phosagro-morgan stanley global chemicals conference · 92% in ammonia self-sufficiency in key...

Morgan Stanley Global Chemicals ConferenceMorgan Stanley Global Chemicals Conference14-15 November 2012, Boston

10

Disclaimer

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21

PhosAgro at a glance

Leading global phosphate rock producers (by production)

2011, mln t, excluding Chinese producers

#1 global producer of high-grade phosphate rock (P2O5>35.7%) with 7.8 mln t capacity

World class 27.8

12.17.7 7.6 7 3

, , g p

#1 producer of high-grade phosphate rock (>35.7% P2O5)

#2 global DAP/MAP producer(1) with 3.6 mln t capacity and DAP/MAP/NPK/NPS capacities of 4.1 mln t

Leading European producer of MCP feed phosphate and the only one in Russia

integrated phosphate producer

7.6 7.33.5 3.5 2.5 1.1

OCP Mosaic Phosagro JPMC PotashCorp Gecopham CF Industries GCT Ma'aden

Leading global DAP/MAP producers (by capacity)

2.1 bln t of apatite-nepheline ore resources(2)

(over 75 years of production)

Al2O3 resource of 283 mln t

Substantial resources of gallium oxide, TiO2 and rare earth oxides (41% of Russian resources and 96% of

Large high quality apatite-nephelineresources

9.7

3 6 3 5


First quartile cash cost of production globally

100% self-sufficient in phosphate rock and 92% in ammonia

Self-sufficiency in key feedstocks provides for

earth oxides (41% of Russian resources and 96% of the currently developed(3))

resources

3.6 3.5 2.9 2.3 2.2 2

Mosaic Phosagro OCP Ma'aden Eurochem CF Industries PotashCorp

Established presence through traders in North and South America Asia and EuropeStrong position in 2011 sales breakdown

92% in ammonia

Local low-cost supplies of sulphur and potash

provides for low costs

Nitrogen fertilisers; 11%

South America, Asia and Europe

Top-3 exporter of DAP/MAP globally

Leader in the fast-growing Russian market

Strong position in prime agricultural markets

2011 sales breakdown

By segment By geography

Russia; 30%North and

Other regions; 14%

Phosphate-based products;

89%

2011 Sales: $3,420 mln

EBITDA of $1,204 mn and $559 mn in 2011 and in H1 2012, respectively

Net debt/EBITDA: < 0.5x

Strong financial performance

Europe; 16%India; 12%

North and South

America; 28%

Note: (1) Excluding Chinese producers(2) PhosAgro, IMC(3) Russian Academy of Science

Source: FERTECON, IFA, companies data, PhosAgro

Source: FERTECON, companies’ data

12

The only pure play phosphates producer

Gross profit breakdown by segment Phosphate segment gross profit margin

43%13% 16%

Average gross profit margin of phosphate segment for 2008-2011Average gross profit breakdown by segment for 2008-2011

32%50%

16%

24% 23%

20%

87%51%

66%

87%

50% 19%

33%

15% 13%

PhosAgro ICL PotashCorp CFIndustries

MosaicPhosAgro Mosaic ICL PotashCorp CF Industries

(1) (1)

Phosphates Nitrogen Potash Other

Source: Companies’ reportsNote: (1) Calendarised


3

The only pure play phosphates producer

Gross profit breakdown by segment Phosphate segment gross profit margin

13% 16%43%

Average gross profit margin of phosphate segment for 2008-2011Average gross profit breakdown by segment for 2008-2011

50%66%

16%29%

32%

46%

51%

66%

24%

20%87%

50% 19%

20%

10%

33%25%

15%

PhosAgro Mosaic ICL Yara PotashCorp PhosAgro ICL PotashCorp Mosaic Yara(1) (1)

Phosphates Nitrogen Potash Other



4

PhosAgro Benchmarks Favourably Against Key Competitors

PhosAgro compares

DA

Mar

gin

1)

g pwell against its phosphate peers on EBITDA margin basis

PhosAgro strongly

35% 31% 31%

50%

20%

EBIT

D(2

01

g g youtperformed all major peers in terms of Cash Conversion and FCF Yield basis

Mosaic ICL Potash Corp Yara

Con

vers

ion 98%

46% 51% 42% 37%

Cas

h C

(201

1)

Mosaic ICL Potash Corp Yara

ield

15%

3.8% 4.2% 2.9%5%

FCF

Yi

(201

1) Mosaic ICL Potash Corp Yara

Source: Phosagro, Bloomberg as of November 12th, 2012

1. Phosphates – an attractive industryp y

Phosphorus is essential for life

Animal feed – 6%(1)Technical phosphates – 9%(1)

• Synthetic detergents

• Metal treatment

W t t t t• Water treatment

• Lithium phosphate for hybrid and electric vehicle batteries

• Personal care products

• Cheese• Processed meat

• Soft drinks

Source: FERTECONNote: (1) as percentage of total phosphorus consumption 7

Strong demand fundamentals for fertilisers

Population growth and decrease of arable land per capita

0 270.308

Phosphate is the most important nutrient for distressed land

0.27

0.240.23

0.220.20 0.19 0.20

0.25

6

7

5.35.7 6.1 6.5 6.9 7.3

0.1551990 1995 2000 2005 2010 2015

World population, bln people (lhs) Arable land, ha/capita (rhs)

Growing GDP per capita in Emerging Markets‘000 US$

Animal feed a key driver for grain consumptionkg of grain required to produce 1 kg meat

3.9

5.87x

4x

Meat consumption is driving demand

1.42.2

2000 2005 2010 2015

4x

2x

Beef Pork Poultry

for phosphate-based fertilisers and feed phosphates

Changing diets – growth in meat consumptionmln t

Meat Consumption by Region kg meat/capita/year

97.480.1

57 3

331307279254 57.3

35.424.0

15.34.4

North America EU Russia World Asia Central America Africa

107 108 113 119

147 171 194 212

2005 2010 2015F 2019F

8Source: United Nations, IMF, USDA, FAO

Phosphorus is essential for life

Fertilisers – 85%(1)

Without phosphate fertilisers With phosphate fertilisers

1,000

Effect of phosphate and nitrogen fertilisers on corn yield Effect of phosphate and nitrogen fertilisers on net farmer revenue

200

400

600

800

1,000

even

ue, $

/A80

120

160

With P and Neld,

bu/

A

+45% bu/A Translates to+$424/A(2)

0

200

0 20 40 60 80 100 120 140 160 180 200

With P and NWith N onlyN

et r

0

40

0 20 40 60 80 100 120 140 160 180 200

With N only

N rate lb/A

Yie

N rate lb/A

Source: FERTECON, International Plant Nutrition InstituteNote: (1) as percentage of total phosphorus consumption

