OJSC PHOSAGRO – PhosAgro 2015 EBITDA up 119% to RUB 82.5 bln

PhosAgro 2015 EBITDA up 119% to RUB 82.5 bln

Moscow – PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, today announces its audited consolidated IFRS financial results for the 12 months ended 31 December 2015. PhosAgro’s revenue for the period increased by 54% year-on-year to RUB 189.7 billion (USD 3,113 million), while EBITDA grew by 119% year-on-year to RUB 82.5 billion (USD 1,353 million).

2015 financial and operational highlights:

RUB/USD rates:       average 2015: 60.9579; average 2014: 38.4217
                                  as of 31 December 2015: 72.8827; as of 31 December 2014: 56.2584
*EBITDA is calculated as operating profit adjusted for depreciation and amortisation.

Highlights

Interim dividend recommendation:

• At its meeting on 22 March 2015, PhosAgro’s Board of Directors recommended that shareholders approve a dividend of RUB 7,382 million, which represents RUB 57 per share (RUB 19 per Global Depositary Receipt). Shareholders will vote on the dividend recommendation at the Annual General Meeting of Shareholders scheduled for 31 May 2016.

Production, sales and logistics flexibility:

• As a result of debottlenecking activities, the Company managed to increase production and sales during 2015 by 10% and 9%, respectively, year-on-year. Revenue in 2015 grew by 54% year-on-year, supported by respective 52% and 50% growth in DAP/MAP and NPK average realised export prices denominated in roubles.
• In June 2015, the Company officially launched Smart Bulk Terminal in Ust-Luga, which will help to achieve sustainable savings on fertilizer exports.  This new terminal has a capacity of 1.5 million tonnes of fertilizer per year, and PhosAgro shipped over 1 million tonnes through Smart Bulk Terminal already in 2015.

Strategic developments:

• On 1 July 2015, PhosAgro finalised its restructuring process, merging Agro-Cherepovets, PhosAgro AG and Nordic Rus Holding into PhosAgro-Cherepovets. This was aimed at further enhancing cost efficiency and simplifying the corporate structure.
• Main Shaft #2 at the Kirovsk underground mine was successfully commissioned in August 2015. This will enable PhosAgro to replace mining capacities due to be shut down, and to increase the annual capacity of the Kirovsk mine from 13 to 16.5 million tonnes of apatite-nepheline ore.
• Following consolidation of Phosint Limited in November 2015, PhosAgro has full control of two new trading offices: PhosAgro Trading SA, Zug (Switzerland) and PhosAgro Americas, Sao Paulo (Brazil). This will strengthen the Company’s position in its priority markets of Europe and Latin America. New sales offices will enable PhosAgro to better understand the needs of local customers, help it to react faster to market demand, facilitate promotion of the PhosAgro brand as the supplier of the best-quality phosphate-based fertilizers, and ensure the Company offers local customers the right solutions in terms of nutrient mix.

Rouble depreciation supported year-on-year revenue growth of 54% in 2015, to RUB 189.7 billion (USD 3,113 million), compared to RUB 123.1 billion (USD 3,205 million) for 2014. Operating profit for the period was RUB 73.3 billion (USD 1,203 million), up 148% from RUB 29.6 billion (USD 770 million) in 2014. PhosAgro’s EBITDA was RUB 82.5 billion (USD 1,353 million) in 2015, 119% higher year-on-year. The EBITDA margin increased to 43% for 2015, compared to 31% in 2014.

Net profit for 2015 amounted to RUB 36.4 billion (USD 598 million), compared to a net loss of RUB 13.4 billion (USD 349 million) in 2014. Basic and diluted earnings per share came to RUB 281 (USD 5) for 2015, compared to loss per share of RUB 105 (USD 3) in 2014.

The Company significantly improved its financial position compared to year-end 2014, when the dramatic rouble depreciation resulted in a net loss from the revaluation of USD- and EUR-denominated loans and operations with derivatives. The significantly higher USD exchange rate during 2015 in comparison with 2014 (average USD foreign exchange rates for 2015 and 2014 were RUB 60.96 and RUB 38.42, respectively) had a net positive impact on PhosAgro’s results in the reporting period, as prices for the most Company’s products are denominated in USD while costs are primarily RUB-based At the same time, the significant depreciation of the rouble as of 31 December 2015 (RUB 72.88 per USD) compared to 31 December 2014 (RUB 56.26 per USD) resulted in a foreign exchange loss of RUB 22,178 million (USD 364 million) in 2015; in 2014 the foreign exchange loss was RUB 33,545 million (USD 873 million).

