Introducing EuroChem

Bank of America Merrill Lynch Fertilizer Forum London, January 26, 2011 2

Disclaimer

This presentation has been prepared by OJSC MHK EuroChem (“EuroChem” or the “Company”) for informational purposes, and may include forward- looking statements or projections. These forward-looking statements or projections include matters that are not historical facts or statements and reflect the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, performance, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements and projections involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements and projections are not guarantees of future performance and that the actual results of operations, financial condition and liquidity of the Company and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements or projections contained in this presentation. Factors that could cause the actual results to differ materially fromthose contained in forward-looking statements or projections in this presentation may include, among other things, general economic conditions in the markets in which the Company operates, the competitive environment in, and risks associated with operating in, such markets, market change in the fertilizer and related industries, as well as many other risks affecting the Company and its operations. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements or projections contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The Company does not undertake any obligation to review or confirm expectations or estimates or to update any forward-looking statements or projections to reflect events that occur or circumstances that arise after the date of this presentation.

This document does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its presentation, communication or distribution form the basis of, or be relied on in connection with, any contract or investment decision. No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness. No representation or warranty, express or implied, is given by the Company, its subsidiaries or any of their respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents.

By participating in this meeting, you agree to be bound by the foregoing. 3 Contents

EuroChem Overview Potash Segment Nitrogen Segment Phosphate Segment Logistics & Distribution 4

Summary

Top 10 agrochemical company globally by Revenue* EBITDA* 1,600 1,485 nutrient capacity: 4,000 3,761 1,400 3,500 3,279 . 2 Nitrogen plants in Russia (2.8 MMT of 1,200 ammonia) 3,000 1,003 2,475 2,467 1,000 2,500 . 2 Phosphate plants in Russia and 1 in 752 2,000 1,790 800

(2.2 MMT of MAP/DAP) US$m 554 US$m 1,500 600 . 1 Apatite and iron ore mine in Russia 371 1,000 400 . P O -rich (37%-38%) apatite ore (2.7 MMT pa) 2 5 500 200 covers c.85% of own P production needs 0 0 . Up to 6MMT of iron ore (Fe content 64%), a 2006 2007 2008 2009 2010E 2006 2007 2008 2009 2010E co-product of apatite mining EBITDA margin Sales by Region . Construction of own Potash (K) capacity is 45% 40% 2,7% 0,4% well underway (production to start 2013, reaching 40% 5,0% Africa ROW N Amer up to c.8 MMT pa of product by 2021) 35% 23,9% 30% 31% Russia . Vertical integration: own raw materials, 30% 14,4% production, port terminals, rail stock, repair shops 25% 22% 21% LatAm and distribution in CIS 20% US$m . Privately owned by Andrey Melnichenko (95%) 15% and CEO Dmitry Strezhnev (5%) 10% 17,8% 14,2% Europe CIS . Expected 2010 EBITDA: USD 1bn, +80% over 5% 2009 0% 21,5% 2006 2007 2008 2009 2010E Asia . Latest Net Debt / LTM EBITDA: 1.13x *Revenue and EBITDA translated into US$ using 20 JAN 2011 exchange rate of 29.8252 RUB/US$ . As of 30 September 2010 EuroChem directly owned 9.998% of K+S AG 5

Position in Sector

6M 2010 Revenue (US$m) Top 10 by nutrient capacity globally Agrium Yara PRIMARY PRODUCT CAPACITY, MMT OF NUTRIENTS Mosaic* K+S 02468101214 PotashCorp ICL PotashCorp CF Industries EuroChem Mosaic Acron Silvinit+Uralkali 0 2000 4000 6000 8000 CF Industries 6M 2010 EBITDA (US$m) PotashCorp Yara Mosaic* Yara Belaruskali Agrium ICL Agrium K+S Ammonia (N) OCP CF Industries Phos Acid (P2O5) EuroChem Israel Chemicals Potash (K2O) Acron EuroChem 0 500 1000 1500 6M 2010 Net Profit (US$m) K+S AG PotashCorp TogliattiAzot Yara Mosaic* PhosAgro Agrium K+S Sinopec ICL EuroChem UralChem CF Industries Acron 0 200 400 600 800 1000 *Data for Mosaic is for Q3’10-Q4’10. Source: Bloomberg, company reports 6

