

0

100

200

300

400

500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

USD/t CAN cif Germany

0

200

400

600

800

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

USD/t Urea prilled fob Black Sea

Average prices 2003 - 2013

0

200

400

600

800

1,000

1,200

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

USD/t DAP fob US Gulf