Presentation on Yara's Capital Markets Day, December 4, 2012, held by CFO Torgeir Kvidal

1. Financial update
Torgeir Kvidal, CFO

2. 1
Financial highlights
CROGI
 Strong results and cash flow
25 %
 Yara benefitting from continued
20 %
tight nitrogen markets
15 %
 Increased sales volumes for
nitrates and NPK outside Europe 10 %
at higher prices
5%
 Qafco expansions finalized and
0%
Lifeco restart
2004 2005 2006 2007 2008 2009 2010 2011 YTD
2012
Ex special items Long-term target
 Strong balance sheet
Capital Markets Day 2012 – 4 December

3. 2
Yara generates value both within commodity
and value-added products
Nitrogen upgrading margins Phosphate upgrading margins NPK blend premium
USD/t USD/t USD/t
700 700 700
600 Margin above
600 600 blend cost
Nitrate premium
above urea
Value above 500
500 500 raw material
Urea
400
Value above
400 400
ammonia
300 MOP
NH3*0.22
300 300
Value above gas
200
200 200
Yara EU gas cost *20 100 DAP
Rock*1.4
100 100 0
3Q10 1Q11 3Q11 1Q12 3Q12 3Q10 1Q11 3Q11 1Q12 3Q12 3Q10 1Q11 3Q11 1Q12 3Q12
Urea CFR CAN (46% N) DAP DAP T17 del France
NH3 CFR (46% N)
Capital Markets Day 2012 – 4 December

4. 3
Yara’s fertilizer production system
Distribution / Trade
Production
Upgrading to value-add
Urea Nitrate NPK NPK Nitrate
products and distribution
Flexible on ammonia source
Ammonia Ammonia Ammonia Ammonia Ammonia Ammonia
Energy exposed
commodity margins
Gas Gas Gas Gas
Trinidad Sluiskil Sluiskil Porsgrunn Glomfjord Ambes
Pilbara Brunsbüttel Tertre Siilinjärvi Montoir
Ferrara Uusikaupunki Rostock
Belle Plaine Montoir Köping
Le Havre Ravenna Pardies
Qafco Rio Grande
Lifeco
Plants located in Europe
Capital Markets Day 2012 – 4 December

5. 4
Ammonia flexibility in Europe
5.2
Million tons
3.6
1.6
1.3 Urea
Land-locked nitrates
0.3
European Flexible Non flexible
ammonia capacity
Yara can swing 2/3 of European ammonia production
without affecting fertilizer production
Capital Markets Day 2012 – 4 December

6. 5
Value-added upgrading and distribution make
up major part of Yara’s contribution
Average 2010-2011 contribution, NOK billions
24.3
1.5
2.1
Value-add
11.1
+
commodity
9.6 outside Europe
Overseas 5.1
European
Europe 4.5 4.5 energy
exposure
Commodity Fertilizer Industrial Trade Total
upgrade & upgrade &
distribution distribution
Capital Markets Day 2012 – 4 December

7. 6
Value-added upgrading and distribution make
up major part of Yara’s contribution
Total Yara contribution
NOK billions
7,000
Trade
6,000
Industrial upgrade & distribution
5,000
Fertilizer upgrade & distribution
4,000
3,000
Commodity overseas
2,000
1,000 Commodity Europe
0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Capital Markets Day 2012 – 4 December

8. 7
Yara product capacity values
Value based on prices last 12 months
USD/t of NH3 equivalent
1,800
1,600
1,400
1,200 Premium above blend
Rock upgrade
1,000 Nitrate value above urea
Urea upgrade value
800
Ammonia upgrade value
600 Gas cost
400
200
0 Mt of NH3
equivalents
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0
Urea overseas Urea EU Nitrate NPK UAN Excess ammonia
Capital Markets Day 2012 – 4 December

9. 8
Yara sensitivities
Operating
Income EBITDA EPS*
USD million USD million USD
Urea sensitivity +100 USD/t 925 1,097 3.1
…of which pure Urea 285 422 1.3
…of which Nitrates 367 393 1.1
…of which NPK 198 208 0.6
Nitrate premium +50 USD/t 458 518 1.4
…of which pure Nitrates 289 333 0.9
Hub gas Europe + 1 USD/MMBtu (130) (145) 0.4)
Ammonia + 100 USD/t 37 94 0.2
Phos rock + 50 USD/t 50 50 0.1
Hub gas North Am + 1 USD/MMBtu (26) (26) (0.1)
Crude oil + 10 USD/brl (30) (30) (0.1)
Currency + 1 USD/NOK ** 90 90 0.2
*Assuming 25% marginal tax rate on underlying business and 279.5 million shares
** Net fixed costs in EUR and NOK
Sensitivities assume stable value-added margins and no inter-correlation between factors
Capital Markets Day 2012 – 4 December

