CULTIVATING

TOMORROW

Integrated report

2023

CONTENTS

ABOUT THIS REPORT

2

COMPANY PROFILE

4

Key highlights

6

Key events in 2023

8

Key events in the field of education 10

Our mission and values

12

Navigator on UN SDGs

14

Business model

15

Geographical footprint

18

Investment case

and credit ratings

20

Stakeholder engagement

27

Material topics

30

STAGEGIC REPORT

32

PERFOMANCE REVIEW

80

Chairman's statement

34

Financial performance

82

CEO's statement

37

Operational performance

90

Business environment

42

Customers and

Market overview

47

product management

96

Research and education

110

Strategy

50

Supply chain

128

Strategic risks

68

People development

142

Industrial safety

164

Environmental review

182

Contributing

to local communities

222

CORPORATE

SHARE CAPITAL

GOVERNANCE

244

Share capital

Chairman's statement

246

Ownership structure

Corporate

Share performance

governance framework

247

Debt management

Corporate

Analyst coverage

governance structure

250

General Meeting

Dividend policy

of Shareholders

255

Relationship with

Board of Directors

255

shareholders and investors

Executive bodies

278

Information disclosure

Remuneration report

280

Corporate controls

284

Ethical practices

290

304

APPENDICES

316

306 The consolidated

306

financial statements

318

Independent limited

306

assurance report

359

308

GRI content index

362

  1. Sustainable development
  1. indicators content index
    as per the Order of the Ministry

312

of Economic Development

of Russia

384

315

SASB content index

388

TCFD Recommendations

390

Glossary

391

Contacts

393

For the interactive version of the report, please visit our website at www.phosagro.com

Appendices (stand-alone document)

ABOUT THIS REPORT

GRI 2-1,2-2, GRI 2-3

It is our pleasure to welcome you

to the 2023 Integrated Annual Report (the "Report") of PJSC PhosAgro (PhosAgro). PhosAgro is a vertically integrated Russian company and one of the world's leading producers of phosphate-based fertilizers.

The Company maintains an annual reporting cycle, with the previous report released on 29 April 2023.

The Report highlights how we integrate ESG principles into everything we do. The reporting period

for the Company's consolidated financial statements is from 1 January 2023 to 31 December 2023.

Financial results in the Report were disclosed based on the IFRS consolidated financial statements of the Group for 2023 audited

by Technologies of Trust - Audit JSC in accordance with the International Standards on Auditing.

compliance with the materiality prin- ciple, we determined such boundaries in a way that this Report describes all material aspects of PhosAgro Group.

The data disclosed in this Report includes information on:

(corresponds to the scope of disclosure in IFRS consolidated financial statements).

Boundary 2 - Apatit, including

its branches and standalone business units.

BOUNDARIES AND STANDARDS

GRI 2-5,2-14

This Report complies with

the following requirements and recommendations:

for the Preparation of Sustainable Development Reporting dated

1 November 2023;

• the Listing Rules of the Moscow

The Company prepared reporting

in accordance with the GRI Standards. Appropriate disclosure of qualitative and quantitative information

The boundaries of the Group companies covered in this Report differ from those in consolidated financial statements when it comes to specific non-financial disclosures. To ensure

Boundary 1 - PhosAgro and companies that are part of the group

to which PhosAgro belongs

For more information on specific disclosures and their boundaries used in this Report, see the GRI Content Index section on page 358.

  • Bank of Russia's Regulation
    No. 714-P On Disclosure
    of Information by the Issuers
    of Issue-Grade Securities dated 27 March 2020;
  • Bank of Russia's Letter
    No. 06-52/2463 On Corporate
    Governance Code dated 10 April 2014;
  • Bank of Russia's Letter
    No. IN-06-28/102 On Disclosure in the Annual Report of a Public
    Joint-Stock Company of a Report on Compliance with the Principles and Recommendations
    of the Corporate Governance Code dated 27 December 2021;
  • the UK Corporate Governance Code;
  • Bank of Russia's Information
    Letter No. IN-06-28/49
    On Recommendations
    on Disclosure by Joint-Stock
    Companies of Non-Financial Information Pertaining to Their
    Activities dated 12 July 2021;
  • Order of the Ministry of Economic Development of Russia No. 764 On Approval of Methodological Recommendations

