Strategy

Operational efficiency and production growth

Capacity expansion

Phosphate rock production:

11.1 mt

11.6 +1.5% vs 2024
+10.5% vs 2019 mt

Mineral fertilizer and feed phosphate production:

11.5 mt

12.0 +4.4% vs 2024
+25.0% vs 2019 mt

Maintaining high feedstock self‑efficiency

Ammonia:

76 %

72 –2 p.p. vs 2024
–14 p.p. vs 2019 %

Sulphuric acid:

91 %

93 +2 p.p. vs 2024
+5 p.p. vs 2019 %

Ammonium sulphate Deviation from the self‑sufficiency target for ammonium sulphate is due to the fact that part of the ammonium sulphate output (139 kt in 2025) was sold as a commercial product rather than used for processing into compound mineral fertilizers as per the scenario adopted in the Strategy to 2025. Taking this 139kt into account, the actual self‑sufficiency rate for 2025 would be 75%.

75 %

45 +8 p.p. vs 2024
+42 p.p. vs 2019 %

Stronger operating efficiency

Implementation of projects targeting technical and organisational improvements and greater operating efficiency, including AI integration across key production, service, and corporate business processes.

Increasing sales efficiency

Expansion of the foothold in premium markets (own products: mineral fertilizers and feed‑grade MCP)

Number of distribution and logistics centres:

35

37 unchanged vs 2024
+37% vs 2019

Total storage capacity:

|gt| 650 kt

|gt| 1,000 unchanged vs 2024
|gt|53% vs 2019 kt

Liquid complex fertilizer storage capacity:

62 kt

121 +19.8% vs 2024
+175% vs 2019 kt

Higher share of premium fertilizer brands

Share of complex fertilizers (NPK/NPS/PKS) in total output:

43 %

(5.0 mt)

35 +7.7% vs 2024
+20% vs 2019 %

(4.2 mt)

Boosting logistics efficiency

Reduction of transportation costs

• Increased reliance on corporate rolling stock
• Use of innovative railcar fleet: its share of total rolling stock owned or leased by the Company was:

34.1 +0.1 p.p. vs 2024
+3.2 p.p. vs 2019 %

Alignment of production and sales

Freight turnover by rail at key production sites:

28.3 mtpa

28.9 +5.1% vs 2024
+42.4% vs 2019 mtpa

Development of port infrastructure

Efficient mix of port capacities in terms of costs and supply reliability:

8.0 mt

9.5 +18.9% vs 2024 mt

Environmental efficiency

Reduced emissions Per tonne of finished and semi‑finished products.

Per unit emissions:

0.800 kg/t

0.667 –6.3% vs 2024
–24.9% vs 2019 kg/t

Reduced impact on water bodies Per tonne of finished and semi‑finished products.

Per unit waste water discharge Excluding mining and pit waters.:

1.70 m³/t

1.63 –10.9% vs 2024
–26.5% vs 2019 m³/t

Reduced waste generation

Share of recycled and disposed of hazard class 1–4 waste:

40.00 %

40.75 +1.6% vs 2024
+18.1% vs 2019 %

Health and safety

Fostering a safety culture and adhering to the highest occupational health and safety standards

Occupational injuries:

annual reduction by 10%

–13% vs 2024 LTIFR of 0.49

0 accidents

in 2025

Capacity expansion

Target 12.5. Making products with enhanced characteristics in line with safe production requirements and maximising the recycling of production waste.

The long‑term growth in demand for mineral fertilizers has been steady. In order to respond to stronger demand, PhosAgro focuses on expanding capacities to produce its key products, which is one of our key strategic goals for 2025.

