Corporate Structure

04

PhosAgro’s corporate structure is designed in such a way that the Company has control over its key production assets. As of 31 December 2011, PhosAgro’s corporate structure was as follows:

1 The stake of 69.29% is the aggregate of shares held by OJSC PhosAgro, PHOSINT LIMITED and LLC Biotechnology, a croup Company.

In February 2012, after the end of the reporting period, Extraordinary General Meetings of the Shareholders of OJSC Ammophos and OJSC Cherepovetsky Azot approved a merger of the companies into a new entity — OJSC PhosAgro-Cherepovets. The merger is intended to create synergies by consolidating administrative costs and electricity expenditures into a single legal entity, and to improve the efficiency of the enterprises.

Vertically-integrated to Maximise Value

PhosAgro’s vertically-integrated model is designed to ensure high margins and to secure business sustainability.

It maximises value for PhosAgro, as the Company manages the entire production chain from raw materials to manufactured products. PhosAgro’s vertically-integrated model is described graphically below:

PhosAgro’s vertical integration gives the company greater control over its business, enhances stability by reducing the impact of market fluctuations in the prices of raw materials and allows PhosAgro to offer a wide range of high-quality products.