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PhosAgro PAOAnnouncement

21/11/2017 15:06

For Immediate Release   21 November 2017 

PhosAgro Board Recommends Dividends

Moscow – The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR),
one of the world’s leading vertically integrated phosphate-based fertilizer
producers, held a meeting at the Company’s Cherepovets production site. At
this meeting, the Board recommended that an Extraordinary General Meeting of
Shareholders (“EGM”) approve a dividend in the amount of RUB 2.72 billion,
or RUB 21 per ordinary share (RUB 7 per global depositary receipt) from the
Company’s undistributed net income as of 31 December 2016.

The Board of Directors made its recommendation after discussion of the
Company's financial and operational performance for the first nine months of
2017, including the interim consolidated IFRS financial statements, which will
be published on 22 November 2017.

Members of the Board of Directors also heard information on the Company's
strategic priorities for 2018, presented by PhosAgro CEO Andrey Guryev:

"We will continue to increase production efficiency at each of our sites in
every region where we operate, with a focus on continuous improvements. We
will conduct an audit of Apatit’s ore deposits and study ways to further
enhance the efficiency of our mining operations. We are also in the process of
working out an integrated strategy through 2025 for the development of
internal logistics, as well as a large-scale programme for the introduction of
new technologies.

“We plan to allocate about RUB 25 billion annually for capital expenditure
in 2018 and 2019. Among our priority investment projects are the construction
of new sulphuric and nitric acid production facilities, as well as ammonium
sulphate capacity that should be completed in 2019 at PhosAgro’s Cherepovets
production site. We aim to expand the capacity of Beneficiation Plant #3 in
Kirovsk to 9 million tonnes by 2018. Overall, we plan to increase capacities
from 2016 levels by around 25%, with fertilizer output of 9.2 million tonnes
planned for 2020, including the new ammonia and granulated urea lines that are
due to be launched.”

During the visit to Cherepovets, the members of the Board of Directors visited
the Company’s new high-tech ammonia production plant with a capacity of 760
ths tonnes per year and the new granulated urea line with a capacity of 500
ths tonnes per year, as well as social infrastructure. PhosAgro invested over
RUB 65 billion into the construction of the new production facilities, which
are due to be officially launched in the near future.

Sven Ombudstvedt, Independent Director and Chairman of the Board of Directors
of PhosAgro, said: "I think that I speak for all of the Board’s Independent
Directors when I say that we were very impressed with the production
facilities that we saw today. These new capacities adhere to the highest
standards of quality, implement the best available technologies and meet the
most stringent environmental requirements. All of this strengthens
PhosAgro’s leading position in Russia and globally. These facilities will
help the Company to maintain stable cash flows over the long term, while it
continues to pay solid dividends to shareholders and invest in new projects to
increase its competitiveness.”

The Board of Directors at its meeting also heard information from the chairs
of the Committees of the Board of Directors on the work of the relevant
Committees during the third quarter of 2017, the methodology and timetable for
carrying out the self-assessment for 2017, as well as the work plan of the
Board for 2018

In addition, the Board of Directors took note of information on the
development of the project management system and the main aspects of ensuring
cybersecurity at PhosAgro’s enterprises, the results of monitoring of key
risks in the third quarter of 2017, and approved a related party transaction.

For further information please contact:

PhosAgro

Alexander Seleznev, Head of Investor Relations Department
+7 495 232 9689 ext 2187
ir@phosagro.ru

Timur Belov, Press Officer
Anastacia Basos, Deputy Press Secretary
+7 495 232 9689

EM
Sam VanDerlip
vanderlip@em-comms.com
+44 7554 993 032
+7 499 918 3134

Notes to Editors

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 P(2)O(5)
content of not less than 37% (according to IFA, Fertecon and CRU).

The Company is the largest phosphate-based fertilizer producer in Europe, the
largest producer of high-grade phosphate rock (with a P(2)O(5) content of not
less than 37%) worldwide and the third largest MAP/DAP producer in the world,
according to IFA. PhosAgro is also one of the leading producers of feed
phosphates (MCP) in Europe, and the only producer in Russia. PhosAgro is
Russia’s only producer of nepheline concentrate.

PhosAgro’s main products include phosphate rock, over 35 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.



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