CEO’s statement

Mikhail Rybnikov Chief Executive Officer of PJSC PhosAgro

2024 was a year of sustainable growth in PhosAgro Group’s operational and financial performance, laying a solid foundation for further expansion.

The Company once again demonstrated the effectiveness of its business model, the professionalism of its team, its deep market expertise, and the ability to deliver strong results while adapting to shifting market conditions.

This success stems from our unwavering commitment to sustainability and responsible business practices, deeply embedded in our goals and daily operations. While we update strategies and modernise production, one constant remains: PhosAgro Group ensures farmers in our core Russian market and globally have access to high‑quality, eco‑friendly fertilizers Certified for environmental compliance under the Vitality Leaf international standard. .

The Kirovsk branch of Apatit operates at one of the world’s largest and richest deposits, enabling us to mine high Apatit is included in the Unified State Register of Manufacturers of Agricultural Products, Food, Industrial and Other Products with Improved Characteristics. phosphate rock – the starting point of our value chain. Today, the Kirovsk branch comprises three mines and two beneficiation plants, maintaining its status as a global leader in high‑grade phosphate rock production and Russia’s only nepheline concentrate producer.

In its 95th anniversary year, the Kirovsk branch produced its 750‑millionth tonne of phosphate rock. To better illustrate this volume: it equals 10,715,000 railcars – enough to circle the Earth’s equator over three times.

In 2024, the Kirovsky mine also produced its 2.2‑billionth tonne of apatite‑nepheline ore, the raw material for eco‑sustainable phosphate fertilizers.

Vertical integration remains a cornerstone of our competitive edge, which is why we pay meticulous attention to the production site where our value chain begins.

The Cherepovets site of Apatit achieved a remarkable landmark by producing its 105‑millionth tonne of sulfuric acid in 2024, setting a new record in a year that also celebrated 55 years of the chemical industry development in the Vologda region.

Sustained growth in sulphuric acid output – a strategically critical product – is essential for expanding phosphate rock processing and phosphate fertilizer production.

In 2024, the Cherepovets site produced 5.5 mt of phosphate‑based fertilizers, a 6% increase y‑o‑y. This growth was driven, in particular, by effective programmes to build new and upgrade existing sulphuric acid capacities along with the generations‑long dedication and expertise of our sulphuric acid production team.

We made substantial progress in 2024. In Cherepovets and Volkhov, productivity upgrades to wet‑process phosphoric acid production systems increased phosphate rock processing by 400 ktpa.

The Volkhov site launched a ground‑breaking new mega‑plant, boosting its annual fertilizer production by over 4x compared to 2019 (to more than 1 mtpa) and phosphate rock processing by over 5x (to more than 1.5 mtpa).

The Balakovo site began producing diammonium phosphate (DAP), expanded feed‑grade monocalcium phosphate (MCP) output by 100 ktpa, and reached full capacity of nearly 3 mtpa at its SK‑20 sulphuric acid unit (an increase of 350 ktpa, or 13%).

The Balakovo site is also implementing Phase 3 of its expansion, introducing flexible MAP/DAP/NPS/NPK fertilizer production and expanding output. Upon completion, annual fertilizer production will grow by almost 1 mtpa to 3.5 mtpa.

Other key ongoing projects at the Balakovo site include the continued construction of the SK‑20/1 sulphuric acid unit (launching in H2 2025 to add another 750 ktpa of sulphuric acid), the setting up of a phosphogypsum conversion facility, and the development of in‑house power generation (also set for completion in 2025).

At the Kirovsk branch, the +10 m level at the Kirovsky mine commenced operations, and underground mining began within the Gakman block of the Yukspor deposit. Construction of a new mine for the Rasvumchorr Plateau deposit (RUB 38 bln capital investment) and development of the Vostochny mine (RUB 33 bln investment through 2035) are underway.

Our consistent efforts to expand production, tap new deposits, and upgrade key capacities underpin the Company’s business resilience and growth. These projects not only boost output but also create a platform for future expansion and efficiency gains. In the coming years, PhosAgro Group will continue strategic development, strengthening its industry position and offering cutting‑edge fertilizer and mineral solutions.

2024 results reflected multiple external and internal factors, notably higher production volumes and selling prices.

Our management team’s coordinated efforts ensured effective cost control and increased sales of high‑margin products.

We closed 2024 with revenue exceeding RUB 507 bln, EBITDA of over RUB 177 bln, adjusted net profit above RUB 100 bln, and comfortable net debt of RUB 325.4 bln (net debt / EBITDA: 1.84x). Our EBITDA margin stood at 34.9%, with free cash flow reaching RUB 29 bln.

In 2025, we will prioritise debt reduction and repayment over refinancing, despite accessible debt markets, to reduce servicing costs and strengthen our position as a highly rated, reliable borrower.

2025 promises to be equally successful. Early signs are encouraging: January saw historic monthly production and shipment records.

For the first time ever, the Company produced over 1 mt of mineral fertilizers, feed phosphates, and sodium tripolyphosphate in a single month. January also set two shipment records: 1.07 mt of agrochemicals and 1.01 mt of apatite concentrate.

We are confident that 2024’s achievements will propel future successes. I extend my gratitude to the entire PhosAgro Group team for their professionalism and dedication, and to our partners, clients, contractors, and suppliers for their invaluable role in these outstanding results.