capital markets day - phosagro · sulphur 14% other 18% 2012, exw, us$ 0 100 200 300 400 500 600...

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CAPITAL MARKETS DAY 14 March 2013

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Irina

Evstigneeva

Head of

Corporate

Finance and

Investor

Relations

Roman

Osipov

Director for

Business

Development

Andrey

Guryev

Deputy CEO,

Head of

Sales and

Logistics

Alexander

Sharabaiko

Chief

Financial

Officer

Boris

Levin

Head of

Strategy

Siroj Loikov

Human

Resources

Director

Alexei

Gribkov

CEO,

Balakovo

Mineral

Fertilizers

Roman

Yakorev

Deputy IT

Director for

ERP System

Development

Mikhail

Rybnikov

Chief

Operating

Officer

CEO,

Management

Company

PhosAgro

Vladimir

Davydenko

Deputy CEO,

Apatit

Alexei

Grigoryev

CEO,

PhosAgro -

Cherepovets

Presentation team

1

Number of years with PhosAgro assets Number of years in chemicals / fertiliser sector

Maxim Volkov

Chief Executive

Officer

10 years 10 years

29 years 29 years 15 year 15 years 15 years 15 years

10 years 10 years 1 year 8 years 15 years 23 years 9 years 9 years 5 years 5 years

19 years 19 years

2 years 2 years

5 years 6 years

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1. Global positioning and strategy

2. Corporate structure and consolidation of subsidiaries

3. Market overview

4. Financial update

5. Asset overview and investment program

6. Closing remarks

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Slide Number

Table of contents

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100% self-sufficient in phosphate rock

72%-90% self-sufficient in ammonia(3)

More than 40% self-sufficiency in electricity

Self-sufficiency in key feedstocks

provides for low costs

Source: FERTECON, IFA, companies data, PhosAgro

Note: (1) Excluding Chinese producers

(2) PhosAgro, IMC as of June 2011

(3) Self –sufficiency depends on the composition of the products produced by PhosAgro

3

World class

integrated phosphate producer

#1 global producer of high-grade phosphate rock

#2 global DAP/MAP producer(1)

Leader in Russian fertiliser market growing twice

faster than the world consumption

Overall fertiliser capacity of 6.1 mln t

Large high quality

apatite-nepheline resources

2.1 bln t of ore resources(2) (over 75 years of

production)

Al2O3 resource of 283 mln t

DAP/MAP/NPK/ NPS/NP flexible production

lines

Net back driven sales model with a global

presence

Flexible production and sales

1 3

2 4

Unique world class integrated phosphate based producer

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2.4

1.4

0.8

1.8

0.2

1.8

0.8 1.1

PhosAgro Eurochem Acron Uralchem Minudobrenia(Rossosh)

Domestic DAP/MAP/NPScapacities

Domestic NPK capacities

27.8

12.1 7.7 7.6 7.3

3.5 3.5 2.5 1.1

OCP Mosaic Phosagro JPMC PotashCorp GecophamCF Industries GCT Ma'aden

Source: FERTECON, IFA, companies’ data 4

World class

integrated

phosphate

producer

Large

high quality

apatite-

nepheline

resources

Self-sufficiency

in key

feedstocks

provides for

low costs

Flexible

production and

sales

A leading global phosphate rock producer with over 2.1 bln t of apatite-nepheline ore resources (over 75 years of production)

#2 global DAP/MAP producer with 3.6 mln t capacity

9.7

3.6 3.5 2.9 2.3 2.2 2.0

Mosaic Phosagro OCP Ma'aden Eurochem CF Industries PotashCorp

2012, mln t, excluding Chinese producers

#1 producer of high-grade

phosphate rock (>35.7% P2O5)

2011, mln t, excluding Chinese producers

#1 phosphate-based fertilisers producer in the fast growing domestic market

2012, mln t

World class integrated phosphate producer

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Location(1)

Russia

Morocco

USA

Jordan

China

Tunisia

World Phosphate

Rock Reserves,

billion t

2.1 50 1.4 1.5 3.7 0.1

Ore type Igneous Sedimentary Sedimentary Sedimentary Sedimentary Sedimentary

Al2O3 content 13.0-14.0%

High Very low Very low Very low Very low

Low to

moderate

Minor Element

Ratio (MER)(2) 0.02-0.04 0.02-0.04 0.05-0.1 0.02-0.03 More than 0.05 0.05

Cadmium

content(3) Less than 0.1 15-40 9-38 5-6 2 40

Level of

radioactivity Very low Moderate

Moderate to

high

Low to

moderate

Low to

moderate Moderate

Hazardous

metals content Very low Moderate

Moderate to

high Low

Low to

moderate

Low to

moderate

Source: FERTECON, IMC, USGS 2011

(1) Primary global DAP/MAP producing regions

(2) Average Minor Element Ratio (MER) greater than 0.1 not sustainable for production of high quality DAP

(3) Average cadmium content in ppm

9

Control of world’s premium phosphate resource base

5

Positive effect on quality Negative effect on quality

World class

integrated

phosphate

producer

Large

high quality

apatite-

nepheline

resources

Self-sufficiency

in key

feedstocks

provides for

low costs

Flexible

production and

sales

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Self-sufficiency in key feedstocks

6

Source: Companies’ data, FERTECON, China Fert Market Weekly, PhosAgro

(1) As of February 2013

(2) Excluding resale, retail and advanced technologies

(3) Calendarised

(4) Raw material integration in the Global Phosphate Industry by phosphoric acid capacities, excluding China

World class

integrated

phosphate

producer

Large

high quality

apatite-

nepheline

resources

Self-sufficiency

in key

feedstocks

provides for

low costs

Flexible

production and

sales

With control over the major cost components… …PhosAgro enjoys extremely competitive cash

costs…(1)

…and displays exceptional profitability levels… …largely due to its highly integrated value chain(4)

Phosphate rock 55%

Ammonia 13%

Sulphur 14%

Other 18%

2012, ExW, US$

0

100

200

300

400

500

600

DAP FOB Tampa: $490/t

(Non

integrated)

(Non

integrated)

(Integrated)

FOB, US$ per tonne DAP

43%

32% 29%

24% 20%

PhosAgro ICL Agrium PotashCorp Mosaic

Average gross profit margin of phosphate segment for 2008-2011

(2) (3)

75%

25%

15%

Phosphate rock integration

Phosphate rock andammonia integration

Phosphaterock+ammonia+local

sulphur = Fully integrated

Integrated Non-integrated

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2.0

0.4

1.8

Flexible business model

Evolution of product mix

7

…driven by diversified and flexible exports structure

North America

South America

Europe Africa CIS(1)

