[PPT] - Uralkali: A Leader in the Global Uralkali: A Leader in the Global PowerPoint Presentation

SLIDE 1

Uralkali: A Leader in the Global Uralkali: A Leader in the Global Potash Market

Analyst Presentation

20 August 2007

Investor Presentation

DRAFT No.1

g Moscow

October 2011

SLIDE 2

Disclaimer

This presentation has been prepared by JSC Uralkali (the «Company»). By attending the meeting where the presentation is made, or by reading the presentation slides, you agree to the following limitations and notifications. With respect to any information communicated by the Company, its agents or its representatives (including its directors, officers, employees, members, attorneys, advisors and any affiliates) to you or your agents or representatives (including any directors, officers, employees, members, attorneys, advisors and affiliates), directly or indirectly, whether in written, oral, visual, electronic or any other form, during or constituting the whole or part of this presentation or any presentation meeting or any conversation or discussion relating to or held in connection with this presentation,

r any opinion expressed in respect of such information (the “Information”), such Information may not be reproduced, redistributed, passed on or otherwise disseminated to any other person,

directly or indirectly, whether in written, oral, visual, electronic or any other form, for any purpose. The Information communicated does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities

f the Company or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any person considering the

purchase of any securities of the Company or any member of its group must inform himself or herself independently before taking any investment decision The Information communicated has purchase of any securities of the Company or any member of its group must inform himself or herself independently before taking any investment decision. The Information communicated has been provided to you solely for your information and background and is subject to amendment. Further, the Information communicated has been compiled on the basis of information from a number of sources and reflects prevailing conditions as of its date, which are subject to change. The medium through which the Information is communicated constitutes neither an advertisement nor a prospectus. The Information communicated has not been independently verified. The Information communicated is subject to verification and amendment without notice and the Company is not under any obligation to update or keep current the Information. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its directors, officers, employees, members, attorneys, advisors, affiliates or any other person as to the correctness, accuracy, currency, completeness, adequacy, usefulness, reliability, fairness or otherwise of the Information communicated, and any reliance you place on such Information will be at your sole risk. Neither the Company nor any of its directors, officers, employees, members, attorneys, advisors, affiliates or any other person accepts any liability whatsoever for any loss howsoever arising from any use of the Information communicated. To the fullest extent permitted by applicable law, the Company shall not be liable for any compensatory, punitive, special, consequential or other damages, any loss of income or revenue, any loss of business, any loss of anticipated savings, any loss of goodwill, or any other losses, liabilities, expenses or costs of whatever nature arising from or attributable to your access to, or inability to access, or reliance on Information even if the Company has been advised of the possibility of such damages, losses, liabilities, expenses or costs. Some of the Information may constitute projections or other forward-looking statements regarding future events or the future financial performance of the Company. These statements involve numerous assumptions regarding the present and future strategies of the Company and the environment in which it operates and will operate in the future and involve a number of known and unknown risks and other factors that could cause the Company’s or its industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Accordingly, the Company provides no assurance whatsoever that its or its industry’s actual results, levels of activity, performance or achievements will be consistent with the future results, levels of activity, performance or achievements expressed or implied by such forward looking statements. Neither the Company nor any of its directors, officers, employees, members, attorneys, advisors, affiliates or any other person intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. Multiple factors could cause the actual results to differ materially from those contained in any projections or forward-looking statements, including, among others, potential fluctuations in quarterly or other results, dependence on new product development, rapid technological and market change, acquisition strategy, manufacturing risks, volatility of stock price, financial risk management, future growth subject to risks of political instability, economic growth and natural disasters, wars and acts of terrorism.

1

SLIDE 3

Agenda 1 A Leader in the Global Potash Market

1. A Leader in the Global Potash Market
2. Positioned for Growth
3. Financial Highlights
4. Potash Market Update

p

5. Conclusions and Outlook

2

SLIDE 4

Uralkali at a Glance

Leading global player in the potash production and capacity
# 1 in potash production
# 2 in capacity globally

Overview of Uralkali Financial and Operational Highlights

Pro-forma SILV + URKA Change (US$ mln) 1H 2011 1 1H 2010 2 % Revenue 1 973 1 527 29%

# 2 in capacity globally

Production facilities located in Berezniki and Solikamsk (Perm

Territory)

5 potash mines, 7 potash producing plants, 1 carnallite plant
2 greenfiled projects: Ust-Yayvinsky and Polovodovsky blocks

at the Verkhnekamskoye field – the world’s second largest

Revenue 1 973 1 527 29% Net Revenue 3 1 654 1 261 31% Adjusted EBITDA 4 1 054 765 38% Adjusted EBITDA margin 5, % 64% 61% Net Profit 794 466 70% Sales volume 000 tonnes 5 276 5 272 0%

y g deposit

The

lowest cost producer with advantageous competitive position and further synergy potential from merger

Unit potash cash COGS 1H 2011 – 61 US$ per tonne - the

lowest across the industry

Sales volume, 000 tonnes 5 276 5 272 0%

Domestic sales

856 841 2%

Export sales

4 421 4 431 0% Average export price, US$ 398 303 31%

Notes: 1. Uralkali financial results for the 6 mths ended 30 Jun 2011 including Silvinit results starting from 1 Jan2011 2. Pro-forma 1H 2010 is calculated as Uralkali fin results for 1H 2010 + Silvinit fin results for 1H 2010 3 N t t dj t d ( l t f f i ht il t iff d t hi t t )

Leading player in the potash export market
Uralkali traders (BPC, IPC) have sustained its top market share

in the export potash market – c.42% in 1H 2011

Unrivalled and sustainable access to the fastest growing BRIC

markets

Shareholder Structure1

Mr. S. Kerimov²,

3. Net revenue represents adjusted revenue (sales net of freight, railway tariff and transshipment costs) 4. Adjusted EBITDA is calculated as Operating Profit plus depreciation and amortization and does not include mine flooding costs

Total number of shares – 3,094,637,905

Ability to add 65% growth in capacity from 2011 to 2021 on the

cheapest basis vs. global peers through:

An attractive portfolio of cost-advantageous brownfield projects
Large-scale Greenfield development opportunities
Industry leading sustainable financial performance
Mr. A. Nesis² ,

12.16% 17.16% Other Legal Entities, Individuals4, 29.09% Equivalent of 618,927,581 GDRs As of 30 September 2011 GDR holders – 17.21%

Pro-forma net revenue up by 30% compared to the first half of

2010, demonstrating the profitable dynamics of business - also supported by the strong EBITDA margin of 64%

Experienced management team with commitment to corporate

governance

Ordinary shares and global depository receipts are traded on the RTS
Mr. Z. Mutsoev²,

