Introducing EuroChemMay 2012y

Nitrogen Segment

Summary Overview

Potash Segment

Phosphate Segment

Potash Segment

Performance Summary

SummaryEuroChem today

13.20PotashCorp

Primary product capacity (MMT p.a. nutrient)3 Nitrogen plants (2 in Russia, 1 in Europe) - 2.7 MMT of ammonia and c.10 MMT of fertilizer product capacity

Natural gas operator (Russia) - 1.1bn m3 of annual capacity (c.25% of E Ch ’ l ti )

7.20

8.40

11.10

Yara

EuroChem

Mosaic3 Phosphate plants (2 in Russia and 1 in Lithuania) - 2.0 MMT of MAP/DAP

Vertical integration: own raw materials, port terminals, rail stock, construction/repair works, distribution in CIS

EuroChem’s annual consumption)

By 2021

5.50

6.70

6.90

Belaruskali

CF Industries

UralkaliApatite and iron ore mine (Russia) - P2O5-rich (37%-38%) apatite ore (2.7 MMT per year) covers c.85% of own production needs at the 3 phosphate plants. Apatite co-product : up to 5.7 MMT of iron ore (Fe content 64%)

stock, construction/repair works, distribution in CISPost completion of both projects

4.40

4.40

4.70

ICL

OCP

Agrium

Construction of own Potash (K) capacity is well underway ( f 8 f C )

Logistics in Russia - 3 port facilities, 2 Panamax vessels, and own rail facilities (c. 7,000 rail stock; 45 locomotives); Ex Russia - K+S Nitrogen platform

2.70

3.60

4.30

PhosAgro

EuroChem

K+S(targeted capacity of c.8 MMT of KCl per year)

Strong operational track record; all EuroChem production facilities are OHSAS-8001, ISO 14001 and ISO 9001 certified

Total employees of >20,000

Now

1.40

1.90

2.60

Acron

UralChem

TogliattiAzotAmmonia (N)

Phosphoric Acid (P2O5)

Potash (K2O)

FY 2011 revenues USD 4.5bn; EBITDA USD 1.7bn

Privately owned by Andrey Melnichenko (92%) and CEO Dmitry Strezhnev (8%)

p y

*MMT = million metric tonnes

SummaryVertically integrated producer

Murmansk Severneft UrengoyKovdorskiy GOK N

M

Kovdor

Murmansk

Phosphorit

Capacity by product 2012

Iron ore 5,700Apatite (37-38% P2O5) 2,700

Baddeleyite 10

Capacity by product

Natural gas 1,1bn m3Gas condensate 220 KTProven and probable reservesNatural gas 50bn m3

Urengoy

Capacity by product 2012

Ammonia 1,670Urea 1,480P

Novomoskovskiy Azot

g yNT

M

N

KingiseppM

Perm

Sillamae

Phosphorit

Ust-Luga

Planned Capacity

Oil 32 MT

Usolskiy Potash

Capacity by product 2012

MAP, DAP 775

Feed phosphates 220

Ammonium Nitrate 1,290UAN 427CAN 420

N

KT

T P K

Kedaynyay

Moscow

Novomoskovsk

Volgograd

Planned Capacity

Phase I (20161) 2,000

Phase II (2019-201) 3,400

Proven and probable reserves

MMT KCl (JORC) 420

Nevinnomyssk

VolgaKaliyCapacity by product 2012

AN / CAN 1,025

NPK 1,250 Antwerp

Planned Capacity

Phase I (2014-151) 2,300Phase II (2016-171) 4,600

EuroChem AntwerpenN KP

N

N

K

Tuapse

Lifosa Belorechensk

Capacity by product 2012

DAP 990

Feed phosphates 160

Nevinnomyssk

EuroChem-Kazakhstan Taraz

Planned Capacity

Phase I phosphate rock

Phase II (2016 17 ) 4,600Proven and probable reservesMMT KCl (JORC) 492

Nevinnomysskiy Azot

P

N

MTP

NK

M

EuroChem-BMU

Feed phosphates 160

Capacity by product 2012

Capacity by product 2012Ammonia 1,160Urea 890Ammonium Nitrate 1,420UAN 1,022NPK 460

Phase I, phosphate rock 30% P2O5 (2014-15) 1,500

Phase II, NPK/AN plant with ammonia (2016-17) 2,600

Reserves, MMT of P2O5 515

P

All capacity volumes are expressed in thousands of tonnes, except where otherwise specified4

MAP, NP 590NPK 460Melamine 50

1Estimated ramp-up to full capacity: 2 years.

