PhosAgro Board of Directors Recognises Company’s Successful Results in 2023 and Welcomes the Decision to Index Wages

The Board of Directors of PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, has declared the Company’s operating results for 2023 a success and has supported the Management Board’s decision to index the salaries of employees by a further 15%, starting 1 February 2024.

In his report on the key results of the Company’s operations in 2023 and prospects for 2024, PhosAgro CEO Mikhail Rybnikov said: “Thanks to the concerted effort of our workforce and our well-thought-out development strategy, we were able to continue our strong growth and make considerable progress in production and sales and in the implementation of our investment programme. We set a new all-time record in 2023: our enterprises produced 11.3 million tonnes of agrochemical products, an increase of 2% from 2022. I would like to highlight the DAP/MAP segment where production increased by 8.4% to more than 4.5 million tonnes. We also increased the production of ammonium nitrate by 4.4%, urea – by 1.6%, phosphoric acid and sulfuric acid – by 4.6% and 2.5% respectively. PhosAgro has solidified its status as the leader in the Russian market in terms of total supply volume. In total, we invested a record amount of over RUB 64 billion last year. This year, we are going to raise the bar even higher, to RUB 73 billion.”

“Thanks to the consistent implementation of our investment programme and steadily increasing production, we are able to ensure that our employees are paid decent wages and to fulfil all our social obligations. In 2021–2023, the average salary increased by 60%, and salaries were indexed by a further 15% in February 2024. Our tax payments at all levels, including the security payment for the windfall tax, and export duties rose by 15% to a record RUB 69 billion last year. We have also increased our support for social and charitable projects. Over the past decade, our funding for these programmes has increased sevenfold. In 2022–2023, the amount of funds allocated for these purposes was over RUB 25 billion. Our traditional commitment to responsible business principles will remain a top priority,” said Viktor Cherepov, Chairman of PhosAgro’s Board of Directors.

This year, PhosAgro’s activities have been highly praised by the organizers and experts of the Responsible Business Leadership National Award established by Russian President Vladimir Putin, with the Company winning in most of the categories where it was nominated, as well as in the Grand Prix.

The Board of Directors took note of the information on occupational health and industrial safety, as well as on the establishment of an inventory procurement system at PhosAgro companies.

In the field of mineral fertilizer sales in 2023, the main aspects of the activity of PhosAgro subsidiaries were evaluated, as well as market conditions and competition analysis.

The Board of Directors approved a report on compliance with the principles and recommendations of the Corporate Governance Code in 2023, confirming that at present, PhosAgro’s corporate governance system and practices fully meet the Company’s current needs and enable shareholders to exercise their rights. In addition, the meeting approved the report of the Company’s Internal Audit Directorate on the division’s work for 2023.

The Board also heard information on the results of the work of the Company’s Board of Directors in 2023 and information on the efficiency of the Company’s risk management and internal control framework in 2023.