(2) as corn price of US$ 8/bu 9

N rate, lb/A N rate, lb/A

Stock-to-use ratios for the key phosphate-using crops are at l l l d i i ilow levels driving crop prices

Phosphate fertiliser use by crop World grain stocks-to-use ratios, %20 year

20

25%

30%y

average 20 year average

20 year average

20 year average

10%

15%

20%Wheat16%

2008

/09

2008

/09

2008

/09

2008

/09

2010

/11

2010

/11

2010

/11

2010

/11

2012

/13

2012

/13

2012

/13

2012

/13

0%

5%

10%

Corn13%

Other47%

Wheat Corn Rice Soybean

Rice12%

Crop prices

70012%

Soybean7%

Other Grains

5% $ pe

r ton

ne

300400500600

US$

0100200

Wheat Corn Soybean RiceA 2001 2011 A t 2011 A t 2012

Source: IFA Source: USDA, FAO

10

Average 2001-2011 August 2011 August 2012

Significant room for further growth of use of phosphate f tilifertilisers

Insufficient application of phosphate fertilisers creates significant room for growth%

Corn yield per harvested acre in US US corn stocks-to-use ratios, %

12 7

13.913.1

14

16fertilisers creates significant room for growth

WheatCornSoybeanRice

bu %

165

160

170

22

23P2O5 estimated crop removalP2O5 application

11.6

12.7

10 9.910

12

RiceApplication

Deficit149

151154 153

147150

160

20

21

9.3

6 5

8

10

mln

t

130

140

18

19

20

6.5

4

6123

120

130

17

18

211015

16

2000/01 2002/03 2004/05 2006/07 2008/09 2010/11

02006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13F

2021/22F

Nutrient removal ratekg P2O5/t of crop

Wheat Corn Rice SoybeansTight corn supply demand balance due

1002006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13F

- Actual - Forecast

11Source: USDA, IFA, IPNI, PhosAgro

11.3 6.7 6.4 16.7Decreasing corn yields in US Tight corn supply-demand balance due to low stock-to-use ratio

High grain prices driven by market imbalanceti t f t f tilimotivate farmers to use more fertilisers

Corn prices relative to DAP Prices Corn to DAP prices ratio

3.0R² = 0.78

1,400HIGH DAP PRICES

10 year correlation

1,000

1,200

2.5

800

1,000

pa, U

S$/

t

2.0

600

AP F

OB

Tam

p

Nov2012

200

400DA

November 2012 price:DAP FOB Tampa: US$ 537/tCorn FOB US Gulf: US$ 319/t

1.5Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12

DAP/C DAP/C (2000 2011)

050 100 150 200 250 300

C FOB US G lf US$/

HIGH CORN PRICES

Corn FOB US Gulf: US$ 319/t

DAP/Corn DAP/Corn (2000-2011)

Source: FERTECON, USDA, FAO 12

Corn FOB US Gulf, US$/t

Need for a combination of feedstocks and complexity of production process act as barriers to entryproduction process act as barriers to entry

Overview of integrated phosphate-based production model based on PhosAgro’s consumption ratios

PHOSPHATE ORE MINE

BENEFICIATION PLANT

14.9 mln t(12.9% P2O5) 4.35 mln t (39% P2O5)

SULPHUR SULPHURIC ACID PLANT

PHOSPHORIC ACID PLANTPLANT

1.29 mln t 3.90 mln t

GAS

746 mln m3 0 68 mln t

1.60 mln t

AMMONIA PLANTEnd products

746 mln m3 0.68 mln t

boun

d is

tics

DAP / MAP / NPS2.35 mln t

POTASH

0.75 mln t NPK 1.75 mln t

Out

bLo

g

Source: PhosAgro13

Only few countries have domestic resource base which is significant enough to produce phosphate fertilisers

Ph h t R k l t N t l G bl S l h k t

which is significant enough to produce phosphate fertilisers

Production/resources of phosphate rock, natural gas and sulphur

Region Phosphate Rock, mln t Natural Gas, bln cm Sulphur, k tProduction Resources Production Resources Production Import

World 180.7 65,000 3,276 208,400 77,184 28,600

1 Russia 10 4,300 607 44,600 7,305 0

2 USA 27.6 1,400 651 8,500 9,091 3,066

3 Saudi Arabia 5* 7,690 100 8,200 3,200 0

4 Canada 1.0 2.0 161 2,000 7,091 0

5 Chi 75 1 3 700 103 3 100 15 626 10 0855 China 75.1 3,700 103 3,100 15,626 10,085

6 Kazakhstan 1.5 3,100 19 1,900 2,857 0

7 Mexico 1.4 1,000 53 400 1,374 368

8 Iraq - 5,800 2 3,600 125 0

9 Australia 2.0 250 45 3,800 991 513

10 Peru 2.2 1,453 11 400 490 0

11 Brazil 6.1 310 17 500 522 1,952

12 India 2.1 85 46 1,200 2,776 1,807

Source: USGS, IFDC, BP, PhosAgro* Ma’aden projection 14

Significant cost advantage for integrated producers

Estimated DAP production cash costs(1)

FOB, US$ per tonne DAP

Key feedstock integration in the World Phosphate Industry(2)

15%Phosphate

rock+ammonia+local600

700

15%rock+ammonia+local sulphur = Fully integrated

500

600

25%Phosphate rock and ammonia integration

400

g

200

300

75%Phosphate rock integration

100

Integrated Non-integrated

0India(non

integrated)

USA(non

integrated)

USA(integrated)

China PhosAgro(integrated)

Source: companies’ data, FERTECON, China Fert Market Weekly, PhosAgroNote: (1) as of October 2012

(2) by phosphoric acid capacities, excluding China 15

Commissioning phosphate rock and phosphoric acid iticapacities

Delays in addition of new phosphate rock capacities (excl. China) Changes in world fertiliser capacities (excl. China)

mln t nutrientsmln t

160

170

180

20

25mln t nutrients

3 years

130

140

15015

2 years

3 years

120

130

2008 2009 2010 2011 2012 2013 2014 2015 2016

IFA-2008 IFA-2012Delays in commissioning phosphoric acid capacities (excl

5

10

Delays in commissioning phosphoric acid capacities (excl. China)

-5

0mln t P2O5

3940

52002-2006 2007-2011 2012-2016

Nitrogen Phosphates Potash

3536373839

3 years

Less new projects are announced in phosphates

3031323334

Less new projects are announced in phosphates Commissioning of new capacities is delayed Shutdown in phosphate fertiliser capacities was more

significant while less new commissioning in the past 5 years in comparison with nitrogen and potash sectors

