Key events 2011

03
February Apatit was awarded a certificate for compliance with the ISO 9001:2008 international standard.
Ammophos completed construction of the new “Kriolit” railway complex. The new railway complex has 6.7 km of railway lines with 17 sets of points, outdoor lighting, a modern communications system and new track equipment and will benefit our operations by increasing the speed of moving our raw materials internally and shipping our finished products.
April The St. Petersburg Plekhanov State Mining University, OJSC PhosAgro and Denmark’s FLSmidth signed a cooperation agreement on technology and engineering projects, aimed at upgrading the facilities of the Pikalevo manufacturing complex.
The Company signed a cooperation agreement with Belgium’s Prayon SA during an official visit to Russia by Prince Philippe of Belgium. The agreement aims to expand cross-border cooperation between the two companies, which are long-term partners in energy efficiency and innovation, and promote (a) advanced technologies in the production and deep processing of minerals, and (b) environmental protection.
May
The Board of Directors approved the conversion of “A1” preferred shares into ordinary shares. The conversion took place in June 2011.
Independent non-executive director Sven Ombudstvedt was appointed as Chairman of the Board of Directors of OJSC PhosAgro.
The Annual General Meeting of Shareholders approved an interim dividend payment for the three months ended 31 March 2011 in the total amount of RUB 3,850 million, representing a payment of RUB 310.35 per ordinary share, RUB 308.25 per A1 type preferred share and RUB 50.20 per A2 type preferred share. All payments of dividends were made in May.
Apatit was awarded the “European Quality” gold medal, and was included in the top 100 best enterprises in Russia in the field of ecology and environmental management.
June PhosAgro acquired a 24% shareholding of CJSC Metachem and 21% of CJSC Pikalevskaya Soda, both important steps towards enhancing vertical integration in the area of industrial phosphates.
July The Company’s initial public offering successfully raised US$ 565 million, with GDRs and shares admitted to trading on the main market of the London Stock Exchange and listed on MICEX and RTS.
August The Board of Directors passed a resolution to convert 35,999 “A2” preferred shares into the same number of ordinary shares.
October Ammophos commissioned a new microbiological laboratory as part of its water treatment reconstruction programme. This laboratory uses the latest technologies to ensure the highest standards of quality control for the drinking water consumed by Ammphos employees.
November The Company participated in reaching a settlement agreement that ended the dispute between the owners of CJSC Nordic Rus Holding. CJSC Nordic Rus Holding owns 7.73% of the share capital (10.3% of ordinary shares) of PhosAgro’s subsidiary Apatit. As a result of the settlement between Acron and Yara International, 51% of CJSC Nordic Rus Holding is now owned by Phosint Limited, which is affiliated to the PhosAgro Group (PhosAgro owns 49% of Phosint Limited).
As part of the Company’s programme for developing flexible production technologies for fertilisers, PhosAgro completed the modernisation of the 4th technological system at Ammophos, as a result of which the Company’s annual NPK production capacity reached 1.7 million tonnes.
The Company announced plans to merge its subsidiaries Ammophos and Cherepovetsky Azot. The planned merger was approved by the EGMs in February 2012, and is expected to be completed in July 2012. It will simplify PhosAgro’s corporate structure, which is anticipated to create a number of cost synergies.
Installation of the Oracle E-Business Suite has been completed at BMF, and all of PhosAgro’s production facilities are now using this system. The software enables enhanced control to be exercised over the production process, it increases efficiency by ensuring that financial and production data are synchronized, and it allows the Company to grant employees access to information based on their specific job responsibilities.
December
The Company’s EGM approved payment of a preliminary dividend for 2011: the total dividend of RUB 3,111,927,000 represents an amount of RUB 250 per ordinary registered undocumentary share or US$ 0.28 per GDR. The EGM also approved a share split, which was completed on 24 February 2012, to increase the number of PhosAgro shares from 12,447,708 ordinary shares with a par value of RUB 25 per share to 124,477,080 ordinary shares with a par value of RUB 2.5 per share, and corresponding changes to the Company’s Charter. As a result of the share split, each PhosAgro ordinary share now represents 3 GDRs.
PhosAgro’s shares were included in the RTS-2 Index, while its GDRs were added to the Dow Jones Islamic Market BRIC Equal Weighted Index.
Ammophos commissioned the first phase of a combined sludge reservoir with a total storage capacity of 100 million cubic metres for phosphogypsum. The first phase includes a bund wall N1 and ditch drains, water discharge structures, clarified wastewater pump station, buffer pool and other structures.
TÜV Rheinland Group (Germany), one of the leading providers of independent auditing services, conducted an audit of BMF. According to the result of the audit, BMF’s feed phosphate production process is compliant with the international standards GMP + B2.
Cherepovetsky Azot and BMF completed their development and modernisation programme for 2007-2011.