PhosAgro Board of Directors Recognises Effectiveness of Andrey Guryev's Work as CEO and Recommends that Shareholders Approve Dividend Payment

OJSC PhosAgro (PHOR) 
PhosAgro Board of Directors Recognises Effectiveness of Andrey 
Guryev's Work as CEO and Recommends that Shareholders Approve Dividend 
Payment 
 
28-Aug-2019 / 09:33 CET/CEST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer / publisher is solely responsible for the content of this 
announcement. 
 
For Immediate Release  27 August 2019 
 
 PhosAgro Board of Directors Recognises Effectiveness of Andrey 
   Guryev's Work as CEO and Recommends that Shareholders Approve Dividend 
                   Payment 
 
     Moscow - The Board of Directors of PhosAgro, one of the world's leading 
producers of phosphate-based fertilizers, heard a report by Andrey Guryev on 
   the results of his work as CEO of the Company over the past six years and 
    about the Company's medium-term plans. Members of the Board of Directors 
    noted the Company's significant progress in all major areas of activity. 
 
  Summing up his six years as the CEO of PhosAgro, Andrey Guryev noted that: 
 
? PhosAgro's production volumes have grown more than 1.6 times, from 5.9 
million in 2013 to 9.4-9.5 million tonnes expected in 2019; 
 
? The EBITDA margin increased from 23% in 2013 to 32% in 2018, and the 
Company consistently generates profit and high profitability levels; 
 
? PhosAgro's EBITDA over the same period increased from RUB 23.9 billion 
in 2013 to RUB 74.9 billion last year; 
 
? An even more significant result is the more than 300% increase in 
dividends paid compared to the 2013 level. 
 
      Andrey Guryev also emphasised progress in its social and environmental 
                                      performance: 
 
? The Company invests over RUB 2.5 billion every year into social 
programmes. In 2018 PhosAgro spent over RUB 8 billion on environmental 
protection projects and currently operates some of the most advanced 
purification equipment in the industry; 
 
? PhosAgro's new strategy to 2025 prioritises sustainable development and 
adherence to high standards in the social sphere, environmental 
performance, corporate governance; 
 
? The Company created the Sustainability Committee of the Board of 
Directors, which just held its first meeting. Former UNESCO 
Director-General Irina Bokova chairs the Committee; 
 
? PhosAgro's annual report for 2018 was prepared in accordance with GRI 
4.0 standards and received external verification by the Company's 
auditors. 
 
           During his report, PhosAgro CEO Andrey Guryev said: "PhosAgro has 
consistently delivered solid operational and financial results thanks to the 
  well-coordinated work of the entire team, including the miners of Kirovsk, 
    chemists in Cherepovets, Balakovo and Volkhov, and management. Thanks to 
      active work on the international stage, we are successfully seeking to 
       strengthen our reputation, increase brand recognition, and succeed in 
       promoting our products globally. As a result of all these efforts, we 
           receive both external recognition and, even more importantly, the 
                                      recognition and loyalty of our team. 
 
"The unique corporate standards for fertilizer purity, which exceed even the 
        most stringent international requirements by a large margin, help to 
   guarantee growing demand for PhosAgro fertilizers for many years into the 
       future. This enables us to set and achieve ambitious goals, implement 
     large-scale investment programmes and long-term development strategies, 
        generate stable cash flows, pay balanced dividends and implement new 
     investment, social and charitable projects, without increasing our debt 
                                      levels." 
 
         In 2019, PhosAgro production volumes continue to grow, with mineral 
fertilizer and feed phosphate output up by 3.4% year-on-year in the 1H 2019. 
  This was achieved thanks to the implementation of investment projects, the 
 most significant of which is the programme for increasing the capacities of 
    the phosphates complex in Cherepovets (the main facilities were put into 
  operation at the end of 2018), as well as business process optimisation at 
    all production sites aimed at removing bottlenecks, improving production 
                                      discipline and operational efficiency. 
 
 PhosAgro's production Kirovsk site has achieved an impressive 160% increase 
        in labour productivity since 2013, while other production facilities 
achieved a 170% rise. Company-wide, labour productivity is growing at a pace 
                                      of around 27% annually. 
 
 This year, the Company plans to commission a new sulphuric acid line with a 
 capacity of 1.2 million tonnes per year and an ammonium sulphate production 
   plant with a capacity of 300 ths tonnes per year at its Cherepovets site, 
  which will make PhosAgro nearly fully self-sufficient in these key inputs. 
 In addition, a new nitric acid line, which will enable PhosAgro to increase 
        ammonium nitrate production by over 170 ths tonnes per year and take 
      advantage of consistently high demand for this product in the domestic 
                                      market. 
 
