Annual Report 2012

Changes in key balance indicators

Property, plant and equipment

In the reporting period, the Group’s PP&E was up 43% to RUB 47,866 million, against RUB 33,472 million in 2011 due to investments in acquisition and construction of new fixed assets, specifically in development of Oleniy Ruchey apatite-nepheline ore deposit and construction of a new urea unit. The share of the total book value of the Group’s assets in 2012 was up to 31%, against 29% in 2011.

Exploration and evaluation licences and expenditure

This item reflects the Group’s investments in raw material assets. During the reporting period, exploration and evaluation licences and expenditures increased 8% to RUB 26,371 million. The increase was due to capitalisation of interest on a loan issued to acquire a potash exploration licence in Russia and expenditures for exploration of permits in Canada in the amount of RUB 2,026 million. Most of the investments (94%) related to the Talitsky area of the Verkhnekamsk potassium-magnesium deposit.

Available-for-sale investments

In the reporting year, this item was up 24% to RUB 24,681 million, mainly due to the acquisition of a stake in Azoty Tarnów (Poland).

Non-controlling interest

The Group’s equity held by minority shareholders in its subsidiaries is recorded in the non-controlling interest line under equity. In the reporting period, this item increased by a factor of 5.6 to RUB 15,698 million, against RUB 2,781 million in 2011. This change is due to the acquisition of a 38.05% stake in Verkhnekamsk Potash Company by Vnesheconombank, Raiffeisenbank and Eurasian Development Bank.

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