Vertically Integrated Producer

Kovdorsky GOK Verkhnekamskoe deposit

Products Volume Products Volume Iron ore 5,700 MOP - Phase I 2,000 Murmansk Apatite 2,700 Kovdor MOP – Phases I and II 3,400 Baddeleyite 8.9

Phosphorit Gremyachinskoe deposit

Products Volume Products Volume Ust-Luga MOP – Phase I 2,300 MAP, DAP, NP 740 Tallinn Perm Kingisepp MOP – Phases I and II 4,600 Feed phosphates 220 Kedaynyay Novomoskovsk Lifosa Nevinnomyssk Azot Products Volume Volgograd Nevinnomyssk Products Volume DAP 980 Belorechensk Ammonia 1,164 Feed phosphates 150 Tuapse Urea 861 Ammonium Nitrate 1,313 EuroChem-BMU UAN 1,022 Products Volume Nitrogen Novomoskovsk Azot MAP, NP 510 Phosphate Products Volume Potash Ammonia 1,627 Apatite / iron ore mining Urea 1,440 Transhipment terminals Ammonium Nitrate 1,285 UAN 427

Note: all volumes expressed in thousands of tonnes 7

Key Competitive Advantages

. Low-cost raw materials (natural gas, phosphates and, in future, potash)

. Further cost advantages through vertical integration (own port terminals, rail stock, repair/maintenance units)

. Distribution in the world’s fastest-growing large fertilizer market (Russia and CIS)

. Iron ore (6 MMT pa) as co-product of apatite mining adds to profitability

. Future global cost leadership in potash expected at Gremyachinskoye field due to:

. Proximity to port (~650 km)

. K2O-rich ore . Flatness and thickness of potash layer

. Thick protective salt layer

. Growing production flexibility allows to quickly adapt to changes in market demand 8

The EuroChem Story

Growth . 2.1% of the world’s nutrient capacity today . 3.0% by 2020

Earnings power . Sustained competitiveness in N and P in Western Hemisphere . Benefits from iron ore as a co-product of apatite mining . Future global cost leadership in K

Key Risks . Potash construction (mines) -? . Natural gas cost differential between Russia and US/Europe -? . Limited free cash flow in 2011-2013 on heavy capex -? 9 EuroChem: Corporate Governance

EuroChem is a private company implementing the best-in-class corporate governance expected of a public company

Shareholding structure and influence Shareholding structure and influence

 Best-in-class approach to corporate governance  Transparent and open ownership structure

– Management develops and executes strategy  Long term shareholder commitment

– Board of Directors performs overall oversight  Prudent dividend policy, consistent with the financial situation of the company  Half of the Board is represented by independent directors with long standing reputation and experience Transparency and disclosure  Three Board committees: Audit, Governance and Personnel, Strategy

 IFRS reporting since 2002

 Annual reports issued since 2005, audited by PwC

 Financial statements and majority of corporate governance documents are publicly available on website, which is regularly updated

