Business model

PhosAgro Group’s business model is based on the simple idea that we must better than our competitors understand the ever‑changing customer needs and respond to them quicker using a wide product range, large distribution network, and robust logistics. A distinctive feature of the business model is our emphasis on sustainable development and the integration of green chemistry principles, enabling us to develop innovative and environmentally friendly solutions for agriculture.

Risks and opportunities present in the Company’s value chain

Opportunities

Development of proprietary technologies and import substitution

Introduction of new types of fertilizers offering enhanced safety and improved biological availability.

Development of special fertilizers tailored to different climate conditions.

Development of logistics infrastructure to simplify the delivery of raw materials to processing facilities.

Development of conveyor lines for transporting ore from open pits to beneficiation plants.

Use of remotely operated machinery to improve the efficiency and safety of mining and transportation.

Introduction of energy efficient technologies.

Development of water-saving technologies for production purposes, including the reuse of industrial waste water.

Automation and digitalisation of production

Growing demand for fertilizers due to declining soil fertility.

Development of educational programmes to teach customers how to use fertilizers effectively.

Investments in digital solutions for cargo tracking.

Entering into long-term contracts with port operators and carriers to reduce costs and increase logistics reliability.

Launch of educational programmes and workshops for domestic and foreign farmers, demonstrating the advantages of PhosAgro Group fertilizers

Expanding the range of special fertilizers tailored to different regional climates.

Use of the ESG approach in marketing to emphasise the high quality of PhosAgro fertilizers.

Risks

The distribution of risks and opportunities across the value chain is shown in the business model diagram

Wrong strategic decisions

Production process disruptions

Occupational health and safety risks

Environmental damage and related losses

Business processes inefficiencies or disruptions, including risks related to counterparties and supply chains

Losses caused by counterparties’ failure to meet financial obligations on time or in full

Sanctions or other regulatory restrictions

Риски и возможности, которые присутствуют в цепочке создания стоимости Компании

We use

Market and technology insights

Management, production, and sales competencies

Energy and water

Mineral resources and materials

Partner, supplier, and customer relationships

Public and private infrastructure

Finances

For more information on the Company’s Strategy to 2025

Value creation cycle

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 in green chemistry, our R&D centres in Cherepovets and Moscow develop highly effective fertilizer brandsPhosAgro Group’s mineral fertilisers have been certified by the Russian Quality Agency, allowing them to carry the Green One conformity label that confirms their enhanced properties. that enjoy steady demand from consumers.

Wide product range

58 agrochemical brands,

including all types of fertilizers and animal feed

RUB 2,284.9 mln

investments in R&D activities

Target
12.5

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

Unique resource base in terms of size and quality

42.1 mtpa

ore mined

Target
3.9, 6.3, 8.5, 12.5, 15.3

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.

Self‑sufficiency in feedstock

100 %

in hosphate rock

72 %

in ammonia

93 %

in sulphuric acid

45 %

in ammonium sulphate

Target
9.1

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. Effective inventory management enables us to take into account seasonal demand for fertilizers, avoiding shortages during peak periods and optimising transport flows.

Supplies to 74 regions in Russia

9.5 mtpa

port transhipment capacity

34 %

share of innovative railcars

28.9 mtpa

freight turnover by rail at key production sites

Target
2.4, 12.5

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 globally and are committed to becoming even closer to our consumers. The digitisation of our sales platforms and customer services is rapidly advancing.

37 distribution centres

in Russian regions

|gt| 1 mt

total storage capacity

85 crops

relevant to Russian farmers supported by AgroCalculator

Target
13.2, 17.16

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.

|gt| 38 mln

visits to PhosAgro’s digital platforms and services for farmers from 2020 to 2025

120 thousand ha

of soil agrochemical surveys conducted under the service model in 2025

3,500 soil samples

tested at the Company’s in‑house agrochemical laboratory in 2025

We secure

Sustainable soil fertility

Basis for making safe food products

New research and technological innovations

Well‑paid jobs and social benefits

Educational initiatives and upskilling opportunities

Large‑scale purchases of local products and services

Consistent tax payments and local community development

Contribution to international programmes addressing global challenges

Sustainably high returns on investment