Cash flow from operating activities increased by 130% year-on-year in 2015, to RUB 63.3 billion (USD 1,038 million), compared to RUB 27.5 billion (USD 716 million) in 2014, driven by improved operating performance and the favourable effect of the rouble depreciation.

Gross debt at 31 December 2015 amounted to RUB 134.5 billion (USD 1,846 million), compared to RUB 123.8 billion (USD 2,201 million) at 31 December 2014. Net debt at 31 December 2015 stood at RUB 105.2 billion (USD 1,443 million), up from RUB 93.1 billion (USD 1,656 million) at 31 December 2014. Most of the Company’s debt is denominated in US dollars as a natural hedge against primarily USD-denominated sales. The Company’s net debt to EBITDA ratio decreased to 1.28 as of 31 December 2015, from 2.48 as of 31 December 2014.

Commenting on 2015 results, PhosAgro CEO Andrey Guryev said:

“I am delighted to report that our strategy enabled us to deliver strong results in 2015, despite the challenging macroeconomic environment. We managed to increase sales of phosphate-based crop nutrients by 11% year-on-year, even while many of our peers chose to curtail production as DAP prices declined in autumn last year. We continued to implement our cost optimisation initiatives, which, combined with the weak rouble, supported excellent financial performance in 2015.

“We achieved substantial year-on-year growth across all key financial metrics. I would specifically highlight that PhosAgro’s 2015 EBITDA in US dollar terms increased by over 38% year-on-year, meaning we had excellent free cash flow generation, even in a year of intensive capital investments. With free cash flow of over USD 400 million in 2015, we were able to improve our debt ratios and also provide solid returns to shareholders. We strongly believe that our strategy will enable us to achieve the rare combination of continued growth and good dividend returns, while delivering solid operational and financial performance.  I hope that our investors and other stakeholders appreciate such a strategy.

“Market conditions in 2015 were difficult, with commodity prices declining across the board, and fertilizer prices following the same trend. Many fertilizer-importing regions experienced macroeconomic problems during the year, resulting in the significant devaluation of local currencies and limited accessibility of credit resources for farmers.

“Our domestic market started the year on a negative note, with interest rates for farmers reaching 25% and higher on top of substantial rouble devaluation. This resulted in a dramatic increase in fx-based costs in farmers’ budgets, including goods like seeds and fertilizers. However, early in the year the Russian Government launched a programme to support agricultural producers, which ended up encouraging many farmers to expand production across all agricultural segments.

“As result, we sold close to 1.6 million tonnes to domestic customers in 2015, which was in line with our 2014 volumes. Russian farmers have demonstrated excellent production and financial performance, and I am very optimistic about the outlook for our domestic market.

“Looking at export markets, the weakest market last year was Brazil, where farmers were experiencing similar issues to Russia, but with one important exception: the Brazilian Government was not as proactive as Russia’s in providing support. The decision to provide an interest rate subsidy came rather late in the year, for example. The negative macroeconomic factors resulted in a decrease in P₂O₅ consumption by 15% year-on-year in Brazil in 2015.  Looking ahead to 2016, we believe that Brazilian farmers are in a better situation, with the subsidy pushed through the banking system and solid farmer margins on the back of the weak real. As such, there is more upside risk in terms of phosphate consumption. Looking at other parts of South America, we think that there is significant potential for increased agricultural output in Argentina following the liberalisation of the agricultural products market.

“In contrast to Brazil, India significantly increased DAP imports last year, taking almost 6 million tonnes, compared to only 3.6 million in 2014. On top of that, NPK/NP purchases in 2015 more than doubled year-on-year.  The rupee was one of the strongest EM currencies last year, which, combined with the Indian Government’s focus on gradually improving the situation for local farmers, has helped this rebound in demand. Some industry analysts expect a moderate decrease in DAP purchases in 2016, following the Government decision to reduce the P&K subsidy by 15%. However, the rupee is strengthening at the moment, DAP prices are more than 25% weaker compared to March 2015, and the NBS (nutrient-based subsidy) decision is yet to be announced. I also believe that weaker DAP purchases might be balanced by increased complex fertilizer volumes.

