IR-Date: 2014-07-18

0

18 July 2014

Yara International ASA

Second quarter results 2014

IR-Date: 2014-07-18

1

Strong result

Lower nitrate deliveries amid early end to season in Europe

Continued strong NPK deliveries and value-added premiums

Improved European commodity margins due to lower gas price

Continued Industrial segment growth

Summary second quarter

IR-Date: 2014-07-18

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

Earnings per share*

• Average number of shares for 2Q 2014: 276.5 million (2Q 2013: 279.3 million).

NOK 41.99 37.31 20.67 14.66

Annual 2011 2012 2013

EPS excluding currency and

special items

2014

IR-Date: 2014-07-18

3

Continued robust fertilizer demand

Stable urea prices, production curtailed in China and Ukraine

Western Europe nitrogen fertilizer industry deliveries 8% lower, season to

date 2% higher

Tight phosphate markets, following a short-lived correction in April and May

Strong demand for value-added fertilizer products

Fertilizer market development

IR-Date: 2014-07-18

4

Farm economics strong overall, despite grain

price decline

Source: FAO

IR-Date: 2014-07-18

5

Lower US nitrogen deliveries, stable in Europe

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

09/10 10/11 11/12 12/13 13/14

Domestic Imports

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

09/10 10/11 11/12 12/13 13/14

Production Net imports

West Europe USA

+2%

Million tons N Million tons N

-8%

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

IR-Date: 2014-07-18

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: strong export volume increase,

limited production increase

11/12

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

Black Sea

USD/t

Chinese exports

(kilotons)

Chinese production

(kilotons)

Season-to-date 65.7 mt

(64.6 mt season-to-date last year)

Year-to-date 29.7 mt

(29.6 mt year-to-date last year)

Season-to-date 10.8 mt

(7.9 mt season-to-date last year)

Year-to-date 3.8 mt

(1.3 mt year-to-date last year)

IR-Date: 2014-07-18

7

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

09/10 10/11 11/12 12/13 13/14

CAGR

7%

Strong NPK quarter and season, with continued

growth outside Europe

Kilotons

Yara-produced compound NPK deliveries

(by season)

Europe Overseas

Kilotons

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

2Q10 2Q11 2Q12 2Q13 2Q14

Yara-produced compound NPK deliveries

(by quarter)

IR-Date: 2014-07-18

8

Brazil: Yara benefiting both from Bunge

acquisition and increase in industry deliveries

Brazil 1H fertilizer industry deliveries

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2011 2012 2013 2014

+7%

Kilotons

Yara Brazil 1H fertilizer deliveries1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2011 2012 2013 2014

Kilotons

Source: ANDA, Yara 1) Excluding trade

IR-Date: 2014-07-18

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

2011 2013 2012 2014

NOK

millions 18,163 16,970 13,399 7,818

Annual

EBITDA excluding special

items

NOK millions

IR-Date: 2014-07-18

10

EBITDA development

512

287

660

105

459

107

EBITDA

2Q13

Volume & mix Price/margin Gas & oil

costs in

Europe

4,039

4,227

Special

items

Currency Other EBITDA

2Q14

NOK millions

IR-Date: 2014-07-18

11

Improved Downstream and Industrial earnings

1,196

1,525

306 365

2,493 2,498

Downstream Industrial Upstream

EBITDA excluding special items

2Q13 2Q14

EBITDA

(NOK millions)

IR-Date: 2014-07-18

12

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

Europe North America ROW % of total Industrial deliveries

Strong growth in Air1 deliveries

Kilotons

> 1 million tons of

product sold L12M

IR-Date: 2014-07-18

13

0

100

200

300

400

500

600

700

800

2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14

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

Strong nitrate premium at season close

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14

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

IR-Date: 2014-07-18

14

0

100

200

300

400

500

600

700

2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14

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

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

USD/t

NPK premium over blend1

NH3, fob Black Sea *0.22

DAP, fob Morocco

MOP, cfr NWE

Urea, fob Black sea

Improved 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

IR-Date: 2014-07-18

15

Lower natural gas cost in Europe

Source: Yara, World Bank, Platts

*Dotted lines denote forward prices as of 10 July 2014

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

USD/ MMBtu

Zeebrugge (1-month lag) Yara Europe

Yara European gas & oil cost

1

(51) (36)

(660)

(950)

(700)

(1,000)

(800)

(600)

(400)

(200)

0

200

3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

NOK millions

Actual for quarter

July 2014 estimate**

** Based on forward prices as of 10 July 2014

Change in European energy cost

IR-Date: 2014-07-18

16

1,551

1,119 1,211

1,114

607

1,360

1,672

1,331

469 407

518

865

2Q13 2Q14 2Q13 2Q14 2Q13 2Q14 2Q13 2Q14 2Q13 2Q14 2Q13 2Q14

Yara-produced deliveries Joint venture & third party sourced Total

Fertilizer deliveries by product and source

Nitrate NPK compounds NPK blends Urea UAN

Kilotons

Other

IR-Date: 2014-07-18

17

-

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

IR-Date: 2014-07-18

18

Net interest-bearing debt development

3,347

860

2,606

2,591

Net debt

Jun 14*

Other FX gain/(loss)

