Phosagro S Regulatory News (PHOR)

For Immediate Release 24 April 2012

PhosAgro Reports 2012 IFRS Profit up 9% y-o-y to RUB 24.5 billion

Moscow - PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR),a leading global vertically integrated phosphate-based fertiliser producer,today announces the publication of its audited consolidated IFRS financialresults for the year ended 31 December 2012. PhosAgro generated net income forthe year of RUB 24.5 billion (USD 788 million), compared to RUB 22.5 billion(USD 765 million) in 2011. Basic and diluted earnings per share came to RUB166 (USD 5.34) for 2012 compared to RUB 161 (USD 5.48) in 2011.

2012 Financial and Operational Highlights:

Result 2012 2011 Change (RUB vs. RUB), % RUB USD RUB USDRevenue 105,303 m 3,387 m 100,518m 3,420m 5%EBITDA* 34,695 m 1,116 m 35,371m 1,204m (2%)EBITDA margin 33% 33% 35% 35%Net Profit 24,510 m 788 m 22,476m 765m 9%Earnings per share 166 5.34 161 5.48 3% Sales volumes kmt

kmt

Phosphate-based fertilisers 4,242.9 4,061.7 4%

(MAP/DAP/NPK/NPS**)

Nitrogen fertilisers 1,094.9 889.4 23%Apatit mine and beneficiation 4,583.1 4,149.3 10%plantOther products 257.3 347.0 (26%)

RUB/USD Rates: average 2012: 31.0930; average 2011: 29.3874As of 31 December 2012: 30.3727; as of 31 December 2011: 32.1961*EBITDA is calculated as operating profit adjusted for depreciation andamortisation.** A compound of nitrogen, phosphate and sulphur.

Strategic highlights

Production and sales flexibility:

- Total fertilizer production and sales in FY 2012 grew 8.6% arecord 5.4 million tonnes and 7.8% to an all-time high of 5.3 million tonnes,respectively;- Production facilities operated at full capacity throughout 2012;- PhosAgro has achieved a 93% increase in fertilizer productionover the past 10 years (2002-2012).

Organic growth through capacity expansion and greater operationalefficiency:

- Flexible production and sales models enabled PhosAgro to adapt tochanges in global demand patterns;- Launch of brand new 500 kt p.a. urea plant on 2H 2012 has doubledPhosAgro's urea production capacity. As result, nitrogen fertilizersproduction and sales grew 21.8% and 23.1% y-o-y, respectively, in 2012.

Consolidation of ownership in production facilities:

- 17 July 2012: Completed PhosAgro-Cherepovets merger, combiningsubsidiaries Ammophos and Cherepovetsky Azot into a single entity;- 4 September 2012: PhosAgro won the privatisation tender for theRussian Federation's 20% stake in Apatit and increased its stake in Apatit'sshare capital from 57.57% to 77.57% after settlement in October 2012;- 17 October 2012: PhosAgro acquired 24% of Nordic Rus Holding,which owns over 7% of Apatit's share capital;- 8 November 2012: PhosAgro announced the launch of a mandatorytender offer for the acquisition of Apatit shares held by minorityshareholders;- December 2012: Consolidated technical phosphate plant Metachem throughincrease of PhosAgro's stake to 74.76%.

PhosAgro today reports its 2012 net profit of RUB 24.5 billion (USD 788million), an increase of 9% from RUB 22.5 billion (USD 765 million) in 2011.Revenue for the period was up 5% y-o-y at RUB 105.3 billion (USD 3,387million) compared to RUB 100.5 billion (USD 3,420 million) for 2011.

PhosAgro's 2012 EBITDA was RUB 34.7 billion (USD 1,116 million), down 2% fromRUB 35.4 billion (USD 1,204 million) a year earlier. EBITDA margin remainedrelatively stable at 33%, compared to 35% for 2011. Operating profit for 2012was RUB 28.2 billion (USD 906 million), a 4% decrease from 2011.

