Sulphur and sulph. acid                       4,016  1,063  277.8% 6,062   2,258   168.5% 
Potassium                                     3,038  2,820  7.7%   6,299   6,026   4.5% 
Natural gas                                   2,886  3,124  -7.6%  6,876   6,921   -0.7% 
Ammonium sulphate                             208    184    13.0%  621     831     -25.3% 
Salaries and social contributions             3,325  3,527  -5.7%  7,559   7,114   6.3% 
Electricity                                   1,410  1,530  -7.8%  3,211   3,236   -0.8% 
Fuel                                          1,217  903    34.8%  2,723   2,047   33.0% 
Products for resale                           1,980  1,666  18.8%  5,293   4,755   11.3% 
Customs duties                                396    204    94.1%  1,138   564     101.8% 
Freight, port and stevedoring expenses        6,327  4,564  38.6%  12,817  9,064   41.4% 
Russian Railways' tariffs and operators' fees 2,475  2,935  -15.7% 5,599   5,917   -5.4% 
Other                                         286    184    55.4%  589     406     45.1% 
Total                                         46,318 39,287 17.9%  98,526  83,949  17.4% 
 

Cost of sales in 2Q 2021 increased 17.9% year over year largely due to a significant increase in commodity prices: due to a

increase in the amount of planned repairs and a slight increase in costs related to the extraction of

phosphorus ore. – Commodity spending increased 56.6% year-on-year to 12.9 billion rubles ($ 174 million):

? a 160.0% increase in ammonia costs to 2.8 billion RUB (38 million USD) due to the price increase of this

raw material;

? a 277.8% increase in expenditure for sulfur and sulfuric acid to 4.0 billion rubles ($ 54 million) due to

higher world prices for sulfur;

? a 7.6% drop in natural gas costs to 2.9 billion RUB (39 million USD) due to lower sales of fertilizers

qualities rich in ammonia. – Expenditure on tariffs increased 94.1% year-on-year to 0.4 billion rubles due to an increase in the share of

exports in the Company’s sales structure. – Freight, port and handling charges rose 38.6% to 6.3 billion rubles (US $ 85 million) due to the rise

transport tariffs and the devaluation of the ruble against the dollar at the start of the year.

Administrative and selling expenses 
                                   2Q    2Q    Chng   1H    1H    Chng 
RUB mln                            2021  2020  %                  % 
                                                      2021  2020 
Administrative expenses            4,997 4,150 20.4%  9,889 8,802 12.3% 
Salaries and social contributions  3,281 2,646 24.0%  6,442 5,728 12.5% 
Professional services              414   534   -22.5% 838   953   -12.1% 
Amortisation                       336   342   -1.8%  692   678   2.1% 
Other                              966   628   53.8%  1,917 1,443 32.8% 
Selling and marketing expenses     1,684 1,402 20.1%  3,284 3,020 8.7% 
Salaries and social contributions  936   713   31.3%  1,910 1,582 20.7% 
Materials and services             353   336   5.1%   588   693   -15.2% 
Amortisation                       395   353   11.9%  786   745   5.5% 

Selling and administrative expenses in 2Q 2021 increased 20.3% year-on-year to 6.7 billion rubles ($ 90 million). The main drivers of this increase were changes in the wage bill and social contributions linked to the indexation of employee salaries, allowances and changes in exchange rates.

Market outlook

Seasonal activity expected in major fertilizer markets in Brazil and India in Q3, combined with expected lower exports from China to supply the domestic market, will help support prices.

Conference call and webcast:

PhosAgro will host a conference call and webcast today at 4:00 p.m. London time (6:00 p.m. Moscow; 11:00 a.m. New York).

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

Webcast link:

https://www.webcast-eqs.com/phosagro20210806

Call numbers of participants:

Russia:

+7 495 213 1767 8 800 500 9283

UK:

+44 (0) 330 336 9125 0800 358 6377

United States:

+1 323-334-2082

866-575-6539

Conference ID numbers:

In English: 1398933

In Russian: 1846165

Contacts

PJSC PhosAgro

Andrey Serov, Head of Investor Relations Department

+7 495 231 2747 ext. 2183

[email protected]

Timur Belov, press officer

+7 495 231 2747 ext 2652

[email protected]

EM

Sam VanDerlip

[email protected]

+44 207 002 7859

About PhosAgro

PhosAgro (www.phosagro.com) is one of the world’s leading producers of vertically integrated phosphate fertilizers in terms of production volumes of high quality phosphate rock and phosphate rock fertilizers with P2O5 content of 39% and more. The ecological fertilizers from PhosAgro stand out for their high efficiency and they do not lead to soil contamination with heavy metals.