Board of Directors Andrey Melnichenko–Chairman of the Board of Directors Richard Sheath–Chairman of Audit Committee, Member of Corporate Governance  Beneficiary of a 95 percent interest in EuroChem and Personnel Committees  Co-founder and former Chairman of the Board of Directors of MDM Bank  Prior to Eurochem, worked as risk management consulting partner with PwC  In partnership with Sergey Popov, built EuroChem, SUEK and founded TMK  Began professional career with the Bank of England and the Ministry of Finance George Cardona–Chairman of the Strategy Committee Vladimir Stolin–Chairman of Corporate Governance and Personnel Committees  Founder and CEO of London-based Cardona Lloyd & Co.  Author of various scientific works on management and corporate behavior  Previously worked at HSBC Group, as Head of Strategy, and also as General Manager  Previous work experience includes being a professor at the and working as a consultant at RHR responsible for international banking International Keith Jackson–Member of the Audit and Strategy Committees Charles Adriaenssen–Member of Corporate Governance and Personnel Committees  From 1996 to 2005, Senior VP and a divisional CFO of Anglo American  Currently, member of the Boards of EPS SA, Green Facts Foundation, Outhere SA., and Sebastien  Extensive experience across several sectors and regions. Previous positions held Holdings, President of VLORO and Chairman of Bastille Investments include Chairman of Cleveland Potash, CFO of Cape plc  Extensive experience in diplomatic affairs Dmitry Strezhnev–Chairman of the Management Board Nikolay Pilipenko–Member of the Audit Committee  Head of EuroChem since August 2003  CFO of EuroChem from 2006 to 2008  Co-founder and General Director of RusPromAvto, 1999-2003  Extensive international experience with trading and industrial companies  Previously worked as Head of Likinskiy Bus Manufacturing Plant  Previously worked at ABB Group 10 Main Strategic Objectives

Become top 5 global • Build and launch own potash production agrochemical company by • M&A: opportunistic approach revenue and profitability

Maintain cost advantage in N • Improve existing production efficiency and P through vertical • Add new capacity for higher-value / lower integration and investment in gas content products (e.g. melamine, LDAN, NPK) efficiency • Enhance distribution in core markets (CIS, Europe) • Improve logistics (Baltic port, rail car fleet) • Improve access to phosphate rock () • Own natural gas production? 11

EuroChem Overview Potash Segment Nitrogen Segment Phosphate Segment Logistics & Distribution 12

Project Overview: Volgograd region (Gremyachinskoye)

Gremyachinskoye cumulative capex Project Overview Phases I+II (2010-completion) 3,500 . License area of 96,9 km2 located in Volgograd 3,000 region 2,500 Mining starts Now 2,000 . Russian reserves (B+C1+C2): 1,613 mmt; 1,500 US$ m . Unbooked reserves (C1+C2): 74,5 thmt 1,000 500 . JORC proven and probable reserves: 492 mmt 0 measured and indicated resources: 1,337 mmt prior to 2010 2011 2012 2013 2014 2015 2010 . Sylvinite ore Phase II cumulative capex Phase I cumulative capex

. KCl average content: 37%  Phase I: capacity of 2.3 mmt p.a., involves . NaCl average content: 54% construction of social infrastructure, cage shaft, . MgCl average content: 0.2% skip shafts and processing facility . CaSO4 average content: 6-7%  Phase II: capacity doubled to 4.6 mmt p.a., involves . Depth of 1,000–1,250 meters construction of additional skip shaft and expansion of . Mining to start in 2013 processing facility . Phase I full capacity in 2016

. Phase II full capacity in 2018

. Total investment for both phases est. US$ 3.4bn 13

Project overview: Perm region (Verkhnekamskoye)

Project Overview Verkhnekamskoye cumulative capex Phases I+II (2010-completion) 3.4 MMT . License area of 132.9 sq km located in Perm 3,000 2.0 MMT region, home of Russian potash industry 2,500 Mining starts Now 2,000 . Russian reserves (A+B+C1): 1,524 mmt 1,500

. JORC proven and probable reserves: 420 mmt US$ m 1,000 measured and indicated resources: 1,075 mmt 500 0 . Sylvinite and carnallite ore prior 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 to . KCl average content: 30% 2010 Phase II cumulative capex Phase I cumulative capex

. NaCl average content: 62%  Phase I: capacity of 2.0 mmt p.a., involves . MgCl average content: 0.3% construction of social infrastructure, cage shaft, . CaSO4 average content: 2.2% skip shafts and processing facility

. Insoluble residue: 4.9%  Phase II: additional capacity of 1.4 mmt p.a., involves . Depth ~500 meters construction of additional skip shaft and expansion of