Asia

Africa

North America

South America

Europe

CIS(1)

Asia

In volume terms

37% 55%

38% 32% 32%

34% 10%

20% 33% 24%

15% 17% 21%

17% 18%

9% 13% 8% 5% 13%

6% 4% 7% 6% 7% 2% 6% 7% 6%

2008 2009 2010 2011 2012

Source: PhosAgro, SMB

(1) Excluding Russia

World class

integrated

phosphate

producer

Large

high quality

apatite-

nepheline

resources

Self-sufficiency

in key

feedstocks

provides for

low costs

Flexible

production and

sales

Flexible production capabilities… …make for resilience profit margins…

mln t, 2012

- DAP/MAP - NPK - NPS - Total production

DAP/MAP only Product mix US$

+56%

+24% -13%

22%

27%

35% 34%

2009 2010 2011 9M20120%

10%

20%

30%

40%

50%

350

550

750

950

EBITDA Margin, % (rhs)

DAP, $/t, FOB, TAMPA (FMB, Fertecon)

Average DAP price growth

3.6 4.2

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Company history:

Organic growth and synergetic M&A

Source: PhosAgro

M&A

Construction of a new urea plant

with capacity of 0.5 mln t per year

Starting

production of

MCP Triple MCP

capacity from

80 kt to 240 kt

Infrastructure upgrade program

Sale of

Voskresensk

Mineral

Fertilizers

Acquisition of

Agro-

Cherepovets,

urea producer

2001 - 2004 2010 - 2011 2009 2008 2006 2005 - 2006 2012

Purchase of a further 20%

stake in Apatit

Merger of Ammophos and

Cherepovetsky-Azot

Metachem consolidation to

74.76%

Acquisition of

24% in

Metachem

Acquisition of a

61.8% stake in

Cherepovetsky

Azot

PhosAgro-

Cherepovets

Balakovo

Mineral

Fertilizers

Phosphate rock processing, % 1

2

3 Total volume of phosphate-based fertilisers, mln t

Total # of products Last 6 years more than US$ 2.5 bln

invested in modernisation

Organic

Total volume of nitrogen fertilisers, mln t

60

23

4.2

1.43

39

7

2.64

0.93 4

+21

+16

+59%

+54%

Increase of capacity

Phosphoric acid: 38%

Phosphate-based fertilisers: 58% (1.9 mln t to 3.0 mln t)

Electricity capacity: 179% (48 MW to 134 MW)

Increase of capacity

Phosphoric acid: 72%

Phosphate-based products: 92% (0.75 mln t to 1.44 mln t)

Electricity capacity: 104% (24 MW to 49 MW)

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48

151 183

151

2012

2011

+21% Electricity,

MW

2011

2001

+215%

Production capacity expansion

9

Capacity growth post IPO (2011-2012)

Source: PhosAgro

Capacity growth pre IPO (2001-2011)

Metachem capacities

End products

DAP/MAP,

mln t +41%

2011

2001

NPK,

mln t 0.8

1.7 +108%

2011

2001

1.8

1.7 +6%

2012

2011

0.98

0.48

+104% 2012

2011

Urea,

mln t 0.40

0.48 +20%

2011

2001

MCP,

mln t 80

240 +200%

2011

2002

1.94

1.86

4.83

4.61

+5% 2012

2011

Sulphuric

acid,

mln t 3.15

4.61 +46%

2011

2001

+4% 2012

2011

Phosphoric

acid,

mln t of P2O5 1.28

1.86

+45% 2011

2001

Feedstock / intermediary products

2.6

3.6

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0

1,000

2,000

3,000

4,000

5,000

6,000

2008 2009 2010 2011 2012

kt

MCP

NPS:

20:20:0:14

14:34:0:8

NPK/NPKS:

9:25:25:4

13:19:19

NPS:

20:20:0:14

16:20:0:14

14:34:0:8

15:36:0:8

NPK/NPKS:

9:25:25:4

10:26:26:4

15:15:15:8

10:20:20

13:13:21

16:16:8

13:19:19

12:32:12

6:20:30

12:32:16

PKS:

0:20:20:6

0:15:46:7

4X

NPK/NPKS/NPS/PKS grades from 4 up to 16

in 4 years

AN

Urea

DAP

MAP

NPK/NPKS/

NPS/PKS

NPS

16%

38%

AN

Urea

DAP

MAP

NPS NPK/NPKS/

NPS/PKS

APP

10 Downstream

Products in 2008

23 Downstream

Products in 2012

Overall

CAGR:9%

NPK/NPS

CAGR: 33%

Kt

MCP

STPP

Note: As of 31 December 2012

High-margin demand for NPK drives PhosAgro’s production

mix

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2.4

2.0

0.7

0.1

1.0

0.4

0.5

NPK

PKS

SOP

MAP

DAP

NPS

MCP

APP

STPP

UREA

AN

Marketable Ammonia

1.6

2.0

0.7

0.7

0.4

NPS

MCP

APP

UREA

AN

MAP

DAP

NPK

63%

37%

2012

Source: PhosAgro

Future (one – four years)

Total: 7.9 mln t

Phosphate rock

15

External

sales

Internal

consumption

New ammonia plant

Ammonia

kt

Overall growth 31%

55%

45%

1,096 1,244

Production Consumption

Total: 7.9 mln t

External

sales

Internal

consumption

New NPK/PKS production

Overall 5.4 mln t

Overall 7.1 mln t

1,150

760

1,455

Capacity Consumption

Total: 1,910 kt

New

pla

nt

11

Long term strategy for volume growth of fertilisers

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105 98 159

188 251

413

384 344

293 349

572

384 344

415

674

1,204

916 874

0

200

400

600

800

1,000

1,200

1,400

2009 2010 2011 9M2011 9M2012

EBITDA

EBITDA vs Capex¹

Source: PhosAgro

Notes: Applied average US$/RUB exchange rates: 31.77 (2009), 30.38 (2010), 29.39 (2011), 31.10 (9M2012), 31.10 for all periods after 9M2012

(1) Additions to Cash from Investment Activities (not Balance Sheet Capex)

Capex policy

12

Maintenance Capex Development Capex

US$ mln

The target is to keep capital expenditures ≤ 50% of EBITDA

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Source: PhosAgro

Note: (1) Cash flows used in operations before income tax and interest paid

Applied average US$/RUB exchange rates: 31.72 (2009), 30.37 (2010), 29.39 (2011), 31.10 (9M2012)

