Yara International ASA · OSL:YAR
Yara International ASA — Shareholder Meeting (May 2020)
14 slides from Yara International ASA's shareholder meeting presentation, May 7, 2020
Slide 1: Yara International ASA Annual General Meeting
Yara International ASA Annual General Meeting 7 May 2020
Slide 2: Safety is our first priority
Safety is our first priority Ensuring a safe workplace for employees and partners with zero as our ambition Total Recordable Injuries Covid-19 priorities TRI1 (12-month rolling) 5 • Safeguard our employees, contractors, partners, neighbors and society at large 4 • Be a responsible company and act in
Slide 3: 2019; Continued profitability improvement - strong capital discipline and cash flow
2019; Continued profitability improvement - strong capital discipline and cash flow Earnings improvement continuing Key points L12M EBITDA ex. special items (MUSD)1 Strategy execution drives improved commercial margins and bottom line 2,500 - EBITDA1 ex. special items at USD 2,165 million, up 42% -
Slide 4: EBITDA variance including YIP
EBITDA variance including YIP EBITDA ex. special items (MUSD) 120 MUSD YIP impact - 95 MUSD EBITDA bottom line • Actual production = ~40 MUSD (~10 MUSD in YIP terms) • NH3 efficiency = ~10 MUSD • Nominal Fixed costs = ~25 MUSD (~80 MUSD inflation adjustment) • Variable costs = ~20 MUSD 75 2,165 96 4
Slide 5: Improvement Program status: production volume KPIs
Improvement Program status: production volume KPIs1 Ammonia production volumes, kt annualized Comments Qtr, annualized 2023 target 12 month rolling 8,900 Operations running without significant disruption L12M 7,692 Q1 decline driven by portfolio effects 2018 2019 7,850 7,772 Several 4Q outages
Slide 6: Our long term targets: increased premium product deliveries and higher margins
Our long term targets: increased premium product deliveries and higher margins Increase premium product Increase YaraVita deliveries to Increase EBITDA margin1 deliveries by > 3.5 mill tonnes > 100 million units Premium products in mill. tonnes YaraVita in mill. units EBITDA margin in USD/tonne 14.3
Slide 7: Committed investments unchanged, but optimization due to Covid-19 may postpone some spending
Committed investments unchanged, but optimization due to Covid-19 may postpone some spending Capex plan1 USD Billions 2.2 Growth - acquisitions Cost&capacity improvements Growth - expansions Maintenance 0.7 1.6 0.0 0.5 1.2 0.6 1.1 1.0 0.4 0.2 0.5 0.2 0.2 0.2 0.1 0.8 0.8 0.7 0.6 0.6 2017 2018 2019 20
Slide 8: Improving cash flow trend
Improving cash flow trend Free cash flow before financing activities1 Comments USD millions, rolling 4 quarters Operations Investments • Strategy execution driving Free cash flow improved free cash flow1 863 845 • Strong deliveries in 1Q generated increase in receivables 14 -141 -230 • Negative one-
Slide 9: Decision to develop “Industrial Holding” within Yara
Decision to develop “Industrial Holding” within Yara Decision driven by value capture Separate governance and visibility amid Covid-19 increased autonomy • Sustaining operations is the top priority • 100% Yara owned, minor carve-out • IPO evaluation has identified new value dissynergies pockets and
Slide 10: Supporting farmers and food value chain is a top priority
Supporting farmers and food value chain is a top priority Supporting food value chain at all levels Strong demand growth for digital offerings Thousand Farmweather active users • Focus on continuity in supply of agricultural inputs • Accelerated digital 1,300 farming ramp-up as physical farmer inter
Slide 11: Nitrogen fertilizer demand shows strong resilience historically
Nitrogen fertilizer demand shows strong resilience historically, as annual application is needed in order to maintain yields Annual N-application is critical for yield Stable global nitrogen consumption pattern Grain yield1 from Nitrogen fertilizer Million tonnes nitrogen Ton per hectar 120 -43% 9.6
Slide 12: Attractive Yara prospects
Attractive Yara prospects Attractive industry Operating cash flow Focused long-term strategy fundamentals improvement • Growing population and dietary • Operating cash flow improving with • Crop nutrition focus; #1 market improvement drives demand cycle and Yara actions presence and #1 premium ferti
Slide 13: Proposed dividend NOK 15 per share
Proposed dividend NOK 15 per share Net Debt/EBITDA ex. special items1 Dividends and buy-backs2 per share (NOK) 2.6 2.5 2.3 Share buy-backs 18 2.3 2.2 Dividends 2.0 3 1.9 1.7 1.7 Target range 15 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
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