. Mining to start in 2016 processing facility

. Phase I full capacity in 2018

. Phase II full capacity in 2021

. Total investment for both phases est. US$ 2.7bn 14

Future Cost Position in Potash

KCl Delivered Cost to India, 2010 KCl Delivered Cost to , 2010 300 300 250 250 200 200 150 150 100 100 50 50 0 0 APC APC Silvinit Silvinit Mosaic Mosaic Uralkali Uralkali Perm Perm K+S Kali K+S Kali Volga-Kali Volga-Kali EuroChem EuroChem EuroChem EuroChem ICL (DSW) ICL (DSW) PotashCorp Belaruskali* Belaruskali* PotashCorp

Freight to India Export Duty Delivery to FOB Site Cost Freight to China Export Duty Delivery to FOB Site Cost

KCl Delivered Cost to Brazil, 2010

EuroChem’s intended global cost leadership in K would help withstand prolonged periods of depressed potash price (<$350 CFR China), if necessary APC Silvinit Mosaic Uralkali Perm K+S Kali Volga-Kali EuroChem EuroChem * export duty for Belaruskali is 50 euro per tonne ICL (DSW) Belaruskali* PotashCorp Source: company reports, British Sulphur, Fertecon, EuroChem estimates Freight to Brazil Export Duty Delivery to FOB Site Cost 15 Visual Update

Employee housing Skip shaft construction site and cooling system

Skip shaft pre-sink Cage shaft construction site 16

EuroChem Overview Potash Segment Nitrogen Segment Phosphate Segment Logistics & Distribution 17

Nitrogen Segment

EuroChem nitrogen operations

Murmansk Novomoskovsk Azot Kovdor Products Volume Ammonia 1,627 Urea 1,440 Ammonium Nitrate 1,285 Ust-Luga Tallinn Perm UAN 427 Kingisepp Moscow

Kedaynyay Novomoskovsk

Nevinnomyssk Azot Volgograd Products Volume Nevinnomyssk Ammonia 1,164 Belorechensk Urea 861 Tuapse Ammonium Nitrate 1,313 UAN 1,022

Nitrogen

Phosphate

Potash Mining operations

Transhipment terminals

Note: all volumes expressed in thousands of tonnes 18

Key 9M 2010 Results

Sales by region*, 9M 2010 Revenue*, RUBbn (in brackets – change in percentage points relative to 9M 2009) 32,9 Africa Australasia 4% (-2) 1% (-1) 29,3 North America 9% (-1)

Latin America Russia and CIS 15% (-4) 38% (+11) 11,0 12,1 9,9 10,3 9,3

Europe Asia 9M 2010 9M 2009 Q3 10 Q2 10 Q1 10 Q4 09 Q3 09 22% (+3) 11% (-8) Sales by Product*, 9M 2010 EBITDA margin

(in brackets – change in percentage points relative to 9M 2009) 31% Methanol 6% (+3) Acetic Acid 25% 25% 26% 4% (-1) 21% Other Urea 19% 10% (+2) 28% (-3) 17%

Ammonia 11% (+1)

Complex Ammonium 9% (-) Nitrate 24% (+1) UAN 9M 2010 9M 2009 Q3 10 Q2 10 Q1 10 Q4 09 Q3 09 8% (-2) *including sales to other segments *Revenue and sales volumes include sales to other segments

Nitrogen segment includes nitrogen fertilizers and organic synthesis products.

Nitrogen Phosphate Distribution 19

Impact of Rising Natural Gas Prices in Russia

Illustrative delivered urea costs to Brazil ($/m tonne)

Gas costs Other cash costs Delivery costs Assuming gas price = $150 per 1,000m3 Nevinnomyssk Azot (equivalent to $340 netback price from Europe)

East European Assuming gas price = $340 producers per 1,000m3

Assuming gas price = $250 per Ukrainian producers 1,000m3 (DAF) . EuroChem maintains significant cost 0 100 200 300 400 advantage over European and Illustrative delivered urea costs to Europe ($/m tonne) Ukrainian producers in its key markets even after domestic gas Gas costs Other costs Delivery costs Import duty prices rise to their “netback” level Assuming gas price = $150 per Novomoskovsk Azot 1,000m3 (equivalent to $340 netback price from Europe)