16Source: IFA, PhosAgro

302008 2009 2010 2011 2012 2013 2014 2015 2016

IFA-2008 IFA-2012

years in comparison with nitrogen and potash sectors

Greenfield plant – costs case-study

Production facilitiesCapacity – mln t / year Ma’aden

Phosphate rock mine 12.0 26.6

Beneficiation plant 5.0 7.8

Sulphuric Acid Plant 4.7 4.6

Phosphoric Acid Plant 1.5 1.9

Ammonia Plant 1.1 1.1

DAP Plant 2.9 4.1

Key products DAP MAP, DAP, NPK, NPS

Ma’aden – total est. CAPEX(1): US$ 5.8blnConstruction period: 6 years +

17Source: PhosAgro, Ma’adenNotes: (1) CAPEX for the Phosphate Project

Phosphate is a consolidated industry

Global export volumes MAP / DAP / TSP / Phosphoric acid

mln t P2O5

62% 57% 53%PhosAgro (Russia)

mln t P2O5

1 41.3 0.6

1.11.1

1.1GCT (Tunisia)

3.53.2 3.2

1.4

PhosChem (US)1

3.7 3.8

MississippiPhosphates (US)

2.93.7

2009 2010 2011

CF Industries

% Combined global shareOCP (Morocco)

Source: Fertecon, IFA , Bloomberg, companies reportsNote: (1) PhosChem – Phosphate Chemical Export Association Inc. (Members: Mosaic, PCS)

18

Timing and completion of new capacities is uncertain

mln t of P O

OCP seeks to extract the maximum value from its phosphate ore reserve. Management has recently indicated that they will match production to market

Incremental demand in 2012-20167 2 l t f

mln t of P2O5 they will match production to market demand

2.02.6

2.7

6.1

2.7

48.4

0 87.2 mln t of P2O5 -0.1 0.8

0.8

Ma’aden Six year delay US$ 5.8 bln Capex Average phosphate rock P2O5 content

of 33%

OCP – Track record of completion

JV OCP/Fauji (Pakistan) Announcement: 2004 Initial expected launch date: end 2006 Actual launch date: 2008

46.9of 33%

JV OCP/Bunge (Brazil): Announcement: 2005 Initial expected launch date: end 2007 /

beginning 2008 Actual launch date: August 2011

39.7 39.7 39.6

Actual launch date: August 2011

Projects likely to be completed by 2016

Total consumption2011

Total production2011

Expected closures2012-2016

Ma'aden2012 - 2016

OCP2012- 2016

Other projects likely to be completed

(1)Low / moderate likelihood projects

Total expected production

2016

Total expected consumption

2016

China2012-2016

Note: (1) Projects with low / moderate likelihood of completion by 2016Source: FERTECON, closures and new projects at 100% nameplate capacity, Fertiliser Week, IFA, companies’ data

19

Growth in phosphate rock production capacities 2000-2011

Net addition to phosphate rock production capacities (excl. China) of 14 mn t with 0.8% CAGR

RUSSIA +1 MLN TRUSSIA +1 MLN T

FINLAND +0 5 MLN T

1.3bln

FINLAND +0.5 MLN T

USA -10 MLN T

MOROCCO +5.9MLN T

SYRIA +1.8 MLN T

JORDAN +1.5 MLN T

1.4bln

3.71.8bln1.5

SAUDI ARABIA +5 MLN T

CHINA +50 MLN T

MOROCCO +5.9MLN T

VIETNAM +1.7 MLN T

bln

50bln

blnbln

bln

PERU +3 MLN T

SAUDI ARABIA +5 MLN T

BRAZIL +2.5 MLN T

AUSTRALIA +1.2 MLN T

0.24bln 0.31

bln

0 25

20Source: Fertecon, USGS

0.25bln- Greenfield - Brownfield - Reserves

Concentrated phosphate rock market

Only few countries export phosphate rockMorocco controls most of world phosphate ore reserves

Syria 3%Jordan 2%

USA 2%Russia 2% Others 5%

China 5%

Algeria 3%Morocco and

Western Sahara

33%

Others30%

Morocco and

Western Sahara

70%

Iraq 8%

ChinaJordan

18%Syria9%

Russia

Algeria4%

2%

4%

Consolidation drivers

Deposits of phosphate ore are located in a limited number of countries. And Morocco controls most of the world’s phosphate ore reserves

Only few countries export significant volumes of phosphate rock and Morocco has a substantial share in

21Source: USGS

export sales of phosphate rock respectively

Stagnating production of phosphates

Global phosphate rock production is mainly driven by China … with stagnating production in the rest of the world

180

200250

China …Mln tonnes Mln tonnes

Global CAGR (2000-2011): +2.6%

140

160

180

200

100

120

140

150

CAGR (2000-2011): 0.8%

60

80

100

100

20

40

60

50 Chinese production

0

20

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201102000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

22

Source: IFA, FERTECON Source: IFA, China Fert Market Weekly, FERTECON

Development of Chinese phosphate exports

Chinese phosphate rock exports Chinese exports of DAP / MAP / NP / TSPCommissioning of new H3PO4 capacitiesp

kt kt ktFrom January 2012 theChinese government hasimposed an export duty of82% on NP/TSP during peak

5,000

6 000

7,000 10,000

seasons (Jan-May, Oct-Dec)

4,0005,000

6,000

8,000 NP/TSPDAP/MAP

3,000

3,000

4,0006,000

40%

1,000

2,000

2,000 4,000

0

,000

2000 2002 2004 2006 2008 201020110

1,000

2000 2004 2008 2012F

2,000

2000 2002 2004 2006 2008 20102011

In the second half of 2011, phosphate rock prices increased several times with an overall price hike of USD 11-13/t. In 2012 the price has already increased

(1)

2000-2003

2004-2007

2008-2011

2012F-2015F

0

2005

2006

2007

2008

2009

2010

2011

-Sep

011

-Sep

012

23Source: IFA, CFMW

by USD 8-10/t. The price of the rock (P2O5>30%) has reached USD 126/t(1)

Note: (1) Applied exchange rate USD/CNY: 6.35

2 2 2 2 2 2 2

Jan 20

Jan 20

Growing food demand in China

Consumer price indices in China, % Chinese food imports

20

25Cornmln t

15

202

+6,535%

15

20

0

5

10

2009/10 2010/11F 2011/12F 2012/13F 2021/22F0

1

1H 2011 1H 2012

10Soybeansmln t

2009/10 2010/11F 2011/12F 2012/13F 2021/22F

100

1H 2011 1H 2012

25

30 +22.5%

0

5

60

80

5

10

15

20

-5

2009 2010 2011

Porkkt900

402009/10 2010/11F 2011/12F 2012/13F 2021/22F

01H 2011 1H 2012

15

-10

Food Grain Meat0

300

600

Source: NBS of China, USDA February 2012

-15 02009/10 2010/11F 2011/12F 2012/13F 2021/22F

24

2 Company Highlights2. Company Highlights

World class integrated phosphate producer

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


27.8resources (over 75 years of production)