Exchange and the London Stock

Exchange;

• the AA 1000 and ISO 26000

standards;

• CDP - Carbon Disclosure Project

standards;

• the Value Reporting Foundation;

• the Task Force on Climate-Related

Financial Disclosures (TCFD);

• Reference Performance

Indicators of the Russian

Union of Industrialists and

Entrepreneurs (RSPP), and

the MOEX-RSPP Responsibility and

Transparency, and Sustainability

Vector indices;

• the Social Charter of the Russian

Business sponsored by the Russian

Union of Industrialists and

Entrepreneurs.

The Company takes into account Russian and international best practices for disclosing information on sustainable development, including the ESG reporting standards IFRS S1 and IFRS S2 issued by the International Sustainability Standards Board (ISSB).

prepared in accordance with the GRI Standards ("Selected Information") has been assured by Joint-Stock Company Technologies of Trust - Audit (Technologies of Trust - Audit JSC) in line with the International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits

or Reviews of Historical Financial Information. The independent assurance report and the GRI Content Index are available in the appendices to this Report.

This Report provides insight into the performance of parent company PhosAgro and its subsidiaries (hereinafter jointly referred to as "PhosAgro Group", the "Group", or the "Company") across their operations for the year 2023, while also offering information on corporate governance and corporate responsibility. The key subsidiaries of the Group and PhosAgro's stake in these subsidiaries are presented

in the Group's 2023 IFRS consolidated financial statements.

The future of humanity will depend on how we produce the food products that we need.

Will they be accessible to everyone?

Will they be environmentally friendly and healthy?

Can we preserve our fragile natural systems along the way?

At PhosAgro, we firmly believe that responsible and efficient production of mineral fertilizers will play a vital role in addressing these concerns.

In the agricultural sector, the future is already here. Autonomous farming machinery, precision irrigation systems, and unmanned crop monitoring have all become daily realities in what was once deemed a backward and conservative industry.

The theme of knowledge and technologies for sustainable fertility will

be at the core of our Integrated Annual Report for 2023, reflecting our deep commitment to resolving the challenges faced by Russian agriculture.

One of the remarkable breakthroughs of 2023 was the extensive advancement of artificial intelligence technologies. AI has been instrumental

in preparing this Report, with some of the images generated using neural networks. However, just like in agriculture, the smartest technology excels when guided by human intuition, creative vision, and professional expertise.

This is the kind of future we eagerly embrace.

The Report was pre-approved by the

Board of Directors of PhosAgro on

26 April 2024 (Minutes w/o No. dated

27 April 2024).

SHARE CAPITALAPPENDICES

COMPANY PROFILE

COMPANY PROFILE STRATEGIC REPORTPERFORMANCE REVIEWCORPORATE GOVERNANCE

4 5

Key highlights

6

Key events in 2023

8

Key events

in the field of education

10

Our mission and values

12

Navigator on UN SDGs

14

Business model

15

Geographical footprint

18

Investment case and credit ratings

20

Stakeholder engagement

27

Material topics

30

PHOSAGRO CONTINUES TO STRENGTHEN ITS POSITION AS A MANUFACTURER OF INNOVATIVE MINERAL FERTILIZERS. FIELD TESTS AND AGRONOMIC TRIALS CONDUCTED IN CONJUNCTION WITH RESEARCH CENTRES CONFIRM BOTH THE EFFECTIVENESS OF OUR MINERAL NUTRITION SYSTEMS AND THEIR AFFORDABILITY FOR RUSSIAN FARMERS.

THE REPORTING YEAR WILL ALSO BE REMEMBERED FOR MANY BRIGHT EVENTS RELATED TO EDUCATION AND DEVELOPMENT OF ADVANCED AGRO TECHNOLOGIES.

