Yara's Third quarter financial report 2014

1. IR-Date: 2014-10-22
0
22 October 2014
Yara International ASA Third quarter results 2014

2. IR-Date: 2014-10-22
1
Strong result with record deliveries
Continued margin benefit from lower European gas prices
Strong fertilizer production; lower ammonia production in Pilbara and Lifeco
Record Industrial result
Summary third quarter

3. IR-Date: 2014-10-22
2
10.02
7.73
12.42
11.84
10.54
9.82
9.25
7.67
8.04
6.69
5.66
0.23
6.40
8.26
6.18
Earnings per share*
•Average number of shares for 3Q 2014: 276.2 million (3Q 2013: 277.6 million).
NOK
41.99
37.31
20.67
20.84
Annual
2011
2012
2013
EPS excluding currency and special items
2014

4. IR-Date: 2014-10-22
3
Continued robust fertilizer demand
Higher urea prices; continued curtailments in China, Ukraine and Egypt
Western Europe nitrogen fertilizer industry deliveries 5% higher
Higher phosphate prices and upgrading margins than last year
Strong demand for value-added fertilizer products
Fertilizer market development

5. IR-Date: 2014-10-22
4
Food prices below 5-year average
Source: FAO
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
Index
FAO price index
Cereals Price Index
Cereals 5 year avg.
Food Price Index
Food 5 year avg.

6. IR-Date: 2014-10-22
5
Nitrogen deliveries in Europe and USA close to normal
0.0
0.5
1.0
1.5
2.0
2.5
3Q10
3Q11
3Q12
3Q13
3Q14
Domestic
Imports
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
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
3Q10
3Q11
3Q12
3Q13
3Q14
Production
Net imports
West Europe
USA
+12%
+5%
Million tons N
Million tons N

7. IR-Date: 2014-10-22
6
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
13/14
Source: BOABC, CFMW
12/13
Chinese urea: production decline despite significant capacity increase
14/15
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
Black Sea
USD/t
Chinese exports
(kilotons)
Chinese production
(kilotons)
Jul-Aug 11.7 mt
(12.1 mt Jul-Aug last year)
Year-to-date 47.5 mt
(48.2 mt year-to-date last year)
Jul-Aug 2.4 mt
(2.8 mt Jul-Aug last year)
Year-to-date 6.6 mt
(4.1 mt year-to-date last year)

8. IR-Date: 2014-10-22
7
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
3Q10
3Q11
3Q12
3Q13
3Q14
CAGR 12%
Long-term growth in deliveries outside Europe
Kilotons
Yara fertilizer deliveries (by quarter)
Europe
Overseas

9. IR-Date: 2014-10-22
8
Brazil: Yara benefiting both from Bunge acquisition and increase in industry deliveries
Brazil fertilizer industry deliveries (Jan-Sep)
0
5 000
10 000
15 000
20 000
25 000
2011
2012
2013
2014
+7%
Kilotons
Yara Brazil fertilizer deliveries1 (Jan-Sep)
Kilotons
Source: ANDA, Yara
1) Excluding trade
0
1 000
2 000
3 000
4 000
5 000
6 000
2011
2012
2013
2014
Thousands

10. IR-Date: 2014-10-22
9
Earnings before interest, tax, depreciation and amortization (EBITDA)
4 281
3 455
5 444
4 982
4 310
4 966
4 103
3 591
4 184
4 039
3 318
1 858
3 591
4 227
3 964
2011
2013
2012
2014
NOK millions
18,163
16,970
13,399
11,782
Annual
EBITDA excluding special items
NOK millions

11. IR-Date: 2014-10-22
10
EBITDA development
68 109
891
132
222
151
EBITDA
3Q14
3,964
EBITDA Other Currency
3Q13
Special
items
Volume & mix Gas & oil
costs in
Europe
Price/margin
3,318
NOK millions

12. IR-Date: 2014-10-22
11
Improved earnings for all segments
1 094
1 463
304
420
1 797
2 293
Downstream
Industrial
Upstream
EBITDA excluding special items
3Q13
3Q14
EBITDA
(NOK millions)

13. IR-Date: 2014-10-22
12
0
100
200
300
400
500
600
700
3Q11
1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
USD/t
Nitrogen upgrading margins1
(monthly publication prices)
Urea CFR
CAN (46% N)
NH3 CFR (46% N)
Value above gas
Value above ammonia
Nitrate premium above urea
Yara EU gas cost *20
Improved European nitrogen margins; nitrate premium in line
0
20
40
60
80
100
120
140
160
180
3Q11
1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
European nitrate premium2
(quarterly Yara realized)
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