 Xavier Rolet, Chairman of the Board of Directors of PhosAgro, said: "I have 
         known Andrey Guryev and PhosAgro since before I joined the Board of 
    Directors. Andrey's appointment as CEO marked the start of an impressive 
 period of growth and development during which the Company invested over 50% 
        of its EBITDA into major strategic projects, continued to refine its 
     governance practices and adopted changes to its dividend policy to make 
                          PhosAgro even more attractive to global investors. 
 
 "Central to its strategy is the sustainability and environmentally-friendly 
    nature of its production, underpinned by its unique line of cadmium-free 
phosphate-based products. The Company's major commitment to employee safety, 
 welfare and education is also well known and has made it a global leader in 
                                      its industry. 
 
    "Under Andrey's leadership, PhosAgro has also put in place an impressive 
programme of active cooperation with numerous international organisations to 
further support the cause of environmentally-friendly fertilizer production, 
          technological innovation and education to sustainably feed a world 
     population estimated by the UN to reach 10.5 billion by the end of this 
                                      century. 
 
 "I am pleased to express the Board's continued confidence and total support 
     for Andrey and his world-class management team as the Company takes its 
     rightful place as the undisputed global industry leader in the years to 
                                      come." 
 
 "PhosAgro's commitment to the principles of sustainable development and the 
  UN Global Compact represent the ambitions of a truly global company and we 
take this work very seriously. PhosAgro contributes to the achievement of 10 
      of the 17 Sustainable Development Goals of the UN, but PhosAgro's main 
       contribution to global sustainable development is to help ensure food 
        security in more than 100 countries of the world where the Company's 
    products are used. PhosAgro fertilizers do not contain toxic impurities, 
  meaning they are safe for human health and they do not harm the soil. This 
is especially important, since 52% of the Earth's soil resources are already 
 subject to degradation. Given the growing global concern over the purity of 
       fertilizers, the importance of PhosAgro's contribution to sustainable 
  development will only increase," said Irina Bokova, Chair of the Committee 
             for Sustainable Development of the PhosAgro Board of Directors. 
 
     Taking into account PhosAgro's stable cash flows and positive financial 
  performance dynamics, the Company's management presented options for a new 
 dividend policy. The Board of Directors decided to further analyse with the 
       intention of giving final approval at a meeting on 24 September 2019, 
      immediately before PhosAgro's Capital Markets Day, where the Company's 
                                      strategy to 2025 will be presented. 
 
      The Board of Directors also recommended that the Extraordinary General 
     Meeting of Shareholders ("EGM") approve a dividend payment of RUB 6.993 
billion, or RUB 54 per ordinary share (RUB 18 per Global Depositary Receipt) 
 from retained earnings as of 31 December 2018. This recommendation was made 
   based on the results of the Board's discussion of the Company's financial 
      results for 1H 2019, including the interim consolidated IFRS financial 
   statements, which are scheduled to be disclosed tomorrow, 28 August 2019. 
 
    The EGM will be held by absentee ballot on 4 October 2019 and the record 
   date for shareholders eligible to participate has been set as 9 September 
2019. The Board has recommended that the shareholders meeting set 15 October 
                                      2019 as the record date for dividends. 
 
   The Board of Directors also confirmed that its Independent Directors meet 
 the criteria of independence, as defined by PhosAgro's bylaws for the Board 
 of Directors, the Corporate Governance Code recommended by the Central Bank 
  of Russia for joint stock companies and the Moscow Exchange listing Rules. 
     The Board also set the payment for RAS audit services and considered or 
                                      reviewed other issues on the agenda. 
 
For further information please contact: 
 
PhosAgro 
 
Andrey Serov, Head of Investor Relations Department 
[phone] ext 2183 
[e-mail] 
 
Timur Belov, Press Officer 
[phone] 
 
EM 
Sam VanDerlip 
[e-mail] 
[phone] 
[phone] 
 
Dmitriy Zhadan 
 
[e-mail] 
 
[phone] 
 
[phone] 
 
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. 
 
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 
[1]. 
 
ISIN:          US71922G2093 
Category Code: DIV 
TIDM:          PHOR 
LEI Code:      635400F8A3KGJIIBIK95 
Sequence No.:  18237 
EQS News ID:   864375 
 
End of Announcement EQS News Service 
 
 
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August 28, 2019 03:33 ET (07:33 GMT)