Yara International ASA Annual General Meeting. 8 May 2018

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Victoria Stokes
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1 Yara International ASA Annual General Meeting 8 May 218

2 Safe operations is our first priority 5 TRI (Total recordable injuries 12-month rolling) 1 Jan'16 Mar May Jul Sep Nov Jan '17 Mar May July Sep Nov Jan'18 Mar'18 1) TRI: Total recordable injuries, lost time (absence from work), restricted work and medical treatment cases per one million work hours. 2

3 Yara s results reflect the business environment Urea supply increases in 218, higher than trend demand growth Food prices increasing recently, but nitrogen demand still muted European nitrogen deliveries and gas prices impacted by cold weather 6.6 Global capacity additions ex China Trend consumption growth FAO food price index Urea fob Egypt USD/t USD/ MMBtu Yara European natural gas cost Yara Europe 7.1 TTF (1-month lag) /214 1/214 7/215 4/216 1/217 1/217 3/218 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 3

4 Earnings impacted by supply-driven market Earnings per share Excluding special items and currency 4

5 EBITDA development 217 USD millions 1, , Volume Price/margin Energy cost Currency Special items Other 217 5

6 Highlights 1Q 218 USD millions Improved margins offset by lower European deliveries Strong Industrial results India acquisition successfully completed Yara improvement program on track EBITDA 1Q17 Volume Price/Margin Energy costs Currency Special items Other EBITDA 1Q18 6

7 Yara Improvement Program on track Start: 216 End: Today 218 EBITDA benefits on track (in 215 terms): Yara Productivity System rolled out to 15 out of 3 sites. Good reliability improvements in ammonia production Energy efficiency improvements ahead of full target for 218 Focus for this year is to reach target but also to enable the organization to sustain already achieved benefits. Annual impact, USD million, vs. 215 baseline, at 215 margins Sustained EBITDA improvement One-off Benefits 1 Cost Investments Q target 219 target 22 target 1 One-off benefits are related to working capital improvements and white certificates 2 Target One-off investments reduced as effect of Capex reduction program (total ~5mUSD less for 218) 7

8 Yara is delivering on its growth pipeline; multiple plant expansions and M&A coming on stream in 218 Production growth Mill.tonnes (mt) Finished products Ammonia Yara-operated plants GrowHow UK (divested mid-215) Yara share of Qafco & Lifeco Uusikaupunki (3Q 216) TAN Pilbara (2Q 217) Babrala (1Q 218) Por/Glo (1Q 218) Sluiskil (2Q 218) Cubatão (3Q 218) Köping Rio Grande (3Q 218) (2Q 22) Salitre (2Q 219) Est Pilbara 4 Babrala (1Q 218) Freeport (2Q 218) Cubatão (3Q 218) Est. 22 1) Adjusted to normalized / 216 turnaround level (.7mt finished fertilizer and.2mt NH 3 ) and regularity level (.7mt finished fertilizer and.4mt NH 3 ) 2) Salitre will reach 1.1 mill.tonnes in 222 3) Rio Grande expansion also adds 1 million tonnes NPK blends by 22 4) Including 1% ownership in Pilbara NH 3 plant (not included in committed growth pipeline) 5) TAN Pilbara started up in 2Q 217, but has been down for technical reasons since 3Q 217. Expected re-start 2Q 218 8

7 growth projects starting up during 218 (1) Babrala (India) Acquisition of urea plant and

uary - 1.2 mt urea and approx 4 MUSD EBITDA p.a. - Provides footprint to accelerate premium product

9 7 growth projects starting up during 218 (1) Babrala (India) Acquisition of urea plant and distribution assets - Take-over 12 January mt urea and approx 4 MUSD EBITDA p.a. - Provides footprint to accelerate premium product growth Porsgrunn (Norway) NPK and calcium nitrate expansion - Start-up in 1Q - Adds 25 ktpa and approx. 5 MUSD EBITDA p.a. - Record nitric acid production in March (5,127 tpd) Freeport (US) Hydrogen-based ammonia newbuild JV with BASF (Yara 68%) - Start-up in progress - 55 ktpa and approx. 1 MUSD EBITDA p.a. (Yara share) - Strengthens Yara s global ammonia position 9

7 growth projects starting up during 218 (2) Sluiskil (NL) Revamp and urea+s expansion -

urea prills to nitrates and urea+s Salitre (Brazil) Phosphate mine - Start-up in 2Q (rock

1 mtpa SSP equivalents by 22 - Limited earnings until chemical production starts mid-219

10 7 growth projects starting up during 218 (2) Sluiskil (NL) Revamp and urea+s expansion - Start-up in 2Q - Adds approx. 21 ktpa and 3 MUSD EBITDA p.a. - Improved product mix - from urea prills to nitrates and urea+s Salitre (Brazil) Phosphate mine - Start-up in 2Q (rock production only) - Adds approx. 1.1 mtpa SSP equivalents by 22 - Limited earnings until chemical production starts mid-219 Cubatao (Brazil) N and P production facility acquisition - Closing expected mid mtpa and approx. 6 MUSD EBITDA p.a. - Strengthens production and industrial footprint in Brazil Köping (Sweden) Nitric acid revamp and TAN expansion - Start-up in 3Q - 9 ktpa and approx. 5 MUSD EBITDA p.a. - Strong long-term fundamentals for civil explosives industry 1