T Port terminals

SummaryEuroChem strategy

• N and P: secure highest competitive position on target markets (FSU and Europe) in terms of cost delivered to customer

Main strategic objective – become a top 5 company globally by earnings and nutrient capacity

g g ( )through integration into raw materials.

• K: build a globally competitive business with up to 8 MMT p.a. capacity by 2021.

Nitrogen

R / d i ti tLogistics

Revamp/upgrade existing assets

Build new ammonia capacity

Optimize product mix

Secure competitive gas supply

Continuously optimize trans-shipment, freight and rail costs

Maximize return on capital tied in logistics assets

Focus on distribution channels in target markets (FSU and Europe)

F ll l di t ib ti t k i

Phosphate/mining DistributionRevamp/upgrade existing assets

Optimize product mixFull-scale distribution networks in Russia and Ukraine

Potash Governance/sustainabilityGovernance/sustainability

Adhere to best practice inStart own production in 2014/2015

Secure competitive supply of P2O5 covering 100% of needs

Adhere to best practice in corporate governance, social responsibility, and environmental accountability.

Start own production in 2014/2015

Expand new supply capacity to 8 MMT by 2021 through brownfield

Conservative financial policy supports strategic objectives while ensuring the sustainability of investments

5

Nitrogen Segment

Summary Overview

Potash Segment

Phosphate Segment

Potash Segment

Performance Summary

NitrogenVertically integrated producer

MurmanskT

MKovdor

Urengoy

Capacity by product 2012Ammonia 1,670

Novomoskovskiy Azot NM

N

KingiseppMoscow

Perm

SillamaeUst-Luga

Capacity by productNatural gas 1,1bn m3

Urea 1,480Ammonium Nitrate 1,290UAN 427CAN 420

Severneft UrengoyNT

T P

PN

K

KedaynyayNovomoskovsk

Volgograd

BelorechenskNevinnomyssk

g ,Gas condensate 220 KTProven and probable reservesNatural gas 50bn m3Oil 32 MT

Capacity by product 2012AN / CAN 1 025

AntwerpEuroChem AntwerpenN

P

N

N

NK

TuapseAN / CAN 1,025NPK 1,250

Taraz

Capacity by product 2012Ammonia 1 160

Nevinnomysskiy AzotN

T M

Ammonia 1,160Urea 890Ammonium Nitrate 1,420UAN 1,022NPK 460Melamine 50

All  capacity volumes are expressed in thousands of tonnes, except where  otherwise specified

7

NitrogenPerformance

Sales1 by region (2011)Key current / recent investment projects

Granulated urea (1 100 KT p a ): launched 2009/2010 at Share Change to 16 7Granulated urea (1,100 KT p.a.): launched 2009/2010 at NovomoskovskCAN (420 KT p.a.): launched 2009 at NovomoskovskMelamine (50 KT p.a.) + revamp of urea shop at Nevinnomyssk: to launch in Q2 2012

(%)g

2010 (PP)1. Russia/CIS 33% -3

2. LatAm 22% +7

3. Asia 15% +5

4. Europe 14% -8

5

6

First nitrogen fertilizer producer to back integrate into gaswith the acquisition of Severneft-UrengoyConstruction of new granulated urea facility (Urea 4 shop)LDAN production (300 KTp.a. by 2016)

p %

5. N. America 11% -1

6. Africa 3% -1

7. Australasia 2% +12

3

4

EBITDA margin Sales1 by product (2011)

41% 39%45%

42% Share (%)

Change to 2010 (PP)

18 9

24%29%

41%37% 39%

35%(%) 2010 (PP)

1. Urea 38% +7

2. AN 22% -1

3. UAN 10% 1

4. NPK 7% -25

67

2009 2010 2011 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11

5. Other 7% -2

6. Ammonia 5% -4

7. Methanol 5% -1

8. CAN 3% 3

9 Acetic acid 3% 1

23

4

The nitrogen segment includes nitrogen fertilizers and organic synthesis products.

