Phosagro S Regulatory News (PHOR)

OJSC PHOSAGRO - PhosAgro Celebrates 5 Years as LSE-listed Company

PR Newswire

London, July 13

PhosAgro Celebrates 5 Years as Successful LSE-listed Company

GDRs included in MSCI Russia

Total dividend payout since IPO of USD 3.8 per GDR, with dividend yield rising from 5% to 9% for 2015

Lowest cash-cost major producer of phosphate-based fertilizers in the world

Fertilizer production capacity increased 38% since 2011

Major investment projects for further capacity increases and greater competitiveness on track to launch in 2017

Moscow – PhosAgro (“the Company”), one of the world’s leading vertically-integrated phosphate-based fertilizer producers, whose shares are traded on the Moscow Exchange and London Stock Exchange (ticker: PHOR), today marked the fifth anniversary of the listing of its Global Depositary Receipts (“GDRs”) on the London Stock Exchange (“LSE”).

The PhosAgro delegation, which included Deputy Chairman of the Board Andrey G. Guryev and CEO Andrey A. Guryev, was joined at the London Stock Exchange by the Russian Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the Court of St. James's Alexander Yakovenko, senior LSE officials, as well as members of the team that assisted PhosAgro during its IPO.

PhosAgro CEO Andrey Guryev said: “PhosAgro’s IPO in 2011 marked one of the most important milestones in our 15-year history. We achieved much more than a successful listing: we have improved nearly every aspect of our operations in order to adhere to global best practices for public companies. We now have investors from all over the world who share their ideas and experience with us.

“We are very pleased to highlight PhosAgro’s impressive achievements during the past five years: we have increased fertilizer production capacity by 38% since 2011, up to 6.9 million tonnes per year. Over the past five years we have increased our fertilizer portfolio from 14 to 33 grades. We are processing more of our high-quality phosphate rock into value-added fertilizers – internal consumption has increased 28% in five years. While improving our production output, we have also maintained the cash cost of production at a level significantly below USD 200/tonne (FOB Baltics), which makes PhosAgro one of the most efficient phosphate-based fertilizer producers in the world.

“This has created significant value for shareholders, with USD-denominated EBITDA for 2015 12% higher than it was in 2011, despite a 26% decline in the price of DAP fertilizer (FOB Tampa). We have also paid our shareholders total dividends of USD 3.8 per GDR since the IPO, and PhosAgro’s dividend yield has grown from 5% in 2011 to 9% for 2015.

“We believe that our successful implementation of strategic investment programmes, including investments of RUB 110 billion over the last five years, combined with a generous dividend policy, as well as programmes aimed at sustainable financial and social development, have gained us recognition among the investment community: PhosAgro recently became the first company to be added to the MSCI Russia index in two years, and we have maintained our investment-grade credit rating from Standard & Poor’s through the challenging macro environment currently facing Russia.

“Since its IPO, PhosAgro always has been and will remain open to the investment community, and we will continue to adhere to the strict requirements for companies whose securities trade on the London Stock Exchange. I view this not only as a serious responsibility, but as a key to creating long-term value for our shareholders and all of our stakeholders.”

Russian Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the Court of St. James's Alexander Yakovenko said: “I am happy to attend this important event for PhosAgro, a Russian company that is a global leader in its industry. PhosAgro’s large-scale investments into its Russia-based production assets have helped it to secure its position as one of the world’s most efficient producers of high-quality phosphate-based fertilizers.

“I am likewise pleased to note the Company’s commitment to best practices throughout its operations, including in its work with the Russian and international investment community, which we are here to celebrate today.”

For further information please contact:OJSC PhosAgroIrina Evstigneeva, Director of Corporate Finance and Investor Relationsir@phosagro.ru+7 495 231 3115Timur Belov, Press OfficerAnastacia Basos, Deputy Press Secretary+7 495 232 9689EMSam VanDerlipvanderlip@em-comms.com+44 7554 993 032+7 499 918 3134Notes to Editors

PhosAgro is one of the leading global vertically integrated phosphate-based fertilizer producers. The Company focuses on the production of phosphate-based fertilizers, feed phosphate and high-grade phosphate rock (P2O5 content of not less than 39%).

The Company is the largest phosphate-based fertilizer producer in Europe, the largest producer of high-grade phosphate rock worldwide and the third largest MAP/DAP producer in the world (excluding China), according to Fertecon. PhosAgro is also one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia. It is Russia’s only producer of nepheline concentrate.

PhosAgro’s main products include phosphate rock, 33 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 100 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.