Dividend Policy Post-IPO dividend yield > 5%

Formal policy to pay between 20% to 40% of annual consolidated profit calculated in accordance with IFRS as

dividends

252 285

+33

Post IPO Dividends and Proforma Dividends with Apatit Consolidation

April-December 2011 9M 2012

- Net Income attributable to PhosAgro Shareholders - Other minorities - Dividend paid - Minorities of Apatit - Proforma dividends

+13% +5%

2011 April-December 9M 2012

Actual Proforma Actual Proforma

Dividends, US$ mln 228 239 252 285

Payout ratio, %

(Net profit attributable to PhosAgro

shareholders)

49 49 49 49

Payout ratio (% of Total Net profit) 44 46 41 46

Dividend payments

per GDR, US$ 0.61 0.67 0.67 0.79

Dividends

13

x49% x49%

493

23 30

514

67

36

228 239

+ 11

Dividends and dividend policy

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3. Market overview

4. Financial update


6. Closing remarks

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103 15

Evolution of corporate structure

Organisational structure at IPO Current structure Target post-consolidation structure

CJSC

PhosAgro AG

(Management

Company)

(100%)

OJSC

“PhosAgro”

(Holding

Company)

Apatite-

nepheline ore

mining and

beneficiation,

etc.

Production of

Phosphate-

Based

Fertilisers

and feed

phosphate

Production of

ammonia and

Nitrogen-

Based

Fertilisers

Other

operations

Balakovo

Mineral

Fertilizers LLC

(100%)

PC Agro-

Cherepovets

LLC

(100%)

OJSC Apatit

(57.6%)

OJSC

Ammophos

(93.8%)

JSC

Cherepovetsky

Azot

(61.9%)

PhosAgro –

Trans LLC

(transportation)

(100%)

PhosAgro-

Region

LLC (storage

and

distribution)

(99.99%)

OJSC NIUIF

(research

and

development)

(94.4%)

CJSC

PhosAgro AG

(Management

Company)

(100%)

OJSC

“PhosAgro”

(Holding

Company)

Apatite-

nepheline ore

mining and

beneficiation

etc.

Production of

Phosphate-

Based

Fertilisers

and feed

phosphate

Production of

ammonia and

Nitrogen-

Based

Fertilisers

Other

operations

OJSC Apatit

(95.95%)

+38.36%

Ammophos

assets

+0.3%

PhosAgro –

Trans LLC

(transportation)

(100%)

PhosAgro-

Region

LLC (storage

and

distribution)

(99.99%)

OJSC NIUIF

(research

and

development)

(94.4%)

Metachem LLC

(74.8%)

+74.8%

Mining and

Chemical

Engineering

LLC

(100%)

Balakovo

Mineral

Fertilizers LLC

(100%)

PC Agro-

Cherepovets

LLC

(100%)

OJSC PhosAgro - Cherepovets

(87.6%)

CJSC

PhosAgro AG

(Management

Company)

(100%)

OJSC

“PhosAgro”

(Holding

Company)

Apatite-

nepheline ore

mining and

beneficiation

etc.

Production of

Phosphate-

Based

Fertilisers

and feed

phosphate

Production of

ammonia and

Nitrogen-

Based

Fertilisers

Other

operations

OJSC Apatit

(100%)

+4.05%

Ammophos

assets

Cherepovetsky

Azot assets

PhosAgro –

Trans LLC

(transportation)

(100%)

PhosAgro-

Region

LLC (storage

and

distribution)

(99.99%)

OJSC NIUIF

(research

and

development)

(94.4%)

Metachem LLC

(100%)

+25.2%

Mining and

Chemical

Engineering

LLC

(100%)

Balakovo

Mineral

Fertilizers LLC

(100%)

PC Agro-

Cherepovets

LLC

(100%)

OJSC PhosAgro - Cherepovets

(100%)

+12.4%

Source: PhosAgro, MergerMarket

Legal entities with changes in shareholder structure

Cherepovetsky

Azot assets

+1.4%

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103 16

Apatit buyout

Sber CIB

1) The structure of the buyout

2) Price in $ per share and $ mln

3) Value accretion

Purchase of Nordic Rus

Holding (step 1)

Decision to

launch the

squeeze-out

Mandatory

buy-out

Purchase of Nordic Rus

Holding (step 2)

Source: PhosAgro

Note: Transaction values translated into US$ using an exchange rate as of date of payment

(1) Affiliated company 49%-owned by PhosAgro

Total amount of investments in buy-out of Apatit shares to date – US$585 mln

Privatisation

auction

Sep-Oct 12: acquisition

of a 20%-stake at

privatisation auction for

US$357 mln

Resulting stake: 77.57%

Nov 12 - Feb 13: buy-out of

11% shares via mandatory

offer for US$196 mln

Resulting stake: 95.95%

Oct 12: acquisition of

a 24%-stake in

Nordic Rus Holding

for US$32 mln

Feb 13:

Management

Board decides

to launch

compulsory

buy-out

Nov 11: acquisition of

51% stake in Nordic Rus

Holding, owner of 7.73%

shares in Apatit, by

PhosInt Ltd (1)

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3. Market overview

4. Financial update


6. Closing remarks

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The biggest portion of the world’s growing 7 bln population(1)…

… translates into the largest share of phosphate consumption

Source: PhosAgro, UN statistics division

Note: (1) World Population was of 6,974 mln people in 2011

China 29%

India 19% USA

10%

Brazil 9%

Others 33%

Breakdown of World population by countries

Breakdown of global phosphate fertiliser consumption by countries

• Global phosphate fertiliser consumption is 44.1

mln t of P2O5 per annum

• China consumes about 25 mln t of DAP

equivalent products

China 19%

India 17%

Other Asia 24%

Africa 15%

Latin America 9%

Europe 11%

North America 5%

Limited arable land stimulates fertiliser consumption

0.25

0.25

0.22

0.14

0.10

World

LatinAmerica

Europe

India

China

ha p

er

capita

18

China is the major consumer of phosphate fertilisers

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0

20

40

60

80

100

120

2008/09 2009/10 2010/11 2011/12 2012/13 2022/23 F

Food Imports are growing in China

Corn Imports

Soybean Imports

CAGR+13%

0

5

10

15

20

25

2008/09 2009/10 2010/11 2011/12 2012/13 2022/23 F

CAGR +10%

CAGR +10%

CAGR +5%

Pork Imports

0

400

800

1200

1600

2008/09 2009/10 2010/11 2011/12 2012/13 2022/23 F

CAGR +2%

CAGR +5%

China’s Economy keeps growing

Source: PhosAgro, FAO, United Nations, IFA, World Bank, US$A

mln

t

mln

t

k t

0

2,000

4,000

6,000

8,000

10,000

12,000

0

2

4

6

8

10

12

14

16

2002 2004 2006 2008 2010 2012 2014 2016

GDP per capita in China, USD, current prices (rhs)

