PhosAgro Celebrates 20th Anniversary

• Large-scale investment programmes helped PhosAgro boost production almost threefold, from 3.4 million tonnes in 2001 to 10.1 million tonnes in 2020.
• Our range of fertilizer products, for 102 countries across all inhabited continents, grew from 5 to 54 products.
• Productivity in tonnes of produced mineral fertilizer per company employee increased sevenfold.
• Between 2001 and 2020, the Company increased supplies for the strategically important Russian market fivefold to 3 million tonnes. Traditionally, PhosAgro has accounted for a third of all fertilizer used by Russian farmers.
• The Company operates in more than 70 Russian regions, with the country's largest mineral fertilizer distribution network, PhosAgro-Region, spanning from Kaliningrad in the West to Petropavlovsk-Kamchatsky in the Far East. PhosAgro-Region includes 10 regional companies, 21 regional offices and 29 distribution centres.
• PhosAgro has allocated more than RUB 4 billion for philanthropy and social projects.
• By continuing its large-scale investment programme, charitable activities, social projects and dividend payouts, the Company has succeeded in maintaining a solid financial position, as confirmed by top ratings agencies: Standard & Poor's, BBB-; Moody's, Baa3; Fitch, BBB-.
• PhosAgro is one of only 37 companies in the world to be recognized as a UN Global Compact LEAD participant for its sustainable development achievements, receiving one of the highest ESG scores among its global peers and among all Russian companies: Sustainalytics, 27.3; MSCI ESG Research, A; CDP, В-.

MOSCOW - PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated phosphate-based fertilizer producers, is celebrating its 20th anniversary.

Over the past two decades, PhosAgro has shown solid dynamics in its operating and financial results. The Company has also integrated sustainable development principles and social responsibility into its day-to-day operations.

Andrey A. Guryev, CEO of PhosAgro, said: "Our team of thousands of like-minded professionals has helped PhosAgro transform over these 20 years into what it is today. One of our priorities has always been to modernise production with the help of the best available solutions. Traditionally, half of our EBITDA is reinvested, strengthening our positions in the phosphate-based fertilizer market as one of the largest suppliers to Russian farmers and one of the most cost-efficient producers globally.

"We have transformed from a mere fertilizer producer into a supplier of working solutions to guarantee solid yields: nutrition systems that are best suited to various types of soil and plants. We are proud of our strong results. Since 2001, we have increased production of our main products threefold, to more than 10 million tonnes last year. Also last year, for the first time in our 20-year history, we increased supplies of our mineral fertilizers to the strategically important Russian market to 3 million tonnes.  

"With our own advanced research facilities as well as partnerships with the country's leading research centres, we have boosted the number of grades of fertilizers that the Company produces more than tenfold, to 54, including innovative grades containing microelements.

"It is important to note that, over the 20 years of our Company's history, PhosAgro has always prioritised sustainable development, and ESG is an integral part of our Company's DNA. Our goal is to ensure global food security by supplying farmers across the globe with eco-efficient fertilizers free of dangerous concentrations of cadmium that are harmful to human health and soils. Our progress has been recognized in the form of high scores from the world's most respected ratings agencies.

"All this leads us to believe in the Company's bright future. I am confident that we will continue down our path of success and growth, improving our operating and financial results and maintaining charitable activities and social programmes."

Irina Bokova, a member of PhosAgro's Board of Directors and the Chair of the Board's Sustainable Development Committee, said: "PhosAgro was one of the first companies in Russia to implement a systemic approach to sustainable development principles, modernising its ESG practices consistently over the past 20 years. Today, PhosAgro is an important contributor across 11 of the 17 UN Sustainable Development Goals. We are proud to be one of only 37 companies across the globe to have the status of a Global Compact LEAD participant, reflecting our commitment to the principles of responsible business conduct, human rights, labour, the environment and anti-corruption.

"We understand that, to plan for the years to come, you need to start working today. This is why our Climate Strategy has set goals to 2028. We are actively implementing our programme to reduce carbon dioxide emissions and to increase the share of green energy in our production. We have begun using solar panels and increased the use of innovative products that minimise the carbon footprint of agriculture.

"We are working hand in hand with our suppliers and consumers, stakeholders and investors. Last year, PhosAgro compiled an ESG rating of its suppliers that enables us to select the most responsible partners based on 60 criteria. We will continue developing our culture of a safe, eco-friendly and socially responsible production environment."

James Rogers, an independent director and member of PhosAgro's Board of Directors, said: "Everything PhosAgro has achieved over these years is the result of effective management and the right balance between the Company's investment programme and regular dividend payouts to shareholders.

"This past year alone has seen the Company's share price grow by two-thirds, while production and supply metrics have reached record highs. I am convinced that this is not the end but rather the beginning of a long road ahead for PhosAgro."

Andrey G. Guryev, Deputy Chairman of PhosAgro's Board of Directors, noted: "These 20 years have been a long journey for both PhosAgro and Russia. As an industry leader, we understand our responsibility: the innovative, accessible and unique eco-effective qualities of our fertilizers have given our country's agribusiness a key edge.

"In recent years, we have increased supplies to Russian farmers fivefold, fostering food security in Russia and 102 other countries around the world. None of this would have been possible if it weren't for our unique team here at PhosAgro, a team of outstanding, dedicated professionals."

Xavier R. Rolet, Chairman of PhosAgro's Board of Directors and an independent director, commented: "PhosAgro is constantly working on becoming more open and transparent to meet all its stakeholders' needs. I am proud of how fast we've continued to improve and refine our corporate practices and governance.

"PhosAgro has adapted quickly and successfully to the investment community's changing demands, and in particular on the increased focus on ESG. The Company has been swift in its response to this new challenge, as our business model and practices have always been based on principles of sustainability and accountability. Sustainable development will also continue to strongly underpin our corporate governance and philosophy."

"PhosAgro's products are unique in terms of their ecological effectiveness, which is crucial to ensuring global food security and food product safety. Our mineral fertilizers are free of dangerous concentrations of cadmium and other heavy metals that are harmful to human health and soils. This is our unique competitive advantage.

"We are committed to expanding our production and building new facilities supported by innovative state-of-the-art technology, backed by our unflinching commitment to serve our customers' interests."

Contact us

PJSC PhosAgro

Andrey Serov, Head of the Investor Relations Department

+7 495 232 9689 ext. 2187

ir@phosagro.ru

Timur Belov, Press Officer

+7 495 232 9689 ext. 2652

pr@phosagro.ru

EM

Sam VanDerlip

vanderlip@em-comms.com

+44 207 002 7859

+7 499 918 3134

About Us

PhosAgro (www.phosagro.ru) is one of the world's leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P2O5 content of 39% and higher. PhosAgro's environmentally friendly fertilizers stand out for their high efficiency, and they do not lead to the contamination of soils with heavy metals.

The Company is the largest phosphate-based fertilizer producer in Europe (by total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of high-grade phosphate rock with a P2O5 content 39%, a top-three producer of MAP/DAP globally, one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia, and Russia's only producer of nepheline concentrate (according to the RAFP).

PhosAgro's main products include phosphate rock, more than 50 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 102 countries spanning all of the world's inhabited continents. The Company's priority markets outside of Russia and the CIS are Latin America, Europe and Asia.

PhosAgro's shares are traded on the Moscow Exchange, and global depositary receipts (GDRs) for shares trade on the London Stock Exchange (under the ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in the MSCI Russia and MSCI Emerging Markets indexes.