Investor Relations

Strategic goals and performance 2010

1. Profitability

Yara’s goal is to deliver a Cash Return On Gross Investment (CROGI) of more than ten percent as an average over the business cycle.

Performance 2010: Yara delivered a CROGI of 17.4 percent, up from 8.5 percent in 2009.

2. Relative competitiveness

Yara’s goal is to deliver a Gross Return (EBITDA/Total Assets) in the top quartile of a peer group of leading chemical companies.

Performance 2010: Yara’s return on assets excluding special items in the second quartile in 2010 improved from 2009 as nitrogen fertilizer margins have improved.

3. Solidity

Yara’s goal is to retain a mid-investment grade credit rating, i.e. minimum BBB, according to Standard & Poor’s methodology.

Performance 2010: Yara maintained a ­Standard & Poor’s rating of BBB, with its outlook revised from “Negative” to “Stable” in November 2010. Yara maintained a “Baa2” rating from Moody’s throughout the year, with a "stable" outlook.

4. Cash returns

Yara’s goal is that cash return to share­holders should average 40 to 45 percent of net income, with dividends at a minimum 30 percent over the business cycle. Share buybacks will constitute the rest.

Performance 2010: Total cash return to shareholders was NOK 1,415 million, or approximately 37 percent of 2009 net income.

5. Growth in low-cost gas supply

Yara’s goal is to increase its proportion of production in low-cost gas regions in order to reduce the average production cost of its fertilizer products.

Performance 2010: Yara’s share of low-cost gas decreased from 37 percent in 2009 to 35 percent in 2010, primarily due to increased capacity utilization in Europe.

6. Overall growth

Yara has set a goal of doubling its fertilizer sales volumes from the IPO up to approximately 40 million tons and an average annual growth in the industrial segment of 10 to 15 percent.

Performance 2010: Yara is progressing with ongoing expansions, including a new urea plant in the Netherlands adding a urea capacity of 0.5 million tons (2011) and Qafco-5 adding 1.3 million tons of urea (2011), of which Yara normally markets at least 50 percent.

7. Citizenship

Yara’s goal is to positively address major global challenges and to pursue industry leading standards in all our operations and activities.

Performance 2010: Yara’s engagement in the African Agricultural Growth Corridors saw two investment blueprints launched, aiming to lift more than 3 million people out of poverty over a 20-year period.

8. Environment

Yara’s goal is to be among the most energy-efficient companies in the industry and to reduce greenhouse gas emissions by 45 percent from 2004 to 2013.

Performance 2010: Yara outperformed its goal, reducing GHG emissions by 45 percent from 2004 to 2010. In 2011, Yara will develop its sustainability strategy and revise its goal.

9. Safety

Yara’s goal is to be a leading performer in the area of worker safety, with a target­ed accident rate as close to zero as possible.

Performance 2010: Yara achieved a TRI rate of 3.8 and an LTI rate of 1.6, which is one third of the average rate of European fertilizer producers. However, the company experienced three fatal accidents, leading to a total of four fatalities.

10. Human resource management

Yara’s goal is to optimize the management of its people to ensure that it continues to have the skilled and engaged workforce it will need to meet future business challenges. 

Performance 2010: A Global HR Function and a new strategy were launched. An increased number of standardized processes and policies were implemented. In addition, a global HR IT system was launched.

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