GDP growth in China, y-o-y, % (lhs)

World GDP Growth, y-o-y, % (lhs)

US

$

%

CAGR +15%

19

Growing food consumption in China

drives demand for phosphates

GDP per capita in China, US$, current prices (rhs)

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103

103

Source: IFA, CFMW, China National Information Center (CNCIC)

0

2,000

4,000

6,000

8,000

10,000

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

NP/TSP

DAP/MAP

Chinese phosphate rock exports Chinese exports of DAP / MAP / NP / TSP Commissioning of new H3PO4

capacities

kt kt kt

From January 2012 the

Chinese government

imposed an export duty of

82% on NP/TSP during peak

seasons (Jan-May, Oct-Dec)

0

1,000

2,000

3,000

4,000

5,000

2000 2002 2004 2006 2008 20102011

In the second half of 2011, phosphate rock prices increased several times, with

an overall price hike of US$ 11-13/t. In 2012 the price increased by US$ 8-10/t.

The price of the phosphate rock (P2O5>30%) reached US$ 126/t(1)

Note: (1) Applied exchange rate US$/CNY: 6.35

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2000-2003

2004-2007

2008-2011

2012F-2015F

-42%

20

In total more than 230

Chinese phosphate

fertiliser producers with

average unit capacity

less than 100 kt P2O5 per

year

Development of Chinese phosphate exports

4

160

53

0

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170

166

166

166

225

235

225

170

178

210

225

225

225

103

103

103

India is the major purchaser of DAP/MAP… … and importer of feedstock for phosphates production

Global Phosphoric Acid Imports of 4.5 mln t P2O5

2.1

Others

Africa

North America

Latin America

Middle East

Other Asia

Europe

India

Global Phosphate Rock Import of 31.1 mln t

7.5

Others

Africa

Oceania

Middle East

FSU

Latin America

North America

Other Asia

Europe

India

mln

t P

2O

5

mln

t

Indian imports of

phosphoric acid equal

to 4.5 mln t of DAP

Indian imports of

phosphate rock equal

to 5 mln t of DAP

21

India 26%

Latin America 23%

East Asia 14%

Europe 12%

Other South Asia 6%

Oceania 5%

North America 5%

Africa 4%

Middle East 4%

FSU 1%

Source: IFA, FCC, PhosAgro

Note: (1) Average figures for 2005-2010

World DAP/MAP Imports : ~8.5 mln t of P2O5 per annum(1)

India depends on P2O5 imports

4

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103

103

103

0

100

200

300

400

500

600

700

800

Apr-10 Apr-11 Apr-12

Subsidy, $US/tImport Price, $US/t, CFRSubsidy and Retail Price, $US/t

Subsidy, US$/t Import price, US$/t, CFR Subsidy and Retail Price, US$/t

Subsidies and imports of phosphate fertilisers in India decrease Indian domestic price is twice above the current subsidy level

Unbalanced fertilisation

Source: PhosAgro, FAI, IFA, Fertecon

k t

mln

t

US

$

Rs, bln

0.38 0.43

0.47 0.45

0.39

0.0

0.1

0.2

0.3

0.4

0.5

0

2,000

4,000

6,000

8,000

2008 2009 2010 2011 2012EDAP ImportsP2O5/N ratioP2O5/N balanced fertilisation

0.5

Evolution of N: P2O5 :K2O ratio in India

N P2O5 K2O

Balanced ratio 4.0 2.0 1.0

2010/11 4.3 2.0 1.0

2011/12 6.9 3.1 1.0

2012/13 7.7 3.0 1.0

N P2O5 K2O

2010/11 23.227 26.276 24.487

2011/12 27.153 32.338 26.756

2012/13 24.0 21.804 24.0

Change -11.6% -32.6% -10.3%

Nutrient Based Subsidy (NBS) Rates in India (Rs/kg nutrient)

0

200

400

600

800

1,000

1,200

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

2008 2009 2010 2011 2012E

Urea subsidies, bln Rs (rhs)Subsidies for phosphorus and potassium, bln Rs (rhs)DAP Import, kt (lhs)Urea Import, kt (lhs)

55%

45%

32%

68%

62%

CAGR +2.6%

22

Change in subsidy policy to

Nutrient based subsidy policy

P2O

5 /N

ratio

Uncertain policy for nutrient subsidies in India decrease

fertiliser imports and unbalance fertilization

4

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225

170

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225

225

225

103

103

103

30

50

70

90

110

130

150

170

2008 2009 2010 2011 2012

Corn, mln tSoybean, mln t

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012

Brazil NPK Imports

k t

…skyrocketing consumption of phosphate fertilisers in Brazil

mln

t P

2O

5

Substantial growth in production of major phosphate consuming agri-products results in …

Breakdown of phosphate fertilisers consumption by crops

in Brazil

Growth in corn and soybeans production, yet more arable land

10% CAGR

CAGR: +43%

2000

2500

3000

3500

4000

4500

2008 2009 2010 2011 2012E

available

23

India 26%

Latin America 23% East

Asia 14%

Europe 12%

Other South Asia 6%

Oceania 5%

North America 5%

Africa 4%

Middle East 4% FSU 1%

Soybean 45%

Corn 18%

Other cereals

7%

Sugar crops 6%

Others 24%

Source: IFA, US$A, MDIC Brazil

mln

t

Brazil phosphate fertilisers market outpaces others

4

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53

0

79

170

166

166

166

225

235

225

170

178

210

225

225

225

103

103

103

Source: IFA, Azotecon, PhosAgro

Note: (1) Average figures for 2005-2010

World NPK imports: ~2 mln t of P2O5 per annum(1)

Europe 36%

Other East Asia

19%

Lat. America

16%

China 8%

Africa 8%

FSU 5%

Others 4% South

Asia 4%

24

India 26%

Lat. America

23% East Asia 14%

Europe 12%

Other South Asia 6%

Oceania 5%

North America

5%

Africa 4%

Middle East 4%

FSU 1%

World DAP/MAP imports : ~8.5 mln t of P2O5 per annum(1)