11 Profitable growth through the cycle Average cash return on gross investment (CROGI) well above the Yara CROGI target of 1% 16.1% 14.4% 14.1% 14.1% 22.8% 8.5% 17.4% 2.9% 17.3% 13.3% 14.% 12.6% 9.5 % 7. % % target NOK/share Average annual shareholder return of 2% 1 24 '6 '8 '1 '12 '14 '16 17 Ex special items Yara avg. gross investment, 12M rolling IPO Accumulated cash dividend payments Book equity Average annual share price Share price 2 Feb 218 1) Share price appreciation (end 217) plus dividend payments 11

12 Major improvement and growth investments in 218; main earnings improvement from 219 onwards 1 EBITDA improvement3 (MUSD) Improvement and growth capex 2 (BUSD) Improvement program Committed expansions + M&A Improvement program: + 35 MUSD cost improvement +15 MUSD volume improvement: ->.4 mill. tonnes ammonia ->.7 mill. tonnes fertilizer , Committed expansions + M&A: mill. tonnes ammonia mill. tonnes fertilizer 1 Currency assumptions for 218 onwards: USD/NOK 7.8, EUR/USD: 1.2, USD/BRL: Excluding maintenance capex on existing assets. Yara s share of capex. Fully consolidated entities presented at 1% basis 3 Measured at 215 conditions. Main average market prices: Ammonia fob Yuzhny 39 USD/t, Urea fob Yuzhny 275 USD/t, DAP fob Morocco 495 USD/t Earnings improvement 3 (USD per share)

Our leading global footprint and differentiated product portfolio set us apart Global #1 in Nitrates 1 9.2 7.7 3. 4.7 2.2 4.2 3. 2.9 2.4 1.1 North America 12.% Europe 4.4%.2 Asia 7.

13 Our leading global footprint and differentiated product portfolio set us apart Global #1 in Nitrates North America 12.% Europe 4.4%.2 Asia 7.1% Yara Eurochem Ostchem Uraichem Acron Global #1 in NPK LatAm ex. Brazil 7.9% Africa 4.8% Yara C. mandel Gresik Iffco Acron Fertilizer product portfolio 3.5 Brazil 27.9% Fertilizers Industrial products & solutions 217 sales figures in mill. tonnes, % = total 217 Yara sales 4 NPK blends 19% Specialty (CN, Compound NPK, Fertigation) 26% Standard products (Urea, UAN, Ammonia) 34% Differentiated Products (CAN, AN) 21% 1) Including TAN and CN Including companies share of JVs 216YE 2) Compound NPK, excluding blends 3) 216/217 season volume 4) Ammonia trade not included in chart above 13

FtMA is designed for scale, and has already increased the income of 136, farmers THE CHALLENGE SOLUTION IMPACT TO DATE OBJECTIVE Feeding a world population of 9.

gap Predictable markets Affordable Finance Quality farming inputs Effective post harvest management 136, farmers across Rwanda, Tanzania, Zambia and soon in Kenya 32%

14 FtMA is designed for scale, and has already increased the income of 136, farmers THE CHALLENGE SOLUTION IMPACT TO DATE OBJECTIVE Feeding a world population of 9.8 billion people in 25 requires increase in food production by 5% 5 million smallholder farmers have the potential to boost their production 3-4 times and help meet this gap Predictable markets Affordable Finance Quality farming inputs Effective post harvest management 136, farmers across Rwanda, Tanzania, Zambia and soon in Kenya 32% yield increase 83% increase in farmers income Making 68, farming household members more resilient Connect 1.5 million smallholder farmers to commercially viable markets by the end of

15 15

Ramp-up of digital solutions We are quickly building a strong pipeline of digital solutions Every 3 months launch of 1-2 digital solution teams Commercial pilots in coming

16 Ramp-up of digital solutions We are quickly building a strong pipeline of digital solutions Every 3 months launch of 1-2 digital solution teams Commercial pilots in coming season Examples Sensor-aided N-application Nutrient optimization tailored to specific fields Crop advisory platforms 16

17 218 is a peak year for Yara growth investments USD bn Cost&capacity improvements M&A Committed growth Maintenance

18 Proposed dividend NOK 6.5 per share Dividend and buy-backs 1 per share Share of net income % 7% 25% 48% 25% 23% 48% 3% 18% 26% 7% 19% 21% 5% 16% 41% 6% 34% 19% 1% 18% 23% 6% 17% 47% 12% 35% 64% 16% 48% 53% 6% 47% 57% 6% 51% 48% 6% 43% 45% 45% P P Share buy-backs Dividends 1) Number of shares based on the number of shares receiving dividend Target range 4-45% Share buy-backs Dividends 18

Yara International ASA 2017 fourth quarter results. 8 February 2018

Yara International ASA 2017 fourth quarter results. 8 February 2018 Yara International ASA 217 fourth quarter results 8 February 218 Safe operations is our first priority 4.5 4. TRI (Total recordable injuries 12-month rolling) 1 3.5 3. 2.5 2. 1.5 Jan Feb Mar Apr May Jun