Indicator	2019 (actual)	2023 (actual)	2024 (actual)	2025 (plan)	2025 (actual)	2025 (actual) / 2024 (actual),%	Strategy to 2025
Production of nitrogen‑based fertilizers	2.3	2.6	2.6	2.6	2.6	0.7	2.5
Production of phosphate fertilizers and feed‑grade MCP	7.3	8.4	8.9	9.4	9.4	5.5	8.9
Production of phosphate rock	10.5	10.7	11.4	11.5	11.6	1.5	11.1

Major capacity expansion projects under Strategy to 2025

Development of ore and raw material base (Apatit's Kirovsk branch)

Development of Apatit's chemical production facilities

Maintaining high feedstock self‑efficiency

Feedstock self‑sufficiency

Strong vertical integration is PhosAgro’s major competitive advantage. With our phosphate rock reserves covering 100% of the Company’s needs for phosphate fertilizer production, we are ramping up output of other key types of feedstock, thus increasing our feedstock security and cutting costs.

Indicator	2019 (actual)	2023 (actual)	2024 (actual)	2025 (plan)	2025 (actual)	Strategy to 2025

Indicator	2019 (actual)	2023 (actual)	2024 (actual)	2025 (plan)	2025 (actual)	Strategy to 2025
Ammonia, %	86	75	74	71	72	76
Production, mt	1.9	2.0	2.0	2.0	2.0	1.9
Consumption, mt	2.2	2.6	2.7	2.8	2.7	2.5
Sulphuric acid, %	88	92	93	96	93	91
Production, mt	6.1	8.1	8.5	9.2	8.8	7.8
Consumption, mt	6.9	8.8	9.1	9.6	9.5	8.6
Ammonium sulphateDeviation from the self‑sufficiency target for ammonium sulphate is due to the fact that part of the ammonium sulphate output (139 kt in 2025) was sold as a commercial product rather than used for processing into compound mineral fertilizers as per the scenario adopted in the Strategy to 2025. Taking this 139kt into account, the actual self‑sufficiency rate for 2025 would be 75%., %	3	46	37	62	45	75
Production, mt	0.0	0.3	0.2	0.3	0.2	0.7
Consumption, mt	0.4	0.6	0.5	0.5	0.5	0.9

Capital investments

A disciplined approach to CAPEX

• Minimum project IRR: approved discount rate + 2% (at least 14%The minimum internal rate of return is reviewed from time to time, including by considering the current key interest rate set by the Bank of Russia.)
• Annual CAPEX budget of up to 50% of EBITDA
• More efficient working capital management

Expenditures	2023 (actual)	2024 (actual)	2025 (plan)	2025 (actual)
Investment projects	18.8	26.5	22.6	22.5
Maintenance	31.3	33.9	28.4	28
Non‑industrial construction	3.3	2.5	2.8	3.1
Total excluding capitalised repairs	53.4	62.9	53.8	53.6
Total including capitalised repairs	64.2	75.2	67.8	67.3

Major projects to maintain and increase feedstock self‑sufficiency under Strategy to 2025

Indicator	2023 (actual)	2024 (actual)	2025 (actual)
CAPEXCAPEX excluding capitalised repairs., RUB bln	53.4	62.9	53.6
Adjusted EBITDA, RUB bln	168.4	170.6	199.4
CAPEX / adjusted EBITDA, %	32	37	27

Apatit’s Balakovo branch development (Phase 3)	4.4
Upgrade of sulphuric acid production and infrastructure facilities to increase capacity by 93 t of monohydrate per hour (SK‑20/1)	4.4
Stripping and mine development at the Rasvumchorr Plateau deposit, Apatit’s Kirovsk branch	2.6
Apatit’s Volkhov branch development to 2030	1.9
Development of +10 m level at the Kirovsky mine, Apatit’s Kirovsk branch	1.6
Open pit ore mining increase, Koashva and Njorkpahk deposits, Apatit’s Kirovsk branch	1.6
Development of in‑house power generation at Apatit’s Balakovo branch	1.1
Other investment projects	4.9
Total for investment projects	22.5

Operating efficiency improvements

In 2025, the Group’s entities successfully implemented Russian software, including as part of import substitution efforts. The projects below were included in the list of high‑priority projects under the IT import substitution programme of the Russian Government and have received or are receiving state funding.

