1 Continuing to transform our business

“Throughout its ten year history, EuroChem has earned a reputation as a responsible and successful company by investing in long-term sustainable growth and efficiency, and at the same time working to reduce our impact on the environment and to support the development of the communities where we operate.”

What we have achieved in ten years

  • Measurable progress on efficiency, production flexibility and capacity
  • Solid track record in implementing complex industrial projects
  • Investment projects on track to secure further, sustainable growth
  • Solid balance sheet, unhampered access to debt capital markets and strong cash flow support BB/stable credit rating
  • Measurable, ongoing improvements on health, safety and environment track record

Where we are today

  • Global competitiveness supported by vertical integration, low-cost raw materials and efficient operations
  • 2010 sales of RUB 97.8bn/USD 3.2bn (+33%/+39% over 2009)
  • EBITDA RUB 29.9bn/USD 986m (+81%/+89% year on year)
  • 2010 net debt to EBITDA ratio of 1.13x, 2010 operating cash flow RUB 26.2bn/USD 863m, net worth RUB 94.5bn/USD 3.1bn
  • Sound corporate governance systems and strong information disclosure practice
  • Recognized commitment to health, safety and the environment, and to the communities where we operate

Where we are going

  • Aim to become a top five global player in all three nutrient segments with c.3.0% of global nutrient capacity
  • Potash production planned to start in late 2013
  • Investing in the sustainability of our business and in the communities where we operate
  • Return on capital employed continues to be comfortably above the cost of capital

Summary

EuroChem is a top ten agrochemical company globally

  • No.7 in nitrogen (N) by ammonia capacity Source: CRU and public filings.
  • No.8 in phosphates (P) by P2O5 capacity (No.7 by MAP/DAP capacity)
    Source: IFA and public filings.
  • No.5 in potash (K) by licensed potash reserves globally Source: EuroChem.

EuroChem is a globally competitive producer with an established foothold in its home markets

Sustainable competitive advantages

  • Low-cost raw materials (natural gas)
  • Cost advantages through vertical integration (in-house supply of apatite and, in future, potash, ports, rail stock, repair/maintenance units)
  • Distribution network in the one of the world’s fastest-growing large fertilizer markets (Russia and CIS)
  • Iron ore (5.7 MMT p.a.) as a co-product of apatite at the Kovdor mine adds to profitability
  • Future global cost leadership in potash supported by unique features of Gremyachinskoe deposit
  • Enhanced product flexibility to quickly adapt to market demand
Dmitry Strezhnev - Chief Executive Officer

Dmitry Strezhnev
Chief Executive Officer