Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman...

41
K+S Aktiengesellschaft Goldman Sachs Seventh Annual European Chemicals Conference London, 16 March 2018 Thorsten Boeckers, CFO Martin Heistermann, Senior Investor Relations Manager

Transcript of Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman...

Page 1: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Aktiengesellschaft

Goldman SachsSeventh Annual European Chemicals Conference

London, 16 March 2018

Thorsten Boeckers, CFOMartin Heistermann, Senior Investor Relations Manager

Page 2: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group

DisclaimerK+S Group

No reliance may be placed for any purpose whatsoever on the information or opinions contained in the Presentation or on its completeness, accuracy of fairness. No

representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its respective directors, officers, employees, agents or advisers

as to the accuracy, completeness or fairness of the information or opinions contained in the Presentation and no responsibility or liability is accepted by any of them for

any such information or opinions. In particular, no representation or warranty, express or implied, is given as to the achievement or reasonableness of, and no reliance

should be placed on any projections, targets, ambitions, estimates or forecasts contained in this Presentation and nothing in this Presentation is or should be relied on as a

promise or representation as to the future.

This presentation contains facts and forecasts that relate to the future development of the K+S Group and its companies. The forecasts are estimates that we have made

on the basis of all the information available to us at this moment in time. Should the assumptions underlying these forecasts prove not to be correct or should certain risks

– such as those referred to in the Annual Report – materialise, actual developments and events may deviate from current expectations. Given these risks, uncertainties and

other factors, recipients of this document are cautioned not to place undue reliance on these forecasts.

This Presentation is subject to change. In particular, certain financial results presented herein are unaudited, and may still be undergoing review by the Company’s

accountants. The Company may not notify you of changes and disclaims any obligation to update or revise any statements, in particular forward-looking statements, to

reflect future events or developments, save for the making of such disclosures as are required by the provisions of statue. Thus statements contained in this Presentation

should not be unduly relied upon and past events or performance should not be taken as a guarantee or indication of future events or performance.

This presentation has been prepared for information purposes only. It does not constitute an offer, an invitation or a recommendation to purchase or sell securities issued

by K+S Aktiengesellschaft or any company of the K+S Group in any jurisdiction.

2

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K+S Group 3

ContentK+S Group

K+S’ Unique Strategic PositionA

Current TradingB

OutlookC

Salt2

Potash and Magnesium Products1

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K+S Group 4

A fresh perspective on our existing portfolioK+S Group

Key financials 2017

Production focus

Potash Salt

+

Customerfocus

2251,428

Revenue EBITDA

EBITDARevenue

2381,176

104

Revenue EBITDA

566

EBITDA

454 57

Revenue

1

2

4

3

• MOP• Premium Fertilizers• Fertigation

• Chemical• Pharma• Ind. Specialties• Food Processing

(€m)

Revenue share

39%

32%

EBITDA-Margin

16%

20%

Revenue share

EBITDA-Margin

Agriculture

Industry

• De-Icing 16% 18%

Revenue share

EBITDA-MarginCommunities

• Consumers 13% 12%

Revenue share

EBITDA-MarginConsumers

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K+S Group 5

'One K+S' creates the most value for all stakeholdersK+S Group

• Reduced complexity, less overhead• More attractive career options in integrated

business• Clear commitment to our production sites

• Clear commitment to sustainability • Continued, value-adding investments in

Germany and abroad

• Measureable synergies from leveraging our scale

• Ample growth and profitability opportunitiesidentified

• "Customer first" approach reflected in new business cut along customer segments

• Spotlights on our hidden championsCustomers

Shareholders

Society

Employees

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K+S Group 6

We will implement our new strategy in two phases

Phase 2: Growth

203020202017

Phase 1: Transformation

Realize synergies

Advance corporate culture

Net debt/ halvedEBITDA vs. H1/2017

Synergies >€150m

EBITDA-Ambition €3bn

ROCE >15%

Revenue growthbeyond 2030 >4%

Increased share of specialties

Tapping the full potential of our existing assets

Exploring new adjacent growth areas

Shaping the organizationand focusing towards our clients

Reduce indebtedness

Investment grade ratingachieved in 2023

K+S Group

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K+S Group 7

Phase 1: We will transform ourselves and create a solid financial baseK+S Group

Strengthen financial base

Supply chain and logistics

Operations: Digital mining

G&A optimization

Operations: Lean management

Sales excellence

Procurement

Evaluate tailings piles optimization

Reduce indebtedness

Realize Synergies

> € 150mp.a. run rate

after inflationby 2020 YE

Shaping the organization

Build ‘One Company’• Commit to existing portfolio• Break up silos and create the

foundation to generate synergies

Customer first: Lift our potential• Focus on customer segments

Agriculture, Industry, Communities and Consumers to better penetrate high-margin, non-commodity business