“We increased sales to Europe by over 30% year-on-year in 2015, and with our new trading offices in the region now open, I believe we can achieve even better results in 2016. More importantly, at the moment the European Parliament has commenced work on revised regulation of European market fertilizer products with the aim to further restrict contaminants in fertilizers such as cadmium. This provides even better opportunities for our products, which are made from exceptionally pure raw materials containing almost no cadmium, arsenic or lead.

“Overall, I expect phosphate-based fertilizer consumption in 2016 to remain relatively stable, with more upside risk coming from complex fertilizers than from concentrated phosphate-based grades. This includes not just complex fertilizers containing potash, but also those with sulphur and potentially other micronutrients.  We have seen this trend developing over the previous five years, and believe it will continue at a higher pace in the future. We are ready to meet demand in this changing environment, with our development programme and R&D efforts providing new, high-quality fertilizer grades to farmers, while at the same time continuing to provide good returns to shareholders.”

2015 Market Conditions

• The average price for DAP in 2015 was USD 459/tonne FOB Tampa, while the average price for MAP in 2015 was USD 458/tonne FOB Baltics/Black Sea; these were below the average prices of USD 472/tonne and USD 469/tonne for DAP and MAP, respectively, in 2014.
• Seasonal demand in US and European markets at the beginning of the year, combined with stable demand for DAP/NPK from India, helped maintain stable prices for DAP/MAP in the range of USD 460-480/tonne FOB Tampa, until the end of Q3 2015.
• Low stocks of DAP in India, the strengthening of the rupee, and favourable weather conditions in the first half of 2015 contributed to significant import demand for phosphate-based fertilizers. According to data from the Fertiliser Association of India (FAI), the volume of DAP imports in 2015 totalled 5.8 million tonnes, while NP/NPK fertilizer imports totalled 0.7 million tonnes, which were 60% and 125% higher than in 2014, respectively.
• The weakening soft commodities market, problems with access to credit for farmers and the devaluation of the real contributed to a substantial reduction in import demand for phosphate-based fertilizers in Brazil. According to data from the Ministry of Development, Industry and Foreign Trade, imports of MAP decreased by 24% from 3.0 million tonnes in 2014 to 2.3 million tonnes in 2015, while overall consumption of P₂O₅ decreased by 15% year-on-year according to CRU estimates.
• The further liberalisation of exports of phosphate-based fertilizers from China and the introduction of a single customs duty (RMB100/t), in place of the previously applicable progressive seasonal rates, contributed to a significant increase in exports. China’s exports of DAP increased by 64% year-on-year to 8.0 million tonnes, while exports of MAP increased by 18% year-on-year to 2.7 million tonnes, and overall P₂O₅ export from China increased by 41% year-on-year compared to 2014. According to preliminary estimates, China had de facto control of up to 50% of global trade in DAP in 2015 and a third of global trade in MAP.
• Moving into low season, by the end of the year DAP prices went below USD 400/tonne FOB Tampa.
• The average price of urea in 2015 was USD 267/tonne FOB Baltics, compared to USD 311/tonne in 2014. Large export volumes from China (reaching a record level for the second year in a row, around 13.7 million tonnes), a decrease in energy prices and the launch of significant capacities in the Middle East and North Africa contributed to a further decline in world urea prices.

Phosphate-Based Products Segment

Phosphate-based products segment revenue grew by 58% year-on-year and totalled RUB 167,430 million (USD 2,747 million) in 2015. PhosAgro increased production and sales of phosphate-based fertilizers and MCP by 12% year-on-year in 2015. Sales volumes for phosphate rock and nepheline concentrate in 2015 decreased by 12% year-on-year.

The growth in fertilizer sales volumes was primarily due to the Company’s flexible production and sales models, which enabled it to substantially increase sales of MAP, DAP and NPK to Europe and India despite challenging market conditions.