World NPK production

mln t P2O5, excluding blending

- Actual - Estimate

4

5

6

7

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E

NPK production in Russia

k t P2O5

- PhosAgro NPK production - NPK production in Russia

+31%

0

200

400

600

800

1000

2006 2007 2008 2009 2010 2011 2012

34% 24% 23% 26% 29% 20% 39%

PhosAgro’s flexible model meets global demand for NPK

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103

Brazil

China

France

India Pakistan

Russia

USA

UK Germany

0

20

40

60

80

0 50 100 150 200 250 300

Ce

rea

ls Y

ield

, 100

kg

/Ha

Fertilizer use for cereals (kg/Ha)

0

1

2

3

4

5

6

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Source: IFA, World Bank, Azotecon, PhosAgro

Note: (1) First full year of PhosAgro operations

(2) Current railway tariff for transportation of one tonne of fertilisers to Krasnodar / Stavropol regions

#1 phosphate fertiliser supplier for domestic market

25

PhosAgro 54%

Acron 22%

Uralchem 10%

Eurochem 6%

Others 8%

Fertiliser effects on yields

Ramp up of new NPK plant will cover domestic demand Fertiliser consumption in Russia

Potential supply of

NPK from Balakovo will

decrease logistics

costs

Post-Soviet

collapse

New

economy

Balakovo Mineral

Fertilizers (BMF)

PhosAgro Cherepovets

Agro-Cherepovets

Apatit

Novorossiysk

Baltic ports

St. Petersburg

Murmansk

Metachem

In 2012 domestic

NPK sales were

499 kt

39 US$/tonne(2)

27 US$/tonne(2)

In 2012 PhosAgro

domestic sales were

726 kt

Top 15 regions of NPK

and MAP consumption

mln

t o

f nutr

ients

Phosphates Nitrogen Potash

PhosAgro - the main phosphate fertiliser supplier

for domestic market

4

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170

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103

103

7,800

4,523

3,2772,614 1,563

1,714

Total sales Internalsales

Externalsales

Domestic(2012)

Domestic(2013E)

Export

Projection of PhosAgro rock production breakdown in 2013

26

Comments

Before 2013 Russian domestic phosphate rock

prices were inflated to PPI

Starting from 2013, the liberalisation of the

phosphate rock market takes effect

In accordance with the new rules, domestic prices

match export prices

However, in 2013 there will be a discount due

to a 30% contribution of inflated domestic

prices from the the previous year

Source: PhosAgro

Note: (1) Applied RUB/US$ exchange rate of 31.1, phosphate rock equaled to Apatit EXW less freight costs for transportation from Murmansk to Apatit

(2) projected domestic price calculated as average 2012 price (RUB 4,301) multiplied by 2012 PPI (105.1%)

2013, kt

Contribution of Moroccan Price, US$ 151

Morocco FOB price (Casablanca) as of 5 March 2013, US$ 163

Contribution of Domestic Price, US$(2) 44

Phosphate rock price recommended by Federal

Antimonopoly Service for 2013, US$ 195

70% x Phosphate rock Morocco FOB Price x 1.32

+

30% x Phosphate rock last year domestic price x PPI

35% x Phosphate rock Minimum Export Price

+

35% x Phosphate rock Morocco FOB Price x 1.32

+

30% x Phosphate rock last year domestic price x PPI

Contribution of minimum export price, US$ 82

Phosphate rock Minimum Export Price, US$ 233

Contribution of Moroccan price, US$ 75

Morocco FOB price (Casablanca) as of 5 March 2013, US$ 163

Contribution of Domestic Price, US$(2) 44

Phosphate rock price recommended by Federal

Antimonopoly Service for 2013, US$ 201

c.1,000 kt apply to

Uralchem regulated

contracts expiring in

Dec. 2013

Phosphate rock price under formulas recommended by Federal Antimonopoly Service

Phosphate rock: 30/70 formula calculations case study Phosphate rock: 35/35/30 formula calculations case study

750

Phosphate rock market liberalisation

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3. Market overview

4. Financial update


6. Closing remarks

3

15

18

28

36

46

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556 615

22% 24%

9M2011 9M2012

US

$ m

ln

Net Income Margin

415

674

1,204 22%

27% 35%

2009 2010 2011

US

$

mln

EBITDA Margin

274 395

765

14% 16%

22%

2009 2010 2011

US

$

mln

Net Income Margin

Revenue (9M 2011/2012) EBITDA (9M 2011/2012)

Source: FMB, Fertecon

Note: Applied average US$/RUB exchange rates: 31.72 (2009), 30.37 (2010), 29.39 (2011), 28.77 (9M 2011), 31.10 (9M 2012)

Revenue (FY 2009-2011) EBITDA (FY 2009-2011)

Net Income (9M 2011/2012)

Net Income (FY 2009-2011)

28

1,430 1,948

2,775 376

457

493

12

20

26

98

108

127

1,916

2,533

3,420

2009 2010 2011

US

$

mln

Chemical fertilisers Apatite concentrate

Nepheline concentrate Other

916 874

36% 34%

9M2011 9M2012U

S$ m

ln

EBITDA Margin

2,006 1,954

374 445

19 18 50 32 112 99

2,561 2,548

9M2011 9M2012

US

$ m

ln

Series5 OtherNepheline concentrate AmmoniumApatite concentrate

DAP FOB Tampa:

US$ 624/t

DAP FOB Tampa:

US$ 539/t

DAP FOB Tampa:

US$ 319/t

DAP FOB Tampa:

US$ 498/t

DAP FOB Tampa:

US$ 620/t

Key financial highlights

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40% 43%

40% 36% 36%

21% 18%

19% 20% 19%

4% 8% 7% 8% 10% 9% 9% 7% 5% 9% 10%

10% 6% 7% 8% 7% 7% 9% 9% 7% 8% 6%

10% 10% 6% 6% 5%

2009 2010 2011 9M2011 9M2012

Co

GS

(%

of t

ota

l)

Other items

Depreciation andamortisation

Gas

Electricity

Sulphur and sulphuricacid

Fuel

Potash

Salaries and socialcontributions

Materials and services

Cost of goods sold and sales volumes DAP production cash cost breakdown

ExW, US$, 2012

Source: PhosAgro, Russian Federal State Statistics Service

Note: Excluding change in stock of WIP and finished goods. Applied average US$/RUB exchange rates: 31.72 (2009), 30.37 (2010), 29.39 (2011), 28.77 (9M2011), 31.10 (9M2012)

