CORPORATE NEWS AGENCY Interfax - CNA 2 Pervaya Tverskaya- Yamskaya Moscow, 127006, Russia Tel. (7-495) 250-2922 cna@interfax.ru http://www.ispark.ru RUSSIA'S FERTILIZERS INDUSTRY IN 2011 January 2012 MARKET SURVEY TABLE OF CONTENTS RUSSIA S FERTILIZER INDUSTRY: FINANCIAL RESULTS...5 Key financials of top holdings to IFRS... 5 Key financials of top producers to RAS... 6 STOCK MARKET CONSENSUS FORECAST...9 Uralkali... 9 Phosagro... 9 Acron... 9 RUSSIA'S FERTILIZER INDUSTRY: MAJOR TRENDS...10 Russia's mineral fertilizer production... 10 Regional output of mineral fertilizers... 15 Russia s mineral fertilizers industry: export performance... 17 Major trends...17 Nitrogen fertilizers: key export markets... 21 Potash fertilizers: key export markets... 22 Compound fertilizers: key export markets... 22 Prices for mineral fertilizers... 23 Russia s mineral fertilizers industry: key segments... 25 Nitrogen fertilizers... 25 Phosphate fertilizers... 27 Potash fertilizers...28 TOP RUSSIAN FERTILIZER HOLDINGS...30 EuroChem... 30 EuroChem: structure... 30 EuroChem: operations summary... 31 EuroChem: key financials and ratios... 35 PhosAgro... 37 PhosAgro: structure... 37 PhosAgro: operations summary... 38 PhosAgro: key financials and ratios... 43 Uralkali... 44 Uralkali: structure... 44 Uralkali: operations summary... 44 Uralkali: key financials and ratios... 49 Acron Group... 51 Acron Group: structure... 51
Acron Group: operations summary... 52 Acron Group: key financials and ratios... 55 United Chemical Company UralChem... 57 UralChem: structure... 57 UralChem: operations summary... 58 UralChem: key financials and ratios... 61 SIBUR-Fertilizers... 63 SIBUR-Fertilizers: structure... 63 SIBUR-Fertilizers: operations summary... 63 Sibur-Fertilizers: key financials and ratios... 65 RUSSIAN INDEPENDENT PRODUCERS OF MINERAL FERTILIZERS...66 Togliattiazot... 66 Togliattiazot: operations summary... 66 Togliattiazot: key financials and ratios... 67 Kuibyshevazot... 68 Kuibyshevazot: operations summary... 68 Kuibyshevazot: key financials and ratios... 68 Minudobreniya (Voronezh region)... 70 Minudobreniya: operations summary... 70 Minudobreniya: key financials and ratios... 71 SUPPLEMENT...73 Profitability in sector of Materials in 2008-2010... 73 Russia s top producers of ammonia... 76 Russia s top producers of nitrogen fertilizers... 76 Russia s top producers of phosphate fertilizers... 77 LIST OF TABLES Table 1 Sales Revenue to IFRS/ US GAAP of Top Russian Holdings in Mineral Fertilizers Industry in 1H2011, US$ million...5 Table 2 EBITDA of Top Russian Holdings in Mineral Fertilizers Industry in 1H2011, US$ million...5 Table 3 Net Income to IFRS/ US GAAP of Top Russian Holdings in Mineral Fertilizers Industry in 1H2011, US$ million...5 Table 4 EBITDA Margin of Top Russian Holdings in Mineral Fertilizers Industry in 1H2011, US$ million...6 Table 5 ROS of Top Russian Holdings in Mineral Fertilizers Industry in 1H2011, US$ million...6 Table 6 Sales Revenue to RAS of Russia's Mineral Fertilizer Producers in Jan.-Sept. 2011, RuB million.7 Table 7 Operating Income to RAS of Russia's Mineral Fertilizer Producers in Jan.-Sept. 2011, RuB million...7 Table 8 Net Income to RAS of Russia's Mineral Fertilizer Producers in Jan.-Sept. 2011, RuB million...7 Table 9 ROA of Russia's Mineral Fertilizer Producers in Jan.-Sept. 2011, RuB million...8 Table 10 ROS of Russia's Mineral Fertilizer Producers in Jan.-Sept. 2011, RuB million...8 Table 11 Russia's Use of Mineral Fertilizers in 2006-2009 (based on 100% nutrients)...11 Table 12 Sales of Mineral Fertilizers in Russian Market in 2005- Jan.-Sept. 2011, '000 tonnes (based on 100% nutrients)...11 Table 13 Russia's Production of Mineral Fertilizers in 2007- Jan.-Nov. 2011, '000 tonnes (based on 100% nutrients)...13 Table 14 Russia's Production of Mineral Fertilizers by Federal Districts in 2008- Jan.-Nov.2011, '000 tonnes (based on 100% nutrients)...16 Table 15 Russia's Production of Mineral Fertilizers by Regions in 2009- Jan.-Nov.2011, '000 tonnes (based on 100% nutrients)...16 2