Increase financial transparency• Make performance transparent

along new customer segments

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K+S Group

2019e2017 2018eActual2016

2020e

We aim for a positive free cash flow in 2019

8

Massive positive swing in free cash flow

Free cash flow bridge approximation 2016-2020Based on current portfolio – inorganic growth not included

Fully invested in best class assets

like Bethune

Phase 2: GrowthPhase 1: Transformation

Ambition

2030

EBITDA

ROCE

€3bn

>15%

+ CapEx+ Werra+ Bethune- FX- WC

Investment grade rating achieved in 2023

K+S Group

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K+S Group 9

Phase 2:K+S Group

Growth opportunities in our Customer Segments

13%

33%

37%

17%

2016

10%

10%

45%

35%

2030

Growth initiatives from 2020

• Tapping the potential of existing assets and expansion options

• Expand offering of specialty fertilizers• Develop strong position in fertigation• Develop advanced business models (e.g. agro-

platform in Africa)

• Leverage branding capabilities in consumer salt• Grow into Asia

CommunitiesConsumers

Agriculture

Industry

8%

9%

6%

4%

7%

• Strengthen portfolio of specialty industrial products• Expand offering for the pharma industry• Grow into Asia

• Strengthen position in existing markets

~€11bn

€3.5bn

2019

43%

12%

28%

17%

Revenue shares and CAGR 2016-2019-2030

2%Inorganic

5%Organic

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K+S Group

What we’ve done – what our next steps are

10

K+S Group

Update on Shaping 2030

Preparing to decide on new organization and reporting lines

Start of bottom-up validation of synergies (> €150 m by 2020)

Setting up project management

!

!

Ong

oing

task

sN

ext t

o co

me

We will keep you posted with updates on our Strategy in H1/2018 and at a CMD at 5 Sept 18

Management remuneration (LTI) linked to share price performance!

Bottom-up validation of synergies done – confident to reach at least € 150 m

!

Projects to lift synergies are starting

!

!

!

Final concept about future organization incl. KPIs done

Sustainability targets and KPIs defined. Possible use of solid residues clarified

!

!

First concept about future organization and KPIs

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K+S Group 11

ContentK+S Group

K+S’ Unique Strategic PositionA

Current TradingB

OutlookC

Salt2

Potash and Magnesium Products1

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K+S Group 12

Long-Term Dynamics Positive for FertilizerPotash and Magnesium Products

Sources: UN, World Population Prospects, 2012 Revision, UNDP, 2013; FAOStat 2014FAO 2014 - forecasts based on the expected increase in animal protein

Less arable land –but more protein consumption per capitaPotash is indispensable for plant growth

“The growth and yield of plants are limited by the nutrient which is in shortest supply”

Justus von Liebig, 'The Natural Laws of Husbandry', 1863

4.300 m2 2.100 m2 1.800 m2

Global population development

Arable Landper capita

Proteinper capita

60 g/ day 80 g/ day 130 g/ day1

Jahr

3.0 billion 6.9 billion 9.7 billion

1960 2010 2050

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K+S Group 13

Unique Portfolio Makes us More RobustPotash and Magnesium Products

Broad portfolio of specialty products Flexibility Stability Partly following different trends

and seasons

Close proximity to our main customers provide logistical advantages

Shipments to overseas customers at competitive costs from Hamburg harbor

Strong and long-standing customer relationships

Europe59%

South America

16%

Asia17%

Other8%

KCL (MOP)3.2

Industrialproducts

0.8

Specialties2.7

Basis: 2017 Sales volumes in million tons

6.7

SOP

Korn-Kali

Kieserite

Industrial potash

Health Care & Nutrition

Basis: 2017 Revenues

Page 14: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 14

Potash and Magnesium ProductsPotash Price Comparisons

200

300

400

500

600

200

300

400

500

600

Basi

s: Q

120

12

Basi

s: Q

120

14

MOP gran. Europe vs. Brazil (Source: FMB)