Cash flows from operating activities amounted to RUB 25.5 billion (USD 819million) in 2012, compared to RUB 32.4 billion (USD 1,102 million) in 2011.The company's capital expenditure in cash terms during the year ended 31December 2012 was RUB 13.4 billion (USD 430 million), compared to RUB 12.9billion (USD 439 million) in 2011.

Net debt at 31 December 2012 increased to RUB 26.8 billion (USD 883 million)from RUB 15.2 billion (USD 472 million) on 31 December 2011, resulting in anet debt to EBITDA ratio of 0.77x.

Commenting on the 2012 IFRS results PhosAgro CEO Maxim Volkov said: "In 2012we increased revenue by 5% y-o-y, while delivering growth in production andsales of phosphate-based fertilisers of 6% and 4%, respectively. By operatingat full capacity and increasing the efficiency of our production units we wereable to maintain a very solid EBITDA margin of 33%, which is only a slightdecrease in a year when DAP/MAP pricing was under pressure globally: theaverage price of DAP in 2012 was USD 539 FOB Tampa, down 14% y-o-y from anaverage of USD 624 for 2011.

"We have also delivered on a number of key strategic priorities, includingconsolidation of our key subsidiaries and significant capacity increases.

"At the same time we continued to pay over 49% of our net profits attributableto PhosAgro shareholders in dividends, and will continue to work towardsincreasing shareholder value through further expansion projects whilemaintaining a good level of dividend payments."

2012 market conditions

- India, the largest consumer of phosphate fertilizers globally, resumed 2012imports only in Q2. Overall imports of phosphate-based fertilizers reportedfor 2012 declined around 30% primarily as a result of a significant decrease -over 75% - in NP imports from China;- Drought in the US led to a reduction in grain supplies and growing softcommodities prices, which approached historic highs at the end of summer 2012,while local sales of DAP/MAP grew 10% y-o-y;- Exports of phosphate-based fertilizers from China decreased over 40% as aresult of the export tariff policy imposed by the Chinese government (82%export duty on NP/TSP introduced from January 2012);- Phosphate consumption in fast-growing developing markets such as LatinAmerica, Eastern Europe, Central Asia and Africa increased 3.0%-4.7% y-o-y in2011/2012, with Brazil up 8.8% y-o-y and Ukraine up 15.9% y-o-y;- 2012 corn and wheat harvests were below initial expectations;- Tight cereals supply pushed agricultural prices to record levels in 2H 2012;- Despite high crop prices, macroeconomic uncertainty weighed on the minds offertilizer buyers. This resulted in cautious purchasing of fertilizers,changed buying patterns to immediately before the application season starts,and thus preventing price increases. Phosphate segment Result 2012 2011 Change, % RUB million RUB millionRevenue 91,233 88,982 3%Cost of goods sold (55,276) (50,631) 9%Gross profit 35,957 38,351 (6%)

Phosphate segment revenue increased by 3% y-o-y and totalled RUB 91,233million (USD 2,934 million) in 2012. The Company increased production ofphosphate-based fertilisers and MCP by 6% y-o-y, while sales volumes were up4% y-o-y. Production and sales volumes for phosphate rock and nephelineconcentrate increased in 2012 compared to 2011 by 3% and 10%, respectively.