• MAP/DAP fertilizers: MAP export revenue increased by 34% year-on-year, with revenue per tonne up in RUB terms by 56%, while volumes decreased by 14%. DAP export revenue increased by 177% year-on-year, with revenue per tonne in RUB terms growing by 43%, and volumes up by 94%. Domestic MAP sales increased by 46% year-on-year. Revenue from DAP/MAP sales was up 72% year-on-year, from RUB 42,654 million (USD 1,110 million) in 2014 to RUB 73,362 million (USD 1,203 million) in 2015, reflecting the overall 13% year-on-year growth in sales volumes and 53% rise in DAP/MAP average revenue per tonne denominated in RUB.
• NPK fertilizers: revenue from NPK export sales increased by 85% year-on-year, from RUB 13,363 million (USD 348 million) in 2014 to RUB 24,778 million (USD 406 million) in 2015, as a result of 23% year-on-year growth in NPK export sales volumes combined with a 50% rise in revenue per tonne denominated in RUB. Revenue from domestic NPK sales grew by 40% year-on-year.
• Phosphate rock: revenue from phosphate rock sales rose by 33% year-on-year to RUB 19,155 million (USD 314 million) in 2015. Revenue per tonne in RUB terms increased by 62% year-on-year. Sales volumes decreased by 18% year-on-year due to higher internal consumption of phosphate rock by PhosAgro’s own downstream production sites.

The phosphate-based products segment’s gross profit for 2015 increased by 104% year-on-year to RUB 97,086 million (USD 1,593 million), resulting in a gross profit margin of 58%, compared to a 45% margin 2014, which was the result of higher sales in RUB terms.

Nitrogen Segment

Nitrogen segment revenue increased by 30% year-on-year to RUB 21,574 million (USD 354 million) in 2015, from RUB 16,626 million (USD 433 million) in 2014. Production volumes of nitrogen-based fertilizers increased by 4% year-on-year in 2015, while sales volumes decreased by 1% year-on-year.

Export revenue from urea was 32% higher year-on-year, up from RUB 11,917 million (USD 310 million) in 2014 to RUB 15,728 million (USD 258 million) in 2015, due to a 41% year-on-year increase in revenue per tonne, balanced by a decrease in sales volumes of 6% year-on-year. Total revenue from ammonium nitrate (AN) rose by 114% year-on-year, from RUB 2,499 million (USD 65 million) in 2014, to RUB 5,358 million (USD 88 million) in 2015, due to 28% year-on-year growth in revenue per tonne and a 68% year-on-year increase in sales volumes.

Nitrogen segment gross profit for 2015 increased by 20% year-on-year to RUB 9,511 million (USD 156 million), mainly as a result of significant revenue growth caused by the devaluation of the rouble against the US dollar. The gross margin for 2015 was 44%, compared with 48% in 2014, down 4% due to the 74% year-on-year increase in purchase volumes of ammonia, as a result of higher fertilizer production.

Cost of Sales

PhosAgro’s cost of sales increased by 23% year-on-year in 2015, to RUB 83,064 million (USD 1,363 million), while overall fertilizers sales volumes increased by 9% year-on-year. This cost of sales performance was primarily due to the following factors:

• An increase of RUB 2,507 million (USD 41 million), or 12%, year-on-year in the cost of materials and services primarily due to 10% growth in fertilizer production volumes, and inflation during the period.
• A year-on-year increase in personnel costs of RUB 401 million (USD 7 million), or 4% primarily due to indexation of payroll.
• An increase in expenditure on sulphur and sulphuric acid of RUB 3,863 million (USD 63 million), or 85%, year-on-year from RUB 4,522 million (USD 118 million) in 2014 to RUB 8,385 million (USD 138 million) in 2015. This was driven by a 6% year-on-year increase in volumes consumed due to higher production of phosphate-based fertilizers, mainly MAP/DAP and NPK, and by 75% year-on-year growth in RUB-denominated purchase prices.
• A year-on-year increase in expenditure on purchased ammonia of RUB 4,767 million (USD 78 million), or 139%, from RUB 3,423 million (USD 89 million) in 2014 to RUB 8,190 million (USD 134 million) in 2015. This was due to 74% higher purchase volumes and a 37% rise in RUB-denominated prices, year-on-year. Growth in ammonia purchase volumes was due to increased fertilizer production volumes and scheduled ammonia unit maintenance.
• A year-on-year increase in expenditure on potash of 93%, from RUB 3,644 million (USD 95 million) in 2014, to RUB 7,559 million (USD 124 million) in 2015. This was mainly due to a 68% rise in RUB-denominated potash purchase prices and 15% growth in potash purchase volumes as a result of an 11% increase in NPK production during the period.
• Expenditures on natural gas were nearly unchanged, due to a decline in consumption of gas by 4% balanced by a 4% increase in average purchase prices. Natural gas is required primarily for the production of ammonia. The decline in volume of gas consumed was due to PhosAgro’s 6% year-on-year decline in ammonia production as a result of scheduled ammonia unit maintenance.
• Despite the increase in phosphate rock production, fuel consumption remained almost on the same level: RUB 2,865 million (USD 47 million) in 2015, vs. RUB 2,791 million (USD 73 million) in 2014. The increase in phosphate rock production volumes were supported by an increase in extraction of apatite-nepheline ore from underground mining, where electricity was primarily consumed. Lower heating oil consumption volumes resulted from the change in heating energy production and the replacement of heating oil with other resources, such as electricity and oil waste.
• A year-on-year increase in expenditure on ammonium sulphate of RUB 1,337 million (USD 22 million), or 159%. RUB-denominated purchase prices rose by 78% year-on-year, while greater production of NPK with high nitrogen content led to growth in consumption of ammonium sulphate by 45% year-on-year.
• A year-on-year decrease in heating energy expenses of RUB 443 million (USD 7 million), or by 38%, from RUB 1,161 million (USD 30 million) in 2014 to RUB 718 million (USD 12 million) in 2015. Purchased volumes of heating energy declined by 32% following the change in contractual obligations with the city of Kirovsk, whereby the city switched to direct purchases of heating energy from the local heating provider. Purchase prices decreased by 9%.