For more information, see page 10

>500

agronomic trials in >20 countries

KEY

HIGHLIGHTS

PhosAgro Group takes

APPENDICES

a holistic approach

to evaluating its performance

FINANCIAL HIGHLIGHTS

OPERATIONAL HIGHLIGHTS

2023

SUSTAINABLE DEVELOPMENT HIGHLIGHTS

across production, finance,

environmental, social, and

other domains. We believe

CAPITAL

that a successful and efficient

business should contribute

positively to society and make

SHARE

continuous efforts to reduce

its environmental footprint.

At all levels of the Company's

GOVERNANCE

management, from the Board

of Directors onwards,

we maintain a steadfast focus

on sustainable development

CORPORATE

and social responsibility.

In 2023, we continued

delivering strong operational

and financial results

REVIEW

inseparable from achieving

our climate, environmental,

industrial safety, and social

PERFORMANCE

development targets.

STRATEGIC REPORT

Revenue, RUB bln

-22.7%

'23 440.3

'22 569.5

'21 420.5

Adjusted net profit, RUB bln

-42.9%

'23 104.1

'22 182.3

'21 130.5

Dividend payments, RUB bln

'23 94.5

'22 142.1

'21 72.3

Sales by key product1, kt

+2.0%

'23 11,353.5

'22 11,133.1

'21 10,483.8

Phosphoric acid output2, kt

+4.6%

'23 3,345.3

'22 3,199.4

'21 2,952.0

  1. In 2023, the Company expanded
    its portfolio of key products to include aluminium fluoride, sulphuric acid, phosphoric acid, sodium silicofluoride, and aluminium sulphate. Sales for 2021 and 2022 have been adjusted accordingly.
  2. A key ingredient of phosphate fertilizers.

2023 was a new record year

Pollutant emissions, kg per tonne of finished and semi-finished products

'25 0.800

Goal

'23 0.799

'22 0.793

'21 0.801

Share of recycled

and decontaminated hazard class 1-4 waste, %

'25

40.0

Goal

'23

40.2

'22

38.8

'21

39.1

LTIFR (own staff) per 1 mln man-hours

'23

0.37

'22

0.32

'21

0.85

GHG emissions (Scope 1), kg of СO2-eq. per tonne of finished and semi-finished products

'28 109.1

Goal

'23 128.5

'22 133.1

'21 135.5

Water withdrawal, including mining and pit waters, m3 per tonne

'25

5.16

Goal

'23

6.05

'22

6.42

'21

6.48

Workplace fatalities (corporate staff)

'23

0

'22

1

'21

0

Waste water discharge into surface water bodies, m3 per tonne of finished and semi-finished products

'25

4.16

Goal

'23

4.72

'22

5.27

'21

5.31

Average annual training hours per employee, hour

'25 123.0

Goal

'23

99.4

'22

99.8

'21

95.1

Employee satisfaction and loyalty, %

'25

65

Goal

'23

73

'22

69

'21

57

COMPANY PROFILE

6

7

The Company's revenue and EBITDA for 2023 decreased year-on-year, driven by the stabilisation of global fertilizer prices after a surge to historical highs in 2022, while the annual EBITDA margin remained at above 40%.This high figure reflects the growth in production of high-margin fertilizers and primary feedstock, and a flexible sales policy of the Company.

For more information on financial performance, see page 82

for PhosAgro in terms of output and sales. The organic growth, driven

by the successful implementation of our investment programme in previous years, enabled us to fully capitalise

on promising opportunities, primarily in the Latin American and in the priority domestic market. The flexibility of our production systems and logistics ensured our ability to effectively meet customer needs across all product categories.

For more information on operational performance, see page 90.

PhosAgro Group continued to progress towards achieving its goals in climate action, energy efficiency, waste management, and water management. In 2023, the emissions reduction targets and waste recycling and decontamination objectives outlined in our Strategy to 2025 were successfully achieved ahead

of schedule.

