Information for shareholders and investors

In 2015 Uralkali continued to act in compliance with best practices in its relations with investors, aimed at transparency and availability of information.

Ordinary shares

Uralkali’s share capital amounts to 1,468,007,945.5 roubles divided into 2,936,015,891 ordinary registered shares with a face value of 0.50 roubles each. As at the date of this report, the Company’s share capital has remained unchanged since 1 August 2012.

Global Depositary Receipts (GDRs)

Global Depositary Receipts (GDRs) are issued in respect of ordinary shares at a ratio of five registered ordinary shares per one GDR. The GDRs were traded on the London Stock Exchange* until 22 December 2015, following which the GDRs were delisted. The Company’s depositary bank is The Bank of New York Mellon.

As of 31 December 2015, GDRs represented approximately 24.7% of Uralkali’s share capital.**

Due to a very small size of remaining 144A GDR programme the Company decided to cancel it starting from 12 January 2016.

Stock exchanges

As of 31 December 2015, Uralkali’s ordinary shares and GDRs were traded on the Moscow Exchange. Uralkali’s GDRs had been traded on the London Stock Exchange up to their delisting on 22 December 2015.



Trading floors of Uralkali’s shares and GDRs

Trading floor Ticker code
Moscow Exchange URKA
London Stock Exchange (LSE)* URKA

Uralkali’s securities identification numbers

CUSIP1:
Regulation S GDRs
Rule 144A GDRs **

91688E206
91688E107
ISIN2:
Regulation S GDRs
Rule 144A GDRs **
US91688E2063
US91688E1073
RU0007661302

1 CUSIP (Committee on Uniform Security Identification Procedures) – identification number is given to the issue of shares for the purposes of facilitating clearing.

2 ISIN (International Securities Identification Number) – international identification number of the share.

* The Company's GDR delisting from London Stock Exchange took place on December 22

** Rule 144A GDR program was closed on January 12, 2016



Trading volumes on the LSE in 2015

Trading volumes on the Moscow Exchange in 2015



Uralkali GDRs and ordinary shares trading information / market transactions, Bloomberg/

LSE* (GDRs, US$) Moscow Exchange (shares, RUB)
2014 2015 2014 2015
Annual maximum price 27.5 16.27 185.9 215.25
Annual minimum price 9 10.37 116.7 126.20
Year-end price 11.79 13.00 128.4 177.00
Trading volume (million units) 255 168 991.5 825.0

Credit ratings

S&P Moody's Fitch
Credit rating BB- Ba2 BB-
Outlook Stable Stable Stable
Last rating date 9 December 2015 9 October 2015 4 September 2015

Total Shareholder Return3

Uralkali Peer average
TSR 2015 5.51% -30%
TSR 2014 -54.8% 5,3%
TSR 2013 -27.9% -15.5%

3For Uralkali and its competitors, Total Shareholder Return is calculated based on change in share price for the period and taking into account dividends announced in the period. Source: Moscow Exchange, MSСI, Market Vectors

*On 22 December 2015, due to the delisting of the Company's GDRs from the London Stock Exchange, the disclosure of information on the website of the London Stock Exchange was suspended.

Uralkali’s share in major indices

MICEX 0.97%
RTS 0.97%
Market Vectors Russia 1.52%
Market Vectors Agribusiness 0.41%

Analyst coverage

More than 15 equity research analysts from leading banks, including Credit Suisse, Goldman Sachs, HSBC, JP Morgan, UBS, VTB Capital and Sberbank CIB, follow the Company on a regular basis.

Uralkali’s IR team routinely monitors and communicates analyst consensus to the Company’s Board of Directors and top management.

For more information please see: www.uralkali.com/investors/analysts/

Credit ratings

In June 2012, the Company received investment grade credit ratings from three international rating agencies: Fitch, Standard & Poor’s and Moody’s.

In January 2015, Fitch affirmed Uralkali’s BBB- rating and changed its outlook from Stable to Negative following the downgrade of the Russian sovereign rating.

Dynamics of the Company's credit ratings in 2015:

  • On 15 May, S&P lowered Uralkali's credit rating from BBB- to BB+ with a negative outlook
  • On 7 July, Fitch lowered Uralkali's credit rating from BBB- to BB+ with a negative outlook
  • On 1 September, S&P lowered Uralkali's credit rating from BB+ to BB with a stable outlook
  • On 5 October, Fitch lowered Uralkali's credit rating from BB+ to BB- with a stable outlook
  • On 12 October, Moody’s lowered Uralkali's credit rating from Ba1 to Ba2 with a stable outlook
  • On 9 December, S&P lowered Uralkali's credit rating from BB to BB- with a stable outlook

For more information please see: www.uralkali.com/investors/fixed_income/

Dividends

Taxation

As a general rule, dividends in the Russian Federation are taxed as follows:

– for legal entities:

  • 0% for tax residents of the Russian Federation, if such an entity owns over 50% of the Company's share capital for a period of more than 365 days
  • 13% for other Russian residents
  • 15% tax for non-residents

– for individuals

  • 13% for Russian tax residents
  • 15% for tax non-residents

Should the recipient of a dividend be a tax resident of a state with which the Russian Federation has signed a treaty on avoidance of double taxation, the tax payments must be made in compliance with the tax rate indicated under the relevant treaty (subject to the conditions set forth in the treaty).