Table 16 Russia's Exports of Mineral Fertilizers in 2007- Jan.-Oct. 2011, '000 tonnes...17 Table 17 Russia s Mineral Fertilizer Export by Value in 2007- Jan.-Oct..2011, $ million...19 Table 18 Breakdown of Russia's Export of Ammonia by Volume by Countries in 2010-January-October 2011...21 Table 19 Breakdown of Russia's Export of Nitrogen Fertilizers by Volume by Countries in 2010- January- October 2011...21 Table 20 Breakdown of Russia s Export of Potash Fertilizers Volume by Countries in 2010- January- October 2011...22 Table 21 Breakdown of Russia s Export of Compound Fertilizers by Volume by Countries in 2010- January-October 2011...22 Table 22 Prices for Mineral Fertilizers in Russia in 2011...24 Table 23 EuroChem's Key Consolidated Financials for January-September 2011 (Millions of US$)...35 Table 24 EuroChem's Key Consolidated Financials for 2008-2010 (Millions of US$)...35 Table 25 EuroChem's Key Financial Ratios for 2008-2010...36 Table 26 PhosAgro's Output in January-September 2011...38 Table 27 PhosAgro 's Key Consolidated Financials for 1H 2011 (Millions of US$)...43 Table 28 PhosAgro's Key Consolidated Financials for 2008-2010 (Millions of US$)...43 Table 29 PhosAgro's Key Financial Ratios for 2008-2010...43 Table 30 Uralkali Production of Potash Fertilizers in 2007-2011, '000 tonnes...44 Table 31 Uralkali Key Consolidated Financials for 1H 2011 (Millions of US$)...49 Table 32 Uralkali Key Consolidated Financials for 2008-2010 (Millions of US$)...49 Table 33 Uralkali Key Financial Ratios for 2008-2010...50 Table 34 Acron Group Consolidated Capacity, million tones...52 Table 35 Acron Group Consolidated Fertilizer Production in 2008-2010, 000 tones...52 Table 36 Acron's Key Consolidated Financials for January-September 2011 (Millions of US$)...55 Table 37 Acron's Key Consolidated Financials for 2008-2010 (Millions of US$)...56 Table 38 Acron's Key Financial Ratios for 2008-2010...56 Table 39 UralChem Production of Mineral Fertilizers in January-September 2011, tonnes...58 Table 40 UralChem's Key Consolidated Financials for January-September 2011 (Millions of US$)...61 Table 41 UralChem's Key Consolidated Financials for 2008-2010 (Millions of US$)...61 Table 42 UralChem's Key Financial Ratios for 2008-2010...62 Table 43 SIBUR-Fertilizers Production Capacity, 000 tonnes...64 Table 44 SIBUR-Fertilizers Sales of Mineral Fertilizers in 2009-2010, 000 tonnes...64 Table 45 SIBUR-Fertilizers Key Consolidated Financials for 2008-2010 (Millions of US$)...65 Table 46 SIBUR-Fertilizers Key Financial Ratios for 2008-2010...65 Table 47 Togliattiazot Production of Ammonia and Nitrogen Fertilizers in 2009-2010, '000 tonnes...66 Table 48 Togliattiazot's Key Financials to RAS for January-September 2011 (Millions of US$)...67 Table 49 Togliattiazot's Key Consolidated Financials for 2008-2010 (Millions of US$)...67 Table 50 Togliattiazot's Key Financial Ratios for 2009- January-September 2011...67 Table 51 Kuibyshevazot Production of Ammonia and Nitrogen Fertilizers in 2004- January-September 2011, '000 tonnes...68 Table 52 Kuibyshevazot 's Key Consolidated Financials for 2008-2010 (Millions of US$)...68 Table 53 Kuibyshevazot 's Key Financial Ratios for 2008-2010...69 Table 54 Minudobreniya Production of Ammonia, Nitrogen, Phosphate Fertilizers in 2004-2009, '000 tonnes...70 Table 55 Minudobreniya Key Consolidated Financials for 2008-2010 (Millions of US$)...71 Table 56 Minudobreniya Key Financial Ratios for 2008-2010...72 Table 57 Growth of Sales, Operating Income, Net Income Within Russia s Materials Sector in 2010..73 Table 58 Operating Margins Within Russia s Materials Sector in 2010...73 Table 59 ROS Within Russia s Materials Sector in 2010...74 Table 60 ROE Within Russia s Materials Sector in 2010...74 Table 61 ROA Within Russia s Materials Sector in 2010...75 Table 62 Top Russia's Producers of Ammonia in 2005-2009, '000 tonnes...76 Table 63 Top Russia's Producers of Nitrogen Fertilizers in 2005-2009, '000 tonnes (based on 100% nutrients)...76 3