8.10%

Mr. A. Skurov²,
Mr. F. Galtchev²,

10.30% The Bank of New York (LSE)3, 15 43%

3

Ordinary shares and global depository receipts are traded on the RTS,

MICEX, and LSE stock exchanges since 2007

Audit in accordance with IFRS by PWC since 1997

7.76% 15.43%

Note: 1. Data as of 24 May 2011 2. Aggregate ultimate shareholding. Mr. Kerimov’s and Mr. Galtchev’s shareholdings include 6.24% and 4.81% respectively of Uralkali share capital transferred to OJSC Sberbank under a repo agreement 3. Data as of 14 June 2011 4. Includes 1.25% of Uralkali share capital transferred to OJSC Sberbank under repo agreements

SLIDE 5

Uralkali Group Structure

tomer

Existing Assets - 5 MINES, 7 POTASH PLANTS, 2 GREENFIELD PROJECTS (Ust-Yayva and Polovodovo)

1 3 2 1 2

End Cust

Berezniki-2

Potash plant and mine
Granular and standard

potash Berezniki-1

Potash plant
Standard potash

ODUCTION

Berezniki-3

Potash plant
Granular and standard potash

Solikamsk-2

Potash mine
Granular and standard

potash Solikamsk-1

Caranllite plant
Potash mine
Standard potash

rve Base to

Berezniki-4 Ust-Yayvinsky Field

4

PRO

MOP Plants

3

Polovodsky fileld

1

Solikamsk-3

4 5

From Reser

BBT shipping terminal

BALTIC BULK TERMINAL (BBT) WAREHOUSES

Berezniki 4

Potash plant and mine
Standard potash

y y

Resources: 1,3 bn tonnes of ore1
Capacity: + 2,8 mln tonnes KCI

in launch year 2020

Storage capacity of

COMPANY-OWNED RAILCARS

Over 8,000

TICS

Potash Mines
Greenfield licenses
Resources: 3,1 bn t of ore1
Capacity: + 2,5 mln t KCI

in launch year 2021

Potash mine
Standard potash

e Chain - F

shortest transp. route

from mines to port Storage capacity of 640,000 tonnes:

Berezniki and Solikamsk –

up to 400 ths tones

BBT – up to 240 ths tones

specialized railcars

LOGIST

POTASH SALES BY COUNTRIES MAJOR POTASH PLAYERS BY EXPORT EXPORT and DOMESTIC

Entire Value

SALES

Uralkali traders have sustained its top

market share in the export potash market

Direct domestic sales through Uralkali

1h 2011 TRADING, 1H 2011 EXPORT and DOMESTIC

BPC/ IPC1 42,1% SQM 2 3% ICL/K + S/APC 26,4%

India 13%

China 17% Russia 16% Other 2% Europe 10%

4

Notes 1. JORC as of January 1, 2011 2. Together with Uralkali Trading S.A.

E

Direct domestic sales through Uralkali

POT/ Canpotex 29,2% 2,3%

Brazi 5% SEA 23% USA 14%

SLIDE 6

Key Milestones

20-Dec-2010 29 Jun 2011 29-Jun-2011 26-Aug-2011 16-Sep-2011 17 May 2011 20-Dec-2010

Uralkali and Silvinit announce proposed combination

29-Jun-2011

BPC reaches agreement on 700 ths tonnes of potash shipments to China at the price US$470 (CFR), over the period Jul-Dec’11

29-Jun-2011

Election of two new INEDs – Sir Robert John Margetts and Paul James Ostling

26-Aug-2011

FSFM permission to increase GDR programme up to 25% of its share capital

16-Sep-2011

Uralkali refinances Silvinit debt of c. US$1.2 bn via syndicated loan at Libor + 1.8%

17-May-2011

Registration of termination of Silvinit as a standalone legal entity

December February March May January July - September June October December February

April

May January August September June October

4-Feb-2011

Shareholder approval of proposed combination of

24-Jun-2011

Under new cooperation terms with IPC Uralkali plans to export its products through the BPC

4-Aug-2011

BPC reaches agreement on 1.2 mln tonnes of potash shipments to India at the price US$490 (CFR), over

7-Oct-2011

Uralkali approved buy-back programme of the aggregate amount

25-Oct-2011

Uralkali announces long- term capacity expansion programme: increase by ~80% to 19.0 mln tonnes of Uralkali and Silvinit p g starting from 1-Jan-2012 p $ ( ), the period Aug’11-Mar’12 gg g up to US$2.5 bln KCl by 2021

5

SLIDE 7

A Leader in Production and Capacity

10 2 CI Largest Global Potash Producer Potash Production 2010 (calendar year) 10.2 8.3 8.1 6.6 5.4 4.5 4.3 1.9 1.8 1.3 0.7 0.7

nnes of KC

s

1

Mn to

Chinese Producers

S C i fi i l t IFA N ti l B f St ti ti f Chi

13 3 Second Largest Player by Capacity Potash Capacity 2010 (as of 31 December)

Source: Companies financial reports, IFA, National Bureau of Statistics of China Note: 1. Mosaic production excluding share produced under toll agreement with PotashCorp

10.6 13.3 10.4 9.2 7.1 6.0 5.3 2.5 2.1 1.5 0.9 0.9 nes of KCI Potash Capacity 2010 (as of 31 December)

1

Mn tonn

Chinese Producers

6

Source: Companies financial reports, IFA, National Bureau of Statistics of China Note: 1. Mosaic capacity as of 31-May-10 excluding capacity used under toll production agreement with PotashCorp

SLIDE 8

Agenda 1 A Leader in the Global Potash Market

1. A Leader in the Global Potash Market
2. Positioned for Growth
3. Financial Highlights
4. Potash Market Update

p

5. Conclusions and Outlook

7

SLIDE 9

Clear Strategy to Deliver Future Growth

“Creation of one of the world’s leading potash companies through leveraging Uralkali’s operational and financial strength”

Drive Organic Growth

Driving organic growth through a value accretive investment program, to include exploitation of

brownfield projects and greenfield development opportunities

1

Enhance Operating

2

Pursuing improvements in operational efficiency to maintain and enhance Uralkali’s

Efficiency

competitive cost position and profitability

Optimization of Sales and Marketing Activities

3

Determining optimum sales and marketing channels

Realize Synergies

4

Realising the considerable synergistic potential that exists through the combination of two

leading regional businesses in an expedited timeframe to increase short and longer term shareholder value

Employer of Choice

5

Delivering value whilst operating in a socially responsible manner and positioning Uralkali as

the employer of choice in the Russian mining industry

Focus on Corporate

6

Clear strategic road map to position Uralkali as one of the world’s leading potash companies to drive longer term value creation

