REG-OJSC PhosAgro: PhosAgro Celebrates 5 Years as LSE-listed Company <Origin Href="QuoteRef">PHOR.MM</Origin>

PhosAgro PAOAnnouncement

13/07/2016 11:20

For Immediate Release   13 July 2016 

PhosAgro Celebrates 5 Years as Successful LSE-listed Company
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GDRs included in MSCI Russia
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Total dividend payout since IPO of USD 3.8 per GDR, with dividend yield rising
from 5% to 9% for 2015
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Lowest cash-cost major producer of phosphate-based fertilizers in the world
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Fertilizer production capacity increased 38% since 2011
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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 PhosAgro
Irina Evstigneeva, Director of Corporate Finance and Investor Relations
ir@phosagro.ru
+7 495 231 3115

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 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 (P(2)O(5) 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.



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