AI projects

AIChemist project: Russian automated enterprise management system enhanced with AI capabilities

PhosAgro enhanced its Russian automated enterprise management system with artificial intelligence capabilities. Integrating Sber’s GigaChat Max large language model was the next step after the system’s commercial launch.

How it works: a machine learning model predicts product quality from data supplied by related systems, while the language model checks compliance with process rules. Retrieval‑augmented generation (RAG) technology pulls information from the Company's knowledge base. The Model Context Protocol (MCP) enables the integration of AI agents to analyse context and tackle tasks independently.

Result: an intelligent assistant and a single knowledge environment bringing together corporate knowledge, documentation, and up‑to‑the‑minute production metrics.

Impact:

• Lower production costs and operating expenses through precise maintenance of process conditions. The system helps avoid abnormal situations and, if they arise, quickly suggests the best response.
• Higher finished product output. The solution has proved its worth, so the Company plans to deploy it across other units and production sites.
• GigaChat, now part of the system, monitors product quality and outperforms the foreign software previously used. Employees have gained a powerful tool that handles routine work and helps them deal with complex issues.

Predictive Analytics project

PhosAgro’s IT team built the Predictive Analytics project as a fully in‑house AI‑powered tool.

The solution is now successfully deployed at the apatite‑nepheline beneficiation plants of Apatit’s Kirovsk branch.

How it works: 407 predictive models track large ball mill performance across thousands of parameters, flagging potential failures before they happen.

What the system does:

• Forecasts remaining equipment life to support planning
• Cuts maintenance costs by preventing breakdowns
• Offers real‑time advice for maintenance decisions.

Impact: specialists can adjust operations in time and order the right consumables, reducing unplanned downtime and avoiding critical wear of vital equipment.

Diagnostics of AI Potential in PhosAgro Group project

Artificial intelligence (AI) is becoming a key driver of competitiveness and sustainable business growth in the digital age. In 2025, we launched our Diagnostics of AI Potential in PhosAgro Group project.

Project goal: a systematic audit of the Company’s AI maturity and potential.

The project will produce a heat map of AI readiness across 16 business areas to help prioritise AI projects by business impact, time, and complexity. The audit will help reveal gaps, identify priority development areas, and shape a strategy for sustainable AI deployment that supports business growth.

Timeline: September 2025 – March 2026

Locations: Cherepovets, Kirovsk, Balakovo, and Volkhov production sites.

Key initiatives:

1. Benchmark AI applications in the chemical and related industries among Russian and international peers
2. Assess AI readiness across 16 business areas using a maturity model and create a heat map
3. Prioritise AI projects and initiatives by business impact, timeline, and complexity
4. Develop models for economic impact assessment and AI project management
5. Introduce systematic component (reserve) accounting
6. Create AI development roadmaps based on maturity model criteria

The strategic sales goals of PhosAgro Group include expanding its foothold in premium markets and increasing the share of premium product sales.

The Group is successfully pursuing these goals in the evolving market landscape both by actively engaging in high‑margin markets and by developing and promoting new, primarily complex grades of mineral fertilizers.

These goals are interrelated, as different geographical markets have historically shown a preference for specific fertilizer grades. For instance, in South America, one of our key regions, there is a strong focus on dual fertilizer grades which enable farmers to create individual blends tailored to their crops, soils, climate, and other agricultural factors. Conversely, in Russia, the Company’s primary market, consumers have historically preferred compound and complex fertilizer grades that are ready for application and do not require blending

Expanding the foothold in premium markets

Targets 2.4, 12.5, 15.3. Promoting and raising awareness about best farming practices and developing the service model.

We remain strategically focused on Russia as both our domestic and primary market.

From 2018 to 2025, the Company invested over RUB 6.5 bln in developing PhosAgro‑Region, its own distribution network operating in Russia and across the CIS.