Focus on Corporate Governance

Continued commitment to ongoing enhancements in corporate governance standards

8

SLIDE 10

Expansion Programme

Complimentary Asset Base x 2 Growth in 10 years

Reserves & Resources: JORC-

compliant resource base of 8.7Bnt of

re including 4.4Bnt from Ust-Yayvinsky

Project Name Project Capacity, mln t KCI Launch Date Full Capacity Date

Debottlenecking 1.9 2011 2017

g y y and Polovodovsky blocks combined

Greenfields: Further expansion

potential through Ust-Yayvinsky and Polovodovsky projects

the largest greenfield license areas

Moscow

Perm Region Solikamsk-3 expansion:

phase 1

0.3 2015 2015

phase 2

1.7 2016 2019 Berezniki-4 expansion 1.5 2012 2012 Ust-Yayvinsky field 2.8 2020 2025

2 3

+0 3 +0.1 +0.5 +2.5

16 18 20

KCI)

19,0

14 0 14,5 15,6 15,9 16,0 16,5

in the industry, which are adjacent to the existing mines

ne of the lowest depths of the mine

(300-450m)

all required infrastructure already in

Polovodovsky field 2.5 2021 TBC

3

+1.5 +0.5 +0.2 +0.3 +0.9 +0.3 +0.5 +0.8 +0.3 0.1

10 12 14 16

(mln tonnes K 10,6 11,5 13,0 13,5 13,5 14,0

place

strong geology and mining expertise
Capacity expansion worth c. US$ 5.8

bn to maintain leading position

An attractive portfolio of cost-

8 10 2010 2011E 2012F 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2011 2012F 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F

Capex (expansion) 300 370 400 460 840 770 730 690 450 330 430 An attractive portfolio of cost advantageous Brownfield projects and large-scale Greenfield development

pportunities
Brownfield capex – c. US$ 4201 per

tonne

2010

(expansion) (US$ mln)4 300 370 400 460 840 770 730 690 450 330 430

Greenfield capex – c. US$ 7501 per

tonne

For more details on Uralkali’s expansion programme please visit

www.uralkali.com/expansion_programme/

Notes: 1. Weighted Average Cost 2. Including 0.5 mln tonnes of additional capacity and 2.3 million tonnes of new capacity that will substitute the depleting capacity of Berezniki-2 mine 3. Full capacity schedule will be confirmed in the course of the project 4. Planned investments

Sustaining long-term leadership on the most effective basis in the industry 9

SLIDE 11

Agenda 1 A Leader in the Global Potash Market

1. A Leader in the Global Potash Market
2. Positioned for Growth
3. Financial Highlights
4. Potash Market Update

p

5. Conclusions and Outlook

10

SLIDE 12

Financial Statement 1H 2011 – Alignment of Reporting Standards

CONSOLIDATION OF SILVINIT

Profit and

Consolidation starting 17 May 2011, when Silvinit ceased to exist as Russian legal entity:

g

Profit and Loss, Cash Flow

Financial Statement includes 1.5 months of Silvinit operations
Pro-forma numbers include 6 months of Silvinit operations –> more representative for results of the Combined

Company

Balance Sheet

Purchase price allocation resulted in:

Goodwill of US$ 2.1bn – excess of consideration over the fair value of assets and liabilities
Intangible assets of US$ 6.4bn – operating licences of Silvinit

CHANGES IN REPORTING STANDARDS AS OF 1H 2011

Changes in

Financial reporting in US Dollars

Changes in reporting

Key numbers on Q-Q basis

Further increasing transparency and disclosure standards

11

SLIDE 13

Key Financial Highlights – 1H 2011

Key Figures Key Considerations

1H 2011 Market mix Net Revenue 3

2 000 Russia Other

Pro-forma SILV + URKA Change (US$ mln) 1H 2011 1 1H 2010 2 % 1 261 1 654

800 1 200 1 600 2 000 (US$ mln) China rail 13% China sea 4% India 13% Europe Russia farmers 1% Russia non- farmers 15% Other markets 2%

31%

(US$ mln) 1H 2011 1H 2010 %

Sales volume, 000 tonnes 5 276 5 272 0%

Domestic sales

856 841 2% Sales to farmers 46 48

4%
Export sales

4 421 4 431 0%

400

1H 2010 1H2011 13% Brazil 5% SEA 23% USA 14% p 10%

Revenue 1 973 1 527 29% Net Revenue 3 1 654 1 261 31% EBITDA 1 036 764 35% Average export price Adjusted EBITDA 4

764 1 054

1 000 1 200 n)

31% 38%

398

400 500 600 nne )

EBITDA margin, % 63% 61% Adjusted EBITDA 4 1 054 765 38% Adjusted EBITDA margin 5 , % 64% 61% Net Profit 794 466 70%

764

200 400 600 800 (US$ mln

303

100 200 300 400 (US$ per ton

CAPEX 226 223 1%

Maintenance

118 109 9%

Expansion

107 114

6%

Average export price US$ 398 303 31%

1H 2011 Demonstrated growth in prices together with virtually full capacity utilization rate

1H 2010

1H2011 N t

1H 2010

1H2011

Average export price, US$ 398 303 31%

12

Notes: 1. Uralkali financial results for the 6 months ended 30 June 2011 including Silvinit results starting from 1 January 2011 2. Pro-forma 1H 2010 is calculated as Uralkali financial results for 1H 2010 + Silvinit financial results for 1H 2010 3. Net revenue represents adjusted revenue (sales net of freight, railway tariff and transshipment costs) 4. Adjusted EBITDA is calculated as Operating Profit plus depreciation and amortization and does not include mine flooding costs 5. EBITDA margin is calculated as EBITDA divided by Net Sales

SLIDE 14

Review of Cost Structure 1H 20111

Cash COGS2 Cash G&A Costs Cash S&D Costs

Repairs and maintenance 6% Other costs 15% Security Other costs Tranship ment 6% Labor cost 2% Repairs and maintenance 9% Consulting, audit and legal services 14% Transport repairs and maintenance 5% Labour costs 33% 15% Labour cost Security 4% Freight 37% costs 6% 6% Insurance 3% Materials and components used 20% 14% Fuel and energy 23% cost 52% Other costs 21% Railway tariff 45%

Unit potash cash COGS 1H 2011 – 61 US$

per tonne - the lowest across the industry:

19%

Labor GnA costs

80

2010 Potash industry cost curve (excl. shipping)

Uralkali

Effective railway tariff and freight rates

49 64 34 Effective freight China effective railway tariff SPb effective railway tariff 46 37

20 40 60 (US$ mln)

ICL Agrium APC Potash Corp Uralkali

Maintaining status of a low cost producer with the focus of further cost efficiency, optimization,

Source: Uralkali, Companies reports , HSBC

(US$/tonne) 10 20 30 40 50 60 70

g

(US$/tonne)

3

1H 2010

1H 2011 50 100 150 200 250

Mosaic

13

Maintaining status of a low cost producer with the focus of further cost efficiency, optimization, delivery of synergies

Notes: 1. Consolidated Condensed Interim Financial Information for 6 months 2011 2. Without COGS of finished goods acquired at acquisition 3. Adjusted for one-off compensation costs