Revenue from NPK fertiliser export sales increased 39% in 2012 to RUB 15,617million (USD 502 million) from RUB 11,254 million (USD 383 million) as aresult of a 48% increase in NPK export sales volumes. Revenue from NPS exportsales increased over 3 times, mainly due to an identical rise in exportvolumes. The record levels of NPK production and sales contributed to a 24%decline in export sales revenue for DAP/MAP to RUB 29,969 million (USD 964million) in 2012 from RUB 39,594 million (USD 1,347 million) for 2011.Domestic MAP revenues increased 24% to RUB 3,887 million (USD 125 million)from RUB 3,138 million (USD 107 million) as a result of an 8% increase inrevenue per tonne and a 15% increase in sales volumes. Revenue from phosphaterock increased 34% y-o-y in 2012, reaching RUB 19,452 million (USD 626million) on higher revenue per tonne (domestic: up 19% y-o-y; export: up 8%y-o-y) and higher sales volumes (domestic: up 6% y-o-y; export: up 37% y-o-y). PhosAgro is largely self-sufficient in key raw materials forphosphate fertiliser production, and therefore is not subject to priceinflation for phosphate rock. Expenditure on potash, a key raw material forNPK fertilisers, increased 52% y-o-y in 2012, reaching RUB 4,598 million (USD148 million), due to a 21% y-o-y increase in volumes of potash purchased and a26% increase in cost per tonne to RUB 8,202 (USD 264) from RUB 6,505 (USD221). This was partially compensated by a 26% y-o-y decline in expenditures onsulphur and sulphuric acid, used primarily in the production ofphosphate-based fertilisers, to RUB 3,597 million (USD 116 million) in 2012from RUB 4,838 million (USD 165 million) in 2011. Sulphur purchase pricesdeclined by 25% y-o-y to RUB 2,442 (USD 79) per tonne for 2012 from RUB 3,271(USD 111) per tonne in 2011, while volumes purchased decreased slightly (lessthan 1% y-o-y) in 2012. These factors, combined with a 4% increase in salesvolumes of phosphate-based fertilisers, contributed to a 9% increase in costof goods sold to RUB 55,276 million (USD 1,778 million) from RUB 50,631million (USD 1,723 million).

The phosphate segment's gross profit for 2012 decreased 6% to RUB 35,957million (USD 1,156 million) from RUB 38,351 million (USD 1,305 million),resulting in a 2012 gross profit margin of 39%, compared to 43% in 2011.

Principal phosphate-based fertilisers, feed phosphate and phosphate rock:revenue per tonne Product 2012 2011 change, % 4Q 2012 4Q 2011 change, % RUB RUB RUB RUBDomestic:MAP 18,704 17,387 8% 17,912 17,672 1%DAP 17,676 17,444 1% 17,385 18,903 (8%)NPK 14,569 15,944 (9%) 14,222 16,337 (13%)MCP 19,273 18,581 4% 19,061 18,678 2%NPS 12,259 11,209 9% 12,742 12,500 2%

Phosphate rock 4,199 3,536 19% 4,351 3,445 26%

Export:MAP 16,916 17,032 (1%) 16,976 19,539 (13%)DAP 16,646 17,150 (3%) 16,557 18,881 (12%)NPK 13,949 14,917 (6%) 13,035 16,856 (23%)MCP 17,205 17,780 (3%) 17,752 19,777 (10%)NPS 11,628 12,593 (8%) 10,649 14,034 (24%)

Phosphate rock 9,138 8,475 8% 8,819 9,442 (7%)

Nitrogen segment Result 2012 2011 y-o-y change, % RUB million RUB millionRevenue 13,048 10,727 22%Inter-segment revenues 3,175 3,629 (13%)Cost of goods sold (7,632) (7,495) 2%Gross profit 8,591 6,861 25%

Revenue in the nitrogen segment was RUB 13,048 million (USD 420 million) in2012, an increase of 22% from RUB 10,727 million (USD 365 million) in 2011.Sales volumes of nitrogen fertilisers increased 23% y-o-y in 2012, primarilyas a result of the ramp up and launch of the new urea production unit atPhosAgro-Cherepovets during the second half of 2012.

Urea revenue increased 68% y-o-y to RUB 8,394 million (USD 270 million) in2012 from RUB 5,004 million (USD 170 million) a year earlier as result of a62% y-o-y increase in sales volumes and a 3% y-o-y increase in export prices.This was partially offset by a 26% y-o-y decrease in revenue from ammoniumnitrate (AN) sales to RUB 2,837 million (USD 91 million) from RUB 3,822million (USD 130 million).