As at the end of 2025, the number of our distribution centres stood at 37, with total storage capacity of over 1 mt, including a record‑high 121 kt of transshipment capacity for liquid mineral fertilizers – the largest in the country.

Nearly half of the distribution centres now have packaging lines, and blending units for custom fertilizer production are operating in the Black Earth and Volga regions.

In 2025, a compacted ammonium sulphate line with 13,000 t annual capacity was launched at the PhosAgro‑Kuban distribution centre in the Krasnodar Territory.

The supply of mineral fertilizers to industrial producers has seen significant growth, increasing by 64% over the past two years (from 61 ktpa in 2023 to 100 ktpa in 2025).

In 2025, as part of its service model development, the Company continued to offer Russian farmers the service of chemical soil analysis. Over the year, agronomic services surveyed more than 120,000 ha. Since the launch of the initiative, we have surveyed 315,000 ha across 36 regions in seven federal districts.

Indicator	2019 (actual)	2023 (actual)	2024 (actual)	2025 (actual)	Strategy to 2025
Distribution centres	27	34	37	37	35
Total storage capacity, kt	652	868	1,000	|gt| 1,000	|gt| 650 kt
Liquid complex fertilizer storage capacity, kt	44	85	101	121	62

In 2025, the Company opened its own accredited commercial agrochemical laboratory at PhosAgro‑Lipetsk, analysing over 3,500 soil samples in its first year and providing farmers with reliable data to choose the right fertilizer programmes.

In 2025, we continued to actively develop a new business area – the supply of domestically bred seeds. Sales reached 45,500 seed units, 2.7 times higher than in 2024. This gave the Company’s customers access to a comprehensive service package, including agrochemical analysis, hybrid selection, development of plant nutrition and protection systems, and fertilizer supply.

In 2025, PhosAgro‑Region and the State Variety Testing CommissionState Commission of the Russian Federation for Testing and Protection of Selection Achievements. signed a cooperation agreement to run a joint pilot project on advanced agricultural technologies. The goal is to unlock the potential of Russian varieties – boosting productivity, quality, and competitiveness – by developing mineral nutrition programmes tailored to each variety or hybrid. The 2025 project involved 24 breeding varieties across four technical crops. Results are expected to be added to the Seed Production Federal State Information System, making information on cultivation technologies using Company fertilizers widely available.

Plans for 2026

In 2026, PhosAgro Group will focus on further expanding its distribution network, upgrading the logistics infrastructure, and launching new logistics centres in Russia’s key agricultural regions.

In 2026, the Company plans to further enhance its service business by offering Russian farmers an expanded set of agronomic and process solutions to improve agricultural productivity.

Higher share of premium fertilizer brands in the sales mix

In the reporting year, the market witnessed accelerated growth in the sales of complex triple fertilizers, with their share in the Company’s product portfolio rising to 35% in 2025.

The share of complex fertilizer brands in sales depends on the structure of the Company’s export markets, which is influenced by both economic and geopolitical factors, as different geographic markets have historically shown preferences for specific products. The flexibility of our production assets enables us to respond swiftly to changes in the market demand, while simultaneously ensuring optimal profitability of the product portfolio and full capacity utilisation.

Indicator	2019 (actual)	2023 (actual)	2024 (actual)	2025 (actual)	2025 (actual) / 2024 (actual), %	Strategy to 2025

Indicator	2019 (actual)	2023 (actual)	2024 (actual)	2025 (actual)	2025 (actual) / 2024 (actual), %	Strategy to 2025
Urea/AN/AS	2.2	2.6	2.5	2.6	4.8	2.6
MCP	0.4	0.4	0.4	0.5	25.6	0.5
APP	0.2	0.2	0.2	0.2	–13.4	0.2
NPK/PK/PKS	3.5	3.5	3.9	4.2	9.1	5.0
MAP/DAP	3.2	4.5	4.7	4.5	–2.6	3.3
Total	9.5	11.1	11.6	12.0	3.7	11.5
Share of complex fertilizers, %	37	31	33	35		43

Targets 2.4, 12.5, 13.2. Expanding sales of mineral fertilizers with improved characteristicsConfirmed by a certificate of conformity issued by the Russian Quality Agency, granting the producer the right to label products with the distinctive Green One label (owned by the Russian Ministry of Agriculture). Apatit is included in theState Register of Manufacturers of Agricultural Products, Food, Industrial and Other Products with Improved Characteristics. and developing advanced plant nutrition systems, including those that limit greenhouse gas emissions and help adapt to climate change.

