Slide 1: Presentation for 1-on-1 meetings September 2020
Presentation for 1-on-1 meetings September 2020 Pure Minerals for Healthy Lives
Slide 2: Disclaimer
DISCLAIMER These materials have been prepared by PJSC PhosAgro (PhosAgro) solely for your information and may not be copied, reproduced, retransmitted or further distributed, directly or indirectly, by any recipient to any other person or published, in whole or in part, for any purpose or under any
Slide 3: PhosAgro at glance
PhosAgro at glance
Slide 4: Overview
OVERVIEW Deposits lifetime Investment grade ratings Company stocks Financial highlights app. 60 BBB- Baa3 S&P global ratings Moody’s LSE MOEX Since 2011 Since 2011 USD mln Revenue 2017 2018 2019 3 105 3 723 3 835 1H19 1H20 1 996 1 789 years BBB- Fitch ratings Incl. in MSCI Russia EBITDA(1) 870 1 195
Slide 5: #1 global producer of high grade phosphate rock
#1 GLOBAL PRODUCER OF HIGH GRADE PHOSPHATE ROCK Highlights Phosphate fertiliser universe(4) 50 • PhosAgro is the largest producer of high-grade phosphate rock by production Total phosphate rock production volume worldwide(1) and #4 global producer of phosphate fertilizers by 40 Morocco nameplate cap
Slide 6: PhosAgro assets
PHOSAGRO ASSETS Mining capacities(4) Kirovsk Branch of Apatit(3) (Kirovsk) Fertilizer production, mln t 37 Ore mining 10.5 phosphate rock + 28% growth mln t mln t production + 10% CAGR 2.3 Total resources 39% Content of P2O5 9,0 9,5 ~10,0 bln t 8,3 2H20 7,4 Production capacities(4) Metachem (Volkhov
Slide 7: Vertical integration as a key advantage
VERTICAL INTEGRATION AS A KEY ADVANTAGE Operational structure PhosAgro perimeter Self-sufficiency in 2019 Phosphate ore Sulphur Potash Natural gas Beneficiation plant Sulphuric acid plant Ammonia unit 100% 90% 90% 41% P-Rock Sulphuric acid Ammonia Phosphate rock Sulfuric acid Ammonia Electricity Min
Slide 8: Global footprint with diversified product portfolio
GLOBAL FOOTPRINT WITH DIVERSIFIED PRODUCT PORTFOLIO Russia fertilizer sales, mln t Export fertilizer sales, mln t + 108% growth + 51% growth + 13% CAGR + 7% CAGR Access to markets Global footprint Fertilizer grades 39 40+ 25 PhosAgro sales Other regions Net fertilizer exporters Source: PhosAgro 8
Slide 9: Corporate governance
CORPORATE GOVERNANCE BOARD OF DIRECTORS EXPERIENCE HIGHLIGHTS Independent Directors Xavier Robert Rolet KBE Chairman Irina Bokova Chairman of the Sustainable Development Committee Sven Ombudstvedt 10 7 Chairman of the Strategy Committee// Chairman of the Risk management Committee DIRECTORS INED Jame
Slide 10: Strategic focus on ESG & UN Sustainable Development Goals
Strategic focus on ESG & UN Sustainable Development Goals PhosAgro directly contribute to 10 SDGs Company has been recognized as a Global Compact LEAD PhpsAgro is a strategic partner of FAO on implementation of Sustainable Soil Management PhosAgro initiated with UNESCO «Green Chemistry for Life» gra
Slide 11: Strategic focus on ESG
Strategic focus on ESG Sustainable growth of the Company positions in ESG ratings 2018 2019 2020 MSCI ВВ ВВ BBB CDP «F» «С» SUSTAINALYTICS 51 54 / 43,8 FTSE4Good 2.9 3.5 * SUSTAINALYTICS essential methodology change was in 2019. Figures reflects now unmanaged risks level. Source: PhosAgro 11
Slide 12: ESG priorities
ESG PRIORITIES Environmental performance OHS and Social performance 2018 2019 1. LTIFR 0.75 (per 1 million working hours) Air emissions, kg/ton 1,048 0,888 2. Employee loyalty and satisfaction index is 57 % GHG emissions, kg/ton 157,973 143,27 3. Average annual number of education hours per employee
Slide 13: Fertilizer Industry
—= ea ee Fertilizer In <2PHOSAGRO:
Slide 14: Fertilizer price performance, FOB Baltics
FERTILIZER PRICE PERFORMANCE, FOB BALTICS (USD/T) India accelerated import amid slow ramp up of new capacities at Ma’aden Ramp up of new capacities at and OCP Ma’aden and OCP sites/ flood in the USA/slow domestic demand in China Capacities cut in Morocco, N. America, China 10 year high affordability
Slide 15: Feedstock prices
FEEDSTOCK PRICES Ammonia FOB Black sea price, USD/t Phosphoric acid CFR India contract price, USD/t Sulphur CFR China prices, USD/t Phosphate rock FOB Morocco prices, USD/t Source: CRU, PhosAgro 15
Slide 16: Global DAP/MAP cash cost