SLIDE 15

Strong Cash Flow Generation

Buyback Program Dividend Policy

Uralkali BOD approved a buyback program on Oct 6 2011 in

respect of the Company’s ordinary shares and GDRs in the $

Target dividend pay-out ratio of minimum 50% of IFRS net

income, in light of strong operating cash flows relative to i t t d hi h i i t t ith hi t i l di id d

ERVIEW

amount of up to US$2.5bn, effective until Oct 6, 2012

The program reflects the Company’s belief that the creation
f shareholder value over the long term requires a balanced

approach to investing in organic growth and returning excess capital to shareholders whilst maintaining a robust capital investment needs, which is consistent with historical dividend payouts

Only excess cash is distributed to shareholders. The company

would not compromise its goal of maintaining strong liquidity and conservative leverage

OV RATIONALE

structure

A non-revolving credit facility in the amount of up to RUB66bn

(c.US$2.0bn) could be used to partially finance the buy-back program

Uralkali BoD recommends interim dividend payment in the

amount of 4 RUR per share / 20 RUR per GDR as of 25 October 2011

R FINANCING 6 O t b U lk li

Dividend Policy Dividends Payout Ratio

50% 50% 60%

Uralkali GDR Performance

49,5 40,0 45,0 50,0 55,0 GDR) 6 October: Uralkali approved buy-back program of the aggregate amount up to US$2.5 bln 50% 39% 40% 50% 50%2 60%

15% 0% 10% 20% 30% 40%

27,8 20,0 25,0 30,0 35,0 0,0 p p p p p p p p p p ct ct ct ct ct ct ct ct (US$ G 39% 0% 20% 40%

Buyback Program reflects ongoing commitment to shareholder value while retaining a robust capital

0% before… after…

1-Se 4-Se 7-Se 10-Se 13-Se 16-Se 19-Se 22-Se 25-Se 28-Se 1-Oc 4-Oc 7-Oc 10-Oc 13-Oc 16-Oc 19-Oc 22-Oc 0% 2007 2008 2009 2010 1H2011

Notes: 1. Consolidated Condensed Interim Financial Information for 6 months 2011 2. Subject to EGM approval on 8 December 2011

structure providing a strong platform for long term growth 14

SLIDE 16

Focus on Capital Structure Optimization

Key Considerations Balance Sheet¹

(US$ bn) 30 June 2011 Debt (bank loans + bonds) 3 173

Maintaining 30% Debt to 70% Equity capital

Debt (bank loans + bonds) 3,173

bank loans

2,074

bonds issued

1,100 Cash 1,058 Net debt/(cash) 2 116

structure

Medium term target ratio of Net Debt to LTM

EBITDA of 1.0x – 2.0x

Net debt/(cash) 2,116 Shareholders’ equity 9, 287

Recent Steps to Optimize Debt Structure

Focus on maintaining strong liquidity and

comfortable debt maturity profile

All debt is maintained in US Dollars acting as a
Significant Balance sheet changes:
Buy-back of bonds at the amount c. US$1bn in August

2011

Refinancing c. US$1.2bn of Silvinit debt with a
All debt is maintained in US Dollars acting as a

natural hedge, with sales predominantly denominated in USD and costs is RUB

g $ syndicate loan in September 2011

Loan portfolio parameters expected as of October 2011:
c.100% of debt exposure is in US Dollars
Average interest rate c. 3.0%
Cross-currency swaps are used to effectively

convert RUB debt into USD

Focus on robust capital structure, maintaining strong balance sheet

g

Notes: 1. Consolidated Condensed Interim Financial Information for 6 months 2011

p , g g 15

SLIDE 17

Synergy Realization Progress Update

OPERATIONAL TRANSPORTATION SG&A / Financial

Operating savings of c. US$35m p.a.

due to procurement improvements, technology efficiency and efficiency

Redirection of Silvinit's transportation

routes to the Baltic Bulk Terminal

wned by Uralkali
Combination of corporate functions,

streamlining divisional functions and

ffices

Synergies Description

in repairs and services functions

Maintenance investment savings of
c. US$20m p.a.
Additional benefits are expected to

come from integrated approach to

More effective use of existing rolling

stock through joint management

Decreased ship chartering costs

thanks to larger and longer-term freight contracts

Reduction of administrative

expenses through elimination of duplicate functions and roles

Optimisation of fixed cost levels –

maintenance of funds, planned come from integrated approach to the development of Ust-Yayvinsky and Polovodovsky greenfield projects freight contracts maintenance of funds, planned replacement of equipment, upkeeping of infrastructure and plant

Optimization of debt portfolio,

refinancing of expensive Silvinit debt

Value

US$55m p.a. US$20m p.a. US$25m p.a.

Update and

2011 Maintenance capex to be less

than US$280mln

Carnalite plant to be shut down
At least 800kt to be redirected to

Baltic Bulk Terminal (economies of US$16/t) in 2011 with up to 1Mt in

Headcount reduction of more than

300 people in 1H 2011 (mostly in G&A function)

Update and Near Term Plans

Carnalite plant to be shut down 2012

Starting 2012 all export volumes of

Silvinit to be redirected to traditional Uralkali traders (economies in trading administration cost)

Silvinit debt refinanced at interest

rates LIBOR +1.8%

In aggregate, core synergies from the merger are expected to reach c.US$100 million p.a.1 by 2013

16

Notes: 1. Net of realisation costs. Management of Uralkali is further reviewing the synergy potential created through the combination, which is expected to result in additional synergies being identified

SLIDE 18

IR of the Combined Company

2011-2012 Conference Calls and Roadshows Preliminary Calendar Year Date Event Location

2011 September 22 Uralkali 1H 2011 IFRS Financial Results Conference Call Moscow San Francisco,

September 2011

M T W T F S S 1 2 3 4 5 6 7 8 9 10 11

September-October 26 Sep - 07 Oct Uralkali Roadshow Chicago, Boston, New York, Stockholm. Frankfurt, London, Moscow October 7 VTB Capital: Russia Conference Moscow 25 UBS R i C t D F kf t

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

October 2011

M T W T F S S

25 UBS: Russia Corporate Day Frankfurt 27 NYSE: Russia Conference New York November 28 GS: 3rd Annual EEMEA 1-x-1 Conference London 29 UBS: GEM 1x1 Conference New-York 29 RenCap: 2nd Annual EM Investor Conference Hong-Kong 30 Citi: Global Chemicals and Fertilisers conference New-York

M T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

December 15 Uralkali trading update call (IFRS key figures for 3Q 2011) Moscow 2012

[TBC]

April 6 Uralkali FY 2011 and 1Q 2012 IFRS Financial Results Conf Call Moscow

31

November 2011

M T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 10 20

May 10-24 Uralkali Roadshow TBD September 12 Uralkali 1H 2012 IFRS Financial Results Conference Call Moscow 12-26 Uralkali Roadshow TBD