The Company continues to develop and actively market new fertilizer grades in an effort to meet the existing and potential needs of farmers in Russia and abroad to the fullest extent possible, while taking into account the specifics of crops, soil types, and farming conditions.

PhosAgro Group is actively developing the following premium products:

• fertilizers with micronutrients are considered one of the most potent ways to combat malnutrition and reduce nutrient deficiencies, as the micronutrients can be accumulated by plants and thus benefit the human diet;
• biological and biomineral fertilizers are expected to become one of the most effective solutions to ensure global food security by boosting agrochemical efficiency of plant nutrition systems without damaging the ecosystem.

The most part of the Company’s freight (ca. 99%) is transported via the Russian Railways network. Freight turnover in 2025 increased by 3.4% compared to 2024, reaching 31.5 mt.

Rail shipments are also a focus area of key initiatives aimed at improving delivery safety and reliability and reducing transportation costs.

Reduction of transportation costs

Target 12.5. Managing chemicals and wastes wisely throughout their life cycle, including transportation.

As part of implementing the Strategy to 2025, we have significantly increased reliance on our own rolling stock, buying mostly innovative railcars with a higher capacity and longer run life. Increased reliance on PhosAgro’s own rolling stock means:

• enhanced safety of operation and more reliable supplies, as PhosAgro Group’s production and logistics processes are less dependent on third‑party services;
• higher cost efficiency, as corporate railcars are cheaper in use than third‑party rolling stock;
• a positive environmental effect, as the use of innovative rolling stock with higher cargo tonnage per railcar and train reduces the negative impact on the environment per tonne of cargo.

Another key focus for ensuring transport safety and optimising transport costs in 2025 was negotiating mutually beneficial terms and signing agreements with Russian Railways involving co‑financing of transport infrastructure development at railway stations adjacent to the production sites of Apatit.

Alignment of production and sales

Target 9.1. Developing rail infrastructure and contributing to the development of local communities through our value chain.

The throughput capacity of the Company’s rail infrastructure is the main logistics condition for reliably meeting the production programme targets.

In response to growing rail freight volumes, the Company is implementing a phased programme to develop its own internal railway infrastructure.

Cherepovets production site

Nitrogen facility

In 2025, work continued under a four‑party agreement between Apatit, Severstal, Russian Railways and Lengiprotrans on simulation modelling of the Cherepovets railway hub operations, with a list of measures to be drawn up to handle both current and future freight turnover. Completion is scheduled for 2026.

Phosphate facility

• An overhaul and upgrade of the rail car service station equipment began in 2025, and a new rail track for loading packaged products was completed.
• 2026 plans include upgrading the ammonia unloading rack and boosting productivity at the rail car service station and sulphur unloading units.

Rolling stock	Timeline	Planned	Acquired in 2025	Total acquired including 2025	Programme completion
Electric locomotives, Kirovsk branch	2022–2030	11	2	4	36%
Dump cars, Kirovsk branch	2021–2033	392 railcars	1 railcar	90 railcars	23%
Diesel locomotives, Cherepovets site and Balakovo branch	2023–2030	23	–	7	31%

AI projects

Mobile Voice Patrol

The Mobile Voice Patrol project was rolled out across all Apatit sites in 2025.

The project was implemented with Skolkovo grant support in collaboration with Speech Technology Centre.

It is a unique Russian AI‑based solution. For the first time in the rail industry, speech recognition is being used at scale – inspectors can record commercial and technical rail car checks by voice using a headset and tablet.