14. IR-Date: 2014-10-22
13
0
100
200
300
400
500
600
700
3Q10
1Q11
3Q11
1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
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
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
USD/t
NPK premium over blend1
NH3, fob Black Sea *0.22
DAP, fob Morocco
MOP, cfr NWE
Urea, fob Black sea
Solid commodity phosphate margins and NPK premiums
Weighted average global premium above blend cost
1) Export NPK plants, average grade 19-10-13, net of transport and handling cost.
Nitrate premium

15. IR-Date: 2014-10-22
14
(51)
(36)
(660)
(891)
(650)
(500)
(1 000)
(900)
(800)
(700)
(600)
(500)
(400)
(300)
(200)
(100)
0
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
NOK millions
October 2014 estimate**
** Based on forward prices as of 14 October 2014
Lower natural gas cost in Europe
Source: Yara, World Bank, Platts
*Dotted lines denote forward prices as of 14 October 2014
Yara European gas & oil cost
Actual for quarter
Change in European energy cost
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
13.0
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
USD/
MMBtu
Zeebrugge (1-month lag)
Yara Europe

16. IR-Date: 2014-10-22
15
1 305
1 390
1 009
1 009
1 402
1 713
1 112
1 296
258
274
569
941
3Q13
3Q14
3Q13
3Q14
3Q13
3Q14
3Q13
3Q14
3Q13
3Q14
3Q13
3Q14
Yara-produced deliveries
Joint venture & third party sourced
Total
Fertilizer deliveries by product and source
Nitrate
NPK compounds
NPK blends
Urea
UAN
Kilotons
Other

17. IR-Date: 2014-10-22
16
Net interest-bearing debt development
308
549
248
4,963
Yara dividend Other Net debt
Sep 14*
Net operating
capital
change
Dividends
from equity-accounted
investees
447
Investments
net
1,860
Cash
earnings**
3,194
Net debt
Jun 14*
3,347
FX loss
164
Share buy
backs &
redemption
2,743
* 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

18. IR-Date: 2014-10-22
17
Prospects

19. IR-Date: 2014-10-22
18
Incentives for nitrogen application remain supportive despite recent decline in grain prices
Continued nitrogen curtailments in China, Ukraine and other export regions
Capacity outside China: limited greenfield additions next two years; and gas availability uncertain for some locations
Strong European order book at start of fourth quarter
Expected further gas cost reduction of NOK 1.15 billion in Europe next two quarters
OFD acquisition completed in October, and Galvani completion due in fourth quarter
Prospects

20. IR-Date: 2014-10-22
19
Galvani acquisition (Brazil) improves raw material and production integration
Current assets:
–Three mining operations with a total production of ~500kt phosphate rock
–Two industrial sites with a total granulation capacity ~1,000kt
Future additions (partly replacement):
–~2 million tons phosphate rock from two new mines.
•Serra do Salitre (greenfield) 1,200 kt
•Santa Quiteria (greenfield) 800 kt
•Angico (brownfield) additional 150 kt
2013 Galvani EBITDA USD 48 million
Two existing fertilizer production sites
Three existing mining operations
Two new mining projects under development
Distribution terminal/Port import terminal

21. IR-Date: 2014-10-22
20
250 kt NPK and Calcium Nitrate expansion in Porsgrunn, Norway
Strong Downstream demand for additional value-added fertilizer volumes
Brownfield investment of NOK 2,250 million
Project adds 200 kt calcium nitrate and 50 kt compound NPK annual capacity
Enables further 150 kt NPK and 35 kt calcium nitrate annual capacity in Glomfjord and Uusikaupunki through optimization
 Completion during 2017

22. IR-Date: 2014-10-22
21
YaraLiva benefits cash crops in particular
YaraLiva provides soluble and strength-building calcium, alongside nitrate-N (15.5%)
Products containing calcium nitrate as the key component are sold under YaraLiva brand
Calcium used for good rooting, stress-free growth, strong cell walls, improved fruit quality and better storage.
Stable pricing, typical range 400 – 600 USD/t1
Yara’s current annual capacity approximately 1.1 million tons2
1)Prices are before freight, and other handling cost. Products sold at different points in value chain, and reflects different types of product. 2) Dry product equivalents