This information is provided for information purposes only. Potential and current investors should seek the advice of professional consultants on tax matters related to investments in the shares and GDRs of the Company.

Dividend payments

Period Record date Date of adoption of decision on dividendpayment Amount of dividend per ordinary share/GDR(RUB) Amount of accrued dividends (RUB, 000)
2013 20.06.2014 09.06.2014 1,63/8,15 4 785 705,90
Interim dividends 29.10.2013 18.12.2013 2,21/0,34 6 488 595,10
2012 25.04.2013 04.06.2013 3,9/19,5 11 450 461,97
Interim dividends 06.11.2012 13.12.2012 4,71/23,55 13 828 634,85
2011 26.04.2012 07.06.2012 4,0/20,0 12 378 551,62
Interim dividends 02.11.2011 08.12.2011 4,0/20,0 12 378 066,30
2010 24.05.2011 29.06.2011 4,55/22,75 14 080 050,40

Dividend policy

The payment of dividends is regulated by the legislation of the Russian Federation. Dividends are paid from the profits of the Company after taxation (net profit). The net profit size is determined on the basis of the Company’s accounting (financial) statements.

Pursuant to the applicable laws, and Uralkali’s Charter and the Regulations on the Dividend Policy, the Company has the right to decide (declare) to pay dividends based on the results of the financial year, as well as of the first quarter, six months and nine months of the financial year (interim dividends).

For more information please see: http://www.uralkali.com/investors/shareholder_inf/dividends/

Investor relations

Communications and dialogue

Transparent communications with all shareholders is one of Uralkali’s top priorities. The Company’s management maintains regular dialogue with institutional investors and sell-side analysts through participation in meetings, presentations, international conferences, webcasts and conference calls, during which it discusses the Company’s financial results and provides an overview of the potash market.

Uralkali understands the importance of keeping the investment community informed of the latest developments and provides updated outlooks in order to build an understanding of the Company’s investment case.

In 2014, Uralkali maintained active communications with investors through the following activities:

  • Roadshows involving senior management to meet with institutional investors in the USA, UK and Europe
  • Participation of the Company’s management in a number of leading international market and industry conferences and forums focused on emerging markets
  • Meetings between the Company’s Independent Directors and current and potential investors to share their views and listen to concerns
  • A Capital Markets Day, which included meetings with operational senior management, as well as visits to Uralkali’s main business units
  • Conference calls and webcasts on financial results and an overview of the potash market

Last year, Uralkali held over 215 meetings with the investment community and more than 50 investors and analysts attended the Company’s Capital Markets Day.

Board oversight

The Board regularly receives investor relations reports covering key meetings, activities and shareholders’ feedback. Analyst coverage reports are also circulated on a regular basis. During the year, Uralkali conducts perception studies analysing opinions within the investment community on the Company’s strategy, corporate governance practices, information disclosure in the area of sustainable development and other key issues. The survey results are presented to the Board of Directors.

Information disclosure

The Company takes great care to ensure that any relevant information is released to all shareholders and analysts at the same time, in accordance with the transparency principles.

Generally, the information is distributed through the following channels:

  • London Stock Exchange website:* the Company posts price-sensitive information on the LSE site through the information disclosure system (RNS)*
  • Uralkali website: the Company publishes releases on important events and financial results, as well as providing regular updates in relation to Uralkali’s operations and the status of the capacity expansion programme. Any interested parties can subscribe online to receive news updates by registering online

Uralkali posts its annual reports on its website www.uralkali.com on the day of the report’s official publication, and sends out a press release to announce the publication. Hard copies of the annual reports are available upon request via the website.

For more information please see: The website is regularly updated.

  • Social media: Uralkali selectively uses social media as an additional channel of information disclosure and to distribute Company and industry news, as well as to highlight publications in the Russian and foreign media.

For more information please visit Uralkali’s official Facebook page at www.facebook.com/UralkaliURKA and www.twitter.com/UralkaliNEWS

E-mail The Investor Relations Department can be contacted with respect to any queries at ir@msc.uralkali.com

*On 22 December 2015, due to the delisting of the Company's GDRs from the London Stock Exchange, the disclosure of information on the website of the London Stock Exchange was suspended.





Awards

In 2015, the Company participated in a number of contests for the best annual report for 2014:

  • Best international report – IR Society (winner)
  • RA Expert: Best design and printing of an annual report (non-financial sector) (winner)
  • CorpComms Awards 2014: Best annual report – private sector (nominee)
  • The 18th Annual Report Competition organised by the Moscow Exchange:
    • Best annual report from the industrial sector of the economy (nominee)
    • Best annual report from a company with a market capitalisation of more than RUB 100 billion (nominee)
    • Best design and printing of an annual report (nominee)
    • Best disclosure of corporate governance in an annual report (nominee)