Europe (€/t, Granular, cfr)

Brazil(US$/t, Granular, cfr)

US$/t €/t

K+SK+S

2012 2013 2014 2015 2016 2017 2018

Peers

Peers

Q12012

Q12013

Q12014

Q12015

Q12016

Q12017

Q12014

Q12015

Q12016

Q12017

K+S average selling price versus selected peers (local currencies)

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K+S Group

New approach to environmental challenges works

1) Kainite Crystallization and Flotation Facility

Potash and Magnesium Products

15

Implementation of measures to limit the risk of outage days KCF 1 commissioned (reduction of saline wastewater by 20%)K+S mandated advisor K-UTEC to carry out a concept to further reduce saline wastewater Expansion of tailings pile capacity Hattorf (Werra): ‘Early commencement’ grantedK+S reaches settlement with BUNDThuringian municipality of Gerstungenand K+S end their long-lasting disputePreparing for future approval procedures and further wastewater reductions

Track Record

!

!

!

!

!

!

20

14

5.57 7

1997 2006 2016 2017 2018

Discharge Deep-well Measures Gap

Saline wastewater significantly reduced

Amount in millioncubic meter

!

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K+S Group

Potash and Magnesium ProductsBethune … up and running

"With Bethune, the most modern potash facility in the world, we are pushing into a new dimension. We are now producing potash on two continents,“

said Dr. Burkhard Lohr (CEO of K+S).

16

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K+S Group 17

Bethune - Strengthening our Global Presence

ChinaIndiaSouth East Asia

North America

South America

Expanding our current production portfolio in Germany with a North American production site Second source supplier

Securing a good asset base with competitive production costs

Sales and distribution through existing distribution structures of the K+S Group

Exclusive outline agreement with Koch Fertilizer about supply and sales of Potash fertilizers in the US

Regional growth projects in China and SEA Flexible multi-product strategy

Potash and Magnesium Products

Page 18: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 18

ContentK+S Group

K+S’ Unique Strategic PositionA

Current TradingB

OutlookC

Salt2

Potash and Magnesium Products1

Page 19: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group

Salt

19

Low single-digit demand growth p.a. to 2018 1

1 Source: Roskill

Demand driven by … Product category

Long-Term Dynamics in Salt Demand

De-Icing

Food processingPopulation growth

Economic growth andindustrialisation

Winter weather conditions

Infrastructure development

Increasing standard of living

Industrial

ChemicalUrbanization

Consumer

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K+S Group

Inevitable for lifeSalt

20

Main Applications: Food processing

industry Baking industry Condiment and

preservative agent

Main Applications: Chemical industry Chlor-Alkali

processes (→ PVC) Polycarbonates ,

MDI (Isocyanat)(→ plastics, synthetic resin)

Synthetic Soda Ash (→ glass)

Main Applications: Winter road

maintenance services

Commercial users Private

households

Main Applications: Water treatment Drilling fluids Animal feed Infusion, dialysis

solutions Pharmaceuticals Preserving of fish Dyeing works Leather treatment

De-Icing Food processing Industrial ChemicalConsumer

Main Applications: Table salt Dishwasher care Water softening Pool chlorination Body care

Page 21: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 21

Unrivalled Global Production NetworkSalt

Competitive edge: Unrivalled global

production network

More than 30 assets on 3 continents allow close proximity to customers in a business that is highly freight-cost sensitive

Unique natural hedge Broad range of products due to variety of production methods Best in class supply chain assets and competence Industry best cost production in Chile

Potential Expansion into

Asia-Pacific

Page 22: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 22

Diverse Regional and Product PortfolioSalt

NormalizedRevenue

Distribution

Consumer

Industrial

Food processing

Salt for chemical use

1 De-icing adjusted to normal winter

Page 23: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 23

Presence in Attractive De-Icing Markets Salt

Indicative regional strength of winter

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Europe North America

Great LakesUS East Coast

Eastern Canada

Central Europe

Scandinavia

Page 24: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 24

ContentK+S Group

K+S’ Unique Strategic PositionA

Current TradingB

OutlookC

Salt2

Potash and Magnesium Products1

Page 25: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 25

P&LK+S Group

The adjusted key figures only include realized operating forecast hedges of the respective reporting period in EBIT I. In addition, related effects on deferred and cash taxes are also excluded.