AI‑powered onboard vision system

An AI‑based onboard technical vision system has been put into commercial operation.

Installed on a shunting diesel locomotive, the neural network monitors the track ahead, alerts the driver of hazards, and automatically applies the brakes when there is a risk of an incident, regardless of the driver’s actions.

Kirovsk branch production site

In 2025, construction began on a second track for the Vudyavr–Vostochnaya section. Key technical solutions were produced for the development of the railway infrastructure in the Aykuven and ANBP‑3 track areas.

Balakovo branch production site

In 2025, 5.3 km of new railway tracks were built, eight sets of turnouts were laid, signalling, centralisation and blocking systems were modernised, and a transition to digital radio communication was completed.

Volkhov branch production site

In 2025, 4.4 km of newly built railway tracks were put into operation at Volkhovstroy II station of the October Railway. Work was carried out on laying cable communications for signalling, centralisation and blocking systems and for communication lines, and 43 overhead line poles and 12 headspans were installed.

Freight turnover of chemical facilities’ railway infrastructure	2019 (actual)	2023 (actual)	2024 (actual)	2025 (actual)	Strategy to 2025
Cherepovets site	12.0	15.3	16.1	16.9	16.5
Balakovo branch	6.7	7.2	6.9	7.5	8.0
Volkhov branch	1.6	4.0	4.5	4.5	3.8
Total	20.3	26.5	27.5	28.9	28.3

Development of port infrastructure

Target 9.1. Enhancing port network, along with offering employment opportunities, developing infrastructure and implementing social investment programmes.

In addition to developing logistics and sales infrastructure across Russia, we are working to increase the reliability and efficiency of our exports by both reducing transshipment costs and providing state‑of‑the‑art transshipment capacities.

To expand cargo delivery options to ports and port infrastructure utilisation during the Strategy to 2025 period, the Company acquired containers for bulk cargo transportation: 6,000 units in 2023–2024 and another 4,000 units in 2025.

Our 2025 strategic goal was to develop and maintain a balanced port sales infrastructure in terms of costs and reliability, capable of handling at least 8.0 mtpa of fertilizer exports. Actual transshipment in 2025 reached 9.3 mt, and the Company's total transshipment capacity now stands at 9.5 mt, with room to expand quickly if needed.

The ports key to PhosAgro Group’s operations are located in the North‑West of Russia. The focus is cutting‑edge technology and advanced specialised terminals designed to minimise environmental impact.

The draft Strategy to 2030 is a comprehensive document covering all key areas of the Company’s operations, with sustainable development principles integrated across every domain of the business strategy.

Focus areas of PhosAgro Group's draft Strategy to 2030

For all areas of the Company's development to 2030, 11 groups of target indicators have been set. In the base scenario, the key targets are higher agrochemical production and sales, supported by the development of the ore and raw material base to supply additional phosphate rock for mineral fertilizer production, as well as high self‑sufficiency in other key raw materials – sulphuric acid and ammonia.

During the strategy development process, the UN Sustainable Development Goals were re‑prioritised. The proposed target indicators for the Strategy to 2030 were aligned with the SDGs, targets, and metrics that the Company has identified as priorities.

Strategy to 2030: targets and key measures to achieve them

Raw material security strategy / Ore and raw material base development

Phosphate rock self‑sufficiency underpins the Company's vertically integrated business model. That is why the Strategy to 2030 focuses on ore and raw material base development:

a) Ongoing approved projects:

• Development of +10 m level at the Kirovsky mine
• Vostochny mine development
• Stripping and mine development preparations at the Rasvumchorr Plateau deposit to +310 m level
• Development of the Gakman block
• Mine development preparations for a block pillar under the Saami pit
• ANBP‑3 development

b) Further development to 2040: development of the +210 m level at the Rasvumchorrsky mine; development of the –115 m level at the Kirovsky mine; extraction of footwall triangles at the Kirovsky mine.