In 2023, PhosAgro Group recorded no accidents, incidents, or fires across its facilities. The Balakovo branch maintained a zero lost time injury frequency rate throughout the year.

Employee satisfaction and loyalty within PhosAgro Group have been consistently improving each year, thanks to a well-thought-out human resources strategy, extensive social programmes, and an active communication policy. The average pay at the Group's facilities increased by 60% from 2021 to 2023, and in February 2024, an additional 15% indexation was implemented.

For information on sustainability

performance, see page 142, 165, 182Report Integrated

2023

KEY EVENTS IN 2023

In 2023, PhosAgro celebrated the 20th anniversary since the inception of its DROZD programme

SEPTEMBER

• The Cherepovets facility produced

its 100-millionth tonne of sulphuric

acid

• PhosAgro joined the UN Global

Compact's Forward Faster

initiative calling for an accelerated

NOVEMBER

• PhosAgro won in four categories

of the 5 Stars. Leaders

in the Chemical Industry

nationwide annual industry

competition

• The Company achieved top

• PhosAgro received the highest

scores in the rankings of Russia's

best employers by Forbes and

RBC

• Global Ports and PhosAgro

Group signed a five-year

CAPITALAPPENDICES

JANUARY

MARCH

MAY

JULY

• The Volkhov branch

• PhosAgro received

•

PhosAgro Group received

• PhosAgro topped the ESG ranking

commenced the production

its first-ever and highest

its third Grand Prix

of Russian companies by RAEX

of water soluble MAP, a new

possible ratings from

at the Russian Business

•

The interdepartmental

highly popular fertilizer

AKRA (AAA (RU)) and

Leaders: Dynamics,

commission approved PhosAgro's

Expert RA (also AAA (RU))

Responsibility and

Special Investment Contracts

with a stable outlook.

Sustainability Awards

(SPIC 2.0) for the development

•

PhosAgro redeemed

of the Balakovo production site

its Eurobonds issued

•

PhosAgro-Region launched

achievement of the UN

Sustainable Development Goals

(SDGs)

positions in the 2023 Russian

Leaders in Corporate

Philanthropy competition

• PhosAgro's Board of Directors

approved the progress of key

investment projects as part

of the Company's Development

Strategy to 2025

contract for the transshipment

of fertilizers at the Great Port

of St Petersburg

• PhosAgro was included

in Forbes' Top 20 largest

investment companies in Russia

• PhosAgro-Region opened a new

customer centre in Krasnodar

COMPANY PROFILE STRATEGIC REPORTPERFORMANCE REVIEWCORPORATE GOVERNANCESHARE

  • 9

in 2018

its third proprietary distribution

centre for mineral fertilizers

in the Tambov region

JUNE

• The 900-millionth tonne of apatite-

APRIL

nepheline ore was shipped from

•

Independent director Victor

the Kirovsky mine of Apatit's Kirovsk

Cherepov was re-elected Chairman

branch

of PhosAgro's Board of Directors

• During the 2023 St Petersburg

• PhosAgro Group increased salaries

International Economic Forum (SPIEF),

for all employees by an additional 15%

PhosAgro and Gazprombank signed

FEBRUARY

• PhosAgro successfully made its debut

an agreement to organise the offering

in the Russian debt market with

of replacement bonds

• The Cherepovets site shipped

CNY-denominated bonds

• Russian Railways and PhosAgro Group

the first batch of a new product

•

PhosAgro successfully placed

reached an agreement on long-

called ApaSil

its debut RUB-denominated bonds

term strategic partnership in freight

• PhosAgro Group introduced a new

with twofold oversubscription

transportation

phosphogypsum-based product

and the lowest spread to the yield

• PhosAgro-Region commenced supplies

for use in livestock farming

of Russian federal bonds among

of water soluble MAP to the Russian

domestic issuers

market

•

For the second consecutive year, •

PhosAgro Group won

PhosAgro won the Grand Prix

the Competitive Procurement

in the Moscow Exchange Annual

Leader Award, an all-Russian

Reports competition

professional competition in trade

•

PhosAgro ranked among

and procurement

the Top 10 Russian companies

in the new Fortune 500 ranking

of Europe's largest corporations

DECEMBER

• Output of phosphoric acid across

PhosAgro's sites surpassed its record 3 mt

AUGUST

mark

• PhosAgro Group facilities signed new

• PhosAgro took part in the panel discussion

collective bargaining agreements,

OCTOBER

on food security during the 28th session

effective until 2026. They expanded

of the Conference of the Parties (COP28)