€ million Q1/16 Q2/16 Q3/16 Q4/16 FY/16 Q1/17 Q2/17 Q3/17 Q4/17 FY/17

Revenues 1,096 732 688 941 3,457 1,126 742 723 1,032 3,627

EBITDA 285 83 56 94 519 211 102 77 187 577

Margin 26% 11% 8% 10% 15% 19% 14% 11% 18% 16%

EBIT I 218 15 -31 28 229 137 29 12 93 271

Financial result -13 -15 -9 -15 -52 -9 -4 -9 -5 -26

EBT, adjusted 205 0 -41 13 177 129 25 3 87 244

Tax rate, adjusted 28% 29% 34% 23% 26% 27% 24% 33% 66% 41%

Net income, adjusted 148 0 -27 10 131 95 19 2 30 145

EPS, adjusted 0.77 0.00 -0.14 0.05 0.68 0.49 0.10 0.01 0.16 0.76

Tangibly improved operating earnings EBITDA and EBIT I, despite €43m effect for Sigmundshall closure Potash pricing continues to recover, SOP prices have bottomed out Higher product availability at the integrated Werra plant; no days of outages in Q4/17 Higher volumes in Salt in Q4

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K+S Group 26

Cash Flow and Balance SheetK+S Group

Operating cash flow lower than last year due to higher Working Capital and FX CapEx came down as high investments at Bethune in Canada came to an end; FCF improved significantly Net Debt/ EBITDA peaked in 2017

€ million Q1/16 H1/16 9M/16 FY/16 Q1/17 H1/17 9M/17 FY/17

Operating cash flow 294 359 390 445 267 384 383 307

- Investing cash flow(pre sale/ purchase of securities)

-243 -537 -847 -1,222 -212 -410 -623 -697

Adjusted free cash flow 50 -178 -456 -777 55 -26 -241 -390

CapEx 280 643 904 1,171 277 410 568 811

Net debt (-) -2,367 -2,860 -3,180 -3,584 -3,614 -3,745 -3,939 -4,141

t/o Net financial debt (-) -1,315 -1,761 -2,052 -2,401 -2,440 -2,592 -2,780 -2,974

Net debt/ EBITDA (LTM) 2.5 3.6 4.9 6.9 8.1 8.1 8.1 7.2

Equity ratio 52% 49% 48% 47% 48% 45% 44% 43%

Page 27: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 27

Potash and Magnesium ProductsK+S Group

1 (Revenues – EBITDA) / Sales volumes

€ million Q1/16 Q2/16 Q3/16 Q4/16 FY/16 Q1/17 Q2/17 Q3/17 Q4/17 FY/17

Revenues 461 371 302 399 1,532 474 387 358 485 1,704

EBITDA 137 50 5 -8 185 81 71 42 74 269

Margin 30% 14% 2% -2% 12% 17% 18% 12% 15% 16%

EBIT 102 15 -49 -35 34 42 31 2 6 81

Avg. selling price (€/t) 272 250 239 246 253 260 252 253 250 254

Sales volumes (million tons) 1.69 1.48 1.26 1.62 6.06 1.82 1.54 1.41 1.94 6.71

Cash Unit Costs 1 192 217 236 251 222 216 205 224 212 214

Demand remains strong across all regions ASP slightly up in Q4 (YoY) due to higher product availability and better market pricing; sequentially

down as Bethune volumes came in Adverse FX-effect Cash unit costs peaked Production problems at Werra plant addressed

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K+S Group 28

SaltK+S Group

€ million Q1/16 Q2/16 Q3/16 Q4/16 FY/16 Q1/17 Q2/17 Q3/17 Q4/17 FY/17

Revenues 595 319 346 502 1,762 611 316 329 507 1,762

EBITDA 150 33 47 93 322 135 29 37 124 325

Margin 25% 10% 14% 18% 18% 22% 9% 11% 24% 18%

EBIT 123 5 18 58 204 106 0 17 100 223

Sales volumes (million tons) 7.1 2.9 3.5 5.8 19.4 7.5 2.8 3.5 6.5 20.3

De-icing 4.9 0.6 1.0 3.5 10.1 5.1 0.6 1.0 4.0 10.7

Non de-icing 2.2 2.3 2.5 2.3 9.3 2.4 2.3 2.5 2.5 9.7

Average selling prices (€)