GLOBAL DAP/MAP CASH COST, USD/t, FOB PhosAgro remains in the 1st quartile of world DAP / MAP producers in 2019 by expected cash cost. The difference with the lowest cost producers from the North Africa and the Middle East is within USD10-20/t 600 World cash cost excluding China Cash cost China 1st q
Slide 17: Premium market expansion
PREMIUM MARKET EXPANSION Key markets Premium to Indian netback prices, FOB Baltic PhosAgro operates in +100 countries, but Russia, North and South America and Europe are the target markets, as USD/t they account for ~40% and ~50% shares on global production and global trade of soybeans, corn and whe
Slide 18: Phosphate fertilizers: demand and supply structure
PHOSPHATE FERTILIZERS: DEMAND AND SUPPLY STRUCTURE Highlights Core changes in P-Fertilizer import in 1H20 vs 2019, mln t • For 2016-2019 global markets showed mixed fertilizers demand growth rates. Russia demonstrated the highest result– 8.7% versus global 0.6% increase • For the next 30 years, glob
Slide 19: Strategic Developments
Strategic Developments
Slide 20: Investment program 2019-2025
INVESTMENT PROGRAM 2019-2025 CapEx allocation*, USD mln Investment projects Investment projects • Investment projects CapEx 2019-2025: USD 1.1 bln Stay-in-business projects • Stay-in-business CapEx 2019-2025: USD 1.7 bln • Effect on EBITDA**: USD 450+ mln • Projected IRR***: 20%+ at WACC 11% Potenti
Slide 21: Production guidance 2019-2025
PRODUCTION GUIDANCE 2019-2025 Fertilizer production outlook, mln t Phosphate fertilizer production, mln t + 25% growth NPK share will grow to 55% + 5% CAGR + 25% growth + 5% CAGR Phosphate rock output, mln t Processing margin*, USD/ t of Ph-rock + 5% growth Source: PhosAgro *additional margin, that
Slide 22: Asset development pipeline
ASSET DEVELOPMENT PIPELINE PROJECT MAP CAPACITES NPK/NPS LINE CHEREPOVETS CAPACITIES NPK(S) for domestic and TARGET MAP for export markets European markets Debottlenecking initiatives SITE Metachem Balakovo Cherepovets COMMISSIONING 2021 2022 2019-20 DESIGNED CAPACITY 0.86 mtpa 1.7 mtpa Various targ
Slide 23: Financial review
Fin E a ancial review <2PHOSAGRO:
Slide 24: Revenue breakdown
REVENUE BREAKDOWN Sales breakdown, mln tonnes FX rates, RUB/USD Revenue dynamics, RUB bln Revenue by region Revenue by product Source: PhosAgro 24 Fertilizer Industry Financial review Market outlook
Slide 25: The most efficient company amid market headwinds
THE MOST EFFICIENT COMPANY AMID MARKET HEADWINDS EBITDA and EBITDA margin for the last 7 years EBITDA margin comparison in 1H20 EBITDA margin comparison in 2019 EBITDA margin comparison in 2018 PhosAgro has a proven track record as a sustainably profitable company in the industry, delivering leading
Slide 26: Financial performance
FINANCIAL PERFORMANCE EBITDA margin resilience vs DAP price DAP cash cost, USD/t - 40% down 2 FCF, mln USD Net debt/EBITDA, x Source: CRU, PhosAgro 26
Slide 27: Debt profile
DEBT PROFILE Liquidity position Debt repayment schedule(1) as of 30/06/2020 USD mln USD mln Current credit rating: 17 BBB- S&P global ratings Baa3 Moody’s 1 288 BBB- Fitch Ratings 2 81 Cash Available credit lines 634 552 459 Debt maturity(2) Debt currency(3) Debt type LT ST USD EUR Fixed rate Floati
Slide 28: Dividend policy
DIVIDEND POLICY Board of Directors approved new dividend policy Historical payout ratio, USD bln on 24 September 2019 Dividend FREE CASH FLOW base Frequency Quarterly ND/EBITDA ND/EBITDA ND/EBITDA Threshold <1.0x 1-1.5x >1.5x Dividends per GDR and dividend yield, USD/GDR Payout >75% 50-75% <50% rati
Slide 29: Appendix
—~Appendix. _ <2PHOSAGRO:
Slide 30: Russia: more space for growth
RUSSIA: MORE SPACE FOR GROWTH Fertilizer application 80 245 Grain average yield, 00 kg/ha USA, 2018 60 156 102 40 EU, 2018 58 EASTERN EUROPE, 2018 40 RUSSIA, 2018 20 RUSSIA, 2013 0 50 100 150 200 250 300 Fertilizer application, kg P2O5/ha Source: Rosstat, RAPU, IFA, FAO, PhosAgro 30
Slide 31: Cash cost performance
Cash cost performance DAP cash costs at FOB, USD/t Av. DAP cash cost, % 12 48 20 250 206 10 10 Urea cash costs at FOB, USD/t Av. Urea cash cost, % 21 53 26 Source: CRU, PhosAgro 31 PhosAgro at glance Fertilizer Industry Financial review Appendix
Slide 32: Thank you!
Thank you! PhosAgro IR contact Address: 55/1, Leninsky prospect, Bldg.1. Moscow, 119333, Russia IR E-mail: ir@phosagro.ru Phone number: +7 495 232 96 89 www.phosagro.ru