The Company is the largest producer of phosphate fertilizer in Europe (by total combined capacity for DAP / MAP / NP / NPK / NPS), the largest producer of high grade phosphate rock with a P2O5 content of 39 %, one of the top three producers of MAP / DAP in the world, one of the main producers of food phosphates (MCP) in Europe, and the only producer in Russia, and the only Russian producer of nepheline concentrate (according to the RAFP).

The main products of PhosAgro include phosphate rock, more than 50 grades of fertilizers, food phosphates, ammonia and sodium tripolyphosphate, which are used by customers in 102 countries covering all inhabited continents of the world. The Company’s priority markets outside of Russia and the CIS are Latin America, Europe and Asia.

PhosAgro shares are traded on the Moscow Stock Exchange and global certificates of deposit (GDR) for the shares are traded on the London Stock Exchange (under the symbol PHOR). Since June 1, 2016, the Company’s GDRs have been included in the MSCI Russia and MSCI Emerging Markets indices.

                                                            Six months ended  Three months ended 
                                                            30 June           30 June 
RUB million                                                 2021     2020     2021     2020 
 
Revenues                                                    176,261  123,996  88,682   59,938 
Cost of Group products sold                                 (93,233) (79,194) (44,338) (37,621) 
Cost of products for resale                                 (5,293)  (4,755)  (1,980)  (1,666) 
 
 
Gross profit                                                77,735   40,047   42,364   20,651 
 
 
Administrative and selling overhead expenses                (13,173) (11,822) (6,681)  (5,552) 
Taxes, other than income tax, net                           (2,997)  (1,583)  (1,479)  (709) 
Other expenses, net                                         (1,521)  (1,445)  (864)    (741) 
Foreign exchange (loss)/gain from operating activities, net (766)    1,021    (864)    (1,215) 
 
 
Operating profit                                            59,278   26,218   32,476   12,434 
 
 
Finance income                                              194      353      110      88 
Finance costs                                               (2,477)  (2,873)  (1,195)  (1,435) 
Foreign exchange gain/(loss) from financing activities, net 3,324    (16,946) 6,209    15,233 
COVID-19 related expenses                                   (218)    (289)    (99)     (289) 
 
 
Profit before tax                                           60,101   6,463    37,501   26,031 
 
 
Income tax expense                                          (11,449) (1,172)  (7,193)  (5,152) 
 
 
Profit for the period                                       48,652   5,291    30,308   20,879 
 
Attributable to: 
Non-controlling interests*                                  (15)     7        (6)      8 
Shareholders of the Parent                                  48,667   5,284    30,314   20,871 
 
 
Basic and diluted earnings per share (in RUB)               376      41       234      161 
 
 
Other comprehensive (loss)/income 
Items that may be reclassified subsequently 
to profit or loss 
Foreign currency translation difference                     (504)    1,534    (718)    (1,052) 
 
 
Other comprehensive (loss)/income for the period            (504)    1,534    (718)    (1,052) 
 
 
Total comprehensive income for the period                   48,148   6,825    29,590   19,827 
 
 
Attributable to: 
Non-controlling interests*                                  (15)     7        (6)      8 
Shareholders of the Parent                                  48,163   6,818    29,596   19,819 
 
RUB million                                       30 June  2021 31 December 2020 
Assets 
Property, plant and equipment                     226,404       220,031 
Advances issued for property, plant and equipment 10,239        7,835 
Deferred tax assets                               8,459         7,462 
Right-of-use assets                               6,801         7,335 
Non-current spare parts                           4,526         4,308 
Catalysts                                         2,536         2,292 
Intangible assets                                 1,576         1,621 
Other non-current assets                          948           948 
Investments in associates                         582           556 
 
Non-current assets                                262,071       252,388 
 
 
Trade and other receivables                       20,945        17,515 
Inventories                                       31,809        30,580 
Cash and cash equivalents                         27,109        8,460 
VAT and other taxes receivable                    8,658         10,285 
Income tax receivable                             463           479 

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August 06, 2021 10:30 am ET (2:30 pm GMT)


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