#1 producer of high-grade phosphate rock (>35.7% P2O5)

12.17.7 7.6 7.3

3.5 3.5 2.5 1 11.1

OCP Mosaic Phosagro JPMC PotashCorp Gecopham CF Industries

GCT Ma'aden

9 7

#2 global DAP/MAP producer(1) with 3.6 mln t capacity

9.7

3 6 3 53.6 3.5 2.9 2.3 2.2 2

M i Ph OCP M ' d E h CF I d t i P t hCMosaic Phosagro OCP Ma'aden Eurochem CF Industries PotashCorp

Source: FERTECON, IFA, companies’ dataNote: (1) In 2012, excluding Chinese producers

26

Control of world’s premium phosphate resource base

Location(1)

Morocco USA Jordan China Tunisia

Al2O3 content 13.0-14.0%High Very low Very low Very low Very low Low to

moderate

Ore type Igneous Sedimentary Sedimentary Sedimentary Sedimentary Sedimentary

Level of radioactivity Very low Moderate Moderate to

highLow to

moderateLow to

moderate Moderate

Hazardous metals content Very low Moderate Moderate to

high Low Low to moderate

Low to moderate

World Phosphate Rock Reserves, billion t

2.1 50 1.4 1.5 3.7 0.1

Note: (1) primary global DAP/MAP producing regionsSource: FERTECON, IMC, USGS 2011

927

Control of world’s premium phosphate resource base

100

GCT

OCP

Phosphate rock with MER > 0.10 significantly increases costs for

Mosaic32%29%

28.5%

Higher cadmium content in sedimentary rocks

10

nt in

ppm

PCSCF Industries

increases costs for production of DAP

29%29.5%

rocks

miu

m c

onte

n Agrium 33%

1

vera

ge C

adm

0

Av

Eurochem

39–40% 37–38%

Average Minor Element Ratio (MER)

0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14

Note: Size of the bubble represents P2O5 content in phosphate rock in excess of 28%, which is recognized as a minimum for production of high quality phosphate fertilisersSource: FERTECON, PhosAgro, companies’ data

928

Growth in demand for igneous phosphate rock

Others

World phosphate ore reserves of igneous origin Consumption of phosphates for industrial chemicals and feed phosphates, P2O5

Uganda4%

Finland6%

Others3%

1,800

2,000

k t P2O5

CAGR: +4.1%

Russia47% 1,200

1,400

1,600

Brazil28%

600

800

1,000

South Africa12%

0

200

400

02007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Miscellaneous Speciality fertilisers ToothpasteWater treatment Metal treatment Food & Beverages

Phosphate rock of igneous origin is applied as a feedstock for industrial chemicals and feed phosphates due to the lowest radioactivity level, low heavy metals and cadmium content in comparison with phosphate ore reserves of sedimentary origin As production of industrial phosphates and food additives will grow the increase in demand for phosphate

Prospects for growth

29Source: IFDC, CRU

As production of industrial phosphates and food additives will grow, the increase in demand for phosphate rock of igneous origin is expected for the applications other than fertiliser production

Self-sufficiency in key feedstocks

PhosAgro DAP production cash costs Phosphate rock: 100% self-sufficient1PhosAgro DAP production cash costs Phosphate rock: 100% self-sufficient1

2011, kt2011, ExW, US$

Phosphate rock

Other17%

1

3 7,757

4,604

3,153 2,478

rock51%

Sulphur18%

2675

Total phosphate rock sales

Internal sales

External sales

Domestic ExportAmmonia14%

Sulphur: access to local suppliesAmmonia: 92% self-sufficient2 3

2011, kt Sulphur suppliers in 2011

TengizChevroil15%

Others1%1,010 1,101

Gazprom Sulphur

84%Production Consumption

Source: PhosAgro

30

Flexible business model

Flexible business modelFlexible business model

FLEXIBLE PRODUCTION LOGISTICSNETBACK-DRIVEN

SALESEXPORT SALES NOT TIED TO OVERSEASFLEXIBLE PRODUCTION

CAPABILITIESLOGISTICS

ALTERNATIVESSALES

PRIORITISATIONSYSTEM

TIED TO OVERSEAS DISTRIBUTION

NETWORK

Phosphate-based fertilisers and feed phosphate exports by regionIn volume terms

Asia

S th

Asia37%

55%38% 32% 29%

SouthAmericaEuropeAfrica Africa

SouthAmerica

Europe34%

10%20% 33%

25%

15%17% 21% 17%

18%

17%

North AmericaCIS(1)

Africa

North AmericaCIS(1)

15%9% 13% 8% 5% 17%

6% 4%7% 6% 6%

2% 6% 7% 5%2008 2009 2010 2011 1H12

Source: PhosAgroNote: (1) Excluding Russia

31

NPK fertilisers – the need to increase yields by balanced fertilisation

World NPK production

mln t P O excluding blending

NPK production in Russia

k t P Omln t P2O5, excluding blending k t P2O5

+31%

500600700800

7

20% 24% 23% 26% 29% 34%100200300400

PhosAgro – main supplier of NPK to the domestic market

20% 24% 23% 26%0

2006 2007 2008 2009 2010 20116

- PhosAgro NPK production - NPK production in Russia

PhosAgro main supplier of NPK to the domestic market

2011Total: 1.1 mln t

Others6%

Eurochem2%

5

PhosAgro44%

Uralchem12%

5

Rossosh

Acron18%

42000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E

Source: IFA, ChemExpert, PhosAgro32

- Actual - EstimateRossosh

18%

PhosAgro flexible model meets global demand for NPK

World NPK Imports: ~2 mln t of P2O5 per annum(1) PhosAgro NPK Exportsk tOthers

4%

600

800

CAGR: +107%Europe

36%

Africa8%

FSU5%

4% South Asia4%

200

400

Other E t

Lat. America

China8%

02006 2007 2008 2009 2010 2011

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

East Asia19%

America16%

400

500k t

CAGR: +63%North America

5%

Africa4%

Middle East4%

FSU1%

100

200

300India26%

Other South Asia

Oceania5%

5%

02006 2007 2008 2009 2010 2011F

Reliable sources of nitrogen and phosphates are critical in the economics of granular NPKs. They are rarely found in the same place.