European producers Assuming gas price = $290 per 1,000m3 (spot/contract mix)

Assuming gas price = $250 Ukrainian producers per 1,000m3 (DAF)

0 50 100 150 200 250 300 350 400

Note: ¹ Gas costs for Western Europe as at German border

Nitrogen Phosphate Distribution 20

Nitrogen Strategy

Key Objectives Key Investment Projects

 Ensuring energy efficiency improvements and removal of Recently completed: bottlenecks, leading to lower costs at both plants through  CAN – 420 kmt p.a. incremental investment;  Granular urea 3 – 2,000 mt p.d.  Achieving product flexibility in order to maximize profit margins through alignment of production to market  Granular urea 4 – 1,150 mt p.d. conditions; Under Construction:

 Ensuring best possible access to attractive markets (i.e.  Melamine – 50 kmt p.a. markets where EuroChem is most competitive on a “cash Objectives: build capacity in premium products, diversify cost delivered to” basis); and reduce share of natural gas cost in the product price  Securing access to competitively priced natural gas. Other Ideas

 Alternative gas supply: Cumulative N capex 2010-2014 (US$ m)  Buy or build own natural gas supply in Russia;

86  Contract with independent gas producer in Russia 123 (Novatek, LUKoil); 127  Build or buy new N capacity in region with cheap gas. 185  Additional value added/lower gas content products: 277  LDAN - 200 kmt p.a.;

2010 2011 2012 2013 2014  AdBlue;

 Production of Urea, CAN and UAN with sulphur content.

 Deep upgrade of Ammonia plants. 21

EuroChem Overview Potash Segment Nitrogen Segment Phosphate Segment Logistics & Distribution 22

Phosphate Operations

EuroChem phosphate operations

Kovdorsky GOK Products Volume Murmansk Iron ore 5,700 Apatite 2,700 Kovdor Baddeleyite 8.9

Lifosa Russia Products Volume

DAP 980 Kingisepp Feed phosphates 150 Moscow – EuroChem HQ Klaipeda Kedaynyay Phosphorit Products Volume MAP, DAP, NP 740 Kazakhstan Feed phosphates 220 Belorechensk Tuapse Taraz

EBMU Products Volume Phosphate and mining operations Own transhipment terminals MAP, NP 510 Port facilities rented under a long-term contract

Note: all volumes expressed in thousands of tonnes Nitrogen Phosphate Distribution 23

Key 9M 2010 Results

Sales by region*, 9M 2010 Revenue*, RUBbn (in brackets – change in percentage points relative to 9M 2009) 35.7 North America Africa 2% (+1) 1% (-3) Latin America 14% (+10) 23.9

Europe Russia and CIS 13.9 16% (-6) 35% (-) 12.6 9.2 7.2 8.5

Asia 32% (-2) 9M 2010 9M 2009 Q3 10 Q2 10 Q1 10 Q4 09 Q3 09

Sales by product*, H1 2010 EBITDA margin

(in brackets – change in percentage points relative to H1 2009) Other NP, NPK 4% (-) 39% 3% (-) 36% 33%

Iron ore 19% 31% (+8) 14% 14% MAP, DAP 12% 54% (-5)

Apatite 2% (-1) Feed 6% (-2) 9M 2010 9M 2009 Q3 10 Q2 10 Q1 10 Q4 09 Q3 09

*including sales to other segments Phosphate segment includes included iron or and baddeleyite, byproducts of apatite production at Kovdorskiy GOK mine.

