Uralkali consolidated statement of financial position as of 31 december (in thousands of US dollars, unless otherwise stated)

Note 31 December 2015 31 December 2014

Assets

Non-current assets

Property, plant and equipment 8 1,682,974 1,899,108
Prepayments for acquisition of property, plant and equipment and intan- gible assets 134,408 129,981
Goodwill 9 809,397 1,048,573
Intangible assets 10 2,424,983 3,192,065
Deferred income tax asset 29 56,721 14,644
Income tax prepayments 11 82,218 128,983
Other non-current assets 2,810 970
Investment in associate 20,110 21,300
Total non-current assets 5,213,621 6,435,624

Current assets:

Inventories 12 130,231 143,374
Trade and other receivables 13 407,576 455,283
Advances to suppliers 21,091 25,844
Income tax prepayments 87,671 76,610
Derivative financial assets 21 - 12,994
Other financial assets at fair value through profit or loss 14 67,599 61,209
Restricted cash 15 200,000 -
Deposits 15 - 300,000
Cash and cash equivalents 15 1,111,878 2,155,247
2,026,046 3,230,561
Non-current assets held for sale - 3,672
Total current assets 2,026,046 3,234,233
TOTAL ASSETS 7,239,667 9,669,857

Equity

Share capital 16 35,762 35,762
Treasury shares 16 (23,953) (5,759)
Share premium 1,012,662 4,361,346
Currency translation reserve (3,706,496) (3,609,136)
Retained earnings 2,057,321 1,879,243
Equity attributable to the company’s equity holders (624,704) 2,661,456
Non-controlling interests 11,670 9,383
TOTAL EQUITY (613,034) 2,670,839

Liabilities

Non-current liabilities:

Borrowings 19 3,579,194 4,418,632
Bonds 20 580,883 580,125
Post-employment and other long-term benefit obligations 28,343 30,967
Deferred income tax liability 29 377,132 459,223
Provisions 17 74,798 45,003
Asset retirement obligations 18 35,084 -
Derivative financial liabilities 21 358,123 525,257
Total non-current liabilities 5,033,557 6,059,207

Current liabilities:

Borrowings 19 2,325,470 628,030
Bonds 20 3,785 3,847
Trade and other payables 22 204,148 163,858
Advances received 23,166 31,723
Provisions 17 11,176 48,567
Derivative financial liabilities 21 227,480 42,634
Current income tax payable 1,758 694
Other taxes payable 22,161 20,458
Total current liabilities 2,819,144 939,811
TOTAL LIABILITIES 7,852,701 6,999,018
TOTAL LIABILITIES AND EQUITY 7,239,667 9,669,857

Approved for issue and signed on behalf of the Board of Directors on
11 April 2016.

Dmitry OSIPOV
Chief Executive Officer

Anton VISHANENKO
Chief Financial Officer

Uralkali group consolidated statement of profit or loss for the year ended 31 december 2015 (in thousands of US dollars, unless otherwise stated)

Note 2015 2014
Revenues 23 3,123,302 3,559,292
Cost of sales 24 (568,758) (915,967)

Gross profit

2,554,544 2,643,325
Distribution costs 25 (604,264) (932,771)
General and administrative expenses 26 (156,884) (209,466)
Taxes other than income tax (24,826) (40,826)
Other operating income and expenses, net 27 (43,329) (102,291)

Operating profit

1,725,241 1,357,971
Finance income 28 61,278 26,967
Finance expense 28 (1,578,920) (2,138,318)

Profit/(loss) before income tax

207,599 (753,380)
Income tax (expense)/benefit 29 (23,831) 122,524

Net profit/(loss) for the year

183,768 (630,856)
Profit/(Loss) attributable to:
Owners of the Company 181,242 (627,305)
Non-controlling interests 2,526 (3,551)

Net profit/(loss) for the year

183,768 (630,856)
Weighted average number of ordinary shares in issue (million) 2,199 2,568
Earnings/(loss) per share – basic and diluted (in US cents) 8.24 (24.43)



Uralkali group consolidated statement of other comprehensive income for the year ended 31 december 2015 (in thousands of US dollars, unless otherwise stated)

2015 2014
Net profit/(loss) for the year 183,768 (630,856)
Other comprehensive income/(loss)
Items that will not be reclassified to profit or loss:
Remeasurement of post-employment benefit obligations (3,164) 1,545
Items that may be subsequently reclassified to profit or loss:
Effect of translation to presentation currency (97,360) (2,307,812)
Total other comprehensive loss for the year (100,524) (2,306,267)
Total comprehensive income/(loss) for the year 83,244 (2,937,123)
Total comprehensive income/(loss) for the year attributable to:
Owners of the Company 80,718 (2,933,572)
Non-controlling interests 2,526 (3,551)



Uralkali group consolidated statement of cash flows for the year ended 31 december 2015 (in thousands of US dollars, unless otherwise stated)

