Phosagro S Regulatory News (PHOR)

PhosAgro-Region Increases Domestic Sales of Fertilizers by 50% to 1.2 Million Tonnes

Moscow - Russia's largest mineral fertilizer distribution network PhosAgro-Region* (a PhosAgro subsidiary) has increased its total sales of mineral fertilizers to Russian farmers by 47% year-on-year in Q1 2020, reaching 1.2 million tonnes. Sales of PhosAgro's own fertilizers to the domestic market increased by 50% year-on-year to 916.7 thousand tonnes, while the network's sales of third-party products from other Russian manufacturers increased by 36% year-on-year.

PhosAgro CEO Andrey Guryev said, "the domestic market will always be our strategic priority and the largest individual market in terms of sales volumes for our products.

"In order to ensure that farmers have a reliable supply of mineral fertilizers amid the coronavirus pandemic, we have put in place a system of measures to prevent the spread of disease at our enterprises, in the cities where we operate and at regional distribution centres, where contactless shipment practices are in place.

"In the first quarter, the Russian market showed record growth: according to the Russian Fertilizer Producers Association, mineral fertilizer sales to the country's farmers rose by nearly 40% year-on-year. The dramatic increase in purchases for spring field work, which began earlier than usual this year and is progressing in a much more dynamic manner, can be attributed to last year's rapid growth in agricultural production and impressive output in terms of crop production, which were the result of sound government policies in the agricultural sector and support from fertilizer producers.

"This year, our customers want to get the most out of a favourable price situation in the market. While the first quarter mainly used to be the season for nitrogen fertilizers, many PhosAgro-Region customers have purchased phosphate-based and NPK fertilizers this year for both spring and autumn sowing. In light of this, we increased our supply of a wide range of phosphate-based grades to the domestic market by 50%, including liquid complex fertilizers, sales of which have doubled."

PhosAgro has continued to develop electronic communications with customers, which has become especially important during the ongoing epidemic: the Company's online trading platform was put into commercial operation, and the first contracts with small and medium-sized agricultural enterprises were concluded in various regions. In addition, the volume of electronic trading in mineral fertilizers at SPIMEX has increased: the most popular brands of PhosAgro's phosphate-based and NPK fertilizers accounted for more than 60% of all trading in the first quarter of 2020.

About PhosAgro

PhosAgro (www.phosagro.com) 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 of 39% and one of the leading producers 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, 39 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.

More information about PhosAgro can be found on the website: www.phosagro.com.

*By total volumes of fertilizers supplied and by the simultaneous fertilizer storage capacity.