PhosAgro Board of Directors Takes Key Parameters for 2020 Budget under Advisement

PhosAgro Board of Directors Takes Key Parameters for 2020 Budget under Advisement

Moscow - The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated phosphate-based fertilizer producers, has taken under advisement the Company's main budget parameters for 2020.

PhosAgro CEO Andrey Guryev said: "Given the current pricing environment in global fertilizer markets, it was recommended that the Management Board consider opportunities to further improve the Company's internal efficiency, including in terms of capital and operating costs, and to submit a new version of the budget by 1 March. The main parameters of the 2020 budget confirm PhosAgro's commitment to maintaining its status as one of the most efficient producers of mineral fertilizers in the global industry.

"Reductions in capital and operating costs in recent years are one of the reasons for our success, and the current price situation in the fertilizer market is a challenge for us - in a good sense - in terms of further steps to improve the Company's performance."

The Board of Directors also called an extraordinary general meeting of shareholders (EGM) to be held by absentee ballot on 24 January 2020. Among the approved agenda items for the EGM is a dividend recommendation. On 22 November 2019, the Board recommended that the EGM approve a dividend payment of RUB 6.216 billion, or RUB 48 per ordinary share (RUB 16 per Global Depositary Receipt).  The amount of dividends that the Board of Directors proposed for payment was determined in accordance with the dividend policy in the amount of 53% of net profit for the third quarter of 2019, calculated in accordance with international standards on consolidated financial reporting and adjusted for the amount of unrealised foreign exchange rate differences. The record date for the EGM was set as 30 December 2019. It was recommended that the EGM set 4 February 2020 as the record date for the register of shareholders to receive dividends.

The Board of Directors of PhosAgro also determined a new composition of the Management Board, which comprises PhosAgro CEO Andrey Guryev as Chairman, First Deputy CEO Mikhail Rybnikov, Deputy CEO Siroj Loikov, Deputy CEO for Corporate and Legal Affairs Alexey Sirotenko, Deputy CEO for Finance and International Projects Alexander Sharabaiko, Сhief of Staff for the CEO of PhosAgro Alexander Seleznev and Deputy CEO for Business Development Roman Osipov.

In addition, the Board of Directors approved the Internal Audit Department's work plan for the year ahead.

About the Company

PhosAgro 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 pure phosphate-based fertilizers stand out for their high efficiency and their environmental safety for the health of people and soils.

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%, 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, 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.ru.