23. IR-Date: 2014-10-22
22

24. IR-Date: 2014-10-22
23
Additional information

25. IR-Date: 2014-10-22
24
NOK millions
Total Yara contribution
Value-added upgrading and distribution make
up larger part of Yara’s contribution
9,000
8,000
5,000
7,000
6,000
4,000
3,000
2,000
1,000
0
1Q10 1Q14 3Q14
Commodity Europe
Commodity overseas
Upgrade & distribution
Trade
3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13

26. IR-Date: 2014-10-22
25
0.75
0.49
0.20
0.07
-0.04
0.05
0.63
0.38
0.22
0.08
0.01
0.06
0.57
0.32
0.12
0.06
0.06
0.08
0.56
0.27
0.12
0.02
0.06
2009
2010
2011
2012
2013
2014
Debt/equity ratio
Net interest-bearing debt / equity ratio (end of period)

27. IR-Date: 2014-10-22
26
4.0
4.4
4.2
4.4
4.1
3.3
2.5
2.3
2.9
3.4
3.5
4.0
3.6
3.9
5.2
4.6
3.9
3.9
4.0
4.8
5.7
7.6
8.3
8.3
8.6
7.9
7.7
8.1
8.3
8.3
8.5
7.5
7.8
8.1
6.1
6.7
7.1
4.7
6.6
9.0
9.5
9.2
9.0
9.3
9.1
9.1
10.3
11.1
10.3
10.1
10.7
9.7
7.6
7.0
8.39
8.99
6.6
7.6
10.1
11.1
10.9
10.8
11.0
11.0
10.8
11.4
11.5
11.9
10.8
11.2
11.3
9.2
7.5
8.7
9.5
0
2
4
6
8
10
12
14
2009
2010
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
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 2011-15 with forward prices* for 4Q14 and 1Q15
*Dotted lines denote forward prices as of 14 October 2014

28. IR-Date: 2014-10-22
27
Currency exposure affecting Profit & Loss
At the beginning of the fourth quarter 2014
1.The US dollar debt generating profit & loss exposure was USD 1,400 million
•Kept as hedge of future earnings and to finance inventories in emerging markets
•Around 60% towards BRL with the rest towards other emerging market currencies, NOK and EUR
•The debt level in emerging markets will fluctuate with fertilizer seasons
2.Additional profit & loss exposure from internal currency positions vs. NOK
•Payables mainly CAD (200 million)
•Receivables mainly EUR (320 million)

29. IR-Date: 2014-10-22
28
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
5 437
5 253
5 013
5 044
5 297
6 342
5 884
6 146
6 389
6 496
6 848
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
Europe
Outside Europe
Total
Fertilizer deliveries
Kilotons
2010
2007
2008
2009
2011
2012
2013
2014

30. IR-Date: 2014-10-22
29
Yara 3Q fertilizer sales by market and product
2 138
2 377
544
573
252
2 195
3 120
515
673
345
Europe
Latin America
Asia
North America
Africa
3Q13
3Q14
1 009
1 402
1 305
1 112
569
258
229
1 009
1 713
1 390
1 296
941
274
225
NPK compounds
NPK blends
Nitrate
Urea
Other products
UAN
CN
Kilotons

31. IR-Date: 2014-10-22
30
500
600
700
800
900
1 000
1 100
1 200
1 300
1 400
3Q10
3Q11
3Q12
3Q13
3Q14
NPK and nitrate deliveries
Kilotons
500
700
900
1 100
1 300
1 500
1 700
3Q10
3Q11
3Q12
3Q13
3Q14
Yara-produced nitrate deliveries
Kilotons
Yara-produced compound NPK deliveries

32. IR-Date: 2014-10-22
31
Industrial deliveries
867 876
843
896
837
860
816
455 438
382
432
368 374
343 342 356
313
342 346 337
304
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
Industrial N-chemicals Environmental products Other
Kilotons

33. IR-Date: 2014-10-22
32
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
50
100
150
200
250
300
350
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
Europe
North America
ROW
% of total Industrial deliveries
Strong growth in Air1 deliveries
Kilotons
> 1 million tons of product sold L12M

34. IR-Date: 2014-10-22
33
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
2013
2010
2011
2012
2014
Yara production volume*
0
500
1 000
1 500
2 000
2 500
Kilotons
2014
* Including share of equity-accounted investees
Finished fertilizer and industrial products
Ammonia
2013
2010
2011
2012