Table 64 Top Russia's Producers of Phosphate Fertilizers in 2005-2009, '000 tonnes (based on 100% nutrients)...77 LIST OF GRAPHS Graph 1 Russia's Mineral Fertilizer Industry Operating Margin and ROS in 2008- Jan.-Sept.. 2011...6 Graph 2 Russia's Industry of Mineral Fertilizers Via GDP and Agriculture in 1999-Jan.-Nov. 2011, Y-to-Y...10 Graph 3 Sales of Mineral Fertilizers in Russian Market in 2005-2009, '000 tonnes (based on 100% nutrients)...12 Graph 4 Russia's Production of Mineral Fertilizers in 2001-2009, '000 tonnes (based on 100% nutrients) 12 Graph 5 Russia's Monthly Growth Rates of Mineral Fertilizers in January-November 2011...13 Graph 6 Russia's Production of Key Types of Mineral Fertilizers in 2001-2011, 2001=100...14 Graph 7 Breakdown of Russia's Production of Mineral Fertilizers by Key Types in 2001-2011...14 Graph 8 Breakdown of Russia's Production of Mineral Fertilizers by Federal Districts in 2007-2011...15 Graph 9 Russia's Mineral Fertilizer Export Via Production in 2003-Jan.-Oct.2011, Y-to-Y...17 Graph 10 Russia's Monthly Export Growth of Main Types of Mineral Fertilizer by Volume in March- October 2011, Y-to-Y...18 Graph 11 Breakdown of Russia's Mineral Fertilizer Export by Volume in 2002-2011...19 Graph 12 Russia's Monthly Export Growth of Main Types of Mineral Fertilizer by Value in March- October 2011, Y-to-Y...20 Graph 13 Breakdown of Russia's Mineral Fertilizer Export by Value in 2007-2011*...20 Graph 14 Export Prices for Russian Nitrogen Fertilizers in January-October 2011, Y-to-Y...23 Graph 15 Export Prices for Russian Potash Fertilizers in January-October 2011, Y-to-Y...24 Graph 16 Russia's Production of Nitrogen Fertilizers in 2001-2011*, '000 tonnes (based on 100% nutrients)...25 Graph 17 Russia's Monthly Growth Rates of Ammonia in January-November 2011...26 Graph 18 Russia's Monthly Growth Rates of Nitrogen Fertilizers in January-November 2011...26 Graph 19 Russia's Production of Phosphate Fertilizers in 2001-2011*, '000 tonnes (based on 100% nutrients)...27 Graph 20 Russia's Monthly Growth Rates of Phpsphate Fertilizers in January-November 2011...28 Graph 21 Russia's Production of Potash Fertilizers in 2001-2011*, '000 tonnes (based on 100% nutrients)...28 Graph 22 Russia's Monthly Growth Rates of Potash Fertilizers in January-November 2011...29 Graph 23 Eurochem s Share in Russia's Production of Mineral Fertilizers in 2010...31 Graph 24 Eurochem s Quarterly Ratios in 2010-2011...35 Graph 25 PhosAgro s Share in Russia's Production of Mineral Fertilizers in 2010...38 Graph 26 Acron s Share in Russia's Production of Mineral Fertilizers in 2010...52 Graph 27 Acron's Quarterly Ratios in 2010-2011...56 Graph 28 Acron s Share in Russia's Production of Mineral Fertilizers in 2010...58 Graph 29 UralChem's Quarterly Ratios in 2010-2011...61 Graph 30 SIBUR-Fertilizers Share in Russia's Production of Nitrogen Fertilizers in 2010...63 Graph 31 Share of Togliattiazot in Russia's Nitorgen Fertilizer Production in 2010...66 Graph 32 Share of Kuibyshevazot in Russia's Nitrogen Fertilizer Production in 2010...68 Graph 33 Share of Minudobreniya in Russia's Mineral Fertilizer Production in 2010...70 4
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