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Board of Directors discusses key areas of PhosAgro Group’s development strategy through 2025; recommends EGM approve payment of RUB 3.1 billion in dividends

29 May 2018
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 an extraordinary general meeting of shareholders (EGM) approve a dividend payment of RUB 3.11 billion, or RUB 24 per common share (RUB 8 per global depositary receipt), from the Company’s undistributed net profit, accumulated as of 31 December 2017.

The extraordinary general meeting of shareholders will be held on 6 July 2018 in the form of an absentee vote. The record date for shareholders eligible to participate in the meeting was set as 11 June 2018. The Board of Directors also approved the agenda of the meeting, which will include the approval of related-party transactions. The recommended record date for shareholders eligible to receive dividends is 23 July 2018.

The dividend recommendation was made following the Board of Directors’ review of PhosAgro’s interim consolidated IFRS financial statements for 1Q 2018, which will be disclosed tomorrow, 30 May 2018, as well as general information about the financial results for the respective period.
The Board of Directors also reviewed information regarding the implementation of the Company’s 2017 development strategy and the main areas of development for 2018.

PhosAgro CEO Andrey Guryev said:

“PhosAgro’s clearly defined development strategy means that the company is able to commission new production capacities, which in turn supports stable cash flow over the long term, allowing us to pay appropriate dividends to shareholders and make investments in new products to improve our competitiveness.

“In the last five years alone, the Company has invested RUB 160 billion in its development, drawing on the best available technology. As a result, our production volumes have increased by 40% over this period, to a record 8.3 million tonnes in 2017. Since our IPO we have paid more than USD 1.9 billion in dividends, or USD 5 per GDR, which is almost 40% of the original price of our GDRs at the moment of listing.

“Today we have presented to the Board of Directors the main areas of focus of PhosAgro’s long-term development strategy through 2025, which aims to further increase the Company’s operational efficiency, strengthen its positions on the domestic and international market, and support growth of shareholder value and profitability.”

The Board of Directors also approved the new budget for 2018 and recommended that management approve the budget and inform the Board of Directors of its implementation on a quarterly basis.

In addition, today’s meeting was given an update on the work of PhosAgro Group companies, in adherence to the norms of labour legislation and industrial safety at production facilities, and compliance with environmental norms and environmental safety in 2017.

The Board of Directors reviewed information on the results of monitoring of key risks in 1Q 2018, as well as about the Company’s compliance with provisions of Russian law regarding the protection and handling of insider information, and about key requirements of Russian and European legislation for persons discharging managerial responsibility (PDMR). In addition, a new edition of the Policy on Conflicts of Interest was approved.

Today’s meeting also reviewed information from the Chairmen of the committees of the Board of Directors regarding the work of their committees during 1Q 2018, and about the implemention of the Company’s information policy in 2017 and main areas of work for 2018.