Experience growth. K+S Aktiengesellschaft. Compendium. Facts worth knowing about K+S

Transcription

1 Experience growth. K+S Aktiengesellschaft Compendium Facts worth knowing about K+S September 2017

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3 Business Unit Salt Business Unit Complementary Activities Unique position in Europe and specialty fertilizers Bethune will strengthen our global presence Salt business to improve earnings substantially Ongoing cost reductions and efficiency improvements Dividend payout of 40-50% 3

4 What Makes Us Strong? Broad product portfolio The uniqueness of our crude salt deposits allows us to produce specialties that many of our competitors are not able to offer in the same way. Both business units offer a unique portfolio of commodity- and specialty products. Geographic reach Our world-class production assets grant a close proximity to both core customers and attractive growth regions. Strongly positioned We are well positioned to participate in long-term growth trends of population growth, economic growth, industrialisation, increasing standards of living and higher protein consumption. 4

5 Management Agenda Successful commissioning Bethune Mine Managing environmental challenges particularly in Germany Enhancing portfolio of higher yielding products Successful implementation of Salt 2020 Strategy Keeping cost discipline above and beyond Fit for the Future Low cost commodity production with Bethune in Canada ensuring cost competitiveness and participation in future growth in the potash markets German mines remaining attractive with broad specialty portfolio and close proximity to customers Salt with unrivalled market and operational footprint 5

6 Strategic Review Two well defined strategies for our business units in place: Salt 2020 and our Shaping the Future for Potash & Magnesium products Identifying future growth potential Considering important trends for our businesses: Growing population Rising economies Digitalization / Precision Farming We aim to release details on our Shaping 2030 strategy in autumn

7 Two-pillar strategy Positioned for growth Sustainable margin growth through specialisation Global Presence Earnings-based dividend policy Balanced regional portfolio Attractive mid-term outlook Cost discipline 7

8 Corporate Strategy Differentiation and Sustainable Margin Growth through Specialisation Consolidation and expansion of market positions by increased marketing of specialty products Realisation of more attractive margins through refinement strategy Expansion of Strategic Business Sectors through Acquisitions and Cooperations External growth in the core business sectors Fertilizers and Salt Expansion of a Balanced Regional Portfolio Reduction of seasonal and regional fluctuations in demand for salt and fertilizers due to a balanced regional portfolio Fertilizers: Expansion of market presence in important overseas regions and tapping into new attractive sales regions in future growth regions Salt: Local production in the volume-driven Salt business Setting Standards for Quality, Reliability and Service The goal is to be our customers preferred partner Strengthening of customer loyalty through service efforts, e.g. targeted advice to customers in the use of fertilizers Increasing Efficiency and Exploiting Synergies Optimisation of the international production network Generating synergies in the exchange of technical, geological and logistics knowhow between the potash and salt production 8

9 Active Portfolio Management Salt Salt Salt Salt Salt Salt Acquisition Foundation Acquisition Acquisition Acquisition Acquisition Ashburton Salt Fertilizer Fertilizer Fertilizer Fertilizer Fertilizer Fertilizer Fertilizer Acquisition Acquisition Acquisition Divestment Divestment Acquisition Acquisition 9

10 Global Presence 1 43 % 38 % 3% 6 % 10 % Employees by Region % 22 % 5 % 3 % 1 Revenues by Region 2016 Germany North America South America Rest of Europe 10

11 Our Salt Industrial products 12% 7% 8% Food processing 15% Consumer Specialties 39% 18% Salt for chemical use Industrial KCl (MOP) 49% 52% De-icing in % sales volumes, FY

12 Leverage Customer Relationships within De-icing Oil & Gas Food processing Significant overlap in most of our market segments Identify and leverage which business unit has the best market access and customer relationships Market oriented synergies Morton is selling BU Potash s KaliSel in the US Agriculture (Feed) Chemicals Pharma Fertilizer Operational synergies: Common production methods Define common operational KPIs Procurement 12

