REG-PJSC PhosAgro: PhosAgro Board Recommends RUB 1.943 bn Dividend

PhosAgro PAOAnnouncement

20/03/2018 14:45

For Immediate Release   20 March 2018 

PhosAgro Board Recommends RUB 1.943 bn Dividend

Moscow – The Board of Directors of PhosAgro ("PhosAgro" or "the Company")
(Moscow Exchange, LSE: PHOR), one of the world’s leading vertically
integrated phosphate-based fertilizer producers, today recommended that the
annual general meeting of shareholders (“AGM”) approve a dividend payment
of RUB 1.943 billion, or RUB 15 per common share (RUB 5 per global depositary
receipt), from the Company’s undistributed net profit for 2017.

The AGM will be held on 30 May 2018. The record date for shareholders eligible
to participate in the AGM was set as 5 May 2018. The Board of Directors also
approved the agenda of the AGM. The recommended record date for shareholders
eligible to receive dividends is 13 June 2018.

The dividend recommendation was made following the Board of Directors’
review of PhosAgro’s consolidated IFRS financial statements for 2017, which
will be disclosed tomorrow, 21 March 2018, as well as a general discussion
about the financial results for the previous year. In addition, the Board of
Directors took note of the statutory accounting statements for 2017 and
submitted them for consideration to the AGM.

The meeting also reviewed the main results of the Company's operations in
2017: operating results, significant aspects of the activities of enterprises
belonging to PhosAgro and responsible for the sale of mineral fertilizers in
2017. In addition, PhosAgro’s annual report for 2017 was submitted for
approval by the AGM.

The Board of Directors recognised PhosAgro’s 2017 operating and financial
results as successful. Summing up the results of the last year, PhosAgro CEO
Andrey Guryev said: "In 2017, the Company achieved its best-ever growth in
terms of production volumes, with total fertilizer ouput up by more than 12%
year-on-year to more than 8.3 million tonnes. Phosphate rock production also
reached its highest level in the last 25 years, at over 9.5 million tonnes.

"PhosAgro has maintained its position as the absolute leader in the supply of
all types of fertilizers to the Russian market, where the Company sells more
fertilizers than in any other country in the world, having increased
fertilizer sales to Russian farmers by 12% year-on-year to a record 2.34
million tonnes. The Company’s range of products has also expanded with four
new types of fertilizer bringing our portfolio up to 39 grades for different
types of soils and climatic conditions.

“Last year, our company was the first and so far the only Grand Prix winner
of the all-Russian competition Leaders of Russian Business: Dynamics and
Responsibility; we topped the list of Russian companies with the best growth
in labor productivity over the last five years according to Vedomosti; we also
were listed in the the first ever Forbes rating of the best employers of the
world, becoming one of four Russian companies in the TOP-500."

At today's meeting, information was provided on the work and results of the
self-assessment of the the Board of Directors and its Committees in 2017.

Also, the Management Board of PhosAgro was appointed, which included PhosAgro
CEO Andrey Guryev, Apatit CEO and PhosAgro COO Mikhail Rybnikov, PhosAgro
Deputy CEO for International Projects Siroj Loikov, PhosAgro Deputy CEO for
Corporate and Legal Affairs Alexei Sirotenko, PhosAgro Director of Business
Development Roman Osipov, PhosAgro CFO Alexander Sharabaika and Deputy CEO and
Chief of Staff for the CEO of PhosAgro Alexander Gilgenberg. In addition,
consent was given to members of the Management Board of PhosAgro to hold
positions management bodies of other organisations.

In addition, information was provided on the assessment of the effectiveness
of the Company's key risk management systems in the fourth quarter of 2017,
the results of their reassessment and the update of the risk map for 2018.

The Board of Directors also approved a report on compliance with the
principles and recommendations of the Corporate Governance Code for 2017,
confirming that the Company adheres to the best standards and practices of
corporate governance that provide all shareholders with an equal opportunity
to exercise their rights.

The Board of Directors considered the issue of recognising as independent Sven
Ombudstvedt and Marcus Rhodes, who are candidates for election to the new
Board of Directors by the AGM, and who have been members of the Board of
Directors since 2011. The Board of Directors recognised them as independent in
accordance with the provisions of the Corporate Governance Code and the
Listing Rules of the Moscow Stock Exchange, as well as taking into account the
practice of their taking unbiased, independent and objective decisions that
are in the interests of all shareholders and PhosAgro.

At today's meeting, a report was approved on related party transactions
concluded in 2017.

FBK LLC has been recommended to the AGM for approval as the Company’s RAS
auditor for 2018.

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 39% (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 worldwide, and one of the
top-three MAP/DAP producers in the world (by production volumes, according to
IFA). PhosAgro is also one of the leading producers of feed phosphates (MCP)
in Europe, and the only producer in Russia (according to CRU and RAFP).
PhosAgro is Russia’s only producer of nepheline concentrate (according to
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.



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