As a result, nitrogen segment gross profit increased by 25% y-o-y to RUB 8,591million (USD 276 million) in 2012, with a gross profit margin of 53%.

Principal nitrogen fertilisers: revenue per tonne

Product 2012 2011 Change, % 4Q 2012 4Q 2011 Change, % RUB RUB RUB RUBDomestic:Ammonium 8,601 7,550 14% 9,707 8,466 15%nitrateUrea 12,455 13,021 (4%) 12,300 14,389 (15%) Export:Ammonium 10,437 8,954 17% 10,641 9,552 11%nitrateUrea 11,691 11,301 3% 11,669 14,717 (21%)

Cost of goods sold

PhosAgro's cost of goods sold rose by 7% y-o-y in 2012 to RUB 60,136 million(USD 1,935 million) from RUB 56,196 million (USD 1,913 million). This was inline with the Company's 8% increase in fertiliser sales volumes. The increasein cost of sales was primarily due to the following changes in 2012 comparedto 2011:

- A 9% increase in materials and services costs due to higherfertiliser sales volumes and inflation (Russian PPI of 5% for 2012) to RUB21,792 million (USD 701 million) from RUB 20,006 million (USD 681 million);

- A 52% increase in expenditure on potash due to substantiallyhigher NPK sales (up 39% y-o-y in volumes) as well as a 26% increase in potashcost per tonne to RUB 8,202 (USD 264) in 2012 from RUB 6,505 (USD 221) in2011;

- An 16% increase in expenditure on natural gas to RUB 5,733million (USD 184 million) from RUB 4,951 million (USD 168 million). This wasdue to an 8% increase in consumption of natural gas related to an 8% y-o-yincrease in ammonia production, and to the launch of a new 32 MW electricitygeneration unit at the Cherepovetsk nitrogen complex, as well as to an 8%y-o-y increase in the price of gas to RUB 3,248 (USD 104) per thousand cubicmeters from RUB 3,015 (USD 103) in 2011. Item 2012 2011 Change y-o-y RUB USD % of RUB USD % of RUB % million million cost of million million cost of mln sales salesMaterials and 21,792 701 36% 20,006 681 36% 1,786 9%servicesSalaries and 11,963 385 20% 11,078 377 20% 885 8%socialcontributionsPotash 4,598 148 8% 3,026 103 5% 1,572 52%Natural gas 5,733 184 9% 4,951 168 9% 782 16%Depreciation 5,936 191 10% 5,486 187 10% 450 8%Fuel 4,579 147 8% 4,207 143 7% 372 9%Sulphur and 3,597 116 6% 4,838 165 9% (1,241) (26%)sulphuric acidElectricity 3,255 105 5% 3,290 112 6% (35) (1%)Other items 88 3 0% 51 2 0% 37 73%Change in stock (1,405) (45) (2%) (737) (25) (2%) (668) 91%of WIP andfinished goodsTotal 60,136 1,935 100% 56,196 1,913 100% 3,940 7% Other expenses

Administrative expenses rose by 10% y-o-y to RUB 6,646 million (USD 214million) in 2012 from RUB 6,036 million (USD 197 million) in 2011. This wasmainly due to an increase in salaries and social contributions of RUB 216million (USD 7 million), or 6%, primarily as a result of increases in salariesin line with 2012 CPI of 6.6%, and continued pay-outs related to employeeredundancy.