14 15 16 17 18 10 20 21 22 23 24 25 26 27 28 29 30

Investor schedule consistent with that employed previously by Uralkali
Roadshow – semi-annually
Participation in major Sector and Country Conferences

December 14 Uralkali trading update call (IFRS financial results for 3Q 2012) Moscow

p j y

Investor days
1x1 Meetings and conference calls

17

SLIDE 19

Agenda 1 A Leader in the Global Potash Market

1. A Leader in the Global Potash Market
2. Positioned for Growth
3. Financial Highlights
4. Potash Market Update

p

5. Conclusions and Outlook

18

SLIDE 20

Crop Prices Stay High

Crop Future Prices Corn stocks-to-use ratios

MYR/t 3000 3500 4000 4500 12 14 16 18 $/bu 30% 40% World stock/use US stock/use 500 1000 1500 2000 2500 3000 2 4 6 8 10 12 0% 10% 20% Source: CBOT, Bursa Malaysia

Soybeans stocks-to-use ratios

Jan'00 Nov'00 Sep'01 Jul'02 May'03 Mar'04 Jan'05 Nov'05 Sep'06 Jul'07 May'08 Mar'09 Jan'10 Nov'10 Sep'11

Corn Soybeans Wheat Palm Oil

99/00 01/02 03/04 05/06 07/08 09/10 11/12 30%

Grain markets should stay relatively immune to any further deterioration in

the macroeconomic environment this year as tight fundamentals continue to support price levels

This year, planting delays, spring flooding, and uneven growing weather led

the analysts to notably reduce forecasted harvest sizes especially in the US

10% 20%

(for corn (~3%), soybean (~4%), and wheat (~3%)) thus pushing stock-to- use ratios to record lows

Strong demand from China and other emerging markets is expected to

support the prices and limit the possibility for stocks to be rebuilt

Wheat stocks-to-use ratios

0% 99/00 01/02 03/04 05/06 07/08 09/10 11/12 50%

2010 Average Price Futures Price Forecast 3-months 6-months 12-months 2011E Corn $3.76/bu

$6.15/bu $6.15/bu $5.50/bu

Soybeans $10.44/bu

$12.60/bu $13.00/bu $13.00/bu

Wheat $5.29/bu

$6.40/bu $6.50/bu $6.00/bu

10% 20% 30% 40% Source: USDA

Palm Oil $856/t $1150/t

Source: CBOT, Bursa Malaysia, Goldman Sachs

19

0% 10% 99/00 01/02 03/04 05/06 07/08 09/10 11/12

SLIDE 21

Potash Export Trade in 1H 2011

Suppliers’ market shares in global potash export¹ 1H 2011 1H 2010

BPC/IPC² 42,1% ICL/K+S/APC 26,4% BPC/IPC² ICL/K+S/APC 29,7%

1H 2011 1H 2010

SQM 2 3% 42,1% , CANPOTEX /POT 29 2% 2,3% CANPOTEX /POT 25 4% SQM 2,8% 29,2% 25,4%

Source: IFA, BPC

Uralkali traders have sustained its top market share in the export potash market

Note: 1. Excluding Canadian potash export to the United States 2. Together with Uralkali Trading S.A

20

SLIDE 22

Supply/Demand Dynamics 2001-2012F

56 55 58-59 60-62

capacity production sales

42 44 47 52 52 49 52 55

Million metric tonnes

29 43 44 46 52 54 49 55 54 32 50

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Е 2012F 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Е 2012F

Source: IFA, BPC estimates

Worldwide potash sales volumes are expected to hit a new record of 58-59 Mtpa in 2011
Healthy farmer economics and re-stocking point to improved supply/demand dynamics into 2012

Healthy farmer economics and re stocking point to improved supply/demand dynamics into 2012

The global supply/demand balances for potash remains relatively tight with effective operating rates

for calendar 2011/12 close to 90%. In 2012, potash demand is likely to exceed 60 Mtpa 2011 expected to see potash sales exceeding pre-crisis level with further growth anticipated in 2012 21 2011 expected to see potash sales exceeding pre-crisis level with further growth anticipated in 2012

SLIDE 23

Fertilizer Prices Continue to Strengthen

1 000 1 200 1 400

Potash prices are expected

250 300 350

600 800 (US$/t)

p p to increase to US$600/t CFR in Q1 2012

150 200

200 400

50 100

Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Phosphate (DAP US Gulf FOB) Nitrogen (Urea Yuzhny FOB) Potash (MOP FSU FOB)

Source: FMB

Jan-05 Sep-05 May-06 Jan-07 Sep-07 May-08 Jan-09 Sep-09 May-10 Jan-11 Sep-11

UREA Price / Grain Index DAP Price / Grain Index MOP Price / Grain Index Source: IFA

Potash prices haven’t surpassed the record highs of 2008 yet
Spot prices are US$550/t in Brazil, US$535/t - in South East Asia; The 2H’11 Chinese contract has

been settled at US$470/t and Indian half-year contract at US$490/t

While equities have recently experienced a downward trajectory, agriculture commodity prices did

not correct much. Prices for potash, DAP, and urea each strengthened over the past month supported by strong agriculture fundamentals

Potash industry fundamentals remain favorable for 2011 and 2012, owing to low stock-use ratios

y , g for grain and oilseeds, which, in turn, support potash prices. Spot prices are expected to increase to US$600/t CFR in Q1 2012 22

SLIDE 24

Potash Market Outlook

Crop prices remain at historical highs, while fertilizers haven’t surpassed the record

highs of 2008 yet In 2011 the combination of high crop prices and relatively low highs of 2008 yet. In 2011, the combination of high crop prices and relatively low fertilizer prices (input costs) will result in one more record year for farmers’ incomes

The recent selloff in the equities market reflects a bearish macroeconomic views,

particularly around Eurozone debt crisis While equities have sold off sharply particularly around Eurozone debt crisis. While equities have sold off sharply, agriculture commodity prices did not correct quite as much owing to low stock-use ratios for grain and oilseeds Spot prices are expected to increase to US$600/t CFR in Q1 2012

Spot prices are expected to increase to US$600/t CFR in Q1 2012
Given healthy crop prices and strong farmers’ economics, balanced to tight

supply/demand suppliers are likely to achieve significant price increases over the next year

23

SLIDE 25

Agenda 1 A Leader in the Global Potash Market

1. A Leader in the Global Potash Market
2. Positioned for Growth
3. Financial Highlights
4. Potash Market Update

p

5. Conclusions and Outlook

24

SLIDE 26

Conclusion and Outlook

#1 in global potash production
Leading player in potash export market
Amongst the lowest cost producers with highly cost advantageous competitive position and further

synergistic potential A Leader in the Global Potash M k t synergistic potential

Attractive portfolio of cost-advantaged brownfield projects alongside large-scale greenfield development
pportunities