Lat. America

23%East Asia14%

Europe12%

Asia6%

Source: IFA, FCC, PhosAgroNote: (1) Average figures for 2005-2010 33

PhosAgro exports NPK fertilisers to developed as well as to fast growing markets

Organic growth through addition of new capacities

2012(1), mln t

Production capacities

2011 2012 mln t(2)

Capacity growthNPK capacities

2.4

0 98

1.8DAP/MAP/NPK/NPS

U

4.2

MAP/DAP 2011 – 2012, mln t(2)

1.8

1.7NPK +5.9%

20122011

0.98

0.45

Urea

AN/AN-basedfertilisers

End

MAP/DAP/NPK:fully flexible production lineswith NPK production capacity of 1.8 mln tand NPS production capacity up to 1 mln t 2011 - 2012, mln t(2)

Urea capacities

0.14

0.24

Liquid fertiliser(APP)

Feedphosphates

End products 0.98

0.48Urea

+104.2%20112012

0.02

phosphates

Aluminum fluoride (ALF3) 2011 - 2012, MW(2)

Electricity capacities

7.8

1.7

Phosphate rock

NephelineFeed stock

183

151Electricity +21.2%

2012

2011

1.1Ammonia

Nitrogen fertilisers Phosphate-based fertilisers

Source: PhosAgroNote: (1) production capacities as of October 26, 2012

(2) as of 31 December 2011 and 26 October 2012

pand feed phosphates

34

PhosAgro increases production and flexibility with growthi b f NPK/NPS d

6000

in number of NPK/NPS grades

4XNPK/NPKS/NPS/PKS d

9 Downstream Products in 2008

21 Downstream Products in 2012

k t

5000

APPNPK/NPKS/NPS/PKS gradesfrom 4 up to 16in 4 years AN

Products in 2008

Overall CAGR:8%

4000

Urea

ANAPP

3000

NPS:20:20:0:1416:20:0:1414:34:0:815:36:0:8

DAP

MAP

AN

Urea

DAP

2000

NPK/NPKS:9:25:25:410:26:26:415:15:15:810:20:20

MAP

NPS

DAP

1000NPS:20:20:0:1414:34:0:8

10:20:2013:13:2116:16:813:19:1912:32:126:20:30

NPK/NPKS/NPS/PKS

38%

MAP

NPS

NPK/NPS CAGR: 33%

02008 2009 2010 2011 2012E

NPK/NPKS:9:25:25:413:19:19

12:32:16

PKS:0:20:20:60:15:46:7

16%

NPSNPK/NPKS/NPS/PKS

35

3. Financial Overview

Revenue, EBITDA and Net Income

Revenue (H1 2011/2012) EBITDA (H1 2011/2012) Net Income (H1 2011/2012)

24%36%

34%

n

253 296 12 12 49 28 64 67

1,704 1,644

430353

19%

US

$ m

n620 559

US

$ m

n

1,326 1,241

US

$ m

n

1H2011 1H2012

Net Income Margin

1H2011 1H2012EBITDA Margin

1H2011 1H2012Chemical fertilisers Apatite concentrateAmmonium Nepheline concentrate

35%22%

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

pOther

1273,420

674

1,204 22%27%

mn 765

14% 16%

22%

US

$ m

n

376457

493

12 20

26

98

108

127

1,916

2,533

mn

415 674

US

$

274395

2009 2010 2011

U

1,430 1,948

2,775 376

2009 2010 2011

US

$ m

2009 2010 2011EBITDA Margin

2009 2010 2011

Net Income Margin

Note: Applied average USD/RUB exchange rates: 31.72 (2009), 30.37 (2010), 29.39 (2011), 28.62 (1Н2011), 30.64 (1Н2012) 37

2009 2010 2011Chemical fertilisers Apatite concentrateNepheline concentrate Other

Cost of Goods Sold

Cost of Goods Sold and Sales Volumes DAP production cash cost breakdown

ExW, US$, 2011Sales (kt) 2009 2010 2011 1H2011 1H2012Fertilisers(1) 3,635 3,842 4,062 1,992 2,123Rock 2,807 3,712 3,153 1,588 1,677

Phosphate rock51%

Other17%

Sulphur18%

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

$ 1,222 mn $1,592 mn $1,937 mn $964 mn $956 mn

80%

100%

Ammonia14%

18%5% 9%

7% 8% 10% 10% 9%7% 5% 9% 10% 10%6% 7%

60%

80%

of t

otal

)

21%18%

19%20% 20%40%

CoG

S (%

o

40% 43%40% 34% 33%

0%

20%

2009 2010 2011 1H2011 1H20122009 2010 2011 1H2011 1H2012Materials and services Salaries and social contributionsPotash FuelSulphur and sulphuric acid ElectricityGas Depreciation and amortisation

Source: PhosAgroNote: Excluding change in stock of WIP and finished goods. Applied average USD/RUB exchange rates:

31.72 (2009), 30.37 (2010), 29.39 (2011), 28.62 (1Н2011), 30.64 (1Н2012)(1) Phosphate-based fertilisers and feed phosphate (MCP)

38

p

Capex and Dividend Policy

Capex

572600

700

293349

421400

500

S$

mn

221293

200

300US

200

0

100

2009 2010 2011 2012E

Dividends

Post-IPO dividends Dividends,RUB bln % of Net Profit

Payout

per share, RUB per GDR, US$2011 April-December 7.2 49 58 0.61Dividends

Post-IPO dividend yield > 5% Formal policy to pay between 20% to 40% of annual consolidated profit calculated in accordance with IFRS

p1H 2012 4.7 56 38 0.41Total 11.9 52 96 1.02

Source: PhosAgroNote: Applied average USD/RUB exchange rates: 31.72 (2009), 30.37 (2010), 29.39 (2011), 30.64 (1Н2012)

39

as dividends

Overview of Debt

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

1 1

Actual Net Debt as of 30 June 2012 (USD in millions)0.3x

0.4x

0.9x 1.1x

0 4x0.5x

1.0x

Total Debt, incl.: 1,144

Short-term debt 800(0.1x)

0.2x

0.4x 0.4x

(0 5x)

0.0x

Types of debt instruments (2)

Short term debt 800

Long-term debt 344

(0.5x)2009 2010 2011 1H2012

Total Debt / EBITDA Net Debt / EBITDA

Types of debt instruments (2)

Cash and cash equivalents (694)

Net Debt 450

RUB denominated

6%

EUR-denominated

4%

Secured letter of credit

5%

Finance lease

liabilities6% Net Debt 450

USD-denominated

Unsecured loans89%

5% 6%

Source: PhosAgro

90%

Source: PhosAgroNote: Applied end-of-period USD/RUB exchange rate of 32.82 (H1 2012)

(1) Net debt is calculated as total loans and borrowings minus cash and cash equivalents (2) As of June 30, 2012. Includes secured bank loans, unsecured bank loans, letters of credit and finance lease liabilities. Total loans and borrowings US$ 1,144 mn