the range of social support measures

• PhosAgro Group commenced

to the UN Framework Convention

and increased funding for employee

supplies of water soluble MAP

on Climate Change

benefits

to customers in Central and Middle

• PhosAgro-Region started selling

• August marked the 10th anniversary

Asia

domestically bred seeds

since the launch of PhosAgro Group's

• The first ore was extracted from

• PhosAgro-Region launched a new

large-scale investment programme

the new +10m horizon at the Yukspor

distribution centre in the Saratov region

• The Cherepovets facility produced

deposit (the Kirovsky mine of Apatit's

• The Balakovo production site celebrated

its 100-millionth tonne of phosphate

Kirovsk branch)

its 50th anniversary

fertilizers

• Apatit received the Russian Government's

• PhosAgro successfully placed

2023 Quality Award

USD 740 mln worth of replacement

ReportIntegrated

bonds

KEY EVENTS

IN THE FIELD OF EDUCATION

2023

CORPORATE GOVERNANCESHARE CAPITALAPPENDICES

TODAY, AGRICULTURE HAS FIRMLY ESTABLISHED ITSELF AS ONE OF THE FLAGSHIP SECTORS OF THE RUSSIAN ECONOMY, THANKS IN LARGE PART TO THE EXTENSIVE IMPLEMENTATION

OF THE MOST ADVANCED AGRICULTURAL TECHNOLOGIES, INCLUDING DIGITAL SOLUTIONS.

To sustain and strengthen this trend, the agricultural sector needs a new quality of management proficiency. This, in turn, requires an upgraded skill set among the human capital engaged in the agro-industrial sector of Russia.

April

February

PhosAgro Group

PhosAgro Group

and Mendeleyev

opened an educational

University of Chemical

centre at Urals State

Technology

Agrarian University

announced

partnership to develop

a line of biologised

mineral fertilizers

June

PhosAgro Group

and the Russian Ministry of Agriculture announced an expansion of collaboration

in agricultural education

PhosAgro Group launched Pro Agro Lectorium, a digital educational platform

PhosAgro Group opened an educational centre at St Petersburg State Agrarian University

PhosAgro Group and several leading universities in Africa signed agreements on collaboration

in promoting agricultural education

July

September

August

PhosAgro

Group

opened its flagship

PhosAgro launched

educational

its Pro Agro Lectorium

centre at Moscow

digital educational

State Academy

platform for African

of Veterinary

farmers

Medicine and

Biotechnology

October

PhosAgro Group and the Russian Ministry of Agriculture presented a joint programme for training agricultural industry professionals to Prime Minister Mikhail Mishustin

PhosAgro awarded the winners of the fourth Laverov Scholarships competition

for research in the fields

of ecology, new materials, and substances

November

PhosAgro Group opened an educational centre at Kazan State Agrarian University

UNESCO,

in collaboration with PhosAgro and IUPAC, awarded its seventh grants for research in the field of green chemistry to the best young scholars from around the world

COMPANY PROFILE STRATEGIC REPORTPERFORMANCE REVIEW

10

11

As one of the leaders in the domestic agrochemical industry and a reliable partner for farmers, PhosAgro Group plays a crucial role in the technological transformation of Russian agriculture. In addition to providing farmers with high-quality and eco-friendly mineral fertilizers, PhosAgro Group is actively involved in disseminating cutting- edge scientific knowledge in the field of agriculture.

The Company has established

  1. multi-levelsystem that contributes to the development of intellectual capital within the industry. It extends from supporting school programmes, secondary and higher education projects, and aiding existing agricultural producers to engaging in global scale initiatives.