Selling expenses rose by 19% y-o-y to RUB 7,720 million (USD 248 million) in2012 from RUB 6,492 million (USD 221 million) in 2011. The Russian Railwaysinfrastructure tariff and operators' fees increased by 10% y-o-y to RUB 3,825million (USD 123 million) from RUB 3,488 million (USD 119 million) as a resultof a 6% increase in the Russian Railways tariff and increased transportationvolumes. Port and stevedoring expenses rose by 47% to RUB 2,309 million (USD74 million) from RUB 1,571 million (USD 53 million) y-o-y primarily due to a9% increase in export sales volumes of PhosAgro's end products and asubstantial increase of CFR deliveries as a result of the introduction ofcontainer sales from the beginning of 2012. Rouble exchange rates have experienced significant volatility in 2011 and2012. The average RUB/USD rate for 2012 was 31.0930, an increase of 6% fromthe average for 2011 of 29.3874. PhosAgro uses foreign currency-denominatedloans as a natural hedge against export sales, which accounted forapproximately 69% of revenue in 2012. While the weaker rouble increases exportsales in rouble terms, the Company accounts for the foreign exchange rate gainor loss at the end of the period on foreign currency denominated loans. From31 December 2011, the rouble appreciated against the USD from 32.1961 to30.3727 as of 31 December 2012, resulting in an exchange rate gain of RUB1,576 million, compared with a loss of RUB 2,836 million in 2011. PhosAgro's capital expenditure, which consists of all additions to property,plant and equipment, amounted to RUB 14,881 million (USD 479 million) in 2012,compared to RUB 16,801 million (USD 572 million) in 2011. Capital expenditurefocused on the construction of the main ore shaft № 2 at the Kirovskyunderground mine (expected to enable the mine to increase production up to 14mtpa after 2016) as well as the construction of the new 500 kt p.a. ureaproduction line and a 32 MW electricity generation unit at PhosAgro'sCherepovets site, which were officially launched on 26 October 2012.

Total debt at 31 December 2012 amounted to RUB 36,469 million (USD 1,201million), versus RUB 32,153 million (USD 999 million) at the end of 2011. Theincrease in total debt was due to new short-term debt facilities obtainedduring the period, denominated in USD, EUR and RUB.

Outlook

Market:

- Agricultural commodity prices remain at elevated levels;- Favourable farm economics should result in a supply response in 2013 due toa greater need for fertilizer input;- Improved affordability and a rise in agricultural output are expected toincrease phosphate-based fertiliser demand in 2013/14 season;- The latest IFA forecast (December 2012) for the upcoming 2013/2014 seasoncalls for 2.4% y-o-y growth in overall global fertilizer demand, whereasphosphate fertilizer demand is expected to increase 3.5%. Phosphateconsumption is expected to increase at a higher pace in 2013/2014 infast-growing markets: Africa +7.2%; Eastern Europe and Central Asia +4.7%;Latin America +4.5%;- Fertilizer stockpiles in Brazil are at the same low level as in 2011, whenBrazil import volumes set new records;- Nutrient consumption imbalance in India has led to a decline in crop qualityand output. The nutrient subsidy level is yet to be determined;- Soft commodities stocks-to-use ratios remain at very low levels compared tohistoric averages, while at the same time corn and soybean prices havesurpassed their previous historical peaks in 2008;- Despite global economic concerns, farmers are not experiencing liquidityconstraints, and therefore remain able to invest in increasing crop output;- Phosphate fertiliser stocks remain at very low levels globally, with nosignificant capacity additions expected to come on stream in the near term.

Company:

- PhosAgro sees increasing global demand for complex fertilisers, and theCompany intends to further invest into both increasing capacity as well asexpanding the number of NPK and other complex fertiliser grades it produces;- PhosAgro has completed the mandatory tender offer for theacquisition of Apatit shares from minority shareholders following its purchaseof the Russian Government's 20% stake in Apatit in October 2012, resulting inPhosAgro and affiliated companies currently owning around 96% of Apatit. TheCompany will continue to focus on consolidation of up to 100% of Apatitshares, followed by the consolidation of PhosAgro-Cherepovets shares;- The liberalisation of the phosphate rock market announced by Russia's FAS isexpected to start having a positive effect for producers commencing from 2013;- The Company is starting several significant expansion projects,including: a new 760 kt per annum ammonia plant, a new 450 kt per yearflexible NPK production line at Balakovo Mineral Fertilizers and a 100 kt peryear PKS production line at Metachem.