40

4 Future potential4. Future potential

Short and medium term strategy for future growthgy g

Strategic objectives Key initiatives

Improve efficiency Construction of shaft No. 2 at Kirovsky Underground Mine, which will increase

annual apatite-nepheline ore production from 12 to 14 mln t from 20141

Expand fertiliser production capacity and enter higher 2rt

term

Construction of a new ammonia plant with 760 k tonnes per annum capacity at Cherepovets site

Enter the technical phosphates and SOP (sulphate of potash) markets through the i t ti f M t h d t ( i d 24% t k i th i 2011)value segments

Shor integration of Metachem products (acquired 24% stake in the company in 2011)

Modernization of BMF’s facilities to enable production of NPK with 450 k tonnes per annum capacity

Mineral Application Development Production Mineral Application Development Stage Today Future

Apatit• Autocatalysts, fuel cells• High strength magnets, ceramics• Fiber optics, lasers

- 7k t• Rare Earth Oxides

Realize full potential of ore3

m te

rm

Nepheline 1.0 mln t 6.0 mln t

• Aluminium Oxide• Alumina, Cement, Catalysts

• Potassium carbonate

Med

ium • Potassium carbonate

• Soda Ash• Potassium Sulfate

• Glass production, agriculture, household chemicals

0.25 mln t 1.50 mln t

• Gallium Oxide • Electronic engineering, lasers, lubricants

42

Long term strategy for volume growth of fertilisers

2011 Future

g gy g

41%

Phosphate rock

External

Phosphate rock

41%External sales

Internal

100%

59%

Total: 7.7mln t

Internal consumption

4.1 mln t(DAP / MAP / NPK / NPS / APP/ MCP)Ammonia

7.2 mln t(DAP / MAP / NPK / NPS / APP/ MCP)

Growth 76%

1 010

Ammonia

760

New ammonia plant1,010

1,150

Source: PhosAgro15

ProductionTotal: 1,910 kt

43

Capacity

Thank You

Appendix

High quality production assets

Kirovsk

Murmansk Cherepovets production complex - largest in Europe

PhosAgro Cherepo etsApatit Kirovsk

Baltic ports St. Petersburg

PhosAgro CherepovetsCapacity by productMAP/DAP/NPK/NPS: 2.9 mln tAmmonia: 1,150 ktAN/AN-based: 450 ktUrea: 500 kt

ApatitResources(1)

Apatite-nepheline ore: 2,060 mln tAl2O3: 283 mln tREO(2): 7.5 mln tCapacity by product

MoscowCherepovets

Urea: 500 ktAPP: 140 ktAIF3: 24 kt

Highlights

Largest standalone phosphate fertilisers producer in Europe

Capacity by productPhosphate rock: 7.8 mln tNepheline: 1.7 mln tHighlights

Largest standalone global producer of high grade phosphate rock(3)

Standard grade – P O content of 39%

Balakovo

Novorossiysk

Largest standalone producer of sulphuric and phosphoric acids in Europe

One of the largest standalone producers of urea, ammonia, AN/AN-based fertilisers in Russia

Standard grade – P2O5 content of 39% Superior grade – P2O5 content of 40%

Lowest hazardous element content among the major phosphate rock producing regions; benefits from low levels of radioactivity

y

Agro-CherepovetsCapacity by productUrea: 480 kt

Capacity by productMAP/DAP/NPS: 1 2 mln t

Balakovo Mineral Fertilisers (BMU)

Top 15 regions of NPK and MAP consumption

Distribution hubsExport ports

Highlights

MAP/DAP/NPS: 1.2 mln tFeed phosphate (MCP): 240 kt

PhosAgro-Region(Domestic distribution)

PhosAgro-Trans(Transportation)

One of the largest standalone producers of urea, ammonia, AN/AN-based fertilisers in Russia

Highlights

Leading European producer of feed phosphate MCP

The only Russian producer of MCP

(Domestic distribution)

Owns and operates seven distribution centres in Russia located in proximity to major agricultural regions of Russia

(Transportation)

Operates about 6,000 railcars

Note: (1) Measured and indicated, PhosAgro, IMC(2) Rare earth oxides (3) Defined as phosphate rock with P2O5 content over 35.7%Source: PhosAgro (capacity as of December 31, 2011), FERTECON, European Commission2

46

Management with strong track record of organic growth and ffi i iefficiency improvement

Technical modernisation at Ammophos Divestment of Voskresensk Mineral Fertilisers

1.7760

388

Phosphoric acid production capacitykt of P2O5

VMF

1,832 1,860+29% +38%

Sulphuric acid Phosphoric acidmln t of P2O5mln t

CAGR+16%

NPKmln t

2.7 1.1

0.4 974 1,100

470

RATIONALE

Efficiency improvement

RATIONALE

Replacement of high cost old capacity with

BMU

Ammophos

2.1 0.8

2001 2011 2006 2010

Growth of production volume

low cost new capacity

Source: PhosAgro Source: PhosAgro

2001 2011 2001 2011 2011

246228

Launch of feed phosphate (MCP) production at BMUTechnical modernisation at BMU

Product structure MCP production volumektkt

107

181

228

532

228

716

1,399

RATIONALE RATIONALE

CAGR: +47%

MCP

DAP

+95%

7

3762 68

81 81107

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

639

2001 2011

Efficiency improvement

Product range expansion

Launch of new value added product

MAP

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: PhosAgro Source: PhosAgro

1447

EBITDA development

EBITDAMargin 22% 27% 35%

EBITDA calculation

p

36% 34%Margin 22% 27% 35% 36% 34%

1,500

(RUB in millions) 2009 2010 2011 1H2011 1H2012Operating Profit 11,077 14,687 29,319 14,878 13,926

D&A and impairment 4,100 5,777 6,051 2,874 3,211

1,204 EBITDA 15,177 20,464 35,370 17,752 17,137

Litigation provision (1,992) - - - -

Adjusted EBITDA 13,185 20,464 35,370 17,752 17,137

1,000

mn

(USD in millions) 2009 2010 2011 1H2011 1H2012

Operating Profit 349 484 998 520 454

D&A and impairment 129 190 206 100 105

415

674 620

559

500

US$

m D&A and impairment 129 190 206 100 105

EBITDA 478 674 1,204 620 559

Litigation provision (63) - - - -

EBITDA is calculated as operating profit adjusted for depreciation andamortisation

415 Adjusted EBITDA 415 674 1,204 620 559

Adjusted EBITDA is defined as EBITDA adjusted to exclude items in the reporting period that the Company views as exceptional and non-recurring