1Revenue and sales volumes include sales to other segments 8In brackets – change in percentage points relative to FY 2010)

9. Acetic acid 3% -1

NitrogenNatural gas back integration

Severneft-Urengoy (SNU) / Novomoskovskiy Cost benefits

C $ /Current gas cost at Novomoskovskiy: $3.25 /mmBtu

Could rise to over $4.5 /mmBtu by 2016

Benefits from SNU acquisition - assuming production of q g p1.1bn m3 of gas and 220 KT of gas condensate :

Cost of gas at the well: $1.25 (per mmBtu)

+ mineral resource extraction taxes: $1.081

+ transportation cost to Novomoskovskiy: $1.40- revenue from gas condensate: ($2.15)

Delivered cost to Novomoskovskiy: $1 58A t ith G t t ti f SNU t

Principles applied to gas assets by EuroChem Long-term goals Seek to fully cover the needs of Nitrogen production through

Delivered cost to Novomoskovskiy: $1.58Agreement with Gazprom on gas transportation from SNU to Novomoskovskiy is expected to be reached before end 2012.

Upstream part of Nitrogen; not a separate businessSame gas pricing assumptions applied to Nitrogen and Gas internallyStand-alone IRRs for gas need to be > IRRs of other projects

Seek to fully cover the needs of Nitrogen production through own gas production or long-term contracts with attractive pricingLong-term target of 5 to 10bnm3 per year of in-house natural gas capacity

9

g p y

1includes the announced mineral resources extraction tax (MET) increase to RUB1,049/1,000m3 from 2015 (calculated using USD/RUB 30.0; 1,000m3 to mmBtu conversion: 32.34)

Nitrogen Segment

Summary Overview

Potash Segment

Phosphate Segment

Potash Segment

Performance Summary

PhosphateVertically integrated producer

Murmansk

Capacity by product 2012Iron ore 5,700

Kovdorskiy GOK M

Kovdor

Murmansk

Phosphorit

,Apatite (37-38% P2O5) 2,700Baddeleyite 10

UrengoyCapacity by product 2012

PT

M

N

KingiseppM

Perm

Sillamae

Lifosa

Ust-Luga EuroChem-Kazakhstan

MAP, DAP 775Feed phosphates 220

Planned CapacityPh I h h t k

P

MT

T PK

Kedaynyay

Moscow

Novomoskovsk

Volgograd

LifosaCapacity by product 2012DAP 990Feed phosphates 160

NevinnomysskAntwerp

Phase I, phosphate rock 30% P2O5 (2014-15) 1,500

Phase II, NPK/AN plant with ammonia (2016-17) 2,600

Reserves, MMT of P2O5 515

P

N

N

K

TuapseEuroChem-BMU

BelorechenskNevinnomyssk

TarazCapacity by product 2012

P TP

NK

M

MAP, NP 590

All  capacity volumes are expressed in thousands of tonnes, except where  otherwise specified

11

PhosphatePerformance

Sales1 by region (2011)Key current / recent investment projects

16Increase of sulphuric acid capacity at Phosphorit from 720 to 1,000 KT p.a.; at EBMU from 520 to 720 KT p.a.

Building NPK production at EBMU by 2014-16: 800 KT p.a. (to correspond to K production coming online in Volgograd)

F d h h t t Lif 160 KT l t d

Share (%)

Change to 2010 (PP)

1. Russia/CIS 35% +1

2. Asia 32% +3

3. Europe 18% -

1

45 6

Feed phosphates at Lifosa: 160 KT p.a. – completed

Kazakhstan: two-phase project, starting with phosphate rock supply (up to 1,500 KT per year 30% P2O5) and ending with construction of 2.6 MT p.a. NPK / AN / LDAN production aimed at Central Asia and North-Western China

4. LatAm 6% -7

5. N. America 6% +1

6. Africa 3% +22

3

EBITDA margin Sales1 by product (2011)

at Central Asia and North Western China

38% 40%3 %

40% 40% Share Change to 14 5 6 7

14%

35%38% 37%

34%(%) 2010 (PP)