Conference Call and Webcast

On 24 April 2013 at 13:00 London time (16:00 Moscow; 08:00 New York) PhosAgrowill host a conference call and webcast to present its audited consolidatedIFRS financial results for the full year ended 31 December 2012 and itsoperating results for the three months ended 31 March 2013.

PhosAgro CEO Maxim Volkov will answer questions from conference call andwebcast participants after a presentation of the results.

The call will be held in English, with simultaneous translation into Russianon a separate line. Participants will be required to tell the operator theirpreferred language when dialling in.

Webcast links:

English: http://www.media-server.com/m/p/mqkr3223/lan/enRussian: http://www.media-server.com/m/p/mqkr3223/lan/ru

Conference call dial-ins:

+7 499 272 4337 Moscow+1 212 999 6659 New York+44 (0) 20 3003 2666 London Toll Free: 0808 109 0700 UK1 866 966 5335 USA8 10 8002 490 2004 Russia (Moscow only)

Conference call password: PhosAgro

A replay of the webcast and conference call in Russian and English, as well asa transcript in English, will be made available on PhosAgro's website shortlyafter the call.

For further information please contact:

OJSC PhosAgro

+7 495 231 2747Irina Evstigneeva, Head of Corporate Finance and Investor RelationsTimur Belov, Press Officer M:Communications Sam VanDerlipvanderlip@mcomgroup.com+44 (0) 7554 993 032 Notes to Editors PhosAgro is one of the leading global vertically integrated phosphate-basedfertiliser producers. The Company focuses on the production of phosphate-basedfertilisers, feed phosphate and high-grade phosphate rock (P2O5 content of notless than 39%), as well as ammonia and nitrogen fertilisers. The Company isthe largest phosphate-based fertiliser producer in Europe, the largestproducer of high-grade phosphate rock worldwide and the second largest MAP/DAPproducer in the world (excluding China), according to Fertecon.

PhosAgro has 2.1 billion tonnes of resources (according to JORC as of 1 June2011) of high quality apatite-nepheline ore, representing over 75 years ofproduction (at current production levels). The Company also controlssubstantial Al2O3 resources, and has more than 41% of Russia's rare earthoxides resources.

The Company's mines and phosphate rock production facilities are located inthe mountainous areas of the Kola Peninsula in the Murmansk region ofnorthwest Russia, whereas its fertiliser and feed phosphate production assetsare located near the city of Cherepovets in the Vologda region and near thecity of Balakovo in the Saratov region of southwest part of European Russia.PhosAgro's 2012 IFRS revenue was over USD 3.4 bln and EBITDA was USD 1.1 bln.The Сompany's net debt/EBITDA ratio was 0.77 at 31 December 2012.

For further information on PhosAgro please visit: www.PhosAgro.com

Consolidated Statement of Comprehensive Income for the year ended 31 December2012 2012 2011 RUB Million RUB MillionRevenues 105,303 100,518Cost of sales (60,136) (56,196)Gross profit 45,167 44,322 Administrative expenses (6,646) (6,036)Selling expenses (7,720) (6,492)Taxes, other than income tax (1,634) (1,411)Other expenses, net (993) (1,064)Operating profit 28,174 29,319 Negative goodwill on consolidation of LLC "Metachem" 678 -Finance income 2,070 824Finance costs (1,450) (1,329)Foreign exchange gain/(loss) 1,576 (2,836)Share of profit of associates 166 2,318Profit before taxation 31,214 28,296 Income tax expense (6,704) (5,820)Profit for the period 24,510 22,476 Attributable to:Non-controlling interests 3,856 2,541Shareholders of the Parent 20,654 19,935 Other comprehensive incomeRevaluation of available-for-sale securities 282

(361)

Recycling of revaluation surplus on available-for-salesecurities to profit and loss

-

(2,076)