02009 2010 2011 1H2011 1H2012

Source: PhosAgroNote: Applied average USD/RUB exchange rates: 31.72 (2009), 30.37 (2010), 29.39 (2011), 28.62 (1Н2011),

30.64 (1Н2012) 48

Revenue per tonne and volume developments for key productsp p y p

DAP Phosphate-based fertilisers volumesMAP

Peak 2008 FOB Baltic price: US$1,190/t (1)

Peak 2008 FOB Baltic price: US$1,190/t (1)

1,000

1,200

392

592 585 590

465

580 560520

6003,635

3,842 4,062

3,000

3,500

4,000

es

347438

594 604 580

298391

584 553 538

200

400

600

800

US

$ pe

r ton

ne 344392

297

200

400

US

$ pe

r ton

ne 1,992 2,123

1,000

1,500

2,000

2,500

ths

of to

nne

Phosphate Rock NPK Phosphate Rock volumes (3rd party sales)

0

200

2009 2010 2011 1H2011 1H2012Domestic Export

02009 2010 2011 1H2011 1H2012

Domestic Export

0

500

2009 2010 2011 1H2011 1H2012

400

p p ( p y )

543 529479

508600 3,712

3 500

4,000

101 118 120 126 134

186160

288 280306

200

S$

per t

onne

310341

479

330 351

450 451

200

400

S$

per t

onne

2,8073,153

1,558 1,677

1,500

2,000

2,500

3,000

3,500

ths

of to

nnes

101

02009 2010 2011 1H2011 1H2012

U

Domestic Export

0

200

2009 2010 2011 1H2011 1H2012

US

Domestic Export

0

500

1,000

2009 2010 2011 1H2011 1H2012

Note: Applied average USD/RUB exchange rates: 31.72 (2009), 30.37 (2010), 29.39 (2011), 28.62 (1Н2011), 30.64 (1Н2012)(1) Source: FERTECON

49

Consolidated income statement

(USD in millions) 2009 2010 2011 1H2011 1H2012

Revenues 1 916 2 534 3 420 1 704 1 644Revenues 1,916 2,534 3,420 1,704 1,644

Cost of Sales (1,258) (1,570) (1,912) (941) (928)

Gross Profit 658 964 1,508 763 716

Selling, General & Administration (295) (387) (196) (207) (225)Selling, General & Administration (295) (387) (196) (207) (225)

Other Income (Expense) (14) (93) (224) (36) (37)


Financial Income (Costs) 27 31 (35) 19 (1)( ) ( ) ( )

Profit Before Taxation 376 515 963 539 453

Income Tax Expense (102) (120) (198) (109) (100)

Profit for the Period 274 395 765 430 353

Margin 14% 16% 22% 25% 21%

EBITDA Calculation


D&A and impairment 129 190 206 100 105

Litigation provision (63) 0 0 0 0

Source: PhosAgro (IFRS)

EBITDA 415 674 1,204 620 559

Margin 22% 27% 35% 36% 34%

Source: PhosAgro (IFRS)Note: Applied average USD/RUB exchange rates: 31.72 (2009), 30.37 (2010), 29.39 (2011), 28.62 (1Н2011), 30.64 (1Н2012)

2550

Consolidated balance sheet

(USD in millions) 2009 2010 2011 1H2012Cash and Equivalents 186 173 526 694Cash and Equivalents 186 173 526 694Accounts Receivable 442 522 334 275 Inventory 226 253 314 331 Other Current Assets 30 108 71 78

Total Current Assets 884 1,056 1,245 1,378N t P t Pl t & E i t 1 407 1 525 1 774 1 847Net Property, Plant & Equipment 1,407 1,525 1,774 1,847 Intangible Assets 24 25 20 17 Investments in Associates 0 307 246 279 Other Long-Term Assets 363 235 110 101

Total Non-Current Assets 1,794 2,092 2,150 2,244Total Non Current Assets 1,794 2,092 2,150 2,244 Total Assets 2,678 3,148 3,395 3,622Accounts Payable 219 329 379 309 Loans and borrowings 71 181 483 800 Derivative financial liabilities 14

CTotal Current Liabilities 290 510 876 1,109 Loans and borrowings 67 112 515 344 Defined benefit obligations 21 31 29 29 Deferred tax liabilities 85 89 89 86

Total Non-Current Liabilities 173 232 633 459Total Non Current Liabilities 173 232 633 459 Total Liabilities 463 742 1,509 1,568 Equity attributable to Parent shareholders 1,717 1,911 1,360 1,480

Equity attributable to non-controlling i 498 495 526 574interests 498 495 526 574

Total Liabilities & Equity 2,678 3,148 3,395 3,622

Source: PhosAgro (IFRS)Source: PhosAgro (IFRS)Note: Applied end of period USD/RUB exchange rates: 30.24 (2009), 30.48 (2010), 32.20 (2011), 32.82 (1Н2012)

2651

Consolidated cash flow statement

(USD in millions) 2009 2010 2011 1H2011 1H2012Profit before taxation 376 515 963 539 453Depreciation amortisation and impairment 129 190 206 100 105Depreciation, amortisation and impairment 129 190 206 100 105Interest Expense 27 14 30 9 23Interest Income (34) (23) (28) (11) (21)Other (4) (18) 32 (9) (5)

Funds From Operations before WC changes 494 678 1,203 628 555p g ,(Inc.) Dec. in Trade and other Receivables 39 (64) 153 204 61(Inc.) Dec. in Inventory 61 (29) (81) (75) (25)Inc. (Dec.) in Trade and other Payables (247) 20 40 (8) (18)

(Inc.) Dec. in Net Working Capital (147) (73) 112 121 18FFO before income taxes and interest 347 605 1 315 749 573FFO before income taxes and interest 347 605 1,315 749 573Income tax paid (51) (97) (184) (116) (127)Interest paid (22) (10) (29) (6) (17)

Cash Flow From Operations 274 498 1,102 627 429Loans repaid/(issued) 160 (144) 106 72 13p ( ) ( )Acquisition of property, plant and equipment (385) (429) (439) (191) (218)Acquisition of investments (184) (52) (32) (33) (2)Other 114 67 136 103 12

Cash Flow From Investing Activities (295) (558) (229) (49) (195)P d f b i 486 697 1 326 909 0Proceeds from borrowings 486 697 1,326 909 0Repayment of borrowings (538) (530) (681) (295) 496Dividends paid (45) (110) (1,155) (1,120) (12)Other (160) (9) 33 (13) (344)

Cash Flow From Financing Activities (257) 48 (477) (519) 140g ( ) ( ) ( )Change in Cash and Equivalents (278) (12) 396 59 374Beginning Cash and Equivalents 488 186 173 184 526Effect of change in exchange rate (24) (1) (43) 0 (207)

