PhosAgro Fertilizer Sales up 4% y-o-y in 9M 2014

For Immediate Release 23 October 2014 PhosAgro Fertilizer Sales up 4% y-o-y in 9M 2014 Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), a leading global verticallyintegrated phosphate-based fertilizer producer, announces its productionresults for the nine months ended 30 September 2014. Total fertilizer production and sales increased year-on-year in 9M 2014 by 5.6%and 4.3%, respectively. Production of phosphate-based fertilizers and feedphosphates for 9M 2014 increased by 3.8%, while production of nitrogen-basedfertilizers increased by 12.2% year-on-year. PhosAgro's production and sales volumes for the nine months ended 30 September2014 are summarized in the tables below. Production volumes by type (kmt) 9M2014 9M2013 Change y-o-y Phosphate-based fertilizers 3,555.7 3,426.8 3.8%and MCP Nitrogen-based fertilizers 1,033.9 921.4 12.2% TOTAL fertilizers 4,589.6 4,348.2 5.6% Apatit mine and beneficiation 6,408.8 6,623.1 (3.2%)plant Other products** 118.4 109.5 8.1% Sales volumes by type (kmt) 9M2014 9M2013 Change y-o-y Phosphate-based fertilizers 3,518.0 3,479.6 1.1%and MCP Nitrogen-based fertilizers 1,080.1 930.6 16.1% TOTAL fertilizers 4,598.1 4,410.2 4.3% Apatit mine and beneficiation 2,556.9 3,034.0 (15.7%)plant* Other products** 269.8 232.5 16.0% Commenting on the 9M 2014 operational results, PhosAgro CEO Andrey Guryev said:"We continue to operate at near-100% capacity utilisation. We saw solid demandwithin the first 3 quarters of 2014, which has enabled us to increasesubstantially our sales of both phosphate- and nitrogen-based fertilizers. Wecontinue to adapt our product mix in response to demand and the pricingenvironment, which has significantly improved from last year, increasing toover USD 500 during the summer before softening slightly towards the endSeptember on the back of low crop prices. Nonetheless, the price of a tonne ofDAP (FOB Tampa) remains 30% higher than it was in mid-October last year at USD470 per tonne now vs. USD 360 per tonne a year ago. "Looking forward to the remainder of 2014, we are going into a quiet period asthe main agricultural markets are moving out of season. However, the low exportwindow in China closed last week. Ammonia has peaked at USD 640 per tonne inthe US, USD 630 in North Africa and above USD 680 in Europe; sulphur remainsaround USD 150 per tonne in most regions. As a result, we see big producerscutting output. All these developments would, in our view, be strong offsettingfactors against any significant price decreases in the low season environment.With our low cost position, I feel comfortable with respect to our financialperformance and operations through the rest of this year." The table below provides a breakdown of production volumes by major product for9M 2014: Production volumes (kmt) 9M2014 9M2013 Change y-o-y Apatit mine and beneficiation plant Phosphate rock 5,740.0 5,905.3 (2.8%) Nepheline concentrate 668.8 717.8 (6.8%) Phosphate-based fertilizers and MCP DAP/MAP 1,748.9 1,628.3 7.4% NPK 1,391.6 1,284.4 8.3% NPS 100.7 220.3 (54.3%) APP 71.7 67.9 5.6% MCP 185.8 182.8 1.6% PKS 36.6 0.0 - SOP 20.4 43.1 (52.7%) Nitrogen-based fertilizers AN 170.9 182.3 (6.3%) NP 120.5 109.1 10.4% Urea 742.5 630.0 17.9% Other products AlF3 21.8 19.8 10.1% STPP 96.6 89.7 7.7% Feed stock Ammonia 875.4 733.2 19.4% Phosphoric acid (kt P2O5) 1,430.6 1,322.2 8.2% Sulphuric acid (kt 3,299.8 3,237.7 1.9%monohydrate) The table below provides a breakdown of sales volumes by major product for 9M2014: Sales volumes (kmt) 9M2014 9M2013 Change y-o-y Apatite mine and beneficiation plant Phosphate rock* 1,886.1 2,316.0 (18.6%) Nepheline concentrate 670.8 718.0 (6.6%) Phosphate-based fertilizers and MCP DAP/MAP 1,779.5 1,682.6 5.8% NPK 1,345.6 1,285.1 4.7% NPS 103.1 229.7 (55.1%) APP 61.0 58.6 4.1% MCP 180.6 179.1 0.8% PKS 27.7 0.0 - SOP 20.5 44.5 (53.9%) Nitrogen-based fertilizers AN 187.3 197.4 (5.1%) NP 118.1 110.0 7.4% Urea 774.7 623.2 24.3% Other products AlF3 21.7 19.2 13.0% STPP 96.1 88.7 8.3% Ammonia 27.2 4.8 466.7% Phosphoric acid 42.0 25.4 65.4% Sulphuric acid 82.8 94.4 (12.3%) * Excluding intra-group sales** Excluding feed stock For further information please contact: OJSC PhosAgro Irina Evstigneeva, Head of Corporate Finance and Investor [email protected]+7 495 231 3115 Timur Belov, Press Officer+7 495 232 9689 EM Sam [email protected]: +44 7554 993 032t: +7 499 918 3134 Notes to Editors PhosAgro is one of the leading global vertically integrated phosphate-basedfertilizer producers. The Company focuses on the production of phosphate-basedfertilizers, feed phosphate and high-grade phosphate rock (P2O5 content of notless than 39%), as well as ammonia and nitrogen-based fertilizers. The Company is the largest phosphate-based fertilizer producer in Europe, thelargest producer of high-grade phosphate rock worldwide and the second largestMAP/DAP producer in the world (excluding China), according to Fertecon.PhosAgro is also one of the leading producers of feed phosphates (MCP) inEurope, and the only producer in Russia. PhosAgro has 2.1 billion tonnes of resources (according to JORC) of highquality apatite-nepheline ore. The Company's mines and phosphate rockproduction facilities are located in the mountainous areas of the KolaPeninsula in the Murmansk region of northwest Russia, whereas its fertilizerand feed phosphate production assets are located near the city of Cherepovetsin the Vologda region and near the city of Balakovo in the Saratov region ofsouthwest part of European Russia. PhosAgro's 2013 IFRS revenue was over USD 3.3 bln and EBITDA was USD 752 mln.The Сompany's net debt/EBITDA ratio was 1.8 at 31 December 2013.

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