eurochem-annual-report-2011

Ten years of performance
Ten years is a major milestone for a Russian company today, but at EuroChem
we know it is only the beginning. The systems and strategies we have put in
place and executed over these last ten years have served to define our priorities
and have provided us with the right tools to see them through. Marking this
anniversary milestone, our revenues for the year grew to a record RUB 131bn in
2011. This is not only the result of a robust market environment, but also stems
from ten years of focused teamwork targeting improvements in production
efficiency and product quality combined with environmental and social
initiatives. As we look to consolidate our newly acquired assets in Russia and
Western Europe, while simultaneously moving closer to entering the select club
of potash producers, I see the next ten years as more promising and
value-creating than ever.
People
On behalf of the Board, I am pleased to report that a record total of 17,100
employees benefited from professional training in 2011. Whether at our
facilities or in university classrooms, we once again strived to ensure our
employees were fully enabled to improve their professional skills and contribute
to our growth. Additionally, following in the footsteps of the 27 graduates of
2009, 35 employees were enrolled in EuroChem-supported MBA programmes
in 2011, something we are all very proud of as it not only unlocks their
managerial potential and leadership skills, but also serves to encourage
those around.
Environment
Ten years ago, as we began acquiring the assets which form the backbone of
today’s EuroChem, we already knew that profitability and accountability work
best together. During Russia’s troubled economic times of the 1990s, these
assets appeared to most as a huge liability due to their significant investment
requirements, particularly in environmental expenditure. We have since been
actively engaged in reducing their environmental footprint, by decreasing
emissions and lowering the energy intensity of our production processes.
Throughout 2011, an aggregate RUB 1.1bn was spent on Company-wide
environmental and industrial safety. If we look back at the past ten years,
that investment adds up to an impressive RUB 6.3bn. It is deeply satisfying
to see that these investments have not only provided immediate benefits
to the environment, but have also benefited our employees, their families
and our Company.
Sustainability
EuroChem
10
years
EuroChem
Responsibility
Board
We had some changes to the Board this year as Charles Adriaenssen opted not
to seek re-election following his fifth term in June 2011. As a member of the
Corporate Governance and the Personnel Committee, Charles played an
important role in developing EuroChem’s corporate governance systems. We
have been actively seeking the right balance of experience and talent to replace
Charles’ vacant seat, while also taking other issues, such as gender diversity,
into consideration.
On the executive side, Igor Nechaev joined the management team from January
2011 as Logistics Director, following his appointment by the Board in late 2010.
His appointment comes as we seek to expand our foothold across key markets
by de-bottlenecking logistical constraints and getting closer to our end-users.
Looking ahead
Our strategic actions have provided us with clear opportunities. Seizing them
and realizing their full potential will require coordinated efforts from all sides of
the business. The Board and I will continue to provide the necessary support
and steering to our management team as it leads the consolidation of our newly
acquired assets and positions us for our next growth phase.
Annual Report and Accounts 2011 EuroChem 11
Overview