35. IR-Date: 2014-10-22
34
Production curtailments in Ukraine and Egypt
Ukraine urea exports (Jan-Jun)
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2013
2014
-60%
Kilotons
Egypt urea exports (Jan-Jun)
Kilotons
Source: IFA
0
100
200
300
400
500
600
700
800
900
1 000
2013
2014
-17%

36. IR-Date: 2014-10-22
35
Farm economics supportive, despite grain price decline
Source: FAO

37. IR-Date: 2014-10-22
36
Source: USDA October 2014
For 2014/15, global grain production expected to moderately exceed consumption
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
13
14E
15F
Million tons
Consumption
Production
Grain consumption and production
Days of consumption in stocks
55
60
65
70
75
80
85
06
07
08
09
10
11
12
13
14E
15F
Days

38. IR-Date: 2014-10-22
37
12.1
2.4
9.7
9.3
2.4
11.7
0
2
4
6
8
10
12
14
Production
Export
Domestic
Domestic
Export
Production
Million tons
4.8
5.0
5.2
5.4
5.6
5.8
6.0
6.2
6.4
6.6
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Million tons
13/14
Source: BOABC, CFMW
12/13
Production not increasing
Chinese urea production
Domestic urea balance
Jul-Aug 13/14
Jul-Aug 14/15
-5%
14/15

39. IR-Date: 2014-10-22
38
Source: CRU urea update September 2014 . Consumption data source is IFA.
Year
Driving regions
Urea capacity growth relative
to nitrogen capacity
Excluding China
Excluding China
2014
Algeria 16% Egypt 15%
1.5%
2015
Saudi Arabia 20%
USA 19%
2.1%
2016
USA 42%
India 11%
2.3%
2017
Nigeria 32%
USA 24%
2.2%
2018
Nigeria 55%
Russia 17%
1.3%
Gross annual addition 2014-2018
~1.9%
Assumed annual closures
~0.5%
Net annual addition 2014-2018
~1.4%
Trend consumption growth from 2002
2.1%
Projected nitrogen capacity additions outside China

40. IR-Date: 2014-10-22
39
-
1 000
2 000
3 000
4 000
5 000
6 000
Kilotons
Finished fertilizer
Urea
Nitrates
Compound NPK
Other
Yara stocks: normal level, adjusted for Bunge
Bunge Fertilizer included from 3Q 2013

41. IR-Date: 2014-10-22
40
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Index
June 2007=1
13/14
08/09
09/10
10/11
11/12
12/13
14/15
Source: Fertilizers Europe, Yara estimate for September
European producer nitrate stocks ending the season close to average

42. IR-Date: 2014-10-22
41
-200
-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
Jan-14
Jul-14
Thousand contracts
Source: US Commodity Futures Trading Commission
Non-commercials’ net long position in corn

43. IR-Date: 2014-10-22
42
Key value drivers – quarterly averages
308
314
338
299
320
336
354
414
358
358
3Q13
4Q13
1Q14
2Q14
3Q14
Urea prilled fob Black Sea (USD/t)/Urea granular fob Egypt (USD/t)
294
291
345
354
309
3Q13
4Q13
1Q14
2Q14
3Q14
CAN cif Germany (USD/t)
3.6
3.8
5.2
4.6
3.9
3Q13
4Q13
1Q14
2Q14
3Q14
US gas price Henry Hub (USD/MMBtu)
10.1
10.7
9.7
7.6
7.0
3Q13
4Q13
1Q14
2Q14
3Q14
Zeebrugge day ahead (USD/MMBtu)
6.0
6.1
6.1
6.0
6.3
3Q13
4Q13
1Q14
2Q14
3Q14
NOK/USD exchange rate
430
417
438
485
488
3Q13
4Q13
1Q14
2Q14
3Q14
Ammonia fob Black Sea (USD/t)
Source: Fertilizer Market Publications, CERA, World Bank, Norges Bank

44. IR-Date: 2014-10-22
43
10-year fertilizer prices – monthly averages
Source: Average of international publications
0
200
400
600
800
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
USD/t
Urea prilled fob Black Sea/Urea granular fob Egypt
Average prices 2004 - 2013
0
200
400
600
800
1 000
1 200
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
USD/t
DAP fob US Gulf/MOP granular fob Vancouver
0
100
200
300
400
500
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
USD/t
CAN cif Germany
0
200
400
600
800
1 000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
USD/t
Ammonia fob Black Sea