EuroChem at a glance

Our primary products are nitrogen and phosphate fertilizers, with additional income from iron ore concentrate, a co-product of our apatite mining operations. We plan to begin our own potash production in late 2013 at the Gremyachinskoe potash deposit. We seek to achieve vertical integration in our operations, from raw materials to transportation and retail distribution. Our product portfolio is well diversified, as are our global sales.

Nitrogen

No.7 globally by primary product capacity (ammonia)

Revenue contribution to Group in 2010 (%)
Revenue contribution to Group in 2010 (%)

We produce nitrogen fertilizers at Novomoskovskiy Azot and Nevinnomysskiy Azot, which have a combined 2.8 MMT of ammonia capacity per year. EuroChem is a leading low-cost producer because we have access to inexpensive raw materials and continue investment in efficiency and product flexibility.

Organic synthesis products are used as raw materials in the chemical, construction and other industries. Our two main organic synthesis products are methanol from Novomoskovskiy Azot and acetic acid from Nevinnomysskiy Azot.

EuroChem is the only producer of acetic acid and granular urea in Russia, and we plan to launch Russia’s only melamine production in the second half of 2011.

Nitrogen production by nutrients (MMT)
Nitrogen production by nutrients (MMT)
Nitrogen segment EBITDA (RUB m)
Nitrogen segment EBITDA (RUB m)

Phosphate

No.8 globally by primary product capacity (phosphoric acid)

Revenue contribution to Group in 2010 (%)
Revenue contribution to Group in 2010 (%)

Our phosphate segment is fully integrated: apatite from the Kovdorsky GOK mining facility supplies our three phosphate plants, Lifosa, Phosphorit and EuroChem-BMU, which can produce a combined 2.4 MMT of MAP, DAP and NP per year, as well as 380 kt of feed phosphates.

Kovdorsky GOK also produces up to 5.7 MMT of iron ore annually, and is the only place in the world where the mineral baddeleyite is produced (up to 8.9 kt per year).

Phosphate production by nutrients
(MMT)
Phosphate production by nutrients (MMT)
Phosphate segment EBITDA
(RUB m)
Phosphate segment EBITDA (RUB m)

Potash

912 MMT 912 MMT of proven and probable reserves (JORC)

Group capex dedicated to potash in 2010 (%)
Group capex dedicated to potash in 2010 (%)

With the commissioning of our first potash mine and production facilities, planned for 2013, EuroChem will become the fourth major global fertilizer producer operating in all three nutrient segments.

Gremyachinskoe deposit (Volgograd)

  • License acquired in 2005 at state auction
  • Purchase price of RUB 3.0bn
  • Reserves and resources: 1.9bn tonnes*
  • Depth of 1,000-1,200 meters
  • High nutrient content: KCI average content 37% (in the range of 23.4-40.9%); NaCI content 57-61%; MgCl content 0.10-0.15%; CaS04 content 4-5%
  • Phase I (capacity of 2.3 MMT p.a.): production to start in 2013
  • Phase II (capacity doubled to 4.6 MMT p.a.): production to start in 2015
  • RUB 18.7bn in total investments as of December 31, 2010

Verkhnekamskoe deposit (Perm)

  • License acquired in 2008 at state auction
  • Purchase price of RUB 4.1bn
  • Reserves: 1.5bn tonnes*
  • Depth of c.500 meters
  • KCl content average 30%
  • Phase I: capacity of 2.0 MMT p.a. planned to start in 2016
  • Phase II: capacity increased by 1.4 MMT p.a. for total of 3.4 MMT p.a.
  • RUB 6.4bn

* A+B+C1+C2+P1 according to Russian reserves classification.

Distribution

22.4% market share of fertilizer sales in Russia and 13.1% in Ukraine

Revenue contribution to Group in 2010 (%)
Revenue contribution to Group in 2010 (%)

Our distribution business consists of a fertilizer sales network in Russia and Ukraine that sells fertilizers, seeds, crop protection products and consulting services to local agricultural producers.

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 our home market, providing important revenue in the same currency as the majority of our operating costs.

Fertilizer distribution in Russia is also a growth business. In the past five years, we have seen fertilizer consumption increase 54%, and our own distribution business, which has only existed for a few years, has seen revenues increase to RUB 8.5bn in 2010.

Logistics

Our logistics infrastructure includes rail stock and repair depots, port facilities and leased panamax ships

Sales & Trading

Our sales and trading offices are in Zug (Switzerland), Tampa (USA) and Sao Paulo (Brazil)

The performance of our four reported segments is enhanced by our logistics arms, which are important to EuroChem’s vertically integrated business strategy.

10th

global fertilizer producer by nutrient capacity

BB/stable

credit rating from Fitch and S&P

USD 3.9bn

planned capex into potash in 2011-2015

EuroChem sales by region
EuroChem sales by region
  RUB bn %
Total sales 97.8 100
1 Russia 23.0 23.5
2 CIS 12.6 12.9
3 Asia 18.6 19.0
4 Europe 18.4 18.8
5 Latin America 14.2 14.5
6 North America 8.4 8.6
7 Africa 2.3 2.4
8 Australasia 0.3 0.3