Phosagro · RUS:PHOR
Phosagro — Investor Presentation (February 2021)
28 slides from Phosagro's investor presentation, Feb 25, 2021
Slide 1: Presentation for 1-on-1 meetings
Presentation for 1-on-1 meetings 25.02.2021 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 3 105 2018 3 723 2019 3 833 2020 3 509 years BBB- Fitch ratings Incl. in MSCI Russia EBITDA(1) 870 1 195 1 168 1 16
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 38 Ore mining 10.5 phosphate rock mln t mln t production + 35% growth 2.3 Total resources 39% Content of P2O5 + 8% CAGR bln t 9,5 10,0 8,3 9,0 Production capacities(4) 7,4 Metachem (Volkhov) St. P
Slide 7: Vertical Integration as a Key Advantage
VERTICAL INTEGRATION AS A KEY ADVANTAGE Operational structure PhosAgro perimeter Self-sufficiency in 2020 Phosphate ore Sulphur Potash Natural gas Beneficiation plant Sulphuric acid plant Ammonia unit 100% 93% 81% 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 + 60% growth + 110% growth + 25% CAGR + 11% CAGR Access to markets Global footprint Fertilizer grades 25 39 40+ 50+ PhosAgro sales Other regions Net fertilizer exporters Source: PhosAgro
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 DEVEOPMENT GOALS PhosAgro directly contribute to 11 SDGs Company has been recognized as a Global Compact LEAD PhpsAgro is a first Russian company selected as strategic partner of FAO on implementation of Sustainable Soil Management Initiative PhosAgro initiate
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» B- SUSTAINALYTICS 51 54 / 43,8* 26,9 FTSE4Good 2.9 3.5 * SUSTAINALYTICS essential methodology change was in 2019. Figures reflects now level of unmanaged ESG risks. Source: Pho
Slide 12: Fertilizer Industry
—= ea ee Fertilizer In <2PHOSAGRO:
Slide 13: Fertilizer Price Performance, FOB Baltics
FERTILIZER PRICE PERFORMANCE, FOB BALTICS (USD/T) India accelerated import amid slow Ramp up of new capacities at ramp up of new capacities at Ma’aden Ma’aden and OCP sites/ flood in the and OCP USA/slow domestic demand in China Capacities cut in Morocco, N. America, China 10 year high Mosaic petiti
Slide 14: 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 14
Slide 15: Global Footprint with Diversified Product Portfolio
GLOBAL FOOTPRINT WITH DIVERSIFIED PRODUCT PORTFOLIO Highlights Global footprint • 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, global population is expected to grow from cu
Slide 16: Strategic Developments
Strategic Developments
Slide 17: 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 18: 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 19: 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 20: Financial review
Fin E a ancial review <2PHOSAGRO:
Slide 21: Revenue Breakdown
REVENUE BREAKDOWN Sales breakdown, mln tonnes FX rates, RUB/USD Revenue dynamics, RUB bln Revenue by region Revenue by product Source: PhosAgro 21
Slide 22: The Most Efficient Company amid Market Headwinds
THE MOST EFFICIENT COMPANY AMID MARKET HEADWINDS EBITDA and EBITDA margin for the last 7 years, bln USD EBITDA margin comparison in 2020 EBITDA margin comparison in 2019 EBITDA margin comparison in 2018 PhosAgro has a proven track record as a sustainably profitable company in the industry, deliverin
Slide 23: 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: PhosAgro 23
Slide 24: Debt Profile
DEBT PROFILE Liquidity position Debt repayment schedule(1) as of 31/12/2020 USD mln USD mln Current credit rating: 17 BBB- S&P global ratings Baa3 Moody’s 1 690 BBB- Fitch Ratings 2 81 Cash Available credit lines 726 553 553 Debt maturity(2) Debt currency(3) Debt type LT ST USD EUR RUB Fixed rate Fl
Slide 25: Appendix
—~Appendix. _ <2PHOSAGRO:
Slide 26: 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 26
Slide 27: ESG Priorities
ESG PRIORITIES Environmental performance OHS and Social performance 2018 2019 Goal 2025 1. LTIFR 0.75 (per 1 million working hours) Air emissions, kg/ton 1,048 0,888 0,800 2. Employee loyalty and satisfaction index is 57 % GHG emissions, kg/ton 157,973 143,27 142,1 3. Average annual number of educat
Slide 28: 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