13 Adding Value Along Our Entire Supply Chain Exploration Our potash and salt deposits came into being millions of years ago. They are either our property or we have corresponding rights or approvals that allow the extraction or solution mining of the raw material reserves. Mining We extract raw materials in conventional mining above and below ground as well as through solution mining. We also use the power of the sun and extract salt by evaporating sea water or saline water. Production The refining of raw materials is one of our core competencies. Above ground, the crude salt is processed in complex, multi-phase, mechanical or physical processes, with the natural properties of the mineral remaining unchanged. Logistics The long-term securing of freight capacity is of strategic importance to us. A large part of our international transport volume is forwarded by service providers with which we maintain long-standing partnerships. Sales/Marketing The wants to be its customers preferred partner in the market. High product quality and reliability are decisive preconditions for this. K+S offers a comprehensive range of goods and services for agriculture, industry and private consumers. Application Our customers apply our products, use our raw materials in their processes or process them in their products. We make extensive product information available and advise our customers on the application of our products. 13

14 Key Financials Revenues ( billion) EBITDA ( million) EBIT I ( million) EBIT Margin (%)

15 Dividend Policy 50% Target payout ratio of 40-50% 10% 45% 40% 8% Earnings-based dividend policy 35% 30% 6% Payout ratio of 40 50% of adjusted net profit 25% 20% 4% Dividend 2016: 0.30 per share 15% 10% 2% 5% 0% % Payout ratio (lhs) Dividend yield (rhs) 1 1 Based on year-end share prices 15

16 Board of Executive Directors Dr. Burkhard Lohr CEO Thorsten Boeckers CFO Dr. Otto Lose Potash and Magnesium business unit Mark Roberts Salt business unit Dr. Thomas Nöcker HR, IT, Logistics, Business Center 16

17 Broad product portfolio Protein consumption Unique position in Europe Strong and long-standing customer relationships Specialty fertilizers Meat consumption Limited arable land Population growth High purity salts Industrial applications Established distribution networks 17

18 Why Use Fertilizers? For plants to thrive they need sunlight, water and minerals There are only few soils on earth which have a sufficient content and availability of plant nutrients to achieve high yields over a longer period without fertilization Potash is an indispensable supplement to the natural nutrient content of soils The growth and yield of plants are limited by the nutrient which is in shortest supply 1 Compensation of the nutrient losses by harvest and other losses is necessary 1 Justus von Liebig, 'The Natural Laws of Husbandry',

19 Long-Term Dynamics Positive for Fertilizer Less arable land but more protein consumption per capita Jahr Global population development Each year additional 80m people need to be fed this equals to the population of Germany Arable Land per capita 3.0 billion 6.9 billion 9.7 billion Available arable land per capita will decrease at the same time Protein per capita m m m 1 60 g/ day 80 g/ day 130 g/ day 1 By 2050 an expanded world population will be consuming two thirds more animal protein than it does today In 2050, only roughly a quarter of a soccer field will be available to feed one person year round - 80 percent of future growth in crop production will come from yield advancements driven by balanced use of fertilizers Sources: UN, World Population Prospects, 2012 Revision, UNDP, 2013; FAOStat FAO forecasts based on the expected increase in animal protein 19

20 What Makes Us Different? Fertilizer Specialties Mainly used for special applications (e.g. chloride sensitive crops) containing a broad range of nutrients (e.g. potash, magnesium, sulphur) Premium products used for high-value crops Potassium Chloride (MOP) Can be applied universally to all crops not sensitive to chloride and to all types of soil Standard product used for commodity crops 20

21 Unique Portfolio Makes us More Robust KCL (MOP) Industrial products 0.7 Specialties 2.4 Health Care & Nutrition Industrial potash Kieserite Korn-Kali SOP Broad portfolio of specialty products MOP related/ not MOP related Flexibility Stability Partly following different trends and seasons Basis: 2016 Sales volumes in million tons Europe 62% Other 8% South America 17% Asia 13% 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 Basis: 2016 Revenues 21