Administrative expenses rose by 32% year-on-year to RUB 12,184 million (USD 200 million) in 2015, primarily due to:

• Growth in professional services by 81%, or RUB 896 million (USD 15 million), year-on-year, related to strategic development projects.
• An increase in personnel costs by RUB 1,536 million (USD 25 million), or 29%, year-on-year, mainly due to the indexation of salaries as well as bonus payments, which are based on operating and financial performance, including EBITDA growth.

Selling expenses rose by 37% year-on-year, from RUB 12,963 million (USD 337 million) in 2014 to RUB 17,751 million (USD 291 million) in 2015. This was primarily due to the following changes:

• A 60% increase in freight, port and stevedoring expenses from RUB 5,252 million (USD 137 million) in 2014 to RUB 8,425 million (USD 138 million) in 2015, mainly due to growth in CFR shipments, leading to higher freight costs and port charges, denominated in USD.
• Russian Railways infrastructure tariff and operators’ fees increased by 11% from RUB 5,471 million (USD 142 million) in 2014 to RUB 6,099 million (USD 100 million) in 2015. This was mainly due to an increase in railway tariffs in 2015 by 10% for internal transportation for the domestic market, and by 23% for exports.
• Growth of 46% in materials and services from RUB 1,633 million (USD 43 million) in 2014, to RUB 2,384 million (USD 39 million) in 2015. This was mainly driven by an increase in multimode shipment volumes on the export market.

PhosAgro’s foreign exchange loss decreased year-on-year from RUB 33,545 million (USD 873 million) in 2014 to RUB 22,178 million (USD 364 million) in 2015. This was the result of the rouble’s 30% devaluation against the US dollar during 2015 (from RUB 56.2584 at 31/12/2014 to RUB 72.8827 at 31/12/2015), which was less in absolute terms than the 72% rouble depreciation during 2014 (from RUB 32.7292 as of 31/12/2013 to RUB 56.2584 as of 31/12/2014). The majority of this foreign exchange loss was unrealised: RUB 19,883 million (USD 326 million) in 2015 versus RUB 31,509 million (USD 820 million) in 2014.

The loss from operations with derivative financial instruments was RUB 310 million (USD 5 million) in 2015, compared to RUB 7,338 million (USD 191 million) a year earlier.

Cash spent on capex in 2015 amounted to RUB 42,550 million (USD 698 million), an increase of 107% in comparison with RUB 20,549 million (USD 535 million) in 2014. PhosAgro’s capital expenditure, which consists of additions to property, plant and equipment, amounted to RUB 44,193 million (USD 725 million) for 2015, compared to RUB 18,575 million (USD 483 million) in 2014. Capital expenditure focused on ore extraction capacity development in Apatit, construction of the new 760 ths tonnes/year ammonia plant at PhosAgro-Cherepovets, as well as construction of new storage facilities for liquid ammonia at Balakovo.

