PhosAgro PJSC: Correction (Xavier Rolet quote added): PhosAgro Board of Directors Approves 2022 Budget

PhosAgro Board of Directors Approves 2022 Budget

Moscow - The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated phosphate-based fertilizer producers, has approved the Company's draft budget for 2022.

Commenting on the results of the meeting, PhosAgro CEO and member of the Board of Directors Andrey Guryev noted, "The approved budget confirms PhosAgro's long-term strategy of maintaining high growth rates through further expansion and modernisation of production facilities, deeper vertical integration, and further securing the Company's position as one of the world's most efficient mineral fertilizer producers.

"We continue to implement our large-scale investment programme as part of the Strategy to 2025. Projected capital investment for next year is RUB 52.5 billion (excluding maintenance). Key projects for the year ahead include the final stage of construction of a modern phosphate-based fertilizer production complex and supporting infrastructure in Volkhov, as well as the expansion of our mining operations, the start of construction of a new ammonia and urea complex in Cherepovets, and an increase in production capacities at the Balakovo site. These and other projects will be included in the updated version of the Strategy to 2025, which will be submitted to the Board of Directors for approval next spring."

Summing up the results of 2021, Andrey Guryev emphasised that even in difficult epidemiological conditions, the Company continued to boost production levels: total finished product output by the Group's enterprises is expected to reach 10.5 million tonnes in 2021 (up by 3% year-on-year). Thus, a new historical record will be set in PhosAgro's 20th anniversary year.

PhosAgro Board of Directors Chairman Xavier Rolet congratulated PhosAgro employees on the Company's outstanding operating performance and thanked them for their strict adherence to measures to protect against coronavirus.

"I am confident that implementation of PhosAgro's strategy will enable the Company to further accelerate its development and increase production of eco-efficient mineral fertilizers that are free from toxic concentrations of elements such as cadmium, which are harmful to human health and soils. This is especially important in the context of the pandemic-driven threat to international food security, as well as growing attention all over the world to issues like food quality and safety," Xavier Rolet said.

PhosAgro Director and Chair of the Sustainable Development Committee Irina Bokova noted that at the end of the year PhosAgro received the best ESG rating of any company in the global agrochemical sector from Sustainalytics

"This is the result of the Company's comprehensive efforts in all aspects of ESG, as well as the deep integration of these principles into PhosAgro's business model. We will continue to move confidently along the path of sustainable development, contributing significantly to reaching 11 of the 17 UN Sustainable Development Goals," Irina Bokova said.

The meeting participants reviewed information about work-related injuries and the development of a project management system in organisations affiliated with PhosAgro.

Chairman of the Audit Committee Marcus Rhodes reported on the successful results of an external independent examination of the Company's internal audit, risk management, and internal controls.

The Board of Directors approved the work plan and budget the Internal Audit Directorate for 2022, the Information Security Policy of the Company, as well as the Transparency Statement regarding the UK Modern Slavery Act, and the amended Code of Ethics of the Company.

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About Us

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 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%, 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, more than 50 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 102 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.