Market

Adjusted EBITDA margin – 64%

Sustainable

Potash COGS per tonne – 61 US$ per tonne
Optimized low interest rate debt portfolio
Expected synergetic effects materializing

Sustainable Superior Performance

Industry fundamentals are highly attractive with favourable demand growth prospects
Crop prices expected to stay elevated in 2011 / 12
Global potash sales volumes expected to range between 58-59 Mtpa in 2011
Upward pricing trajectory is likely to continue during 2012

Potash Market Update Further Improvement in Corporate Governance

High calibre international INEDs elected to the Board – Sir Robert John Margetts and Paul James Ostling
New dividend policy (50% payout) benefits all shareholders

Focused on delivery of growth to drive shareholder value

Governance

25

Focused on delivery of growth to drive shareholder value

SLIDE 27

Financial and Investor Community Achievements

Fundamental Efficiency Appraisal Annual Report Wins Awards Deal of the Year Award

* Highest efficiency dynamics

The Best Presentation in an Annual Report 2010 of a Company's Investment Attractiveness Received the deal of the year award for the combination with Silvinit at the “Expert 400” forum 2011

g y y * Highest level of transparency among 100 major Russian companies in the real economic sector (2011)

Efficiency and Transparency Financial Acumen Best Annual Report 2010 among nonfinancial sector and the best Design and Graphic Arts

Uralkali shares named "Best rising" in the RTS Index (2010 2011)

Top-tier Investor Relations Team

Investor Relations Progress Award

Ranked 1 in ‘Most progress in IR’

Index (2010, 2011)

For the second year Uralkali shares shows the strongest

Best

Widely Traded Shares MSCI Inclusion and #3 in ‘Best roadshows’ by TR Extel Survey 2010 ‘Best chemicals IR team’ in Russia by TR 2009 shares shows the strongest growth among securities that are part of the Russian RTS Index - "Best rising security in the RTS Index".

Strong Local Liquidity + LSE Listed GDRs

GDRs admitted to main Board of LSE under ticker URKA local

4.59% of MSCI Russia

MSCI increased Uralkali weighting in its MSCI Russia Index from 2.99% to 4.59% presence on both RTS and MICEX following the completion of combination with Silvinit

26

SLIDE 28

Contact Information

IR Contact Details

Uralkali 119034, Russia, Moscow, Butikovsky per., 7 Tel.: +7 (495) 730-2371 Fax: +7 (495) 730-2393 Fax: 7 (495) 730 2393 Web: www.uralkali.com E-mail: ir@msc.uralkali.com Anna Batarina CFA Anna Batarina, CFA Head of Investor Relations and Capital Markets Karina Oparina Senior Manager for Investor Relations Daria Fadeeva Manager for Investor Relations

27

SLIDE 29

Appendices

28

SLIDE 30

Uralkali Management Team and Governance

Vladislav

Senior management team

Management team and governance structure optimally positioned to drive future growth

Vladislav Baumgertner CEO Viktor Belyakov Vladimir Yevgeny

Senior management team comprises highly experienced operational, financial and functional professionals

Viktor Belyakov Chief Financial Officer Bezzubov Director of Procurement g y Kotlyar Director of Operations Andrey Elena

Selected from the legacy

management teams of both companies

A new Board of directors

ill be elected at the

Valery Lepekhin Head of Internal Audit Motovilov Head of Government Relations Oleg Petrov Director of Sales and Marketing Samsonova Director of Human Resources Stanistav D i Marina Al d

will be elected at the AGM on 29 June

New Board1 expected to

comprise two high calibre international

Seleznev Director of Health, Safety and Environment Protection Dmitry Sharapov Director of Security Marina Shvetsova Director of Legal and Corporate Affairs Alexander Babinsky Head of Public Relations

calibre international INEDs – Sir Robert Margetts and Mr. Paul Ostling

Commitment to

Igor Tsuranov Director of Strategy and Investment Vladimir Vaulin Chief Engineer - Director Anna Batarina Head of Investor Relations and Capital Markets

enhancement in corporate governance standards

Note: 1 N B d f Di t t d t i f i b f th t B d (M V l hi M i hik N i G h M l kh d M K l hi ) t th ith M Vl di l B t

29

1. New Board of Directors expected to comprise of six members of the current Board (Messrs. Voloshin, Mosionzhik, Nesis, Grachev, Malakh and Ms. Kolonchina) together with Mr. Vladislav Baumgertner, Sir Robert Margetts and Mr. Paul Ostling

SLIDE 31

Potassium: One of the Three Primary Nutrients

H2O O2 CO2

Primary nutrients

S d t i t Mi t i t

N P K

Secondary nutrients Micro-nutrients

Ca Mg S B Zn Fe Cu Mg Mo Cl

Nitrogen (N) Phosphorus (P) Potassium (K)

Promotes protein formation
Determines plant’s growth,

vigour, colour and yield

Nitrogen (N) Phosphorus (P) Potassium (K)

Plays a key role in adequate

root development and photosynthesis process

Improves plant durability

and resistance to drought, disease, weeds, parasites d ld th vigour, colour and yield

Helps plant resist drought

and cold weather

30 Each nutrient plays its own role, but only together they ensure a balanced nourishment and cannot replace each other

SLIDE 32

Potash: Growth, Visibility, Stability

30 2 million tonnes K O

Potash (K) Phosphate (P) Nitrogen (N)

Market size1 41 4 million tonnes 105 2 million tonnes Very limited 30.2 million tonnes K2O Market size (2011E) (48.6 million tonnes KCl)2 41.4 million tonnes 105.2 million tonnes (N) Geographic availability Limited Readily available ( P2O5 ) Profitability Industry members High Low/medium Low/medium Small number of leading players Several leading players Large number of players Estimated cost of greenfield capacity (NH3) US$4.1bn for 2 mln tonnes (KCl) US$1.5bn for 1 mln tonnes US$1bn for 1 mln tonnes ( P2O5 ) Estimated greenfield i 7 3 ~ Estimated greenfield development time min 7 years 3-4 years ~ 3 years

Potash represents the strongest investment story across the fertilizer industry 31

Source: Fertecon as of 2Q 2011, IFA May 2011, PotashCorp Notes: 1. Including fertilizer consumption 2. 1 t KCl (product) is equal to 1.61 t K2O (nutrient)

SLIDE 33

Strong Industry Fundamentals

Growing demand Challenging supply

Income growth in developing countries Biofuels and scientific recommend- ations Increasing population Mineral scarcity High capex requirements Declining arable land per person Relatively few top players countries potential Ch i Hi h d d Limited number of players I d l New source of Changing diets Higher demand for food p y able to bring additional capacity Improved supply management demand for crops

Growing demand and high supply visibility make potash a unique industry 32 Growing demand and high supply visibility make potash a unique industry