De-icing 64 53 52 59 60 61 54 50 55 58

Non de-icing 122 123 113 124 120 120 122 109 110 115

Non de-icing: Vols up in Q4 (YoY), but prices down due to higher share of chemical/industrial salt De-icing: Better demand in Europe more than offsets weak US-pricing in Q4/17 On track to reach SALT 2020 EBITDA-target of at least € 400m

Page 29: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 29

Debt Instruments (as of Dec. 31, 2017)K+S Group

Schuldscheinloans

€ 2.1 billion

avg. maturity: 3.75 yrs

€ 1 billionexpires in 2020

Syndicated credit line1

Bonds

€ 765 million

avg. maturity: 2.75 yrs

1 As an alternative instrument a Commercial Paper program is in place

about€ 220

million

Bank loans, Leasing, others

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K+S Group 30

Debt ProfileK+S Group

0

500

1.000

1.500

2.000

2.500

3.000

Bond IV € 500 million(mat. 2018; coupon 3.125%)Schuldschein € 325 million(mat. 2019)Loan € 45 million(mat. 2020)Schuldschein € 335 million(mat. 2021)Bond III € 500 million(mat. 2021; coupon 4.125%)Bond II € 500 million(mat. 2022; coupon 3.000%)Schuldschein € 65 million(mat. 2022)Bond I € 625 million (mat. 2023, coupon 2.625%)Schuldschein € 40 million(mat. 2023)

2017 2018 2019 2020 2021 2022 2023

Debt Instruments

As further liquidity source a syndicated credit line facility amounting to € 1 billion and a Commercial Paper program are in place until 2020

Page 31: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 31

NetDebt/EBITDA developmentK+S Group

0.71.1 1.0 1.2

0.8

3.2

1.8

2.6

0.4

3.3

0.81.6

0.5

1.8

0.81.1

1.82.3

6.97.2

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

X-fa

ch

Legacy

Page 32: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group

Dividend Policy

32

K+S Group

Target payout ratio of 40-50%

Payout ratio (lhs) Dividend yield (rhs) 2

Earnings-based dividend policy

Payout ratio of 40 – 50% of adjusted net profit

Dividend proposal for 2017: € 0.35 per share

1 Proposal to the AGM.2 Based on year-end share prices

0%

2%

4%

6%

8%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2013 2014 2015 2016 20171

Page 33: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group

Currency Management

33

K+S Group

Freight/ other costs

USD/CADUSD/EUR

Transaction Translation

CAD/EUR

USD/EUR

Page 34: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group

Currency Management

34

K+S Group

Hedging of transaction risks, basis USD budget net position Cash flow view: most of anticipated net position hedged Hedging is used if an underlying transaction exists or is expected with

great probability

2018

EUR

/USD

2017: Realized average exchange rate: 1.12 EUR/USD (incl. premium) 2018: Anticipated average exchange rate: 1.15 EUR/USD (incl. premium)¹

USD

/CAD

1,20

1,25

1,30

1,35

1,40

1,45

Q1 Q2 Q3 Q4

Limitation of chance

Limitation of risk

1,00

1,05

1,10

1,15

1,20

1,25

Q1 Q2 Q3 Q4

Worst Case

Best Case

Planned EUR/USD

Limitation of chance

Limitation of risk

Worst Case

Best Case

Planned USD/CAD

2017: no operational hedging transactions2018: Anticipated average exchange rate: 1.31 USD/CAD (incl. premium)²

¹ Premise: based on planned rate of 1.20 EUR/USD for 2018; ² Premise: based on planned rate of 1.25 USD/CAD for 2018

Page 35: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group 35

ContentK+S Group

K+S’ Unique Strategic PositionA

Current TradingB

OutlookC

Salt2

Potash and Magnesium Products1

Page 36: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group

K+S GroupGuidance 2018: EBITDA1

36

Actual2017

Bethune Price Volume Currency Othereffects(net)

2018e

577

€ million

Significantincrease2

Main effects:+ Potash prices

(slight increase)

Main effects:+ Higher sales+ Cost improvement

Main effects:+ Potash volumes

(outage days)+ Tangibly higher salt

volumes

Main effects:- Planning assumption:

1.20 EUR/USD

Main effects:+ Sigmundshall

1 The basis for EBITDA is EBIT I, that only includes the realized result from operating forecast hedges.2 Based on average weather conditions in both business units.