Ending Cash and Equivalents 186 173 526 243 693

Source: PhosAgro (IFRS)Note: Applied average USD/RUB exchange rates: 31.72 (2009), 30.37 (2010), 29.39 (2011), 28.62 (1Н2011), 30.64 (1Н2012)

2752

Commitment to high corporate governance standards

Audit Committee Board of Directors Chief Executive Officer

Maxim Volkov

Sven Ombudstvedt (Chairman)

INDEPENDENT NON-EXECUTIVE DIRECTORS

Marcus Rhodes (Chairman)Sven Ombudstvedt

Ivan Rodionov Sven Ombudstvedt (Chairman)

Remuneration and Human Resources Committee

Marcus Rhodes

Ivan Rodionov

Ivan Rodionov

Ivan Rodionov (Chairman)

Igor Antoshin (Deputy Chairman)Strategy Committee

NON-EXECUTIVE DIRECTORS

Sven OmbudstvedtIgor Antoshin

Igor Antoshin (Deputy Chairman)gy

Vasily Loginov

Vladimir LitvinenkoVladimir Litvinenko (Chairman)

Igor AntoshinMaxim Volkov R O i

Maxim Volkov

EXECUTIVE DIRECTORSEnvironmental, Health and

Safety Committee

Maxim Volkov

Roman OsipovRoman Osipov

Igor Antoshin (Chairman)

Maxim Volkov

Vladimir Litvinenko

Source: PhosAgro

Vasily Loginov

53

PhosAgro – vertically integrated production model

Feedstock Processing Product Production unit

Apatite-nepheline ore

Beneficiation plants Phosphate rockPhosphate rock

“Standard Grade”, “S G d ”

Nepheline concentrate

Apatit

Nepheline concentrate

“Super Grade”

UreaUrea lines PhosAgro Cherepovets(Nitrogen Complex)

AN, AN based fertilisers

Ammonia lines

AN&AN based fertilisers lines

Purchased natural gas(Nitrogen Complex)

Agro-Cherepovets

Ammonia

Phosphoric acid lines

Sulphuric acid

APPLiquid fertiliser lines (APP)

Ph A

Phosphoric acid P2O5

Fluorine

Purchased sulphuric acid

Purchased sulphurSulphuric acid lines MAP, DAP, NPK, NPSSolid fertiliser lines

Purchased ammonia

PhosAgro Cherepovets(Phosphate Complex)

BMU

Feed phosphate lines MCPPurchased aluminiumhydrate

AlF3AlF3 linePurchased potash

Ammonia and nitrogen based fertilisers division Phosphate-based fertilisers and feed phosphate divisionPhosphate rock divisionPurchased

3154

GDRs performance

16

18

160

170PhosAgro ADTV ($000) in LSE3 months 2,080

14

16

150

160,

1 month 1,8241 week 2,125

10

12

130

140

$US

mn

100

GDRs included in DowJones Islamic BRIC Index

6

8

110

120

aily

Tur

nove

r, $

Reb

ased

to 1

2

4

90

100

Da

Ordinary shares includedin MICEX MC Index

080

Daily Turnover PhosAgro GDRs MSCI Russia MICEX FTSE IOB Russia

% Performance PhosAgro FTSE IOB Russia MSCI Russia MICEXSince PhosAgro inclusion in Dow Jones Islamic BRIC Index 61.8% 6.7% 4.7% 4.1% Since PhosAgro inclusion in MICEX Mid Cap Index 47.5% (4.9%) (7.5%) (3.9%)

55Source: Bloomberg (data as of 2 November 2012), PhosAgro analysis

g p ( ) ( ) ( )1 month (0.4%) (4.3%) (5.3%) (3.1%)1 week 0.4% (0.3%) (0.6%) (0.5%)

GDR performance and DAP prices

%

100

110

o 10

0

90

Reb

ased

to

70

80

60

40

50

14-Jul 14-Aug 14-Sep 14-Oct 14-Nov 14-Dec 14-Jan 14-Feb 14-Mar 14-Apr 14-May 14-Jun 14-Jul 14-Aug 14-Sep 14-Oct

DAP, FOB US Gulf PHOR LI

56

Source: Bloomberg (data as of 1 November 2012), FMB, PhosAgro analysis

Potential phosphate rock supply in 2011-2016

mln t

250

Export14%Non Integrated

Syria9%

200Export15%

LocalDownstreamProcessing(1)Integrated

Fertiliser

Fertiliser Producers (excl.

Syria)21%

15086%

LocalDownstreamProcessing

Producers70%

50

10085%

0

50

2011Current supply

Source: IFA Fertecon PhosAgro

2016Expected supplyNew phosphate rock supply 2011-2016

Brownfield(2) Greenfield(2)

57

Source: IFA, Fertecon, PhosAgroNote: (1) Estimate

(2) Assuming that declared projects will commission without delays and will operate at full capacities

Growth in US Phosphate Rock Imports

US phosphate rock imports

+51%

kt

Despite the fact that Agrifos hadstopped import of about 1 mln t ofphosphate rock per year in early2011

2,847

2 500

3,000

2011

1,790 1,856 1,8832,000

2,500

1,363 1,375 1,383

1,000

1,500

500

02007 2008 2009 2010 2011 1H 2011 1H 2012

Agrium has entered into contract with OCP to purchase phosphate rock as their own economic rockreserves are depleted

Mosaic resumes mining at South Fort Mead but phosphate rock imports remain almost the same

Import drivers

58Source: USITC, PhosAgro

Current and projected US mine phosphate r d cti n ca acit production capacity

mln t

50

40

45

30

35

40

25

30

15

20

5

10

02005 2010 2015 2020 2025 2030

US excl. Florida Florida

Source: IFDC (World Phosphate Rock Reserves and Resources, 2011)

2959

Fertiliser prices and price ratios

%

1.80

2.00

900

1,000

MOP to DAP price ratio

DAP FOB, Tampa

1.40

1.60

700

800MOP FOB, Vancouver

Average MOP to DAP price ratio (1999-2011)

US

$/t

1.00

1.20

500

600

0.60

0.80

300

4000.75

0.20

0.40

100

200

0.0001999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

60Source: FMB, FERTECON, The Market

Fertiliser utilization rates and price ratio

1.8100% 100%

1 6

1.8

81% 80%

90%

1.4

1.6

72% 79%

70%

80%

1.2

0 7 0 7

60%0.8

1.0

0.5

0.60.7 0.7

48%

50%0.6

40%0.42007 2008 2009 2010 2011

MOP to DAP price ratio DAP/MAP- utilization rate

61Source: FMB, FERTECON, The Market, PhosAgro

MOP - utilization rate PhosAgro phosphate-based fertiliser capacity utilisation rate

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