Actuarial gains and losses (276)

17

Foreign currency translation difference (396)

334

Other comprehensive income for the period (390)

(2,086)

Total comprehensive income for the period 24,120 20,390Attributable to:Non-controlling interests 3,794 2,514Shareholders of the Parent 20,326 17,876 Basic and diluted earnings per share (in RUB) 166

161

Consolidated Statement of Financial Position as at 31 December 2012

31 December 2012 31 December 2011 RUB Million RUB MillionASSETSNon-current assetsProperty, plant and equipment 66,528 57,116Intangible assets 553 640Investments in associates 9,620 7,910Other non-current assets 3,071 3,556 79,772 69,222Current assetsOther current investments 833 2,123Derivative financial assets 45 -Inventories 12,324 10,096Current income tax receivable 769 166Trade and other receivables 11,874 10,734Cash and cash equivalents 9,664 16,946Assets held for sale 346 - 35,855 40,065Total assets 115,627 109,287 EQUITY AND LIABILITIESEquityShare capital 360 360Share premium 1,099 1,099Retained earnings 48,294 42,265Other reserves (267) 61Equity attributable to shareholdersof the Parent 49,486 43,785Equity attributable to non-controllinginterests 12,389 16,923 61,875 60,708 Non-current liabilitiesLoans and borrowings 14,452 16,592Defined benefit obligations 1,257 922Deferred tax liabilities 2,973 2,850 18,682 20,364 Current liabilitiesTrade and other payables 12,377 11,407Current income tax payable 676 801Loans and borrowings 22,017 15,561Derivative financial liabilities - 446 35,070 28,215Total equity and liabilities 115,627 109,287

Consolidated Statement of Cash Flows for the year ended 31 December 2012

2012 2011 RUB Million RUB MillionOPERATING ACTIVITIESProfit before taxation 31,214 28,296Adjustments for: Depreciation and amortisation 6,521 6,051Negative goodwill on consolidation (678)of LLC "Metachem" -Reversal of impairment loss - (190)Loss from disposal of fixed assets 193 24Finance costs 1,450 1,329Finance income (2,070) (824)Share of profit of associates (166) (2,318)Foreign exchange (gain)/loss (1,203) 2,967Operating profit before changes in workingcapital and provisions 35,261 35,335Decrease/(increase) in inventories (1,843) (2,379)

(Increase)/decrease in trade and other receivables (324) 4,499(Decrease)/increase in trade and other payables

915 1,184Cash flows used in operations beforeincome taxes and interest paid 34,009 38,639Income tax paid (7,117) (5,399)Interest paid (1,429) (865)Cash flows from operating activities 25,463 32,375 INVESTING ACTIVITIESLoans repaid (153) 3,125Acquisition of intangible assets (110) (115)

Acquisition of property, plant and equipment (13,370) (12,905)Proceeds from disposal of property, plant

251and equipment 527Proceeds from disposal of investments 669 1,391Acquisition of investments (21) (950)Acquisition of investments in associates (987) (471)Consolidation of LLC "Metachem" 84 -Additional equity contribution in associates (511) -Finance income received 1,569 819Dividends received 10 1,840Cash flows used in investing activities (12,569) (6,739) FINANCING ACTIVITIESProceeds from borrowings 21,375 38,967Repayment of borrowings (15,941) (19,999)Proceeds from disposal of treasury shares - 791Acquisition of non-controlling interests (12,047) (9,196)Proceeds from disposal of non-controlling -interests 9,864Dividends paid to non-controlling interests (364) (1,676)

Dividends paid to shareholders of the Parent (11,890) (32,253)Finance leases paid

(1,169) (487)Cash flows used in financing activities (20,036) (13,989)Net increase in cash and cash equivalents (7,142) 11,647Cash and cash equivalents at beginning of 16,946the period 5,261Effect of changes in exchange rates (140) 38Cash and cash equivalents at end of the period 9,664 16,946