At PhosAgro Group, we believe that the formula for sustainable soil fertility in our country lies in the combination of Russia's unique natural resources, cutting-edge scientific knowledge, and, most importantly, the talent and hard work of our people.

PHOSAGRO

SCHOOLS

  1. programme to promote in-depth study of natural sciences, economics, and management disciplines. Financial support to schools and career guidance for students with a view
    to attracting young talent to the mining and chemical industries

6 5

schools cities

> 6thousand

students

For more information, see page 232

VOCATIONAL SCHOOLS, TECHNICAL COLLEGES, AND UNIVERSITIES

Support for educational facilities infrastructure and assistance in aligning educational programmes with the labour market requirements. Offering students internship opportunities at PhosAgro Group's facilities with potential subsequent employment.

620 24

participants in the High-

educational

Potential Graduates

institutions

programme and PhosAgro

START programme

230

students who have signed Company- funded education and scholarship agreements

For more information, see page 123, 155, 235

AGRICULTURAL

UNIVERSITIES

A programme to improve proficiency levels of students and teachers

at agricultural universities

as well as of agricultural producers and agro-industrial technology service providers.

47

> 40thousand

universities

programme

participants

17

PhosAgro Group's education centres

For more information, see page 236

INNOVATION

Scholarship programmes for young researchers

PhosAgro Group's awards for the best implemented R&D projects and practices

Partnership for promoting basic sciences and research

Collaboration in climate action and biodiversity preservation

For more information, see page 123

PRO AGRO

LECTORIUM

An online platform based

on PhosAgro's From Mine to Plate training programme and offering e-lectures on various topics, such as agronomy and agrochemistry, crop and livestock production, innovations and digitalisation in agriculture, economics, law, and responsible farming.

15

topics

35

speakers

For more information, see page 236

Integrated Report

OUR MISSION AND VALUES

2023

COMPANY PROFILE STRATEGIC REPORTPERFORMANCE REVIEWCORPORATE GOVERNANCESHARE CAPITALAPPENDICES

12

13

AS ONE OF THE WORLD'S LEADING MINERAL FERTILIZER PRODUCERS, PHOSAGRO ASSUMES A SPECIAL RESPONSIBILITY

FOR GLOBAL FOOD SECURITY.

WE OFFER HIGH-QUALITY, ECO- FRIENDLY FERTILIZERS, SUPPLY THEM, AND TRAIN FARMERS HOW TO APPLY THEM IN THE MOST SUSTAINABLE MANNER.

OUR MISSION

Caring for Earth fertility for prosperous lives

OUR VISION

Global presence

Organic growth and development

Healthy lifestyles and occupational health and safety

Care for the environment

Social responsibility

Innovation and digital transformation

OUR VALUES

Leadership

Our goals are ambitious as we strive

for professional excellence and continuous self-improvement

Teamwork

As strong team players, we look to ensure smooth cooperation of all our business units

Expertise

Everyone at PhosAgro is a qualified professional in what they do

Reliability

We always honour our obligations and are a reliable partner

Improvement and innovation

Development is ongoing at PhosAgro,

with every procedure relentlessly improved and refined

Safety

We promote and share a safety culture within the Company to ensure safe working conditions

Ethics

We support human integrity, fostering moral standards and ethics, spiritual values, dedication at work, and respect for family values

Integrated Report

NAVIGATOR ON UN SDGS

BUSINESS

MODEL

PHOSAGRO GROUP'S BUSINESS MODEL IS BASED ON THE SIMPLE IDEA THAT WE MUST BETTER THAN

REVIEWCORPORATE GOVERNANCESHARE CAPITALAPPENDICES

17 UN SDGs are the most important benchmark in our making both strategic and day-to-day management decisions. Committed to the Company's mission

and values, which are underpinned by our Strategy to 2025, we look to contribute to, and monitor

the progress against, the targets of our eleven priority UN SDGs.