Development of chemical production capacities

The Company’s key chemical production development goals are to significantly boost agrochemical output from 11.8 mt (2024) to 13.7 mt (2030), while expanding the range and volumes of water‑soluble fertilizers (SMAP, SDAP, MKP, chlorine‑free NPK). The main growth will come from the phosphate segment.

	2024	2030	2030 / 2024, kt	2030 / 2024, %

	2024	2030	2030 / 2024, kt	2030 / 2024, %
МАР/SMAP, DAP, liquid complex fertilizers	4,761	4,828	67	1
NPK/NPS	3,702	5,224	1,522	41
Nitrogen‑based fertilizers	2,593	2,715	122	5
Feed‑grade MCP	411	482	71	17
Sodium tripolyphosphate	65	18	–47	–72
Feed phosphates (Phase 1)	0	13	13	–
Other products	237	419	182	77
Total products	11,770	13,700	1,930	16

Logistics development

As shipments of finished products and receipts of raw materials have grown substantially, the Company has had to develop measures to keep logistics operations reliable and safe – and to set corresponding logistics targets, which are now part of the strategy’s base scenario. These targets include expanding phosphate rock shipment capacities at the Kirovsk branch, upgrading logistics infrastructure in Cherepovets to accommodate increased granular sulphur volumes, and boosting freight turnover at the Volkhov and Balakovo branches. Improving freight efficiency is a particular priority. The Company has set specific targets for increasing the share of empty trains consisting of more than 100 railcars and for using longer, heavier trains.

Sales strategy

Under the base scenario, the Company aims to increase sales of agrochemical products from 11.8 mt (2024) to 13.7 mt (2030), maintaining its leadership in the priority Russian market while redirecting supplies to promising markets in the Global South. Sustaining high sales efficiency will be ensured by the unique production flexibility achieved through measures carried out during the previous and current investment cycles.

The Company has also analysed the risks associated with zero growth in chemical fertilizer consumption in China – a scenario that could potentially set a global trend.

Minimising the environmental impact of production processes

The key goals of the draft strategy are to comply with pollutant emission quotas; implement measures under comprehensive programmes to improve gas cleaning efficiency and upgrade treatment facilities; and expand the applications for products made from recycled materials.

Alongside the base scenario, an accelerated decarbonisation scenario has been developed, assuming tighter climate policy based on the stress‑testing parameters proposed by the Bank of Russia NGFS Below 2°C scenario (NGFS – Network of Central Banks and Supervisors for Greening the Financial System)..

Information technology development

The draft comprehensive business strategy now includes, for the first time,a dedicated focus on IT development (including AI). The goals are to makeproduction processes more reliable and secure, remove bottlenecks that could hold back the production programme, and help the Company meet its 2030 development targets

Development priorities:

Raise software and hardware import substitution from 10% in 2024 to 80% by 2030

Grow the number of data centres from two today to three by 2030

Expand the use of machine learning, AI, and computer vision from three sub‑processes today to 30 by 2030.

Draft development strategy: three horizons framework

The draft strategy is based on a three‑horizon framework, which views the Company's activities as three parallel, interconnected work streams, each with its own time horizon and unique strategic objectives.

Horizon 1

Horizon 1 – investments to support and grow the core business (phosphate and nitrogen fertilizer production)

• Expanding phosphate raw material production
• Developing core production capacities
• Securing feedstock security
• Developing human resources
• Expanding logistics capacities

Horizon 2

Horizon 2 – investments in new opportunities in adjacent or related markets to diversify the Company’s activities

• Launching new products (food phosphates) and entering into the food industry market
• Launching new products and entering the vanadium catalyst market for sulphuric acid production
• Expanding production capacities for key raw materials for the aluminium industry

Horizon 3

Investments to create entirely new products/markets and breakthrough innovations

• Bringing to market new products: adaptogens, growth stimulants, biological fertilizers, and crop protection products
• Implementing AI technology in production, quality management, maintenance management, and industrial safety