Note 2015 2014

Cash flows from operating activities

Profit/(loss) before income tax 207,599 (753,380)
Adjustments for:
Depreciation of property, plant and equipment and amortisation of intan- gible assets 810 220,346 371,292
Expenses related to mine flooding provision 27 10,113 16,408
(Reversal)/Write off of Solikamsk-2 property, plant and equipment 27 (27,248) 38,049
Loss on disposals of property, plant and equipment and write-off of prepay- ments for acquisition of property, plant and equipment and intangible assets 27 24,804 27,676
Loss on impairment of property, plant and equipment and assets under construction 27 1,558 -
Write-off of bank deposits 27 - 2,857
Accrual of provision for impairment of receivables 27 8,337 3,034
Change in provisions, net (33,782) -
Income from redemption of bonds 28 - (2,364)
Fair value loss on derivative financial liabilities, net 28 232,759 748,936
Foreign exchange loss, net 28 1,038,810 1,166,924
Other finance income and expense, net 28 246,073 179,875
Operating cash flows before working capital changes 1,929,369 1,799,307
Decrease/(increase) in trade and other receivables and advances to sup- pliers 132,993 (52,192)
(Increase)/decrease in inventories (29,742) 3,440
Increase/(decrease) in trade and other payables and advances received 77,447 (32,317)
Increase in other taxes payable 11,664 2,196
Cash generated from operations 2,121,731 1,720,434
Interest paid 1920 (278,042) (258,841)
Income taxes paid net of refunds received (62,601) (81,117)
Net cash generated from operating activities 1,781,088 1,380,476

Cash flows from investing activities

Acquisition of intangible assets (3,461) (14,220)
Acquisition of property, plant and equipment (339,169) (349,411)
Proceeds from sales of property, plant and equipment - 1,766
Purchase of other financial assets at fair value through profit or loss (7,792) (130,790)
Proceeds from sale of other financial assets at fair value through profit or loss 8,367 60,575
Acquisition of other non-current assets - (13,263)
Decrease in deposits 370,000 -
Increase in deposits (70,000) (296,945)
Increase in restricted cash (200,000) -
Deferred payment for the share in associate (4,000) -
Interest received 36,632 23,898
Net cash used in investing activities (209,423) (718,390)

Cash flows from financing activities

Repayments of borrowings 19 (929,885) (2,119,682)
Proceeds from borrowings 19 1,924,709 3,398,756
Syndication fees and other financial charges paid (32,678) (28,926)
Purchase of bonds issued 20 - (65,736)
Purchase of non-controlling interest - (733)
Cash proceeds from derivatives 21 49,621 87,744
Cash paid for derivatives 21 (94,337) (221,651)
Purchase of treasury shares 16 (3,366,878) (10,506)
Finance lease payments (476) (1,326)
Dividends paid to non-controlling interests (246) (5,509)
Dividends paid to the Company’s shareholders (259) (284,570)
Net cash (used in)/generated from financing activities (2,450,429) 747,861
Effect of changes in foreign exchange rate changes (164,605) (184,868)
Net (decrease)/increase in cash and cash equivalents (1,043,369) 1,225,079
Cash and cash equivalents at the beginning of the year 15 2,155,247 930,168
Cash and cash equivalents at the end of the year 15 1,111,878 2,155,247



Uralkali group consolidated statement of changes in equity for the year ended 31 december 2015 (in thousands of US dollars, unless otherwise stated)

Attributable to equity holders of the Company Non-controlling interests Total equity
Share capital Treasury shares Share premium/ (discount) Retained earnings Currency translation reserve Total attributable to owners of the Company
Balance at 1 January 2014 35,762 (5,722) 4,371,815 2,626,946 (1,301,324) 5,727,477 14,133 5,741,610
Loss for the period - - - (627,305) - (627,305) (3,551) (630,856)
Other comprehensive loss - - - 1,545 (2,307,812) (2,306,267) - (2,306,267)
Total comprehensive loss for the period - - - (625,760) (2,307,812) (2,933,572) (3,551) (2,937,123)

Transactions with owners

Dividends declared (Note 16) - - - (121,943) - (121,943) - (121,943)
Purchase of treasury shares - (37) (10,469) - - (10,506) - (10,506)
Total transactions with owners - (37) (10,469) (121,943) - (132,449) - (132,449)
Disposal of non-controlling interest - - - - - - (1,199) (1,199)
Balance at 31 December 2014 35,762 (5,759) 4,361,346 1,879,243 (3,609,136) 2,661,456 9,383 2,670,839
Profit for the period - - - 181,242 181,242 2,526 183,768
Other comprehensive loss - - - (3,164) (97,360) (100,524) - (100,524)
Total comprehensive in- come/(loss) for the period - - - 178,078 (97,360) 80,718 2,526 83,244

Transactions with owners

Dividends declared - - - - - - (239) (239)
Purchase of treasury shares (Note 16) - (18,194) (3,348,684) - (3,366,878) - (3,366,878)
Total transactions with owners - (18,194) (3,348,684) - - (3,366,878) (239) (3,367,117)
Balance at 31 December 2015 35,762 (23,953) 1,012,662 2,057,321 (3,706,496) (624,704) 11,670 (613,034)



Uralkali group notes to consolidated financial statements for the year ended 31 december 2015 (in thousands of US dollars, unless otherwise stated)