1. MAP/DAP 51% -22. Iron ore 35% +33. Feed phos. 6% -4. NP 2% -

1

34 5 6 7

14%

2009 2010 2011 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11

5. Apatite 2% -6. Baddeleyite 2% +17. Others 2% -18. NPK 0% -1

2

1Revenue and sales volumes include sales to other segmentsThe phosphate segment includes iron ore and baddeleyite (co-products of apatite production) 12

2009 2010 2011 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11

In brackets – change in percentage points relative to FY 2010)

Nitrogen Segment

Summary Overview

Potash Segment

Phosphate Segment

Potash Segment

Performance Summary

PotashFuture potash cost leader

Murmansk

Kovdor

Murmansk

Planned CapacityPhase I (20161) 2 000

Usolskiy PotashUrengoy

KT

M

N

KingiseppM

Perm

SillamaeUst-Luga

Phase I (20161) 2,000Phase II (2019-201) 3,400Proven and probable reservesMMT KCl (JORC) 420 T

T PK

Kedaynyay

Moscow

Novomoskovsk

VolgogradNevinnomysskVolgaKaliy

Antwerp

K

P

N

N

K

Tuapse

BelorechenskVolgaKaliy

Taraz

Planned CapacityPhase I (2014-151) 2,300Phase II (2016-171) 4,600Proven and probable reserves

TP

NK

M

Proven and probable reservesMMT KCl (JORC) 492

All capacity volumes are expressed in thousands of tonnes, except where otherwise specified141Estimated ramp-up to full capacity: 2 years.

PotashFuture potash cost leader

Potash global cost curve (export+domestic) in 2015 .t.t t.t.

VolgaKaliyK

300

350

Potash global cost curve (export+domestic) in 2015

arket  BC 65

m.

arketWC 62

m.

alsupp

ly73

 m.t

al sup

ply55

 m.t

200

250

R/F

CA

bas

is, $

/t

glob

al m

glob

al m

a

glob

alpo

tentia

expo

rt poten

tia

100

150

otas

h co

st o

n C

FR

e

-

50

1.7

3.5

5.3

7.0

8.8

10.6

12.4

14.1

15.9

17.7

19.4

21.2

23.0

24.7

26.5

28.2

30.0

31.8

33.5

35.3

37.1

38.8

40.6

42.4

44.1

45.9

47.7

49.4

51.2

53.0

54.7

56.5

58.3

60.0

61.8

63.6

65.3

67.1

68.9

70.6

72.4

Po potential

domestic supplyP o t e n t i a l e x p o r t s u p p l y

1 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 6 6 6 6 6 6 7 7

Global potash market

Site Cost Delivery to port Export duty Freight

All capacity volumes are expressed in thousands of tonnes, except where otherwise specified151Estimated ramp-up to full capacity: 2 years.

PotashVolgaKaliy (Volgograd)

S2 S1StatusCharacteristics

License acquired in 2005 via auction process

C

License acquired in 2005 via auction processPurchase price of USD 106m

License area of 33.6 km2 located in Volgograd region

Depth of 1,000–1,200 meters

-50m

Phase I: capacity of 2.3 MMT p.a., involves the construction f i l i f t t h ft ki h ft #1 d

JORC proven and probable reserves: 492 MMT (39%-40% KCl content); JORC useful life of mine: 58 years

-535m

-100mof social infrastructure, cage shaft, skip shaft #1 and processing facility.

Phase II: capacity doubled to 4.6 MMT p.a., involves the construction of skip shaft #2 and expansion of processing facility.

2012 2013 2014 2015 2016Total CAPEX, USDm 920 1,027 828 569 290

C Cage shaft (phase I)

S1 Skip shaft #1 (phase I)

VolgaKaliy 691 707 521 321 14

Usolskiy Potash 229 320 307 248 276

Total next 5 years: USD 2,254 mS2 Skip shaft #2 (phase II)

y ,

PotashUsolskiy Potash (Perm)

S2 S1StatusCharacteristics

Li i d i 2008 i ti

C

License acquired in 2008 via auction processPurchase price of USD 172m

License area of 132.9 km2 in region

Depth of ca 500 meters

-62mPhase I: capacity of 2.0 MMT p.a., involves the construction

JORC proven and probable reserves: 420 MMT (30% KClcontent); useful life of mine: 37 years

Depth of ca.500 meters

-196m -62m

Phase II: additional capacity of 1.4 MMT p.a., involves the construction of skip shaft #2 and expansion of processing

of social infrastructure, cage shaft, skip shaft #1 and processing facility.

