ACRON : ACRON : Miscellaneous

                        ACRON : ACRON : Miscellaneous

                                      


                                                                April 16, 2013

          Acron Releases 2012 Consolidated IFRS Financial Statements

Today Acron (Moscow Exchange and LSE: AKRN) released its audited  consolidated 
IFRS financial statements for 2012.

Key Financials

  *Revenue was up 9%  year-on-year to RUB 71.11  billion (USD 2.29  billion), 
    against RUB 65.43 billion in 2011.

  *EBITDA* was down 4%  year-on-year to RUB 19.92  billion (USD 641  million) 
    (2011: RUB 20.86 billion).

  *EBITDA margin was 28%, against 32% in 2011.

  *Net profit  was  down 27%  year-on-year  to  RUB 14.86  billion  (USD  478 
    million), against RUB 20.33 billion in 2011.

  *Net debt was RUB 32.67 billion (USD 1.08 billion), down 3% from RUB  33.81 
    billion at the end of 2011.

  *Net debt/LTM EBITDA** was 1.6, with no change year-on-year.

Alexander Popov,  Chair  of  Acron's  Board  of  Directors,  comments  on  the 
performance:

"The reporting year was one of the most significant in the Company's  history. 
The key event was the launch of our mining segment, the crucial element in the
Group's vertically integrated  business model.  In December  2012, the  Oleniy 
Ruchey mine started shipping apatite concentrate, and Novgorod-based Acron and
Dorogobuzh facilities  have already  produced  complex fertilisers  using  the 
Group's own phosphate inputs. We have been gradually expanding the output  and 
plan to  achieve 60-65  ktpm by  this June,  which will  completely cover  our 
phosphate commodity needs. We also  successfully commissioned a new urea  unit 
in Veliky Novgorod which increased  urea and UAN output  by 25% in 2012.  Both 
projects were completed to schedule and within budget.

"In 2012, the Group  made significant advances with  its two other  investment 
projects: construction of the  Talitsky mine and a  new ammonia unit at  Acron 
facility. We raised the required financing of over RUB 12.8 billion from three
investors and commenced construction of two shafts at the potash mine. Work on
the Ammonia-4 construction site  is on schedule,  and we plan  to put the  new 
unit on stream in 2015.

"In 2012  the  Group  invested  over  RUB 16  billion  in  its  projects.  The 
considerable capex notwithstanding, we are primarily committed to securing the
financial sustainability of the Group. The debt burden remains at a manageable
level.

"In the reporting year, the Group maintained high operating performance,  with 
total commercial  product  output of  5.9  million tonnes.  Despite  a  slight 
decrease of  complex  fertiliser  output  at the  Russian  facilities  due  to 
interrupted apatite concentrate supply in June-July and protracted overhaul of
the ammonia unit at our  Dorogobuzh facility, the Group's facilities  operated 
at a high capacity utilisation rate and boosted output of certain products.

"2012 was complicated for  producers of all types  of mineral fertilisers.  In 
the first half  of the year,  the nitrogen market  saw prices hovering  around 
local highs, but a number of factors dramatically depressed the market in  the 
second half,  resulting in  a price  adjustment. Despite  the volatility,  the 
nitrogen market was  the only  one to see  higher sales,  while phosphate  and 
potash fertiliser producers  had to pull  back on output  due to  considerably 
lower demand. It is  important to note that  demand on the complex  fertiliser 
market was stable throughout the year.

"We do not forecast  any deterioration on the  global fertiliser markets  this 
year. The spring  sowing season  revitalised nitrogen  fertiliser prices,  and 
higher agricultural product prices support fertiliser demand globally."

Notes on Key Items in the Financial Statements

Key Financials
In 2012, revenue was up 9%, to RUB 71.11 billion on the back of favourable
nitrogen fertiliser market conditions in the first half of the year, higher
sales of urea and UAN, and a sales focus on premium markets of Asia and Latin
America.

The cost of products shipped  by the Group in 2012  was RUB 40.44 billion,  up 
14% year-on-year. Higher  production costs  were due to  increased prices  for 
natural gas, commodities  and power,  and increased  commodity consumption  in 
China resulting from higher  output. Higher staff costs  were mainly due to  a 
10% increase in  the Group's total  personnel in 2012,  to 15,644, because  of 
expanded operations and construction of new production capacity.

In 2012, EBITDA was RUB 19.92 billion, down 4% year-on-year. EBITDA margin was
28%. The Group's  profit margin  was lower because  production costs  outpaced 
mineral fertiliser prices.