(1) Average for 9M 2012

2009 2010 2011 9M2011 9M2012

Fertilisers sales, kt 4,557 4,692 4,951 3,711 4,018

YoY change, % 3.0% 5.5% 8.3%

Rock sales, kt 2,807 3,712 3,153 2,351 2,534

YoY change, % 32.2% (15.1%) 7.8%

CoGS, US$ mln 1,222 1,592 1,937 1,422 1,432

YoY change, % 30.3% 21.7% 0.7%

PPI 13.9% 16.7% 12.0% 9.8% 9.4%

Exchange rate, US$/RUB 31.72 30.37 29.39 28.77 31.10

Appreciation/(depreciation) of RUB, % 4.3% 3.2% (8.1%)

Phosphate rock 55%

Ammonia 13%

Sulphur 14%

Other 18%

29

PhosAgro Europe USA Morocco

Sulphur, US$ 80 - 175 194

Natural gas,

US$/mmbtu 3.5 9.0 3.7 -

Potash, US$ 271 473 475 -

Ammonia, US$ - 582 575 567

External feedstock price advantage (1)

Cost of goods sold

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10,544

9,566 8,973

42.3 49.6

55.2

0.0

20.0

40.0

60.0

8,000

9,000

10,000

11,000

2011 2012 2013E

Average headcount (lhs)

Efficiency of labour, kt of fertilisers and feed phosphates per capita per month (rhs)

30

Evolution of labour productivity

Upstream operations (Apatit)

Downstream operations (Cherepovets production site, Balakovo)

Source: PhosAgro, Russian Federal State Statistics Service

Note: Applied average US$/RUB exchange rates: 28.77 (9M2011), 31.10 (9M2012)

(1) Incl. salaries and social contributions

• Labour efficiency increased due to headcount

reduction combined with simultaneous increase in

fertiliser production

• Since IPO the average number of employees

at Apatit, BMF and the Cherepovets

production site (primary production sites)

decreased from 23,780 in 2011 to 22,293 in

2012

• At the same time, total production of fertilisers

increased by 8.6% in 2012 on y-o-y basis

• Personnel management process comprises the

following elements:

• Outsourcing non-core services, and

• Re-engineering of business processes

• Scope of responsibility expansion

• Consolidation of service department functions

on the Group wide level

Personnel management – controlling costs

• The average salaries has grown at a rate that

is competitive with regional labour markets

• Successful control over the salary growth

and social contributions

Personnel management provides control over efficiency

k t p

er

ca

pita

k t p

er

ca

pita

Num

be

r o

f e

mp

loye

es

Num

be

r o

f e

mp

loye

es

11,637

11,348 11,201 62.4

65.8 66.8

60.0

62.0

64.0

66.0

68.0

10,800

11,000

11,200

11,400

11,600

11,800

2011 2012 2013E

Average headcount (lhs)Efficiency of labour, kt of phosphate rock per capita per month (rhs)

Productivity of labour, kt of fertilisers and feed phosphates per capita per month (rhs)

Productivity of labour, kt of phosphate rock per capita per month (rhs)

286

269

9M2011 9M2012

Salary expenses in COGS, US$ mln(1)

CPI:+6.6%

-6.2%

+5%

+2%

+17% +11%

Personnel management – controlling expenses and

increasing labour efficiency

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103

Total Debt / EBITDA and Net Debt (1) / EBITDA

31 Note: Applied average US$/RUB exchange rates: 30.37 (2010), 29.39 (2011), 28.8 (9M2011), 31.1 (9M2012)

(1) Net debt is calculated as total loans and borrowings minus cash and cash equivalents

(2) As of 30 September 2012. Includes secured bank loans, unsecured bank loans, letters of credit and finance lease liabilities

0.3x

0.4x

0.9x 1.0x

(0.1x)

0.2x

0.4x

0.3x

(0.5x)

0.0x

0.5x

1.0x

2009 2010 2011 9M2012

Total Debt / EBITDA Net Debt / EBITDA

Types of debt instruments (2)

USD denominated

94%

RUB denominated

3%

EUR-denominated

3%

Unsecured loans

88%

Finance lease liabilities

7%

Secured letters of credit

5%

Source: PhosAgro

Net Debt

Actual Net Debt as of 30 September 2012 (US$ in millions)

Total Debt, incl.: 1,156

Short-term debt 697

Long-term debt 459

Cash and cash equivalents (815)

Net Debt 341

Comments

As of 30 September 2012 Net debt / annualised

EBITDA was at very comfortable level of 0.3x

PhosAgro is well positioned to access debt

financing for planned acquisitions of additional

stakes in its production subsidiaries while

maintaining strong balance sheet

Almost all outstanding debt has floating interest

rates tied to LIBOR/EURIBOR except for Eurobond

Solid balance sheet

US$

denominated

94%

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Format RegS/144A

Volume US$ 500 mln

Maturity 5 years

Placement date 13.02.2013

Coupon 4.204%

Spread to UST/MS 335.8 bps / 320 bps

Total demand US$ 2.6 bln

Oversubscription 5.2х

32

High credit rating:

Successful recent Eurobond placement

Key Eurobond highlights

Key terms of Eurobond

In February PhosAgro’s placed its debut Eurobond issue of

US$ 500 million for 5 years

As a result of efficient marketing campaign final coupon rate

was fixed at the lowest end of the range - MS + 320 bps

Assigned ratings overview

An investment-grade long-term Issuer Rating of ‘Baa3’

with a Stable outlook by Moody’s Investor Service

A long-term corporate credit rating of ‘BB+’ with a positive

outlook by Standard & Poor's

A long-term foreign currency Issuer Default Rating of ‘BB+’

with a Stable outlook by Fitch Ratings

"The assigned Baa3 long-term issuer rating balances

PhosAgro's strong operational and financial performance,

including low leverage and high cash flow generation against

the volatility in the crop nutrient market, the cyclical nature of the

company's commodity business and the fact that there has been a

relatively limited track record of PhosAgro in the current setup and

as a publicly listed company."

Moody’s Investor Service, 30 January 2013

• "We believe Russia-based phosphate fertilizers and rock

producer PhosAgro benefits from large, high quality, low

cost phosphate rock reserves and supportive long-term

demand fundamentals

• The group has demonstrated a conservative financial policy

in the past several years, with low net and gross debt to

EBITDA, which we expect will continue

• We are assigning our 'BB+' long-term and 'ruAA+' Russia

national scale ratings to PhosAgro

• The positive outlook reflects the potential for a one-notch

upgrade if the company completes its secondary public

offering and diversifies funding sources in line with its plan,

while sustainably maintaining very strong credit metrics under

our base-case scenario."