Page 37: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group

K+S GroupGuidance: Housekeeping items

371 Incl. ̴ 4mt of potassium sulphate and potash grades with lower mineral content

FY 2016 FY 2017 FY 2018eGroup

Revenues € 3.5bn € 3.6 bn tangible increaseEBITDA € 519m € 577m significant increase

EBIT I € 229m € 271m significant increase

Financial result € -52m € -26m significantly more negative

Free cash flow, adjusted € -777 € -390 Significant improvement

CapEx € 1.2bn € 811m significant decreaseAverage fx-rate (EUR/USD) 1.11 1.13 1.20Production Outage Days (Werra) ~200 days ~25 days 0 days

Potash and Magnesium ProductsGlobal sales volumes1 ~ 66m tons ~ 69m tons At least stableK+S sales volumes 6.1m tons 6.7m tons significant increaseAverage selling price 253 €/t 254 €/t slight increase

SaltK+S sales volumes 19m tons 20m tons tangible increase

t/o de-icing 10m tons 11m tons tangible increase

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K+S Group

IR Contact DetailsK+S Group

E-mail: [email protected]: www.k-plus-s.comIR-website: www.k-plus-s.com/ir

K+S AktiengesellschaftBertha-von-Suttner-Str. 734131 Kassel (Germany)

Laura SchumberaJunior Investor Relations Manager

Phone: +49 561 / 9301-1607Fax: +49 561 / [email protected]

Lutz GrütenHead of Investor Relations

Phone: +49 561 / 9301-1460Fax: +49 561 / [email protected]

Katharina VolkmarRoadshow Management

Phone: +49 561 / 9301-1100Fax: +49 561 / [email protected]

Martin HeistermannSenior Investor Relations Manager

Phone: +49 561 / 9301-1403Fax: +49 561 / [email protected]

Alexander EngeInvestor Relations Manager

Phone: +49 561 / 9301-1885Fax: +49 561 / [email protected]

38

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K+S Group

Financial CalendarK+S Group

39

CFO Roadshow Frankfurt, MainFirst 15 March 2018

Goldman Sachs 7th European Chemicals Conference with CFO, London 16 March 2018

Non Deal Fixed Income Roadshow Frankfurt, DZ Bank 21 March 2018

Non Deal Fixed Income Roadshow London, Goldman 22 March 2018

Roadshow Paris, Bank of America Merrill Lynch 6 April 2018

Roadshow Zurich, UBS 11 April 2018

Solventis Aktienforum with CFO, Frankfurt 12 April 2018

Roadshow Middle East with CFO, Bankhaus Lampe 19 April 2018

Bankhaus Lampe Deutschlandkonferenz, Baden-Baden 20 April 2018

Quarterly Report Q1/18 14 May 2018

Annual General Meeting 15 May 2018

Half-yearly Financial Report H1/18 14 August 2018

Capital Markets Day in Bethune, Canada (save-the-date) 5 September 2018

Page 40: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group

Page 41: Goldman Sachs Seventh Annual European Chemicals Conference€¦ · K+S Aktiengesellschaft. Goldman Sachs. Seventh Annual European Chemicals Conference. London, 16 March 2018. Thorsten

K+S Group

K+S Group

K+S Aktiengesellschaft · Bertha-von-Suttner-Straße 7 · 34131 Kassel | Germany · Internet: www.k-plus-s.comInvestor Relations · phone: +49 (0)561 / 9301-1100 · fax: +49 (0)561 / 9301-2425 · email: [email protected]

K+S Share• WKN: KSAG88• ISIN: DE000KSAG888 • Ticker-Symbols:

Bloomberg SDF / Reuters SDFG

K+S ADR• CUSIP: 48265W108 • ADR Ticker-Symbol:

Bloomberg: KPLUY / Reuters: KPLUY.PK

K+S Bond 12/2018• WKN: A1Y CR4 • ISIN: XS0997941199

K+S Bond 12/2021• WKN: A1Y CR5• ISIN: XS0997941355

K+S Bond 06/2022• WKN: A1P GZ8• ISIN: DE000A1PGZ82

K+S Bond 04/2023• WKN: A2E 4U9• ISIN: XS1591416679