On course to a nature-positive food future
Yara launched its new ambition statement, ‘Growing
a Nature-Positive Food Future’, with last year’s
integrated report. During the past year, we have
worked on putting our ambition into action. This
work has been developed under drastically changed
conditions, from Russia’s war on Ukraine, through
disruptions in supply chains, to unprecedented volatility
in energy and commodity prices.
Throughout 2022, Yara’s people, culture and business model
have continued to create value for our shareholders as well as
for farmers, suppliers, and other important stakeholders. Yara’s
ability to sustain supplies and keep providing our crop-nutrition
and industrial solutions to the markets is based on our integrated
business model, operating a worldwide production, trade, and
marketing system. This means that we can keep our focus on
maintaining supply of Yara’s vital solutions to customers and
securing continuity throughout the supply chain.
We are concerned about the impact of the current crisis on the food
value chain, with high food prices for consumers, and availability
and affordability of fertilizers being a substantial challenge to
farmers worldwide. While increasing prices for fertilizers help Yara’s
profitability, we have made efforts to support the farmers hardest
hit by the crisis. This has happened through market design models
enabling discounts for fertilizers and making digital tools available
for farmers at no cost.
While we face many risks and uncertainties in the current context,
we have made progress towards Growing a Nature-Positive Food
Future. Among our key contributions this year, this report gives
insight into:
• How Yara has adapted its operations to tackle a challenging
environment, ensuring sustainable value creation for investors,
farmers, suppliers, employees, and society at large
• How we have used the challenges presented to strengthen our
efforts to decarbonize our business
• New partnerships that move us closer to delivering on our
Ambition, including through Yara Clean Ammonia
• Strengthened efforts to protect and restore nature with a spe-
cific focus on solutions in the value chain where it matters the
most – in the field
• Continued efforts on People, through stronger engagement and
development of our employees, follow-up on Safe by Choice,
and actions on human rights and ethics
• Increased efforts to reach more farmers and communities to
improve nutrition and quality of life through our global scale.
This year has underscored how important the security of fertiliz-
ers, food, and energy really is. Our employees have demonstrated
tremendous agility and commitment to our mission. As Yara, we
have proved the solidity of our business model, and our collec-
tive ability to deliver on our ambition. By providing innovative,
climate- and nature-friendly solutions for farmers, food companies
and other energy-intensive sectors, Yara will follow through on its
commitment to sustainable value creation and a decarbonized and
nature-positive 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 nature-positive 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.
To achieve our ambition, we have taken the lead
in developing digital farming tools for precision
farming, and work closely with partners through-
out the food value chain to improve the efficiency
and sustainability of food production. Through
We operate an integrated business model with
around 17,500 employees and operations in 60
countries, with a proven track record of strong
returns. In 2022, Yara reported revenues of
USD 24.1 billion.
SHORTCUT
Go to the Financial
Statements for 2022 here
Return on invested capital
(7.9% in 2021)
1)
USD millions
Operating income (1,068 in 2021)
1)
Diversity and inclusion index
(77% in 2021)
GHG intensity
7)
(3.0 in 2021)
25.7%
3,827
75%
3.1
65 NOK
Total cash returns per share
paid and proposed for 2022
17,500
employees
ROIC (Percent)
0
5
10
15
20
25
30
20222021202020192018
3.8
6.6
8.0
7.9
25.7
TRI
0,0
0,5
1,0
1,5
2,0
20222021202020192018
1.4 1.4
1.3
1.0
1.1
2022 2021
Prosperity performance
Revenue and other income MUSD 24,051 16,607
Operating income
1)
MUSD 3,827 1,068
EBITDA
1)
2)
MUSD 4,959 2,804
Net income MUSD 2,782 384
Capex
3)
MUSD 987 902
Debt/Equity ratio
1)
4)
0.37 0.55
Net cash flow from operations MUSD 2,391 1,406
Basic earnings per share
5)
USD 10.90 1.75
People performance
Engagement rate % 78 79
TRI rate
6)
per million
hours worked
1.1 1.0
Planet performance
Scope 1+2 CO
2
e emissions
million
tonnes
15.9 17.5
Energy use million GJ 246 273
1)
See page 267 for definitions,
explanations and reconciliations of
Alternative Performance Measures
(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)
Cash outflows from investing activities,
see consolidated cash flow statement on
page 143 for specification.
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.
7)
The GHG intensity indicator covers scope
1, 2 and parts of scope 3 emissions
from suppliers, but does not represent
a complete carbon footprint. Measured
against tonnes nitrogen in Yara’s
products.