Dividend Policy

06

According to the Company’s Charter and the Law on Joint Stock Companies, PhosAgro’s shareholders have the right to receive an annual return on their investment in the form of dividend payments. The Company’s dividend policy is based on the following principles:

  • shareholders’ interests are to be balanced between payment of dividends and reinvestment of profit into further development;
  • there is to be a transparent and predictable dividend policy that is attractive to investors; and
  • the majority of profit is to be used for reinvestment to support the Company’s growth.

A decision regarding the payment of a dividend, its timing and the exact amount of such a payment is subject to approval of the General Shareholders Meeting, based on recommendations provided by the PhosAgro Board of Directors. The Board of Directors’ recommendations depend on such factors as the Company’s earnings, cash requirements, and financial position.

The amount of dividend payments is based on the Company’s net profits for the first quarter, six months, nine months and/or full year calculated under Russian Accounting Standards (RAS), and payments are made in relation to these specific periods.

A decision on the payment of an interim dividend is made at the General Shareholders Meeting within three months after the end of the relevant period. If the dividends are approved by the General Shareholders Meeting, they are payable to the Company’s shareholders in Russian roubles within 60 days following the decision.

Holders of PhosAgro GDRs are also entitled to receive dividends in respect of shares underlying the GDRs, subject to the terms of their Deposit Agreements.

According to PhosAgro’s dividend policy, the Board of Directors will always try to recommend dividend payments of between 20% and 40% of the consolidated profit for the year attributable to OJSC PhosAgro shareholders calculated in accordance with IFRS.