The Company is among the most highly-engaged participants

of the world's largest corporate sustainability initiative. The UN first named PhosAgro a Global Compact LEAD company in 2019.

Target 2.4

Our key programmes

  • Increasing sales efficiency;
  • Improvement
    of the product mix;
  • Programme
    to develop digital services for farmers.

For more information, see page 54, 98, 112

Targets 3.4 and 3.9

National project

  • Demography: Sports as a Way of Life federal project.

Our key programmes

  • Safety culture improvement programme;
  • Minimising pollutant emissions per unit of output;
  • Social benefits and employee guarantees;
  • DROZD (Educated and
    Healthy Children of Russia).

Target 4.4

National projects

  • Demography: Sports as a Way of Life federal initiative;
  • Education: promoting engineering professions;
  • Culture: establishing cultural and educational museum facilities.

Our key programmes

•

School-college/

university-facility

educational model;

•

Cooperation

with universities

and Russian and

international R&D

Targets 6.1 and 6.3

Our key programmes

  • Initiatives to boost water use efficiency as part of the Company's Water Strategy;
  • Participation in international initiatives (CEO Water
    Mandate and Water Resilience Coalition).

For more information, see page 184

Targets 8.3, 8.5 and 8.8

Our key programmes

  • Comprehensive production development programme;
  • Incentives and rewards system;
  • Our Favourite Cities programme;
  • Green procurement programme and ESG assessment of suppliers.

For more information, see page 64, 130, 144, 166, 244

Target 9.1

Our key programmes

  • Logistics infrastructure development programme;
  • Our Favourite Cities programme;
  • Process Mining development.

For more information, see page 57, 130, 224

Target 11.3

National project

  • Housing and Urban Environment: Creating a Comfortable Urban
    Environment federal project.

Our key programmes

  • Our Favourite Cities programme;
  • Promotion of entrepreneurship.

For more information, see page 222

OUR COMPETITORS UNDERSTAND THE EVER- CHANGING CUSTOMER NEEDS AND RESPOND TO THEM QUICKER USING A WIDE PRODUCT RANGE, LARGE DISTRIBUTION NETWORK, AND ROBUST LOGISTICS.

This requires flexible high-tech production facilities, high self-sufficiency in quality raw materials, deep vertical integration and, most importantly, continuous feedback from end customers and analysis of our product performance. All this helps PhosAgro Group maintain a low cost position in the industry, while also ensuring top quality and unique eco-friendliness of its fertilizers. We leverage our competitive advantages and seek to meet the highest operational standards throughout our product lifecycle.

For more information on the Company's

Strategy to 2025, see page 50

STRATEGIC REPORTPERFORMANCE

For more information on SDGs, see the Commitment to UN Goals section of the Company's website

Target 12.4

Our key programmes

For more information, see page 144, 166, 184, 224

centres;

•

Promotion of retraining

and professional

development;

•

Improving safety

competencies.

For more information, see page 112, 144, 166, 224

Target 15.1

Our key programmes

Targets 17.16 and 17.17

National project

  • Housing and Urban Environment: Creating a Comfortable Urban
    Environment federal project.

Our key programmes

• Cooperation with universities and

Russian and international R&D

centres;

COMPANY PROFILE

14 15

  • Programme to promote circular economy elements, including the use of phosphogypsum in farming and other industries;
  • Improvement of production processes;
  • Green procurement programme and ESG assessment of suppliers;
  • Initiatives to boost water use efficiency as part of the Company's Water Strategy.

For more information, see page 54-59,112, 130, 184

Targets 13.1 and 13.2

Our key programmes

  • Energy Efficiency Programme;
  • Delivering on the Climate Agenda project;
  • Green procurement programme and ESG assessment of suppliers;
  • Application improvement.

For more information, see page 58, 112, 130, 184

  • Comprehensive programmes to assess and preserve biodiversity
    at the Cherepovets site and the Volkhov and Kirovsk branches of Apatit;
  • Partnership with UN FAO in advancing sustainable farming;
  • Carbon farm project in the Vologda region run jointly with the Russian Academy of Sciences to arrange, among other things, for the regional monitoring
    of GHG emissions.

