Investor Presentation 2006

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3 Contents PRODUCTION OF MINERAL FERTILIZERS IN RUSSIA COMPANY OVERVIEW – HISTORY – OPERATIONAL DATA – TARGET MARKETS – FINANCIAL HIGHLIGHTS – CAPEX CORPORATE GOVERNANCE COMPETITIVE ADVANTAGES SWOT ANALYSIS SHARE MARKET CONTACTS

4 PRODUCTION OF MINERAL FERTILIZERS IN RUSSIA BASIC TRENDS Economic downturn in the late 1980s through early 1990s resulted in a fertilizer consumption plunge in the domestic market. Between 1988 and 1944 it decreased by more than ten times. Russian domestically oriented fertilizer producers were forced to notably cut their production and redirect their sales abroad economic crisis led to a considerable devaluation of the Russian currency and to a respective improvement of the exporters’ financial standing, which enabled the Russian fertilizer producers to rise their businesses. Consequently, in 2005 the domestic fertilizer output nearly doubled to 1990 level. Russian fertilizers are highly competitive globally due to low internal energy tariffs. It is anticipated that within next years the domestic fertilizer consumption will increase in line with a general economic upturn and the consolidation of farms into large holdings.

5 COMPANY OVERVIEW – HISTORY The plant for nitrogen fertilizer production was built in Dorogobuzh area, Smolensk region in Since 1994, Dorogobuzh facility has been successfully operating as a part of Acron Holding, one of the leading fertilizer producers in Russia and globally. JSC Dorogobuzh is the local economic mainstay. It currently employs about 4,000 people.

6 COMPANY OVERVIEW – OPERATIONAL DATA Dorogobuzh offers a range of over 30 products complying with world quality standards including: – ammonia – ammonium nitrate – complex fertilizers – dry blended fertilizers – liquid carbon dioxide – polyethylene and polypropylene products – catalysts

7 COMPANY OVERVIEW – OPERATIONAL DATA Ammonia is the basic raw material used in mineral fertilizer production. Some 90% of ammonia produced by Dorogobuzh is further processed domestically, the balance being exported to Europe. Dorogobuzh invests heavily in upgrading ammonia production facilities, thus ensuring competitive prices of final products - mineral fertilizers. Dorogobuzh boasts the lowest level of natural gas consumption per ton of ammonia among its peers:1,212 m 3 against industry average 1,300 m 3. AMMONIA

8 COMPANY OVERVIEW– OPERATIONAL DATA Of all nitrogen fertilizers, ammonium nitrate is most widely used in agriculture as well as in the production of explosives. Dorogobuzh’s export volumes of ammonia nitrate equal to its domestic sales volume. However, the trend is for an increase in annual domestic sales growth. AMMONIUM NITRATE E

9 COMPANY OVERVIEW – OPERATIONAL DATA Complex fertilizers contain two or three nutrients (nitrogen, phosphorus, potassium) in different proportions. Dorogobuzh produces a well- balanced complex fertilizer with an equal content of nitrogen, phosphorus and potassium (16% each). About 50% of 2005 overall complex fertilizer production was exported to Europe, Asia, Africa and CIS. COMPLEX FERTILIZERS (NPK)

10 COMPANY OVERVIEW – OPERATIONAL DATA Dry mixed fertilizers contain all necessary nutrients: nitrogen, phosphorus and potassium. They are produced by blending the following components: ammonium nitrate, NPK and potassium chloride. Dorogobuzh’s dry mixed fertilizers are mostly exported to Europe. The company plans to considerably expand its production of dry mixed fertilizers. DRY MIXED FERTILIZERS

11 COMPANY OVERVIEW – OPERATIONAL DATA Dorogobuzh produces a range of non- organic chemistry products. The most important of these are liquid carbon dioxide, lime and calcium carbonate. The quality of liquid carbon dioxide produced by Dorogobuzh complies with the highest international standards and is the best in Russia. Almost all of the non-organic chemistry products are sold domestically, while about 10% of the carbon dioxide production is supplied to Belarus. NON-ORGANIC SYNTHETIC PRODUCTS

12 COMPANY OVERVIEW – OPERATIONAL DATA In-company production of propylene bags ensures a lower final cost of packaged products. The production amounted to 11.4 million bags in 2005 and to 6,6 million bags in 1 st half of Propylene bags

13 COMPANY OVERVIEW – TARGET MARKETS Domestic Market Dorogobuzh is one of the leading fertilizer suppliers domestically, due to its advantageous location relative to the main agricultural regions of Russia. In 2005, Dorogobuzh sold 36% of its production domestically. Key products supplied domestically are ammonium nitrate, NPK and non-organic synthetic products.

14 COMPANY OVERVIEW – TARGET MARKETS Exports Dorogobuzh’s production is also in high demand abroad. In 2005, the company exported 807,000 tons of fertilizers or 64% of its total production. Key exported products are dry mixed fertilizers, ammonia and NPK.

15 COMPANY OVERVIEW – FINANCIAL HIGHLIGHTS In 2005, Dorogobuzh managed to materially improve its financial performance due to both increased physical production volumes and growing prices for the whole range of its products.

16 COMPANY OVERVIEW – FINANCIAL HIGHLIGHTS Financial Stability and Credit Quality

17 COMPANY OVERVIEW CAPEX In July 2005, JSC Dorogobuzh embraced a $500 million Investment Programme through 2015 Investments intoUSD million Year Increase of existing capacities Formalin, urea-formaldehyde concentrate, resins production Power plant, 40 MW Ammonia production, 700,000 tpa Ammonia production and processing TOTAL

18 CORPORATE GOVERNANCE IAS reporting Quarterly disclosures IAS results auditor RAS consolidated results auditor since 1998 since 1997 PriceWaterhouse Coopers Baker Tilly Russaudit Corporate Governance Code since 2005

19 KEY COMPETITIVE ADVANTAGES The distance from Dorogobuzh to the nearest of Baltic ports is 680 km, while most domestic producers are 1,500 to 2,500 km away from main sea terminals Dorogobuzh is one of the most efficient producers of nitrogen fertilizers in CIS. Natural gas consumption stands at 1,212 m 3 per ton of ammonia, which is significantly below the CIS average of 1,300 m 3 per ton of ammonia A wide product range allows the company to mitigate the negative effects of cyclical revenues from the sales of mineral fertilizers Regional sales diversification provides the flexibility to respond to diminishing demand in some regions by increasing deliveries to other markets Low level of gas consumption ratio per ton of ammonia Well-diversified product mix Well-diversified markets Advantageous location in terms of proximity to ports

20 SHARE MARKET During 2004 and 2005, the aggregate market capitalization of the top ten Russian producers of mineral fertilizers in the domestic stock market increased nearly sixfold to USD8.2 billion from USD1.4 billion. The increased share value in the industry is explained by enhanced financial performance, a favorable price environment for mineral fertilizers in global markets, and improved transparency.

21 DIVIDEND HISTORY

22 CONTACTS JSC Dorogobuzh Alexander Popov Vice-President for Corporate Construction and Financial Control Deputy Chairman of the Administration Board Elena Romanovskaya Head of Information and Analysis Department Nadezhda Bashkirtseva Head of Securities Department e-mai: 37 (2) Prechistenka St. Moscow, , Russia phone: +7 (495) fax: +7 (495)