EuroChem at a glance

We are one of the largest agrochemical companies in the world. our business is underpinned by the unrelenting need to produce and deliver the primary nutrients needed to help the world grow.

Our main activities are the production of nitrogen and phosphate fertilizers, to which we soon plan to add potash. We are investing in deepening our vertical integration while expanding our global reach to help us achieve our vision.

We measure our success by our ability to create best in class products to help our customers improve crop yields.

Our four reporting segments* are nitrogen, Phosphates, Potash, and Distribution, which we use to measure and communicate our results and performance.

  • * Note: EuroChem Agro results are included in the Nitrogen segment. The Distribution segment only represents sales carried out by our CIS distribution network.

REVENUE

RUBm 2013 2012 2011
Revenue 176,937 166,478 131,298
     
Revenue by region 2013 2012 2011
Europe 32% 27% 14%
Russia 19% 21% 24%
Asia 18% 16% 23%
North America 10% 11% 8%
Latin America 9% 14% 15%
CIS 8% 8% 12%
Africa 3% 2% 3%
Australasia 1% 1% 1%

Nitrogen

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Nitrogen is a key constituent of the proteins essential for plant growth. Our nitrogen assets are at the core of EuroChem, with close to half of our revenues derived from nitrogen-based fertilizers.

Our nitrogen facilities in Russia and Belgium currently have a combined annual production capacity of close to ten million tonnes per year. We also produce gas condensate and natural gas, which is the main raw material for the production of ammonia and subsequent production of nitrogen-based fertilizers. Furthermore, the sale of gas condensate to third parties allows us to offset a portion of our natural gas costs.

Find out more about our Nitrogen segment

  • 49% of external sales
  • RUB 100.1bn Revenue1
  • RUB 26.2bn EBITDA (61% of total)
  • 26% EBITDA Margin
  • 1 Revenues include sales to other segments.
Highlights
  • Number one producer by size and market share in Russia
  • Up to 25% self-sufficient in natural gas ammonia production secured by Severneft Urengoy
  • Global reach across key markets with EuroChem Agro sales network (ex-KSN Nitrogen)
  • Deeply entrenched position in Western Europe via EuroChem Antwerpen (ex-BASF Antwerp fertilizer assets)
  • Russia’s only producer of acetic acid, granulated urea and melamine.

Phosphates

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Phosphates help increase the strength of the root system of plants and improve their drought resistance.

Our phosphates segment encompasses the production and sale of phosphate mineral fertilizers and feed phosphates, as well as the extraction and subsequent sale of iron ore concentrate and baddeleyite concentrate, co-products of phosphate rock raw material mining operations. As well as providing a considerable credit to apatite mining costs, these co-products help mitigate the volatility in fertilizer pricing.

Find out more about our Phosphates segment

  • 31% of external sales
  • RUB 58.3bn Revenue1
  • RUB 14.0bn EBITDA (32% of total)
  • 24% EBITDA Margin
  • 1 Revenues include sales to other segments.
Highlights
  • Own phosphate rock, up to 75% self-sufficiency
  • Benefits of iron ore and baddeleyite as a co-products of apatite mining at Kovdorskiy GOK. The co-products together generated 38% and 74% of phosphate segment revenues and EBITDA, respectively in 2013
  • Start of drilling and blasting in Kazakhstan in October 2013.

Potash

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Along with nitrogen and phosphate, potash is one of the three key plant nutrients. It helps improve the nutrient value, taste, texture, and crop disease resistance.

Development of greenfield potash projects in Russia’s two largest deposits, the Gremyachinskoe deposit in the Volgograd region (EuroChem-VolgaKaliy) and the Verkhnekamskoe deposit (Usolskiy Potash) in the Perm region. Once on stream, the two mining and processing sites will have a combined annual output of eight million tonnes of KCl.

Find out more about our Potash segment

  • ca.10% of 2013 global capacity
  • 8 MMT of planned annual potash capacity
  • 912 MMT of proven and probable reserves (JORC)
  • RUB 57bn in total cumulative investments
Highlights
  • Future top five potash producer globally in terms of annual capacity
  • Most advanced greenfield projects in the world
  • Cost of production expected to be among lowest globally
  • Cage shaft sinking completed at Usolskiy in October 2013.
  • * Based on capital expenditure incurred as at 31 December 2013, including both phases of the projects

Distribution

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Retail sales of own and purchased fertilizers, seeds, crop protection services and other activities via our distribution network in the CIS.

Distribution is an important part of EuroChem’s sustainable growth strategy. Not only does our own distribution help us enhance value all the way to the end consumer, it gives us a strong foothold in Russia, one of the world’s fastest growing large agricultural markets, while providing important revenue in the same currency as the majority of our operating costs.

Find out more about our Distribution segment

  • 10% of external sales
  • RUB 17.0bn Revenue1
  • RUB 0.7bn EBITDA (2% of total)
  • 4% EBITDA Margin
  • 1 Revenues include sales to other segments.
Highlights
  • 26 distribution centres across Russia and Ukraine and a representative officein Belarus
  • Building relationships through tailored advisory services to help customers increase yields through advanced plant nutrition
  • Offering crop protection services, seeds, and soil analysis and field mapping services.