Committed to growth

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Introduction Committed to growth As one of the world’s leading international fertilizer businesses, we are very focused on how we can sustain our success over the long term and continue to deliver for our customers, employees, partners, communities and shareholders. This strategic approach is crucial to our ability to withstand any periods of short-term market volatility that affect our business, and ensures that we remain well-positioned to respond efficiently and responsibly to world demand for our products. Contents Strategic Report 01 At a glance 02 Business model 04 Geographical footprint 06 Our marketplace 10 Chairman’s statement 12 Chief Executive Officer’s review 14 Strategy 16 Performance review 16 Group performance 22 Nitrogen 26 Phosphates 30 Potash 34 Distribution 38 Logistics 40 Sustainability 44 Risks and uncertainties Corporate Governance 48 Corporate Governance Report 55 EuroChem Group AG Committees Financial Statements 60 Independent Auditor’s Report 61 Consolidated Statement of Financial Position 63 Consolidated Statement of Profit or Loss and Other Comprehensive Income 64 Consolidated Statement of Cash Flows 66 Consolidated Statement of Changes in Equity 67 Notes to the Consolidated Financial Statements 120 Key financial and non-financial data 124 Contact information Online View the Annual Report and Accounts 2015 online www.eurochemgroup.com/reports/ annual-reports EuroChem Annual Report and Accounts 2015
At a glance How we measure up A global leader EuroChem is a world-leading agrochemical company with low-cost natural resources and production bases. These are supported by wholly-owned logistics assets and a global advisory, sales and distribution network. Our ability to access lower cost raw materials and energy, combined with a vertically integrated business model provides us with distinct cost advantages over many of our competitors. Our significant investment in major potash reserves will reinforce our leadership position in global fertilizer production when they come on stream next year. As one of the fastest growing fertilizer majors, we aim to be a top five producer by nutrient capacity by 2020. Who we are and what we do Our holding company – EuroChem Group AG – is based in Zug, Switzerland. It operates under Swiss law and financial regulations, whereas the Group’s operational functions fall under local jurisdictions. Strategic advantages • Access to low-cost, high-quality resources, including phosphate rock, hydrocarbons and potash. • Efficient, advanced production assets accessible to key markets. • Vertical integration enables control of raw materials, production, logistics and distribution, which deliver cost advantages, sector knowledge and economies of scale. • High quality products, with a growing emphasis on slow release and specialty grades in addition to our standard lines. • Global distribution network enables us to get the right product to the right place at the right time. • Investments in upstream supply (mainly potash and phosphate rock) provide a clear path for growth. 2015 highlights We manufacture high quality nitrogen and phosphate fertilizers. Our range includes standard and commodity products as well as a growing slow-release and specialty offering. In 2017 we will commence potash operations to further enhance our portfolio of products. Our expanding international production base comprises assets in Russia, Lithuania, Kazakhstan and Belgium, as well as a joint venture in China, the world’s largest mineral fertilizer market. These assets have ready access to key markets through our logistics and distribution network that extends across 25 countries. We employ more than 23,400 people globally. Total sales (US$) 4.5bn EBITDA increase (vs. 2014) 4% EBITDA (US$) 1.6bn EBITDA margin 35% Lost time injury frequency rate (LTIFR) 1.08 Total products sold 18 MMT EuroChem Annual Report and Accounts 2015 1
Page 1: Committed to growth 2015 ANNUAL REP
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Strategic Report Garth Moore Member
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27 Distribution costs Distribution
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Forward-looking statements This ann
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