PJSC "PhosAgro" IFRS® Accounting Standards Consolidated Financial Statements and Independent Auditor's Report 31 December 2025
PJSC "PhosAgro"
Contents
Independent Auditor's report Consolidated Financial Statements
Consolidated Statement of Profit or Loss and Other Comprehensive Income for 2025 1
Consolidated Statement of Financial Position as at 31 December 2025 2
Consolidated Statement of Cash Flows for 2025 3
Consolidated Statement of Changes in Equity for 2025 4
Notes to the Consolidated Financial Statements
Background 5
Basis of preparation 6
Significant accounting policies 7
Fair value determination 12
Revenues 13
Cost of Group products sold 13
Administrative and selling expenses 14
Taxes, other than income tax 14
Other expenses, net 14
Finance income and finance costs 15
Income tax expense 15
Property, plant and equipment 16
Right-of-use assets 18
Investments in associates and joint ventures 18
Deferred tax assets and liabilities 19
Inventories 20
Trade and other receivables 20
Cash and cash equivalents 21
Equity 21
Earnings per share 23
Loans and bonds 24
Lease liabilities 27
Defined benefit obligations 27
Trade and other payables 28
Financial risk management 28
Commitments 33
Contingencies 34
Related party transactions 35
Significant subsidiaries of the Group 35
Subsequent events 36
Joint-Stock Company "Technologies of Trust - Audit"
("Technologies of Trust - Audit" JSC)
https://www.tedo.ru
Ferro-Plaza Business Centre,
14/3 Krzhizhanovsky street, bldg. 5/1, Akademichesky municipal district, Moscow, Russian Federation, 117218
+7 495 967 60 00
Independent Auditor's Report
To the Shareholders and Board of Directors of Public Joint Stock Company "PhosAgro":
Qualified opinionIn our opinion, except for the effects of the matter described in the Basis for qualified opinion section of our report, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Public Joint Stock Company "PhosAgro" (PJSC "PhosAgro") and its subsidiaries (together - the "Group") as at
31 December 2025, and the Group's consolidated financial performance and consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards.
What we have audited
The Group's consolidated financial statements comprise:
the consolidated statement of profit or loss and other comprehensive income for 2025;
the consolidated statement of financial position as at 31 December 2025;
the consolidated statement of cash flows for 2025;
the consolidated statement of changes in equity for 2025; and
the notes to the consolidated financial statements, which include material accounting policy information and other explanatory information.
Basis for qualified opinionThe Group's management did not disclose segment information for the year ended 31 December 2025 and for the year ended 31 December 2024 in the notes to the consolidated financial statements as required by IFRS 8, Operating Segments. Disclosing the omitted segment information within this Basis for qualified opinion section is not practicable as it would be unduly voluminous in relation to this auditor's report.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial
statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Independence
We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), as applicable to audits of financial statements of public interest entities, and the ethical requirements of Federal Law of 30 December 2008 No. 307-FZ "On Auditing Activity", the Auditor's Professional Ethics Code and Auditor's Independence Rules that are relevant to audits of the financial statements of public interest entities in the Russian Federation. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.
Key audit mattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. In addition to the matter described in the Basis for qualified opinion section, we have determined the matters described below to be the key audit matters to be communicated in our report.
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Key audit matter
How our audit address ed the key audit matter
Recoverability of deferred tax assets
Refer to Note 15 to the consolidated financial statements of the Group
In the consolidated statement of financial position at 31 December 2025, the Group recognised deferred tax assets of RUB 13,876 million in respect of the Group companies' accumulated tax losses carried forward.
Under IAS 12, Income Taxes, a deferred tax asset in respect of unused tax losses shall be
recognised to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilised.
The Group's management analysed probability of receiving future taxable profits by the Group companies and concluded that the deferred tax assets are recoverable. This analysis was based
on management's plans in respect of recoverability of the Group's deferred tax assets and projections of the future taxable profit.
We continue to pay special attention to verifying the existence of sufficient evidence that the Group's deferred tax assets are recoverable as the Group's management applies significant judgements and estimates in respect of the size of the future taxable profit, timing when it would be available, and available mechanisms to recover the deferred tax assets.
We performed the following audit procedures to address the key audit matter:
mechanisms available to the Group to recover the deferred tax assets, among other things, by engaging our taxation specialists;
Acceptability of the management's current estimates in relation to the deferred tax assets recoverability for the purpose of the consolidated financial statements of the Group for 2025 does not guarantee that future events which are inherently uncertain will not lead to a significant change in these estimates.
We also assessed a compliance of the information disclosed in Note 15 to the consolidated financial statements with the IFRS Accounting Standards disclosure requirements.
We received and analysed the management's plan in respect of recoverability of the deferred tax assets.
We assessed the current status of implementation of the management's plan to recover the deferred tax assets, including:
we received the projection of the future taxable profit prepared by the Group's management and reviewed, on a sample basis, the assumptions related to future income and expenses reflected in the projection, including their comparison to the industry and market trends. We also assessed the quality of the Group's management projections by comparing the previous periods projections to actual results;
we assessed, on a sample basis, the mathematical accuracy of calculations applied by the Group's management;
we assessed whether the management used reasonable judgements related to applying the
we analysed written representations of the Group's management in relation to their assessment of recoverability of deferred tax assets.
Management is responsible for the other information. The other information comprises the Integrated annual report of PJSC "PhosAgro" for 2025 (but does not include the consolidated financial statements and our auditor's report thereon), which we obtained prior to the date of this auditor's report, and the Securities issuer's report for the 12 months 2025, which is expected to be made available to us after that date.
Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
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If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the Securities issuer's report for the 12 months 2025, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of management and those charged with governance for the consolidated financial statementsManagement is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is
necessary to enable the preparation of cons olidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Auditor's responsibilities for the audit of the consolidated financial statementsOur objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
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