124

Yara Dividend Investments net

1,580

Net operating

capital change

1,382

Dividends

received

from equity-

accounted

investees

26

Cash

earnings**

2,758

Net debt

Mar 14*

* 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: 2014-07-18

19

Prospects

IR-Date: 2014-07-18

20

Farm economics strong overall, despite grain price decline

Break-even urea export price from China; domestic coal price and export

tax regime are key for global commodity nitrogen pricing going forward

Capacity outside China: limited greenfield additions next 2 years, and

curtailments currently in Ukraine

Yara European 3Q deliveries in line so far, and improved commodity-N

margins with lower gas cost

Prospects

IR-Date: 2014-07-18

21

250 kt NPK expansion in Uusikaupunki, Finland

250

1,250

1,000

Current Expansion End 2015

Strong NPK demand growth

outside Europe presents solid

business case

Project to install new

granulator adds ~250 kt

annual capacity

Competitive capex at ~200

EUR/t capacity addition

Completion end 2015

Annual NPK production capacity (kt)

IR-Date: 2014-07-18

22

Additional information

IR-Date: 2014-07-18

23

NOK millions

Total Yara contribution

Value-added upgrading and distribution make

up larger part of Yara’s contribution

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Commodity overseas

Commodity Europe

Fertilizer upgrade & distribution

Trade

4Q13 2Q14 2Q13 4Q12 2Q12 2Q10 4Q11 2Q11 4Q10

IR-Date: 2014-07-18

24

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

0.56

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)

IR-Date: 2014-07-18

25

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

4.1 4.2

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

6.9

5.9 6.4

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

7.8

6.2

8.6

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

7.3

8.5

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

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 2011-14 with forward prices* for 3Q14 and 4Q14

*Dotted lines denote forward prices as of 10 July 2014

IR-Date: 2014-07-18

26

Currency exposure affecting P&L

At the beginning of the third quarter 2014

1. The US dollar debt generating p&l exposure was USD 950 million

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

• Around 80% towards EUR and BRL, the rest towards NOK and emerging market

currencies

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

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

• Payables mainly CAD (200 million)

• Receivables mainly EUR (165 million), GBP (25 million) and AUD (45 million)

IR-Date: 2014-07-18

27

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

6,405 6,491

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

IR-Date: 2014-07-18

28

Yara 2Q fertilizer sales by market and product

2,771

1,448

644

1,118

361

2,183 2,487

537

954

329

Europe Latin America Asia North America Africa

2Q13 2Q14

1,211

607

1,551 1,672

518 469 314

1,114 1,360

1,119 1,331

865

407 295

NPK compounds NPK blends Nitrate Urea Other products UAN CN

Kilotons

IR-Date: 2014-07-18

29

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

2Q10 2Q11 2Q12 2Q13 2Q14

NPK and nitrate deliveries

Kilotons

500

700

900

1,100

1,300

1,500

1,700

2Q10 2Q11 2Q12 2Q13 2Q14

Yara-produced nitrate deliveries

Kilotons

Yara-produced compound NPK deliveries

IR-Date: 2014-07-18

30

Industrial deliveries

867843

896

837860

816

455

382432

374368343 342

313337346342

304

4Q13 2Q14 1Q14 3Q13 2Q13 1Q13

Industrial N-chemicals Other Environmental products

Kilotons

IR-Date: 2014-07-18

31

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

IR-Date: 2014-07-18

32

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.

Farm economics support fertilizer demand

Source: FAO

IR-Date: 2014-07-18

33

Source: USDA July 2014

For 2014/15, global grain production and

consumption close to balanced

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

IR-Date: 2014-07-18

34

64.6

7.9

56.8 54.9

10.8

65.7

0

10

20

30

40

50

60

70

Pro

du

ctio

n

Expo

rt

Dom

estic

Dom

estic

Expo

rt

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

13/14

Source: BOABC, CFMW

12/13

Production stable, reduced domestic supply

due to more exports

Chinese urea production Domestic urea balance

Jul-May 12/13 Jul-May 13/14

-3%

11/12

IR-Date: 2014-07-18

35

Source: CRU urea update July 2014 . Consumption data source is IFA.

Year Driving regions Urea capacity growth relative

to nitrogen capacity

Excluding China Excluding China

2013 Qatar 23%

Algeria 16% 1.6%

2014 Algeria 16%

UAE 15% 1.5%

2015 Saudi Arabia 22%

USA 20% 1.9%

2016 USA 48%

Malaysia 12% 2.0%

2017 Nigeria 34%

USA 26% 2.1%

Gross annual addition 2013-2017 ~1.8%

Assumed annual closures ~0.5%

Net annual addition 2011-2015 ~1.3%

Trend consumption growth from 2002 2.1%

Projected nitrogen capacity additions outside

China

IR-Date: 2014-07-18

36

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

Source: Fertilizers Europe, Yara estimate for June

European producer nitrate stocks ending the

season close to average

IR-Date: 2014-07-18

37

-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

IR-Date: 2014-07-18

38

Key value drivers – quarterly averages

342 308 314

338 299

379 336 354

414

358

2Q13 3Q13 4Q13 1Q14 2Q14

Urea prilled fob Black Sea (USD/t)/Urea granular fob Egypt (USD/t)

322 294 291

345 354

2Q13 3Q13 4Q13 1Q14 2Q14

CAN cif Germany (USD/t)

4.0 3.6 3.8

5.2

4.6

2Q13 3Q13 4Q13 1Q14 2Q14

US gas price Henry Hub (USD/MMBtu)

10.3 10.1 10.7

9.7

7.6

2Q13 3Q13 4Q13 1Q14 2Q14

Zeebrugge day ahead (USD/MMBtu)

5.8

6.0

6.1 6.1

6.0

2Q13 3Q13 4Q13 1Q14 2Q14

NOK/USD exchange rate

500

430 417 438 485

2Q13 3Q13 4Q13 1Q14 2Q14

Ammonia fob Black Sea (USD/t)

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

IR-Date: 2014-07-18

39

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