Yara Capital Markets Day 2023 Highlights and Analysis

Recently, Yara participated in a Capital Markets Day where they shared an update on their progress towards their 2023 goals from a 2020 ESG Seminar. It was very telling surrounding the Yara business.

Yara Capital Markets Day 2023 - Yara International

I go over three basic areas:

1. Digital Farming Solutions

2. Regenerative Agriculture Association

3. Outcome-based pricing

Digital Farming Solutions

Recently, Yara participated in a Capital Markets Day where they shared an update on their progress towards their 2023 goals from a 2020 ESG Seminar. It was very telling surrounding the Yara business.

I covered the ESG Webinar in Upstream in 2020 where the original image had actual numbers associated with it:

If we focus on the Farming Solutions goals, Yara targeted $300-$600 million in NEW EBITDA.

However, in their recent update, Yara does not state where this number is currently at and how they are tracking.

Yara had a view of carbon offsets and new business models driving this new EBITDA.

I think this was the wrong frame focus for monetization, and I called it out in the 2020 write-up that it should augment their core business. Yara is now leaning that direction, stating:

New revenue streams less apparent, however offerings strengthen ability to extract value through premiums in core

This is associated with the concept of picks and shovels.