Standard & Poor's, 21 February 2013

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ERP timeline

1

2006 2007 2009 2012 2008 2011 2010 2013

Implementation project (JSC

Apatit)

1st rollout project (JSC

Ammophos, JSC Cherepovetskiy

Azot)

Business Intelligence

project. Dashboards

for plants managers

2nd rollout project

(Agro-Cherepovets,

BMU)

Business

Intelligence project

for top managers.

3d rollout

(Metachem)

Continuous Improvement

Development Plan:

•Include additional

companies into ERP

instance

•Improve solutions

for mobile devices

•Automate KPIs

calculation

• Upgrade software

version to R12

33

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ERP System in PhosAgro

2

Planning and budgeting

Inventory Account Payable

Accounts

Receivables

Cash Flow

Maintenance

Manufacturing

Fixed Assets Projects

Cost management General Ledger

Report System Business Intelligence

Manufacturing Executive System HRMS

34

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3. Market overview

4. Financial update


6. Closing remarks

3

15

18

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36

46

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PHOSPHATE

ORE MINE

BENEFICIATION

PLANT

SULPHUR SULPHURIC

ACID PLANT

GAS

POTASH

PHOSPHORIC

ACID PLANT

AMMONIA

PLANT

NPK

1.8 mln t

End products

Ou

tbo

un

d

Lo

gis

tic

s

DAP / MAP / NPS

2.4 mln t

36 Source: PhosAgro

(1) Expected volume of phosphate rock sales to third parties in 2013 Part of PhosAgro vertical operations

Integrated production model Production footprint

Moscow

Balakovo Mineral Fertilizers (BMF)


Agro-Cherepovets

Apatit

Novorossiysk

Baltic ports

St. Petersburg

Murmansk

Distribution hubs Export ports

Metachem

Processing operations Mining operations

UREA

PLANT

Urea

0.98 mln t

Phosphare rock

3.3(1) mln t

Value chain overview

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2012 volume

mined, mln t

Target mining volumes after

shaft #2 reaches full capacity

in 2017

2012 cost

per tonne, $

Underground mines 15.6 18.0 11.3

Open-pits 10.8 10.0 23.0

Phosphate rock 7.9 79.4

37

Key highlights

Production flow

Resources / capacity by product

Key production assets footprint

Located in Murmansk region, Apatit produces

phosphate rock and nepheline concentrate

Largest standalone producer of high grade

phosphate rock globally(3)

Russia’s only nepheline concentrate producer

Ore extraction from the deposits is conducted via

four mines (Kirovsky, Rasvumchorr, Central and

Eastern) with a combined capacity of 27 mln t per

year

Resources(1)

Apatite-nepheline ore: 2,074 mln t

Al2O3: 283 mln t

REO(2): 7.5 mln t

Capacity by product

Phosphate rock: 7.8 mln t

Nepheline: 1.7 mln t

Source: PhosAgro (capacity as of December 31, 2011), FERTECON, European Commission

Note: Applied average exchange rate US$/RUB: 31.09 (2012)

Kirovsk

Apatity ANBP – 3

ANBP – 2

Kirovsky Mine

Rasvumchorrsky

Mine

Central Mine

Vostochny

Mine

Mining

Beneficiation

Open-pit mining Underground mining

ANBP-3 ANBP-2

Phosphate Rock

Superior grade:

P2O5 content 40%

Standard grade:

P2O5 content 39%

Nepheline concentrate

Mining

Benefication

Mines Opex per tonne of ore

(1) Measured and indicated, PhosAgro, IMC, JORC report June 2011

(2) Rare earth oxides

(3) Defined as phosphate rock with P2O5 content over 35.7%

Apatit overview

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Mine Mineral resources, kt

Average P2O5

content, % Stripping ratio

Kirovsky

underground mine 969,327 14.43 -

Rasvumchorrsky

underground mine 295,203 13.85 -

Central

open-pit 118,193 14.17 2.73

Vostochny – Koashva

open-pit 630,901 16.79 3.92

Vostochny – Njorkpahk

open-pit 60,293 14.83 0.83

TOTAL 2,073,918 15.06

38

Source: IMC Group Consulting Ltd, Competent Persons Report of the Mining Assets of OAO PhosAgro

Note: The information relating to mineral resources as at 1 June 2011 is a JORC Equivalent Resources

Apatit mining assets

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58% 56% 56% 59% 62% 64% 65% 65% 64%

42%44% 44% 41% 38% 36% 35% 35%

36%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2009 2010 2011 2012 2013 2014 2015 2016 2017

mln t

Undeground mines Open-pits

39

Comments

Main shaft #2 Capex

Main shaft #2 at Kirovsky mine

Ore production dynamics

Both an open-pit and an underground mine

The ongoing modernisation and expansion of the Group’s

apatite-nepheline ore mines provides for commissioning of

Main shaft #2 in the second half of 2016, which will improve

efficiency by increasing the share of lower-cost

underground mining over open-pits

Expected post-completion extraction capacity will

increase from 12 mln t per year in 2012 to 14 mln t

per year in 2016

Source: PhosAgro

Note: Applied exchange rate US$/RUB for all periods after 9M2012: 31.10

Main shaft #2 at

full capacity

US$ mln

389

267

74

48

Total Capex Spent as ofJanuary 1, 2013

Budgeted for2013

Budgeted for2014 - 2016

Apatit development program

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Located in the city of Cherepovets, PhosAgro-Cherepovets

is the largest stand-alone phosphate-based fertiliser

producer in Europe, according to IFA

Capable of producing MAP, DAP, NPK and NPS on the

same four production lines, with switch time within two

working shifts

One of the largest standalone producers of urea, ammonia,

AN/AN-based fertilisers in Russia

In 2012 the Group built a gas-turbine power plant with

electricity generation capacity of 32 MW, which is expected

to further increase the Group’s energy self-sufficiency

40

Key highlights Capacity by product

Technical modernisation at PhosAgro-Cherepovets assets


(1) Since acquisition of Agro-Cherepovets in 2008

(2) Since acquisition of Cherepovetsky Azot in 2005

Total number of end products in 2012: 17

MAP/DAP/NPS: 3.0 mln t (incl. 1.8 mln t fully flexible for

NPK)