Nitrogen Phosphate Distribution 24

Cost Comparison

Illustrative economics for competing DAP producers Delivered cost to Europe and India (US$/t)

US integrated Morocco EuroChem To To To To India To Europe To India US$ To India To India Europe Europe Europe (Phosphorit) (Lifosa) 356 353 Ammonia cost 470 470 445 445 244 256 334 311 320 Ammonia / tonne DAP 0.22 0.22 0.22 0.22 0.22 0.22 293 Ammonia cost / tonne 103 103 98 98 54 56 DAP

Rock cost / tonne 48 48 49 49 102 80 Rock / tonne DAP 1.73 1.73 1.56 1.56 1.28 1.28 Rock cost / tonne 83 83 76 76 131 102 DAP

Sulfur cost / tonne DAP 60 60 34 34 30 30 Other cash costs / 50 50 60 60 50 60 tonne DAP EuroChem Morocco US integrated Production costs / 296 296 269 269 264 249 tonne Source: EuroChem information

Freight 60 57 43 51 29 85 Total delivered cost / 356 353 311 320 293 334 tonne

Assuming “normalized” across-the-cycle ammonia and sulphur costs for US integrated producers

Nitrogen Phosphate Distribution 25

Phosphate Strategy

Key Objectives Key Investment Projects

 Increase supply of own raw materials (phosphate rock, apatite);  Feed phosphates at Lifosa: 150 kmt p.a. (completed in mid. 2010);

 Reduce conversion cost to improve cost per unit;  Increase sulphuric acid capacity: at Phosphorit from 720 to 1,000 kmt p.a.; at EBMU from 520 to 720 kmt p.a.;  Grow capacity to increase the benefits of economies of scale;  Increase phosphoric acid capacity: at Phosphorit from 350 to 400 kmt  Improve cost efficiency through energy-saving technologies; p.a.; at EBMU from 240 to 300 kmt p.a.;  Enhance product flexibility with capacity to produce at least two products at each plant (DAP and MCP at Lifosa, DAP/MAP and DFP at  Build NPK production at EBMU: 800 kmt p.a. (to correspond to K Phosphorit, MAP and NPK at BMU). production coming online in Volgograd). Objectives: debottleneck, decrease fixed costs per tonne, reduce costs through own energy generation, eliminate reliance on external phosphate rock.

Cumulative P capex 2010‐2014 (US$ m) Other Ideas

 Expand phosphate business and with access to low cost phosphate rock in Kazakhstan; 67 91  Discussing development of apatite deposit in Finland close to Russian 142 border with mine owner Yara;  Opportunities for access to Moroccan rock under discussion. 170

142

2010 2011 2012 2013 2014 26

EuroChem Overview Potash Segment Nitrogen Segment Phosphate Segment Logistics & Distribution 27

Logistics

Overview and plans

. Assets: Murmansk Bulk Terminal . Murmansk: 1.5 mmt p.a., iron ore TankChem (Sillamae) . Sillamae: 700 kmt p.a., liquid fertilizers and organic chemicals Ust-Luga . Tuapse : 3 mmt p.a., bulk fertilizers Klaipeda Moscow . Klaipeda (long-term contract): 3.5m bulk, 500k tonnes liquid, 1m tonnes phosphate rock

. 3 ships in long-term lease

. Over 6,700-strong rail stock and 42 locomotives

. Own rail stock service depot Tuapse Bulk Terminal . Plans:

. Ust-Luga (planned): 5 mmt p.a., bulk Phosphate rock and iron ore mine Nitrogen plant fertilizers Own shipping terminals Phosphate plant Long-term contract shipping terminal . Use own rail stock only 28

Distribution

Overview and plans Distribution network

. Distribution: 39 distribution Phosphorit centres in Southern and Central Russia and Ukraine Kovdorsky GOK

. Future plans: gradual Moscow

development of distribution in Novomoskovsky Azot other key markets (Europe, US, Brazil) Lifosa

EBMU Nevinnomyssky Azot

Phosphate rock and iron ore mine Nitrogen plant Planned distribution centres Own shipping terminals Phosphate plant Operating distribution centres Long-term contract shipping terminal

Nitrogen Phosphate Distribution 29

Summary: The EuroChem Story

Growth . 2.1% of the world’s nutrient capacity today . 3.0% by 2020

Earnings power . Sustained competitiveness in N and P in Western Hemisphere . Benefits from iron ore as a co-product of apatite mining . Future global cost leadership in K

Manageable . Potash construction (mines) -? Risks . Natural gas cost differential between Russia and US/Europe -? . Limited free cash flow in 2011-2013 on heavy capex -? 30

THANK YOU

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