Yara International : Integrated Report 2021

Yara Integrated Report 2021

Growing a Nature- Positive Food Future

Growing a Nature-Positive Food Future 

To better reflect our holistic and progressive strategy, 'Growing a Nature-Positive Food Future' is our new ambition statement. This encompasses our expertise in crop nutrition solutions and our goal of climate neutrality, but also goes further. We will expand our knowledge-sharing to create measurable, positive global impact in order to help feed the world and contribute to a responsible food system while protecting nature, reducing emissions, and improving livelihoods.

Concretely, we will: 

• Establish partnerships to decarbonize agriculture and shipping  
• Use our deep and growing knowledge, products, and digital solutions to enhance crops and soil health, while reducing pollution  
• Reach more farmers and communities to improve nutrition and quality of life through our global scale  
• Protect and restore nature and reverse climate change through science-based targets and actions  
• Contribute to creating a viable, profitable food future for all 

The new ambition statement will be our guide to areas where we will aim to create positive global impact, and where we will measure success. Our new KPI and target structure will enable us to fine-tune our performance tracking.  

Our strategic pillars remain the same - to advance operational excellence and expand our reach and offerings. Yara's ability to drive change is based on operating a worldwide production- trade- and marketing system, with people on the ground in more than 60 countries. We are involved throughout the food value chain, from mining of minerals, to processing and providing expert crop nutrition advice to farmers, to piloting organic-based fertilizer products, leveraging upcycled nutrients in our product portfolio.

We recognize the urgent nature and climate crises which are unfolding, and we are positioning Yara to play an important role in driving change and value creation for the future. 

Key figures

About Yara

Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a planet respected, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara's ambition is focused on growing a nature positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.

17,800 employees

58 NOK

Total cash returns per share paid and proposed for 2021

ROIC (Percent)

TRI

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To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming, and work closely with partners through-

7.9%

Return on invested capital

2021 2020

1) See page 255for definitions,

explanations and reconciliations of

alternative Performance Measures

out the food value chain to improve the efficiency and sustainability of food production. Through our focus on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy intensive industries.

Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry's only global crop nutrition company. We operate an integrated business model with around 17,800 employees and operations in over 60 countries, with a proven track record of strong returns. In 2021, Yara reported revenues of USD 16.6 billion.

1,068

77%

17.5

(8.0% in 2020)⁜1)

MUSD

Operating income (1,176 in 2020)⁜1)

Diversity and inclusion index (74% in 2020)

million tonnes

Scope 1+2 CO2e emissions (17.7 in 2020)

Prosperity performance

Revenue and other Income Operating income⁜1) EBITDA⁜1)⁜2)

Net income attributable to shareholders of the parent

Investments⁜3) Debt/Equity ratio⁜1)⁜4)

Net cash flow from operations Basic earnings per share⁜5)

People performance

Engagement rate

TRI rates⁜6)

USD million	16,607	11,728
USD million	1,068	1,176
USD million	2,804	2,223
USD million	384	691
USD million	902	933
	0.55	0.36
USD million	1,406	2,047
USD	1.75	2.58
Percent	79	79
Per million	1.0	1.3
hours worked

	(APMs).
2)	EBITDA, as defined by Yara, includes
	operating income, interest income,
	other financial income and share of net
	income in equity-accounted investees. It
	excludes depreciation, amortization and
	impairment loss, as well as amortization
	of excess values in equity-accounted
	investees.
3)	Investment in property, plant and
	equipment, long-term securities,
	intangibles, long-term advances and
	investments in non-consolidated
	investees.
4)	Net interest-bearing debt divided by
	shareholders' equity plus non-controlling
	interests.
5)	Yara currently has no share-based
	compensation program that results in a
	dilutive effect on earnings per share.
6)	TRI: Number of Total Recordable Injuries
	per million hours worked, contractors
	included.

SHORTCUT

Go to the Financial Statements for 2021 here

Planet performance
GHG intensity⁜7)	GHG/tonne
produced
Energy use	Petajoules

		7) The GHG intensity indicator covers scope
		1, 2 and parts of scope 3 emissions
3.0	3.0	from suppliers, but does not represent
		a complete carbon footprint. Measured
	279	against tonnes nitrogen in Yara's
		products.

Global presence

Yara is the industry's most global player. We combine production and marketing of crop nutrition products and solutions with a farmer-centric approach, turning a century of agronomic knowledge into value for millions of farmers around the globe.

Yara-branded retail outlets around the world

10,800+‌

Countries with	Countries with sales
operations
60	160 )sales -)
Production plants	Terminals, warehouses, blending
	units and bagging facilities	nes
28	200

1) More than 10,800 Yara-branded retail outlets around the world

2) Yara operated terminals and logistical production sites

3) Salitre, Brazil, is being divested

Countries with sales⁜1)	Yara Plants	Phosphate mines⁜3)	Sales/marketing offices, R&D sites
Head office	Smaller sites⁜2)	Joint ventures	Digital Hub

Yara Integrated Report 2021

1. ‌THIS IS YARA
2. ‌YEAR IN REVIEW
3. ‌FROM THE BOARDROOM
4. FINANCIAL STATEMENTS

Content 01

‌THIS IS YARA

Our strategic direction

02

‌YEAR IN REVIEW

Responsible performance

03	04
‌FROM THE BOARDROOM	FINANCIAL STATEMENTS
Delivering on	Transparent
our commitment	performance

About the report

This is Yara International ASA's 2021 Integrated Report. Yara's integrated report builds on the guiding principles set out in the International Framework from the Value Reporting Foundation. The report outlines Yara's business model and strat- egy, describes how we create value, and documents our People, Planet, Prosperity and Governance

in 2021. Additional information on sustainability topics is available in the separate Sustainability report available on yara.com.

CEO message	07
2021 Highlights	10
Company presentation	11
How‌	we create value	14
Clean ammonia to grow a
Nature‑Positive Food Future	15
Megatrends	18
Our strategy	20
Strategy scorecard	24
Managing outcomes	28
Engaging with our stakeholders	30
Materiality	35

PEOPLE	39
Black Talent Initiative	40
People performance	43
⁜
PLANET	50
Five questions on regenerative
agriculture	51
Planet performance	53
⁜
PROSPERITY	56
A new era of digital production	57
Prosperity performance	59
‌The Yara share	68
⁜
GOVERNANCE	71
Ethics & Compliance on demand	72
Governance performance	73
⁜
‌External framework guidance	75

Corporate governance

Group‌ Executive Board ‌Board of Directors Board message

Risk management

79	Consolidated‌	financial statements	126
97	Financial‌	statements for
101	YaraInternationalASA	220

106 Statement‌ from the Board and the

CEOofYaraInternationalASA 247

116	Auditor's report	250
	‌Reconciliation of alternative
	‌performance measures in
	theYaraGroup	255

Listed as one of the 100 most sustainably managed companies in the world

Yara was ranked as no. 29 on Fortune's prestigious Change the World List

Number three in a review of ESG disclosures from the 100 largest companies on the Oslo Stock Exchange

Yara won the Finance for the Future award in the category "Communicating Integrated Thinking"

Medium risk and number two of 60 Agri-Chemicals companies

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