For more information, see page 54, 112, 184

Making a positive impact

Minimising the negative impact

• Collaboration with UN organisations

(FAO, UNESCO, UN Global

Compact);

• Joining efforts with

the governments and municipal

authorities in the Russian regions

in which the Company operates.

For more information, see page 98, 112, 224

We use

Value creation cycle

GRI 2-6

2023

We secure

Market and technology

Management,

insights

production and sales

competencies

APPENDICES

Energy and water

Mineral resources

Process and product development

Target 2.4

The value creation cycle at PhosAgro Group starts with a thorough analysis of consumer preferences and market trends. Drawing upon analytical insights and the latest research findings, our R&D centres in Cherepovets and Moscow develop highly effective and eco-friendly fertilizer brands that enjoy steady demand from consumers.

Fertilizer application and service

Targets

We use a service model where customers receive a combination of a fertilizer and our agronomic expertise, all available in a digital environment. Our industry-leading agronomic service provides training, agronomic advice, and support to our customers. Customer feedback serves as a valuable source of information for improving existing products and developing new ones.

Sustainable soil

Sustainably

Consistent

fertility

high returns

tax payments

on investment

and local

community

development

and materials

SHARE CAPITAL

GOVERNANCE

Partner, supplier

Public and private

and customer

infrastructure

relationships

For more information, see page 110

RUB

2,481.3

mln

investments in R&D activities and development of new products

Wide product range

58

agrochemical brands, including all types

of fertilizers and animal feed

13.1, 13.2, 17.16 and 17.17

For more information, see page 54, 96

Results of

Ca.

> 500

50thousand ha

of soils surveyed

agronomic

by agronomic experts

trials published

in 20 regions

on the Company's

website

Well-paid jobs

New research

Large-scale

and social

and technological

purchases

benefits

innovations

of local

products

and services

CORPORATE

Finances

PERFORMANCE REVIEW

REPORT

Mineral extraction

Target 12.4

For more information, see page 90

Our mining division in the Murmansk region extracts unique high-quality and eco-friendlyapatite-nepheline ore for further production of phosphate fertilizers.

Unique resource base in terms of size and quality

Reserves-to-production ratio (RPR) of 60years

(including off-balance reserves)

Marketing and sales

Targets 2.4 and 12.4

PhosAgro Group's sales network is the largest in the Russian agrochemical industry. We have a presence in all key agricultural regions across the country and are committed to becoming even closer to our consumers. The digitisation of our sales platforms and customer services is rapidly advancing.

34distribution

+80% y-o-y

>65thousand

centres in Russian regions

AgroResult

mobile app downloads

> 10mln regular users

Basis for making

Contribution

Educational

safe food

to international

initiatives

products

programmes

and upskilling

addressing

opportunities

global

challenges

STRATEGIC

Fertilizer production

Our Cherepovets, Volkhov, and Balakovo facilities produce our entire range of phosphate and nitrogen-based fertilizers as well as complex ones. With a strong vertical integration, we ensure maximum economic efficiency of production while maintaining full control over product quality.

For more information, see page 18, 96

of PhosAgro's digital ecosystem

COMPANY PROFILE

16

17

17

Targets

3.9, 6.3, 8.3, 12.4 and 15.1

For more information, see page 63, 90

Self-sufficiency in feedstock

100%

75%

Apatite concentrate

Ammonia

92%

46%

Sulphuric acid

Ammonium sulphate

Transportation and logistics

Target 9.1

For more information, see page 18, 57

Thanks to our high-capacity railway infrastructure, extensive own fleet of railcars, and modern port terminals, our transportation and logistics services ensure reliable supplies of PhosAgro Group's products to our customers in Russia and worldwide.

Supplies to

Port transshipment capacity

74regions

of

8mtpa

in Russia

Integrated Report

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OAO PhosAgro published this content on 28 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2024 18:38:02 UTC.