7 Sustainability at the core

EuroChem recognizes that superior shareholder returns can only be achieved by ensuring that the business is run in a sustainable and responsible way. Our view of sustainability involves ten key aspects of our operations:

1 Continuity of production

Sustainable production is at the heart of our overall business sustainability concept. This is ensured by preventative maintenance and repair, capital expenditure in new plant and equipment, investment in new products and technologies.

2 Health and safety

EuroChem has a good track record in health and safety, comparable to leading international standards.

3 Environmental safeguards

We are a responsible business that aims to minimize its impact on the environment whenever possible. Our investment in environmental projects over the past three years has amounted to RUB 2.5bn.

4 Financial stability

We maintain prudent debt levels, which can be sustained even through a material downturn of our key markets. We demonstrated our financial strength in 2009, when our net debt to EBITDA level peaked at 2.3x at the end of Q3 2009, following the precipitous decline in prices and volumes in the preceding 12 months. But even at the height of the market strain the threat to our business was remote.

5 Staff

We want to be able to attract, retain and motivate the best talent available to Russian industrial companies. Over the past five years, we have been able to markedly raise the quality of our staff and their efficiency, which has resulted in average monthly remuneration per person doubling to RUB 31,700, while production per staff has increased by 78% to 1,360 tonnes per employee.

6 Customers

Our customers have come to expect from us that good quality products will be delivered to them on time and in the amounts agreed, regardless of market conditions and circumstances. We strive to maintain this reputation.

7 State and authorities

While we are a demanding customer, we are committed to treating all our suppliers in a fair and transparent manner.

8 Suppliers

In Russia and other countries, we are fully committed to compliance with local legislation. We engage in a continuing dialogue with the authorities.

9 Local communities

In many of the places where we work, our enterprises are among the top local employers and contributors to the local budget.

10 Shareholder returns

Our sustainability depends on our commercial success, which in turn depends on our market competitiveness. The ultimate measure of our success is the increase in the value of our business, which is mainly driven by our ongoing operating cash flows and the attractiveness of the investments we make.