Outlook

Market:

• Following the significant decline in prices at the end of 2015 and the beginning of 2016, the market has been gradually recovering, which is related to the growth of seasonal demand in key markets in Europe and North and South America. Since the beginning of March, prices per tonne in these markets have risen by USD 30-40, which has contributed to stabilisation in other areas.
• Stable import demand is expected in Latin American markets, especially after the significant decline in imports last year and the corresponding decrease in carry-over stocks. Since the election of a new president and a new government in Argentina and the liberalisation of agricultural exports, a significant increase in imports of phosphate-based fertilizers has already been observed this year.
• The high level of carry-over stocks has hampered import demand in India since the beginning of the year. Expected favourable weather conditions and improved affordability of fertilizers following a price decrease, however, will support stable growth in seasonal import demand. 
• Based on current price ratios for fertilizers and agricultural products, the outlook for fertilizers is positive, which will contribute to stable demand in key markets, meaning prices are likely to rise from their floor. The simultaneous growth of seasonal demand in key markets in Asia (India and Pakistan) and Latin America (Brazil) in Q2 and Q3 2016 is an additional factor contributing to market stability.
• Among the factors limiting further price increases is the continuing high level of competition among suppliers, including as a result of increased capacity in Morocco, and the continued export potential from Chinese producers.
• However, export from China in 2016 year-to-date has significantly fallen down, on DAP by 42% year-on-year, MAP – 55%.
• Urea prices in world markets will continue to be influenced by significant exports of Chinese production in combination with the expected launch of major import-replacement capacity in the United States.

Company:

• The accelerated rouble depreciation accelerated at the end of 2015 continued in Q1 2016, and there is limited potential for significant appreciation unless oil prices increase dramatically.
• In March 2016 PhosAgro launched its new sales office in Warsaw (Poland), which will continue strengthening the Company’s position in the priority European market.
• As a result of the marketing efforts at new sales offices, the Company expects to further increase sales in its target markets, and intends to invest further into expanding the number of NPK and other fertilizer grades it produces.
• All major development projects are on track, including the new ammonia plant designed to increase cost efficiency and support further expansion of PhosAgro’s complex fertilizer production capacity.

Conference call and webcast

Today PhosAgro will hold a conference call and webcast to present its FY 2015 results at 13:00 London time (16:00 Moscow; 09:00 New York).

The call will be held in English, with simultaneous translation into Russian on a separate line.

Webcast links:

English: http://event.onlineseminarsolutions.com/r.htm?e=1158371&s=1&k=0984F3B5076FE5BBB675EB92806ADEA9
Russian: http://event.onlineseminarsolutions.com/r.htm?e=1158372&s=1&k=08D2D820C07F48A49A5D8663A20B96C6

Participant Dial-in numbers:

Russia:
+7 4952216523

UK:
+44 2030432440
08082381774

USA:
1 8778874163

Conference ID numbers:

English call: 87438334#
Russian call: 24814798#

For further information please contact:

OJSC PhosAgro
Irina Evstigneeva, Head of Corporate Finance and Investor Relations
ir@phosagro.ru
+7 495 231 3115

Timur Belov, Press Officer
Anastacia Basos, Deputy Press Secretary
+7 495 232 9689

EM
Sam VanDerlip
vanderlip@em-comms.com
+44 7554 993 032
+7 499 918 3134


Notes to Editors

PhosAgro is one of the leading global vertically integrated phosphate-based fertilizer producers. The Company focuses on the production of phosphate-based fertilizers, feed phosphate and high-grade phosphate rock (P₂O₅ content of not less than 39%), as well as ammonia and nitrogen-based fertilizers.

The Company is the largest phosphate-based fertilizer producer in Europe, the largest producer of high-grade phosphate rock worldwide and the third largest MAP/DAP producer in the world (excluding China), according to Fertecon. PhosAgro is also one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia.

PhosAgro has 2.1 billion tonnes of resources (according to JORC) of high quality apatite-nepheline ore. The Company's mines and phosphate rock production facilities are located in the mountainous areas of the Kola Peninsula in the Murmansk region of northwest Russia, whereas its fertilizer and feed phosphate production assets are located near the city of Cherepovets in the Vologda region and near the city of Balakovo in the Saratov region of southwest part of European Russia.

PhosAgro’s 2015 IFRS revenue was over USD 3.1 bln and EBITDA was USD 1.4 bln.

For further information on PhosAgro please visit: www.PhosAgro.com