TOGLIATTIAZOT ANNOUNCES FINANCIAL RESULTS FOR 2015

In 2015 the revenues grew by over 30% against the result of the previous financial year to 63.3 billion rubles (48.5 billion rubles in 2014). Net profit increased by 44.3% to21.7 billion rubles (15.0 billion rubles in 2014).

Main factors of performance growth in 2015 were the output boost for urea under the program for increasing efficiency, and the growth of export earnings (mainly due to growth of the rates of major currencies to ruble).

Key Events of 2015

Major year’s events are connected with active realization of Togliattiazot’s program for renovation of production facilities until 2020.The volume of capital investments grew by 14% y/y, from 5.98 billion to 6.82 billion rubles. Among major investment projects were:

· Complete overhaul of the ammonia production unit No. 4 (completed in 2016);

· First phase of the water discharge system upgrade (completed in 2016);

· Overhaul of the ammonia production unit No. 6;

· The first phase of the project for coating (heat insulation) replacement at the technologic facilities;

· Complete overhaul of Russia’s largest insulated tank for ammonia storage.

Along with that, ToAZ has launched several investment projects that are to be financed in 2016-2017:

· Construction of the third unit for production of urea (development of project documentation);

· Implementation of high-technology system of tanks cleaning;

· Renewal of construction of the ammonia and urea transshipment complex at the port of Taman (Krasnodar region).

Tax and Social Liabilities

In the reviewed period OJSC Togliattiazot confirmed its status of a major taxpayer in Samara region by increasing its tax payments to the budgets of all levels by over 50% y/y, from 4.8 billion to 7.3 billion rubles; payments to the regional budgets grew by over 70% to 5.4 billion rubles.

Ensuring social guarantees to the company’s employees is a key priority of ToAZ’s corporate policies. In 2015, average wages in the company reached 43.5 thousand rubles. Today, the employment benefits package at ToAZ is one of the best in the industry and includes health cover, health resort treatment, additional financial support for young specialists and retired long-service employees. OJSC Togliattiazot will continue consistent work on maintaining and improving labor conditions in the company.

Commenting on the results of the year, CEO of CJSC Corporation Togliattiazot Vyachelslav Suslov noted: “Despite all external difficulties, 2015 was a success for us, and this is a result of coordinated work of the entire ToAZ team and realization of the investment program targeted primarily at improvement of our efficiency.

Despite the complicated geopolitical situation, the Ukrainian conflict in particular, that created difficulties in transportation of products, we maintained the ammonia output on 2014 level, while production of urea grew by over 40%.

Stable operational results allowed ToAZ to maintain leadership, but we are not ready to rest, and we will keep focusing on raising efficiency and upgrading in 2016: investments for these purposes may more than double. At the same time, we will continue to pay great attention to social and environment programs, these spheres have always been and remain priorities for ToAZ”.