10. 9
Financial scenarios are not forecasts, but
illustrate potential earnings in given situations
• Based on last 4 quarters EBITDA excluding special items
adjusted for portfolio changes
Model
assumptions • Qafco 5 & 6 expansions and Yara Pilbara consolidation
included on full-year basis
• Production assumed at 95% of stated capacity
1. China swing exporter with assumed zero domestic margin
Scenarios 2. China swing exporter with 2H12 domestic price
3. Average prices last five years
4. USD 150 urea margin per ton above average of Chinese
scenarios
Capital Markets Day 2012 – 4 December

11. 10
Lower coal price in China
Anthracite coal prices, RMB/t
1,100 -25%
• Current cost for marginal producers
assumed at ~1,800 RMB/t
825
• Last year’s China swing scenario
assumption of ~1,850 RMB/t on the
conservative side
Nov 11 Nov 12
Source: China Fertlizer Market Week
Capital Markets Day 2012 – 4 December

12. 11
Swing price last two years set by Chinese
domestic price and export tax
Domestic urea price in China Chinese export tax 1 Jul – 1 Nov
RMB/t Fob China
2 500 700
2 400 650 2011
2 300 600
550
2 200
500
2 100 2012
450
2 000
400
1 900
350
1 800
300
1 700 250
1 600 200
Jan Apr Jul Oct 1 750 1 950 2 150 2 350 2 550
2012 2011 Avg Jul-Oct 12 Domestic price ex works, RMB/t
* China Fertlizer Market Week
Capital Markets Day 2012 – 4 December

13. 12
Summary of scenario price assumptions
Urea price fob China
USD/t
440
420 410
400
49
380 370
360
335 24
340 56 335
320 22 22
48
300 24 24 24 Domestic
280 290 290 289 289 price
0
CMD 11 CMD 11 CMD 12 CMD 12
Cost revised Assumed cost Avg domestic
price Jul-Oct 12
Tax Logistics Producer margin Cost
Capital Markets Day 2012 – 4 December

14. 13
Price and currency assumptions in scenarios
5-year Chinese swing*
Last 4 avg. to Demand
quarters 30 Sep Domestic -driven**
Cost
12 price
Ammonia fob Black Sea (USD/t) 527 420 475 475 550
Urea prilled fob Black Sea (USD/t) 432 372 325 400 515
Nitrate premium (% above Nitrogen in Urea) 21% 33% 25% 25% 20%
Nitrate premium, USD/t 62 83 56 68 69
Phos rock fob North Africa (USD/t) 191 184 180 180 180
DAP fob USG (USD/t) 565 588 550 550 550
Zeebrugge natural gas (USD/MMBtu) 9.0 8.1 10.5 10.5 10.5
Henry hub natural gas (USD/MMBtu) 2.8 5.0 3.7 3.7 3.7
Yara’s European energy price (USD/MMBtu) 11.0 9.5 10.9 10.9 10.9
Brent blend crude oil price (USD/bbl) 105 89 105 105 105
NOK/USD 5.8 5.9 5.7 5.7 5.7
* Energy prices are forward prices as of 9 October
** Given example to illustrate effect of urea price USD 150 per ton above average of the two sing scenarios
Capital Markets Day 2012 – 4 December

15. 14
Simplified P&Ls for scenarios
5-year avg. Chinese swing
Last 4 Demand-
NOK millions to
quarters Domestic driven**
30 Sep 12 Cost
price
EBITDA1) 17,000 18,000 11,400 16,700 24,400
Depreciation -3,100 -3,200 -3,300 -3,300 -3,300
Interest expense -800 -800 -800 -800 -800
Income before tax 13,100 14,000 7,300 12,600 20,300
Tax -2,500 -2,900 -1,300 -2,500 -4,100
Minorities -100 -200 -300 -300 -400
Net income 10,500 10,900 5,700 9,800 15,800
Number of shares (millions) 284.2 279.5 279.5 279.5 279.5
Earnings per share (NOK) 37 39 20 35 57
Currency translation +1 USD/NOK 2,900 3,050 2,000 2,950 4,300
1) Including interest income, assumed in line with last 4 quarters in all scenarios.
2) Not historical earnings, but estimated earnings for today’s Yara business, using 5-year average price conditions.
Capital Markets Day 2012 – 4 December

