Water use in agriculture

– Yara’s approach

Bent Axelsen

CFO & SVP Global Business Excellence

6.2

3.3 2.7 2.7 2.2

Yara C. mandel Gresik Iffco Acron

7.7

4.2 3.0 2.9

2.3

Yara Eurochem Ostchem Uraichem Borealis

Yara’s leading global position and differentiated product portfolio

represent key sources of competitive edge Global #1 in Nitrates1

1) Including TAN and CN – Including companies’ share of JVs 2016YE

2) Compound NPK, excluding blends

3) 2016/2017 season volume

4) Ammonia trade not included in chart above

Global #1 in NPK2

0.3

1.3

Africa 4.8%

1.1

3.0

North America12.0%

0.2 2.2

Asia 7.1%

0.3

2.4

LatAm ex. Brazil7.9%

0.5

9.0

Brazil 27.9%

Industrial products & solutions Fertilizers 2017 sales figures in mill. tonnes, % = total 2017 Yara sales4

Fertilizer product portfolio3

Standard

products (Urea,

UAN, Ammonia)

34%

Differentiated

Products

(CAN, AN)

21%

Specialty

(CN,

Compound

NPK,

Fertigation)

26%

NPK blends

19%

4.7

9.2

Europe 40.4%

2

Intro and Yara strategy

3

Responsibly feed the world

and protect the planet

Our Mission A collaborative society;

a world without hunger;

a planet respected

Our Vision

Responding to global challenges is an integral part of our

business model and strategy

4

Our business is uniquely positioned to provide shared value for shareholders and society

Resources Resource Efficiency

Food Sustainable Agriculture

Environment Reduced Emissions

The challenge with water and agriculture

5

0 2000 4000 6000 8000 10000 12000 14000

Target Scenario

"Business as usual"

Today

Cubic kilometers

2050

2050

Existing

sustainable

supply of water

Global annual Water use - today and projection into 2050

“Business as usual” is not an option

Source: International Water Management Institute 6

70% of all water that is used today

is used for agriculture

7

~2% remains

in the crop

= ~100 g

Dry Matter

~900g

Water ~44 litres

are transpired

+

1 kg lettuce

Most of the water taken up by crops is lost through transpiration

Example - lettuce

+

~98%

Transpiration

8

Yara’s approach improved crop nutrition

9

Good crop nutrition enables the crop to use water more efficiently

Example Maize, Tanzania

10

0

200

400

600

800

1000

Farmer Practice Yara Treatment

Waterfootprint in m3 per ton of corn

Good crop nutrition enables the crop to use water more efficiently

Example Coffee, Vietnam

11

Waterfootprint in m3 per ton of green beans

0

100

200

300

400

500

600

700

Farmer Practice Yara Treatment

Solving big problems in water optimization

12

Yara fertigation solutions: profitable crops, satisfied growers.

13

Yara fertigation

solutions

Knowledge Portfolio

Tools &

Services

Yara offers a wide range of fertigation

products for growers – both for

greenhouses and open fields.

More than 100 years of experience

since first fertigation product

development: calcium nitrate; now

expanded to support grower’s needs.

Trainings Demos Literature Experts

Comprehensive

set of tools and

services to offer

Software Telemetry Crop Analysis YaraTera EASYFEED Sensors

Yara solutions helps to increase the water efficiency via better

usage of resources in open field irrigation systems

14

Flooding

30 - 40% Furrow

55 - 70%

Pivots / Sprinkler

70 - 85%

Drip

90 - 95%

Water

efficiency:

Increased accuracy of irrigation application and reduced water per ton of crop

Moving to fertigation creates value both for the farmer and for the

environment: Example Potatoes

Ref: Collaborative trial partners: Yara, Netafim, Regaber, Pepsico

Potato price = €142/t 15

Treatment Yield

(t/ha) Yield

(€/ha)

Fertilizer cost

(€/ha) Water cost

(€/ha) Total costs

(€/ha) Profit

(€/ha)

Pivot 59,1 8373 464 723 1187 7186

Fertigation (drip) 71,1 10073 732 595 1327 8746

Differences 12 1700 268 -128 140 1560

Fertigation benefits

31% less water use / ton crop

36% less CO2 eq. / ton crop

10.5% more profit (after drip investment costs)

The significant growth potential of fertigation products & strong profitability

above alternatives makes this segment highly interesting for Yara

16

Th

e s

olu

tion

Growth potential of fertigation products

2022 2018 2023 2015

0,7

2016 2017 2020 2019 2021 2024 2025 2026 2027

1,0

1,4

+6%

Fertigation products are above the competition

YaraRega Other Fertigation YaraTera/Calcinit

Water soluble NPKs vs field grade

NPKs

compared to commodity values

Yara Tera Calcinit (soluable calcium

nitrate) and nitrate

premium above urea

100

419

2018

Nitrates Calcinit

100

129

162

2018

Fully-soluable NPK (YaraTera)

NPK (YaraMila and YaraBasa)

Semi-soluble NPK (YaraRega)

6% CAGR from 2015 to 2017

Index: NPK=100% Index: Nitrates=100%

17