SLIDE 34

Mineral Scarcity

Potash reserves are largely concentrated in Canada and Russia

CANADA ISRAEL 1.37% 2.2% 1.58% GERMANY 7.9% BELARUS 46.3% 34.7% RUSSIA 0.42% SPAIN UK 0.23% 0.21% ISRAEL USA CHINA JORDAN 0.42% 3.20% SPAIN CHILE 0.74% BRAZIL

% - Share in world’s potash reserves

Limited access to resources, few high quality large scale ore deposits 33

Source: USGS, 25 January 2011 Note: Other countries not represented on the map account for less than 1 % of world’s potash reserves

SLIDE 35

Higher Yields Required to Feed Rising Population

Growing population Needs Higher Crop Yields Arable land per capita is shrinking

7 8

0 40 0.45

Population, bn 4 5 6 7

0 25 0.30 0.35 0.40 HA per capita

2 3 4 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009F 2011F 2013F 2015F 2017F 2019F

0.15 0.20 0.25

1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2010

Income Growth in Developing Countries Food consumption is increasing

Source: FAO

2 2 2 2 2 2

12

The Recovery is set to continue (GDP growth, %)

Source: Scotia Capital, US Census Bureau 2,000 2,500 3,000 3,500

n tonnes

2 4 6 8 10 12

World Emerging and developing economies Advanced economies

500 1,000 1,500 961 964 967 970 973 976 979 982 985 988 991 994 997 000 003 millio

10

8
6
4
2

Advanced economies

34

Source: FAO Source: IMF, 25 January 2011

19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 Cereal Vegetable Dairy Fruit Meat

10

2007Q1 2007Q4 2008Q3 2009Q2 2010Q1 2010Q4 2011Q3 2012Q2

SLIDE 36

Changing Diets Drive Demand for Grain

Global Grain Yield Requirements are Growing Global Grain Stock-to-Use Ratio is Still Below Average

35% 40% 3,3

Avg. Yield ~3.20

A Yi ld 3 00 15% 20% 25% 30% 35% 2,8 2,9 3,0 3,1 3,2 nnes per HA Avg Yield ~2 50

Avg. Yield ~3.00
Avg. Yield ~2.75

0% 5% 10% 1961/62 1964/65 1967/68 1970/71 1973/74 1976/77 1979/80 1982/83 1985/86 1988/89 1991/92 1994/95 1997/98 2000/01 2003/04 2006/07 009/10E 2,4 2,5 2,6 2,7 , 0/91 /92 2/93 3/94 4/95 5/96 6/97 7/98 8/99 9/00 0/01 /02 2/03 3/04 4/05 5/06 6/07 7/08 8/09 10E To

Avg. Yield ~2.50

Developing countries have a big portion of total crop acreage …though have lower yields compared to developed agricultures

Source: RBC Capital Markets Source: RBC Capital Markets, USDA 2 2 2 20 Global Stocks-to-use ratio Historical Average 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009/

p g

5 6 7 8 9 10 s per HA

25 30 35 40 45 50

HA 1 2 3 4 5 ca na zil ia EA ca na zil ia EA ca na zil ia EA ca na zil ia EA Tonnes

5 10 15 20 25

rica hina razil ndia SEA rica hina razil ndia SEA rica hina razil ndia SEA rica hina razil ndia SEA mln

35

Source: USDA North Americ Chin Braz Ind SE North Americ Chin Braz Ind SE North Americ Chin Bra Ind SE North Americ Chin Bra Ind SE Corn Rice Soybean Wheat Source: USDA North Amer Ch Br In S North Amer Ch Br In S North Amer Ch Br In S North Amer Ch Br In S Corn Rice Soybean Wheat

SLIDE 37

China

Market Overview Potash Demand: Imports vs. Domestic Sales

16 000

Imports CAGR 0.5% Domestic sales CAGR 25.7%

Market size: 9.8Mt KCl

D d th (CAGR 2000 2010) 5 9%

4 000 8 000 12 000

000, tonnes

Demand growth (CAGR 2000-2010): 5.9%
Share in global demand: 18%
Share in global imports: 15%
Uralkali* sales in 2010: 26% of its total export volume

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Domestic sales Imports

Source: IFA, National Bureau of Statistics of China *Incl. Silvinit sales volumes Source: IFA, Uralkali

Market specifics: traditionally large contract market is becoming less

related to imports due to increasing domestic production. Market has switched from annual contract to half-year contract

Potash Consumption by Crop Types Potash Application Rates are Well Below Required Level

80 100

O/ha USA China Other crops; 18%

20 40 60

kg K2O China Fruits & Veg., 50% Rice; 28% Wheat; 4%

Source: BoA Merrill Lynch Source: IFA

Corn Soybeans

;

Domestic MOP prices are going up
BPC reaches agreement on potash shipments to China at the price of US$ 470 (CFR) for the period Jul 11 – Dec 11. Under the contract BPC will ship

36

500 ths tonnes firm and 200 ths tonnes of mutual optional quantities

Railway deliveries continue to be made on spot basis reflecting the current price trend

SLIDE 38

India

7 000

Market size: 6.1Mt KCl

D d th (CAGR 2000 2010) 8 6%

Market Overview Potash Demand: Net Importer

2 000 3 000 4 000 5 000 6 000

000, tonnes

Demand growth (CAGR 2000-2010): 8.6%
Share in global demand: 11%
Share in global imports: 17%
Uralkali* sales: 19% of its total export volume

Source: IFA

1 000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

*incl. Silvinit sales volumes Source: IFA, Uralkali

Market specifics: net potash importer; nutrient-based subsidy

system gives substantial support to potash consumption Sugar crops; 10%

60 70 80 90

O/ha USA India

Potash Consumption by Crop Types Potash Application Rates are Well Below Required Level

Rice; 34% Other crops; 51%

10 20 30 40 50 60

kg K2O Cotton; 5%

Source: BoA Merrill Lynch, FAO Source: IFA

10 Corn Wheat

MOP inventories are extremely low

37

MOP inventories are extremely low

BPC reaches agreement on potash shipments to India at the price of US$ 490 (CFR) over the period Aug 2011 – Mar 2012. Under the contract BPC

will ship 1.2 mln tonnes of KCI

SLIDE 39

South East Asia

10 000

Market size: 8.0Mt KCl

Market Overview Potash Demand: Net Importer

2 000 4 000 6 000 8 000

000, tonnes

Demand growth (CAGR 2000-2010): 4.1%
Share in global demand: 14%
Share in global imports: 22%
Uralkali* sales: 21% of its total export volume

Source: IFA, Uralkali data Source: IFA

2 000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

* Incl .Silvinit sales volumes

Market specifics: Indonesia, Malaysia and Vietnam ensure about 60%
f potash demand in the region