2012 2013 2014 2015 2016Total CAPEX, USDm 920 1,027 828 569 290

facility.

VolgaKaliy 691 707 521 321 14

Usolskiy Potash 229 320 307 248 276

Total next 5 years: USD 1,380 m

C Cage shaft (phase I)

S1 Skip shaft #1 (phase I)y ,

S2 Skip shaft #2 (phase II)

Nitrogen Segment

Summary Overview

Potash Segment

Phosphate Segment

Potash Segment

Performance Summary

PerformancePerformance overview

Key Figures 2011 External sales by segment (2011)

FY 2011 Y-o-Y,%

Revenue RUBm 131 298 +34%

Share (%)

Change to 2010 (PP)

1. Phosphates 46% -2

2 Nitrogen 40% 1

13

4

Revenue RUBm 131,298 +34%

EBITDA RUBm 49,656 +66%

Net profit RUBm 32,031 +60%

Gross margin % 52% +3 pp

2. Nitrogen 40% -1

3. Distribution 11% +7

4. Other 3% +1

2EBITDA margin % 38% +7 pp

Sales volumes:

Nitrogen* KMT 5,647 -

Ph h t ( l i d

External sales by region (2011)

2

Share Change toPhosphate (excl. iron ore and baddeleyite) KMT 2,387 -1%

Only iron ore and baddeleyite KMT 5,480 -11%

* Includes organic synthesis products.

Share (%)

Change to 2010 (PP)

1. Russia 24% -

2. Asia 23% +4

3. LatAm 15% -

4 E 14% 5

1

5

67 8

4. Europe 14% -5

5. CIS (exRUS) 12% -1

6. North America 8% -

7. Africa 3% +1

8. Australia 1% -3

4

2

19

3

PerformanceCapital expenditure

23.81• Melamine and urea revamp at Nevinnomyssk

Main Projects Main Projects 

4.68

18.69

20.47

• Melamine and urea revamp at Nevinnomyssk• Granulated urea at Novomoskovsk• Environmental monitoring stations and wastewater

treatment programs at Russian N facilities • Revamp/upgrade of plants to increase efficiency

NN

P

Nitrogen

Phosphate

6.406.79

5.25

bn

• Rebuild sulphuric acid production with capacity increase by 720 KMTp.a.Reconstruction of phosphate acid production with

K

O

Potash

Other

2.65

4.94

RU

B b • Reconstruction of phosphate acid production with

capacity increase by 300 KMTp.a. • Upgrade Kovdor wastewater treatment facility • Revamp/upgrade of P facilities to improve efficiency

P

6.406.97

10.56

1 84

1.71 1.800 64

1.370.99 1.68

3.85

6.006.78 7.17

• Shaft sinking at Gremyachinskoe (phases I & II) and Verkhnekamskoe (phase I)

• Start of beneficiation plant construction at Gremyachinskoe

K

2.85 3.312.17

0.65 0.14 0.89 0.48

1.51 2.653.20 3.21

1.051.840.64

2009 2010 2011 Q1 11 Q2 11 Q3 11 Q4 11

Gremyachinskoe

• Tuapse: operations commenced July 2011• Purchase of 2 Panamax vesselO2009 2010 2011 Q1 11 Q2 11 Q3 11 Q4 11 Purchase of 2 Panamax vessel

EuroChem StorySummary

2 1% of the world’s nutrient capacity today2.1% of the world s nutrient capacity today3.0% by 2020GrowthRussia / CIS the fastest-growing large market globally

Sustained competitiveness in N and P Benefits from iron ore as a co product of apatite miningEarnings power Benefits from iron ore as a co-product of apatite miningFuture global cost leadership in K

Earnings power

Greenfield potash developments Erosion of competitiveness on gas pricingControlled risksLimited free cash flow on heavy capex over 2012-2015

22

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