Ammonia: 1,100 kt (additional 760 kt to be launched by

2017 and 50 kt due to modernisation program)

Urea: 980 kt

AN/AN-based: 450 kt

APP: 140 kt

AIF3: 24 kt

RATIONALE

Efficiency

improvement

Growth of

production

volume

2.1

2.7

2001 2012

+29%

Sulphuric acid

mln t

0.8

1.1

2001 2012

+38%

Phosphoric acid

mln t of P2O5

0.8

1.8

2001 2012

NPK

mln t

+125%

1.0

1.1

2005 2012

Ammonia(2)

mln t

+10%

0.5

1.0

2008 2012

Urea(1)

mln t

+104%

48

134

2001 2012

Electricity

MW

+179%

Cherepovets production complex overview

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103 41 Source: PhosAgro, Fertecon, US Energy Administration, World Bank

Note: Applied average US$/RUB exchange rates is 31.10 for 2012 – 2016 period

The current 72%-90% level of self-sufficiency in ammonia will be significantly

improved after the launch of new ammonia plant with 760 kt capacity

Sensitivity analysis of the new ammonia plant construction with 760 kt capacity

Ammonia Capex breakdown Total Ammonia Capex breakdown(1)

Current price

Base case

Ammonia price in 2017, US$ per tonne 550 430

IRR 20% 13%

Payback period, years 11 14

785

209

576

Total Capex Budgeted for 2013 Budgeted for2014 - 2016

US$ mln

Ammonia production

facility construction

Infrastructure facilities

construction69% 31%

Cherepovets production complex development program

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440

760

2001 2012

1.1

1.9

2001 2012

Total number of end products in 2012: 6

MAP/DAP/NPS: 1.2 mln t

NPS 16:20:14

NPS 20:20:14

NPS 14:34:8

Feed phosphate (MCP): 240 kt

42 42

Key highlights Capacity by product

Technical modernisation at BMF

Located in the city of Balakovo in the Saratov region, BMF is the leading European and the only Russian producer of feed phosphate MCP

Operates three sulphuric acid production lines, two phosphoric acid production lines and four phosphate-based fertiliser production lines that are capable of producing MAP, DAP or NPS

At the moment BMF is capable of switching production from MAP/DAP to 3 grades of NPS (switch time within two working shifts) in response to market demand

In 2011 produced enough energy to satisfy c.70% of its energy requirements

In the course of the modernisation program the electric capacity was doubled to 49 MW in 2010


Note: Applied average US$/RUB exchange rates is 31.10 for 2012 – 2017 period

RATIONALE

Efficiency improvement

Product line expansion

+72%

Sulphuric acid

mln t

+72%

mln t of P2O5

MAP/DAP/NPS

mln t

+50%

Electricity

MW

Phosphoric acid MCP

mln t +104%

80

240

2002 2012

0.8

1.2

2001 2012

+200%

24

49

2003 2012

Balakovo Mineral Fertilizers (BMF) overview

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Sensitivity analysis of the new NPK plant construction

Ramp up the new NPK plant will cover domestic demand New NPK production Capex

43

Source: PhosAgro

Note: Applied average exchange rate US$/RUB: 31.09 (2012)

(1) Current railway tariff for transportation of one tonne of fertilisers to Krasnodar / Stavropol regions

Balakovo Mineral

Fertilizers (BMF)


Agro-Cherepovets

Apatit

Novorossiysk

Baltic ports

St. Petersburg

Murmansk

Metachem

191

9

182

Total Capex Budgeted for 2013 Budgeted for2014 - 2016

US$ mln

Fertilisers prices in 2015 compared to base case 115% 100%

Price of NPK 9:25:25, FCA Yulievka, US$/tonne 653 568

Price of NPK 15:15:15, FCA Yulievka, US$/tonne 473 411

IRR 22% 15%


39 US$/tonne(1)

27 US$/tonne(1)

In 2012

domestic NPK

sales

amounted to

499 kt


and MAP consumption

New production capacity at BMF

760 847

2012 2016

Phosphoric acid

+11%

kt

1,250

1,700

2012 2016

DAP/MAP/NPK/NPS

+36%

BMF development program

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103 44

Key highlights

The Group’s capacity growth with consolidation of Metachem Close proximity to St. Petersburg sea port (c.100 km)

Metachem is a producer of STPP and SOP located in the town of Volhov in the Leningrad region

Unique SOP granulating technology in Russia

Close proximity to St. Petersburg sea port (c.100 km)

Modernization program is currently under consideration

In 2014, the Group plans to construct a PKS/NPKS production plant with an annual production capacity of 100 kt

4.61 4.82

1.86 1.94

Sulphuric acid Phosphoric acid

Before After

mln t mln t

+5%


Sulphuric acid: 215 kt

Phosphoric acid: 80 kt of P2O5

Sulphate of potash (SOP): 80 kt

Sodium tripolyphosphate (STPP): 130 kt

Capacity by product

+4%


and MAP consumption

Distribution hubs

Export ports

Processing operations

Mining operations

Balakovo Mineral Fertilizers (BMF)


Agro-Cherepovets

Apatit

Novorossiysk

Baltic ports

St. Petersburg

Murmansk

Metachem

Metachem new PKS production Capex

107

3

Total Capex Budgeted for 2013 Budgeted for 2014

US$ mln

Sensitivity analysis of the new PK(S) plant construction

Average price for PK(S) for post plant

commissioning, FCA Volhov,

US$/tonne

358 346

IRR 51% 37%


Metachem overview

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3. Market overview

4. Financial update


6. Closing remarks

3

15

18

28

36

46

Slide Number

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7.6x

13.5x 12.7x 12.8x 13.4x10.5x

Mosaic Uralkali ICL Potash Corp Agrium

5.3x7.5x 9.4x 9.2x 9.3x

7.0x


11.4%

2.9%6.8%

4.7% 4.7% 4.9%


4.9%

1.7%

3.9%5.2%

2.6%1.7%


PhosAgro is significantly undervalued against its key peers

P/E

2013E

Source: Bloomberg 11 March 2013

(1) Calendarised

(1)

(1)

(1)

Phosphates Nitrogen Potash

EV

/EB

ITD

A

2013E

FC

F y

ield

2013E

46

PhosAgro’s shares are

strongly undervalued

on a trading multiples

basis: the Group’s

2013E P/E and 2013E

EV/EBITDA reflect a

43% and a 27%

discount to its most

relevant peer Mosaic

The Group offers one

of the highest dividend

yield among its peers

Div

iden

d y

ield

2013E

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