Sugar crops; 3% Rice; 23% Maize; 5% Other crops; 16%

4 000 5 000

Potash Consumption by Crop Types Farmers Enjoy Good Margins

Oil Palm; 43% Fruits & Veg; 10% Maize; 5%

1 000 2 000 3 000

$/ha 43%

Source: BPC * Includes Indonesia, Malaysia, Vietnam, Thailand, Bangladesh, Philippines Source: IFA

Palm oil, Malaysia Palm oil, Indonesia

Demand in SEA markets is very strong at the moment

38

Demand in SEA markets is very strong at the moment

Most observers expect that spot price for MOP will be close to $600 pt cft in Asia in the 1Q 2012

SLIDE 40

Brazil

8 000

Imports CAGR 5.8% Domestic sales CAGR 2 4%

Market size: 6.6Mt KCl

D d th (CAGR 2000 2010) 5%

Market Overview Potash Demand: Imports vs. Domestic Sales

2 000 4 000 6 000

000, tonnes Domestic sales CAGR 2.4%

Demand growth (CAGR 2000-2010): 5%
Share in global demand: 12%
Share in global imports: 18.5%
Uralkali sales in 2010*: 5% of its total export volume

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Domestic sales Imports

* Incl .Silvinit sales volumes Source: IFA Source: IFA, Uralkali

Market specifics: Spot growing market. Brazil and the U.S are strongly

interconnected markets in terms of price developments Soybeans, 34% Other crops,

300 400

Potash Consumption by Crop Types Farmers Enjoy Good Margins

34% Corn, Sugar crops, p 27%

100 200

$/ha Corn, 19% 20%

Source: IFA

Corn Soybeans

Demand remains very strong
Continued strong demand has prompted BPC to announce a further $30/t increase for gMOP to Brazil effective October 1 2011, raising prices to $580-

590/t

Source: BPC

39

590/t

According to ANDA, Brazil is expected to import 7 Mt of potash in 2011, up 14% yoy

SLIDE 41

USA

12000

Market size: 10.0Mt KCl

Market Overview Potash Demand: Imports vs. Domestic Sales

2000 4000 6000 8000 10000

000, tonnes

Demand growth (CAGR 2000-2010): 0.2%
Share in global demand: 19%
Share in global imports: 4%
Uralkali sales in 2010*: 12% of its total export volume

Source: IFA

2000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Domestic sales Imports

* Incl .Silvinit sales volumes Source: IFA, Uralkali

Market specifics: solid, mature market which is more than 80%

supplied by local producers Soybeans; 15% Wheat; 5% Other crops;

$217,76 $233 200 250

Potash Consumption by Crop Types Farmers Still Enjoy Good Margins

Wheat; 5% Cotton; 3% 31%

50 100 150

$/ha Corn; 46%

Source: BPC Source: IFA

Corn Soybeans

US market is still the one with the highest prices
According to the latest USDA report US corn stock-to-use ratio will reach the record lows of 5% this year adding the upward pressure on the crop

40

prices

High levels of the grain prices and good farmers margins are expected to stimulate fertilizer application in autumn yoy

SLIDE 42

Europe¹

Imports CAGR (1.5)% Domestic sales CAGR (4.9)%

10 000

Market size: 7.6Mt KCl

Market Overview Potash Demand: Imports vs. Domestic Sales

2 000 4 000 6 000 8 000 10 000

000, tonnes

Demand growth (CAGR 2000-2010):-2.3%
Share in global demand: 14%
Share in global imports: 16.6%
Uralkali sales in 2010*: 15.2% of its total export volume

* Incl .Silvinit sales volumes

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Domestic sales Imports

Source: IFA, Uralkali

Market specifics: conservative market

Other crops, 32% Fruits & Veg, 14% Wheat

600 800 1000

a

Potash Consumption by Crop Types Farmers Still Enjoy Good Margins

Wheat, 14% Oilseeds, 10% Oth CG Sugar crops, 5%

200 400 600 Wheat France Wheat Poland

$/ha Corn, 12% Other CG, 13%

Wheat, France Wheat, Poland

Healthy crop prices (almost 2 times higher than during spring last year) allows for better profits of the farmers

Source: BPC Source: IFA ¹ European Economic Area, Serbia and Croatia

41

Demand grows faster in CEE market than in WE

SLIDE 43

Production Chain

Ore extraction takes place underground at an approximate depth of 400 metres In the crushing section of the flotation plant rod mills d b k i t

CRUSHING MINING

1 2

depth of 400 metres Specialized mining combines drill for potash underground, then the extracted ore is moved by conveyor belts to the shafts and lifted to the surface and screens break ore into smaller particles of the size required for further enrichment.

FLOTATION

The HALURGIC METHOD is based on the varying joint solubility

f KCl and NaCl in water at

Partly purified potash ore is placed in the flotation machine, bubbles stick to potassium

CHEMICAL ENRICMENT

3 3

f KCl and NaCl in water at

different temperatures KCl crystallises out of saturated solution when it cools down Produce potash fertilisers which contain up to 98% of the useful component bubbles stick to potassium chloride particles and push them to the mixture surface for subsequent separation Produce potash fertilisers for agriculture which contain up to 95% of the useful component p 95% of the useful component

White potash (MOP) Pink potash (MOP) Granular potash

STANDARD PRODUCT COMPACTING

White potash (MOP)

Applied directly to the soil,

for producing compound NPK fertilisers, and for other industrial needs

Uralkali supply this mainly

to China Russia and Europe

Pink potash (MOP)

Applied directly to the soil
Produced through the

flotation method

Uralkali supply this

primarily to India and Southeast Asia

Granular potash

Premium product bought mainly in countries

using advanced soil fertilisation methods

Uralkali export granular principally to Brazil,

the USA and China, where it is applied directly to the soil or blended with nitrogen and phosphate fertilisers

42

to China, Russia and Europe Southeast Asia and phosphate fertilisers.

SLIDE 44

Chemical enrichment

ORE ORE 30% KCI

CRUSHING

Hot Brine

CLAR LEACH WITH BRINE

Hot Brine

BRINE CLARIFICATION BRINE RIFICATION Tailing Debrining Slimes Thickener CONTROLLED CRYSTALLIZATION COOLING TO 35° N Dumping and Mine Backfilling

Cooled Brine

PRODUCT DEBRINGING DRYING

White MOP

43

White MOP 97% KCL or 98% KCL as required

SLIDE 45

Flotation

ORE ORE 30% KCI

CRUSHING SIZING DESLIMING SLIMES FLOTATION Tailing Slimes Thickener Dumping and Mine B kfilli Tailing Debrining Backfilling PRIMARY FLOTATION REFLOTATION: 3 STAGES REHEAT CONCENTRATE DEBRINGING 3 STAGES DRY SETTLEMENT CRUSHING COMPACTION DRYING

Pink MOP Granular

POST TRETMENT 44

Pink MOP 95.8% KCL Granular MOP

SLIDE 46

Thank You!

45