The board of directors of PhosAgro notes the strong growth of the company, the improvement of its operational and financial performances in the 10 years since its IPO

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06-Aug-2021 / 17:15 MSK
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For immediate release August 6, 2021

The board of directors of PhosAgro notes the strong growth of the company, the improvement of its operational and financial performances in the 10 years since its IPO

Moscow – The board of directors of PhosAgro (“PhosAgro” or “the Company”) (Moscow Exchange, LSE: PHOR), one of the world’s leading producers of vertically integrated phosphate fertilizers, noted the continued strong growth of the Company and improving its and financial performance over the 10-year period since its IPO in July 2011.

“Over the past decade, we have more than doubled our mineral fertilizer production, increased our phosphate rock production by 40% and nearly doubled our EBITDA. PhosAgro Market Capitalization 60% Increase to USD 8.6 Billion The Company increased its free float from 10.8% to 30.5%.

“More than 335 billion rubles have been allocated for the implementation of new investment projects and the development of production capacities. In 2020, we completed a large-scale development program at our production site in Cherepovets which saw investments of over $ 1.4 billion. The main event for us in 2021 will be our program of reconstruction and opening of a new production plant in the city of Volkhov. Completion of the project is expected to increase the company’s total fertilizer production by nearly 10%. The first two installations, with a total capacity of over 800,000 tonnes of MAP, were launched in March and June 2021; by the end of the year, a new sulfuric acid production line with an integrated heat capture power generator will be launched. All these facilities use the best technologies and comply with the most recent environmental requirements: the ESG agenda has become part of the company’s DNA in recent years and a priority axis of its options strategy development.

“Through the implementation of our strategy for 2025, we intend to increase production to 11.6 million tonnes of finished product per year while continuing to improve labor productivity. If we compare the current situation with 2011, we have increased productivity by almost 230% thanks to the modernization of our production facilities and the improvement of the efficiency of our processes. By 2025, it is expected to increase by an additional 20% for the Company as a whole. In addition, we are about to make a decision on the construction of new ammonia and urea plants. We will provide investors with a revised strategy through 2025 after it is reviewed and approved by the board later this year or early next year.

“Speaking of the operational performance of the Company for the second quarter and the first half of the year, I would like to thank all the staff of PhosAgro for their conscientious, high-quality work and strict adherence to measures aimed at preventing the spread of COVID-19. We have been able to maintain the production and sales of fertilizers at record levels thanks to the realization of investment projects for the construction of new facilities and the modernization of existing capacities as well as a constantly growing demand in our priority domestic market. , given the excellent affordability of fertilizers for farmers, ”said Andrey Guryev, CEO of PhosAgro in his report to the Board of Directors meeting.

“One cannot fail to note the outstanding achievements of the company in the 10 years since its IPO, of which Andrey Guryev was the eight-year CEO. It is gratifying to see that PhosAgro has not only operated efficiently but has also maintained a positive performance momentum – its growth rate has only increased. We will move forward in the same spirit, confident that the Company’s successful investment program will continue to be able to support its ambitious growth and ‘increase the production of PhosAgro’s eco-efficient mineral fertilizers, which are free from concentrations of cadmium and other toxic substances dangerous to human health and soils,’ said Xavier Rolet, Chairman of the Board of Directors of PhosAgro, commenting on the CEO’s presentation.

The meeting also discussed a report on the occupational health and safety performance of the subsidiaries of PhosAgro as well as the results of monitoring the management of key business risks in the first half of 2021.

Following a discussion on the Company’s IFRS interim consolidated accounts for H1 2021, which will be presented today, August 6, 2021, and information on the Company’s financial results for the same period, the Board of Directors recommended that an extraordinary general meeting of shareholders approve the payment of dividends in the amount of RUB 20.2 billion, or RUB 156 per share (RUB 52 per global certificate of deposit) from net profit not distributed as of June 30, 2021.

The extraordinary general meeting of shareholders will vote on the dividend recommendation at a meeting held by correspondence vote on September 13, 2021. The board of directors recommended to set September 24, 2021 as the registration date for the receipt of dividends.

The Board of Directors also approved a new version of the Company’s draft budget for 2021, a new version of the Company’s Regulations on inside information and a report on the work of the Secretary General for the period from August 2020 to July 2021.

The Board of Directors also took note of the reports of the Chairmen of the Committees of the Board of the Company on the work of the respective committees for Q2 2021, of a report on the Company’s strategy concerning international projects and collaboration with investors, a progress report on the implementation of the measures provided for in the Company’s climate strategy and a report on the implementation of the Company’s communication policy in 2020 and its main areas of focus. intervention in 2021.

The board of directors has approved a material transaction and has determined that the price of the property being transacted is in line with its market value. In addition, the Board also recognized that its independent members comply with the independence criteria determined by the Regulations on the Board of Directors of PhosAgro, the Corporate Governance Code recommended by the Bank of Russia for use by companies. by shares, the UK Code of Corporate Governance and the Moscow Stock Exchange Listing Rules.

About PhosAgro

PhosAgro (www.phosagro.com) is one of the world’s leading producers of vertically integrated phosphate fertilizers in terms of production volumes of high quality phosphate rock and phosphate rock fertilizer with a P2O5 content of 39% and more. The ecological fertilizers from PhosAgro stand out for their high efficiency and they do not lead to soil contamination with heavy metals.

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

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

PhosAgro shares are traded on the Moscow Stock Exchange and global certificates of deposit (GDR) for the shares are traded on the London Stock Exchange (under the symbol PHOR). Since June 1, 2016, the Company’s GDRs have been included in the MSCI Russia and MSCI Emerging Markets indices.


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