16. 15
Negative price effects reduces
swing EPS by NOK 8
NOK per share 57
21
35
28
15
8
20
Swing CMD11 Price/margin Currency Other Swing CMD12 Price/margin Swing CMD12 Price/margin Demand driven
Assumed cost Domestic price
Capital Markets Day 2012 – 4 December

17. 16
Demand-driven USD 150 per ton on urea
improves EPS by 22
NOK per share 57
35
28
15
8
20
Swing CMD11 Price/margin Currency Other Swing CMD12 Price/margin Swing CMD12 Price/margin Demand driven
Assumed cost Domestic price
Capital Markets Day 2012 – 4 December

18. 17
Risk factors
Risk factors Downside protection factors
 Major decline in grain prices  Strong incentives to maximize productivity
even at significantly lower grain price
 Severe downturn in global economy, levels
impacting food consumption growth
 Food consumption has historically seen
 China: loosening of export tariff system limited impact from economic slowdowns.
Record crops are needed to meet growing
 China: further fall in anthracite coal price consumption
 European crisis could improve
competitiveness of European agricultural
sector and put pressure on European gas
prices
 Yara financially stronger and may take
advantage of a potential negative short-
term development
Capital Markets Day 2012 – 4 December

19. 18
Cash distribution to date: stable growth in
absolute dividend, flexible buy-backs
Annual dividends and buy-backs, NOK per share*
13.2
8.1
6.2
5.4 5.4 5.3
4.9
3.9
7.0
5.5
4.0 4.5 4.5
2.3 2.4 2.5
2004 2005 2006 2007 2008 2009 2010 2011
Buy-back Dividend
* Carried out in the year following the result year, i.e. 2011 number reflects buy-backs and redemptions
executed in 2012. 2004 number reflects buy-backs and redemptions carried out in 2004 and 2005.
Capital Markets Day 2012 – 4 December

20. 19
Dividend payment to date behind target, while
buy-backs are within targeted range
NOK Dividend (cumulative) NOK Buy-back (cumulative)
billions billions
16 16
14 14
Target minimum 30%
12 12
10 10
8 8
6 6
Target 10-15%
4 4
2 2
0 0
2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 2011
Capital Markets Day 2012 – 4 December

21. 20
40 - 45% target is at the right level
Debt /
NOK Equity
billions
30 1,00
0,90
25
0,80
0,70
20
0,60
15 0,50
0,40
10
0,30
0,20
5
0,10
0 0,00
2004 2005 2006 2007 2008 2009 2010 2011 3Q12
NIBD actual NIBD 45% D/E actual D/E 45%
Capital Markets Day 2012 – 4 December

22. 21
Balance sheet can accommodate targeted
cash distribution and significant growth
Debt to equity ratio development assuming base
earnings equal to average of swing scenarios
0.6
0.5
0.4
0.3
0.2
0.1
0.0
3Q12 2013S 2014S 2015S 2016S
Annual growth CAPEX 2 BUSD, 45% payout Annual growth CAPEX 1 BUSD, 30% payout
Capital Markets Day 2012 – 4 December

23. 22
Execution of cash distribution policy
Key elements Main benefits
• The overall cash distribution target of 40-45% • Increased absolute payments when cash
is at the right level and is aligned with Yara’s flow is strong and attractive M&A
growth ambitions opportunities are limited, at the higher end of
the cycle
• Going forward, cash distribution will normally
be 40 - 45% of the previous year’s net • Improved availability of cash when attractive
income M&A opportunities are present at the lower
end of the cycle, in the interest of both Yara
• Cash distribution may in some years fall and its investors
short of or exceed the 40 - 45% range, but
normally only if cash flow and balance sheet • Increased predictability of the relative payout
metrics move outside the required rating level (stronger link to recent earnings)
range
Capital Markets Day 2012 – 4 December