Net profit shrank 27% to RUB 14.86  billion, mainly because in 2011 the  Group 
sold exploration permits worth  RUB 4.84 billion (before  tax) and a stake  in 
its subsidiary which held Apatit shares  worth RUB 4.26 billion (before  tax). 
Adjusted net profit for 2011 (less these transactions) was RUB 13.21  billion. 
Therefore, when compared  to the adjusted  amount net profit  for 2012 was  up 
12%. The  adjusted net  profit margin  was 21%,  up from  20% in  2011.  These 
financials demonstrate improved efficiency in the Group's core business.

In 2012, net  cash outflow  from investment  activity was  RUB 19.91  billion, 
against RUB 602 million in 2011. The  main expenditure items in 2012 were  RUB 
16.12 billion in capex, including revamping of production assets,  investments 
in  the  Oleniy  Ruchey  mine  project,  investments  in  the  Talitsky   mine 
construction, and acquisition of a stake in Polish Azoty Tarnów worth RUB 3.88
billion.

Net cash flow from financial activity in 2012 was RUB 25.48 billion. The  item 
increased due  to proceeds  from borrowings  earmarked to  finance  investment 
activity. Moreover, in 2012  this item was supported  by RUB 12.76 billion  of 
cash inflow  from  the  acquisition  by  Vnesheconombank,  Raiffeisenbank  and 
Eurasian Development Bank of shares in VPC's authorised capital.

As of  December  31,  2012,  available-for-sale  investments  were  RUB  24.68 
billion, up 24%  year-on-year. This item  accounts for the  Group's stakes  in 
Uralkali and Azoty  Tarnów, whose  market value increased  over the  reporting 
period.

Debt Burden
By the end of 2012, net debt was down 3% to RUB 32.67 billion. The relative
debt burden did not change, with net debt/EBITDA ratio remaining at 1.6. As of
December 31, 2012, the Group's total debt under loans and borrowings was RUB
61.56 billion, up RUB 13.12 billion year-on-year. The increase was due to
accumulation of free cash balance for its further utilisation in the Group's
investment and financing activity.

Dividends
Based on  performance  for  the  first nine  months  of  2012,  the  Company's 
shareholders approved the  Board of Director's  recommendation to pay  interim 
dividends of RUB 46 per share. RUB  1.87 billion was paid out, accounting  for 
16% of IFRS net profit for the nine months of 2012.

The full financial statements, as well as a presentation on performance in the
2012 fiscal year are available at www.acron.ru. The Group's operating analysis
for 2012 is detailed in the 2012 Annual Report, and a draft shall be available
at www.acron.ru on April 30, 2013.

Note: The exchange rate used for currency  conversions was RUB 30.37 to USD  1 
as of December 31, 2012  and RUB 32.20 for USD  1.00 as of December 31,  2011. 
The average exchange rate was RUB 31.09 to USD 1 in 2012 and RUB 29.39. to USD
1 in 2011.

* EBITDA is calculated as operating profit adjusted to reflect depreciation of
fixed and intangible assets, Forex gains or losses, and other non-monetary and
non-core items.

** EBITDA calculated for last 12 months.

For Further Information:



Acron



Ms. Elena Kochubey -                          Tel: 
+7 (495) 777 08 65
Head of Public Relations

Mr. Ilya Popov -                                 
Tel: + 7 (495) 411 55 94 (ext. 5252)
Head of Investor Relations



Background

Acron Group is a leadingRussian and global mineral fertiliser producer  with 
a diversified product  portfolio consisting  of multi-nutrient  (NPK and  bulk 
blends) and straight  nitrogen-based fertilisers (urea,  ammonium nitrate  and 
UAN), as well as industrial products.  In 2012, the Group's output  (exclusive 
of own use) totalled 5.9 million  tonnes. The Group's key markets are  Russia, 
China and other Asian countries, Europe, America, and CIS countries.



In 2012, the Group's consolidated revenues under IFRS were RUB 71,112  million 
(US$ 2,287 million), and net profit  was RUB 14,861million (US$ 478  million). 
Acron's shares are  listed and traded  on the Moscow  Exchange and the  London 
Stock Exchange (ticker AKRN). Acron employs over 15,600 people.



A high vertical  integration, including  development of  potash and  phosphate 
deposits, operation of three  large production facilities, own  transportation 
infrastructure and international distribution network,  is a platform for  the 
Group's sustainable growth. The  phosphate and potash  projects in Russia  and 
Canada are Acron  Group's most intensively  evolving segment. After  launching 
the Oleniy Ruchey mining  and processing complex, the  Group will reach a  new 
stage of development by securing supplies  of its own phosphate raw  materials 
to Acron's processing facilities.



For more information about the Group please visit www.acron.ru/en.


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