eurochem-annual-report-2011

More documents

Recommendations

Info

Overview Vertically integrated business model EuroChem’s vertically integrated business model allows us to create value at every step of the production chain. Together with our access to lower-cost raw materials, and our investments in both production capacity and efficiency, our model underpins our global competitiveness and ensures the sustainability of our business. EuroChem’s vertical integration is enhanced by its distribution network, rail depots, and port facilities and vessels that we either own or operate on long-term leases. Apatite mine and beneficiation plant Potash People RUB 2.6bn invested in communities, social projects and charities over the last ten years In addition to our direct contribution to local budgets, our social programmes, investments in social infrastructure, grants and charitable giving – which exceeded RUB 450m in 2011 – demonstrate our concern and care for the social fabric of the towns where we operate, and our desire to work with local residents, authorities, and organisations to create a better future for all. 08 EuroChem Annual Report and Accounts 2011 RUB 2.6bn See our social report at www.eurochem.ru/ > Phosphate fertilizer production Communities 3,800 support service and repair specialists Port terminals
Raw materials Up to 80% self-sufficient in phosphate rock EuroChem’s upstream integration starts with apatite mining operations and natural gas production for its Phosphate and Nitrogen segments respectively. Our Potash segment will benefit from the start of production at EuroChem-VolgaKaliy and EuroChem- Usolskiy Potash where we expect to reach a combined 8 MMT of annual capacity. Maintenance and repairs Group sales by region % of Group sales 5 4 6 7 8 1 2011 3 Nitrogen fertilizer production 1 Russia 24% 2 Asia 23% 3 Latin America 15% 4 Europe 14% 5 CIS 12% 6 North America 8% 7 Africa 3% 8 Australasia 1% 2 80% See pages 36-47 > Natural gas Products RUB 150bn projected investments in nitrogen, phosphates and potash for 2012-2016 – mostly on new construction and development EuroChem produces and sells more than 100 different products, including ammonia, urea, AN, CAN UAN, MAP, DAP, and methanol, with melamine and potash in the pipeline. We are taking steps to further diversify our product range, while increasing the efficiency of our production processes and reducing the environmental footprint of operations. Our diversified product mix provides us with a competitive advantage in both domestic and international markets, while our substantial degree of sales flexibility allows us to quickly adapt to customer demand and economic conditions. Logistics Distribution 25 distribution centres in Russia and the Ukraine In addition to offering a full range of EuroChem fertilizers, our distribution centres provide third-party crop protection products, seeds, and consulting services. The expansion of our distribution network has provided us with a strong foothold in Russia, the world’s fastest growing large agricultural market, and the attractive Ukrainian market. Our sales reflect the Russian market growth story – from 2009 to 2011, sales from our Distribution segment increased 160% from RUB 5.32bn to RUB 13.97bn. We now boast a 25% market share in Russia, where our presence is heavily concentrated within the Black Earth Region. RUB 150bn See pages 36-47 > Distribution centres and customers 25 See pages 36-47 > Annual Report and Accounts 2011 EuroChem 09 Overview
Page 1 and 2: Enabling our future Annual Report a
Page 3 and 4: ...by supplying world markets Our s
Page 5 and 6: 2011 Operational highlights > Succe
Page 7 and 8: Potash 912 MMT of proven and probab
Page 9: 16 Estonia Lithuania 7 14 15 Belaru
Page 13 and 14: Ten years of performance Ten years
Page 15 and 16: A record RUB 131bn in revenues 66%
Page 17 and 18: 4. Global economy Emerging economie
Page 19 and 20: Ranking by nutrient capacity MMT p.
Page 21 and 22: Despite the significant breakthroug
Page 23 and 24: Business review Our strategy Our st
Page 25 and 26: Enabling our future... ...by supply
Page 27 and 28: 7billion World population in 2011 9
Page 29 and 30: Severneft-Urengoy Novy Urengoy, Yam
Page 31 and 32: Environmental footprint -16% decrea
Page 33 and 34: Our commitment We have committed US
Page 35 and 36: Vertical integration > 2.8 MMT p.a.
Page 37 and 38: Employee participation Our employee
Page 39 and 40: The following table highlights our
Page 41 and 42: Nitrogen segment RUBbn, or as indic
Page 43 and 44: Over the next five years (2012-2016
Page 45 and 46: Phosphate segment RUBbn or as indic
Page 47 and 48: EuroChem’s main planned investmen
Page 49 and 50: i Along with nitrogen and phosphate
Page 51 and 52: Distribution RUBbn, or as indicated
Page 53 and 54: i At Tuapse, one of our priorities
Page 55 and 56: Cost of sales and gross margin As i
Page 57 and 58: 2011 2010 2009 RUBm % of total % ch
Page 59 and 60: Balance sheet Working capital Worki
Page 61 and 62:
Environment We’ve come a long way
Page 63 and 64:
Occupational health and safety We s
Page 65 and 66:
Strategic risks We classify as stra
Page 67 and 68:
Area Ref. code Nature Description S
Page 69 and 70:
Richard Sheath Audit Committee Chai
Page 71 and 72:
Nikolay Pilipenko Audit Committee Q
Page 73 and 74:
Where did we focus in 2011? The Boa
Page 75 and 76:
The Strategy Committee The Strategy
Page 77 and 78:
1 Andrey Melnichenko (39) Chairman
Page 79 and 80:
Financial information Consolidated
Page 81 and 82:
Financial information Consolidated
Page 83 and 84:
Financial information Notes to the
Page 85 and 86:
2 Basis of presentation and signifi
Page 87 and 88:
2 Basis of presentation and signifi
Page 89 and 90:
3 Critical accounting estimates, an
Page 91 and 92:
4 Adoption of new or revised standa
Page 93 and 94:
6 Segment information continued The
Page 95 and 96:
8 Intangible assets Note Acquired s
Page 97 and 98:
10 Mineral rights continued As of 3
Page 99 and 100:
13 Cash and cash equivalents and fi
Page 101 and 102:
15 Bank borrowings continued Intere
Page 103 and 104:
17 Derivative financial assets and
Page 105 and 106:
22 Distribution costs Distribution
Page 107 and 108:
26 Income tax continued The movemen
Page 109 and 110:
29 Business combinations Acquisitio
Page 111 and 112:
31 Contingencies, commitments and o
Page 113 and 114:
32 Financial and capital risk manag
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Financial information Main producti
Page 121 and 122:
Q4 2010 Q3 2010 Q2 2010 Q1 2010 201
Page 123 and 124:
Forward-looking statements This ann
show all

eurochem-annual-report-2011

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?