22 Basis: Q Basis: Q Potash Price Comparisons MOP gran. Europe vs. Brazil (Source: FMB) US$/t Brazil (US$/t, Granular, cfr) /t Europe ( /t, Granular, cfr) K+S average selling price versus selected peers K+S K+S Peers Peers Q Q Q Q Q Q Q Q Q Q

23 World Potash Production and Sales by Region million tons Basis: year 2016 (preliminary) Incl. sulphate of potash and low-grade potash Sources: IFA, K+S World potash production: 2016: 65.3 million tons 2015: 66.9 million tons World potash sales volume: 2016: 65.6 million tons 2015: 65.7 million tons 23

24 Supplier Structure on the World Potash Market 28% World Potash Sales Volumes: 2016: 65.6 million tons 2015: 65.7 million tons 17% 16% 14% 8% 8% 3% 3% 3% Canpotex Potash Corp. Mosaic Agrium Uralkali Basis: year 2016 (preliminary) Quelle: IFA, K+S BPC Belaruskali K+S ICL DSW CPL Iberpotash APC Participation of Potash Corp. SQM Participation of Potash Corp. China > 20 producers Other Intrepid Vale Compass Usbekistan Laos Incl. potassium sulphate and potash grades with lower K 2 O content 24

25 1.000 t (product) World Potash Supply and Demand Production is driven by demand despite continuous excess capacity Capacity by producer ICL 7% K+S 7% Others 22% Belaruskali 14% Canpotex 35% Uralkali 15% '60 '65 '70 '75 '80 '85 '90 '95 '00 '05 '10 '15 Technical available capacity Sales volumes Production Basis: year 2015 Quelle: IFA (preliminary), K+S; incl. sulphate of potash and low grade potash of about 4 million tonnes eff. (product) 25

26 Potash Use by Crop in Selected Countries 100% Wheat 16% Corn 13% Corn 16% Wheat 2% Rice 2% Corn 8% Rice 11% Soybean 2 % Rice 1% Oilseeds 11% Sugar crops 5% Soybean 40% Fruits & Vegetables 12% Oil palm 62% Sugar crops 18% 0% Other crops 42% Fruits & Vegetables 7% Sugar crops 5% Fruits & Vegetables 6% Other crops 15% Other crops 7% EU-28 Brazil Indonesia Source: IFA, Estimates of Fertilizer Use by Crop in Selected Countries in /11, published

27 Farmer Profitability of US Corn 100% in % of revenues 17% 16% thereof costs for potash: ~ 4 % Expenditure on potash products accounting for just around 4% 67% Operating profit Fertilizer costs Other costs Earnings prospects should give the agricultural industry sufficient incentive to increase yield per hectare by using plant nutrients 0% US Corn Source: USDA 27

28 World Potash Sales Volume by Region Million tons Western Europe Central Europe / FSU Africa North America Latin America Asia thereof China thereof India Oceania World total Incl. potassium sulphate and potash grades with lower K 2 O content of around 4 million tons eff. Sources: IFA (preliminary), K+S 28

29 First Potash Produced at Bethune First potash produced earlier than expected Infrastructure in place (Railroad/Railcars, Harbor) Capacity of 2 million tons p.a. by the end of 2017 ramping up to 2.86 million tons p.a. by 2023 Positive EBITDA in

30 Bethune Strengthening our Global Presence China India South East Asia North 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 Southeast Asia Flexible multi-product strategy Located in the Heart of Saskatchewan s Potash-Rich Basin South America Regina Two additional potash permit areas in the Esterhazy potash region 30

31 Bethune - Ramp-up Curve Production capacity in milllion t KCl/a Outlook for Phase 3 Expansion of secondary mining Phase 2 Development of secondary mining Phase 1 Primary mining '16 '17 '18 '20 '25 '30 '35 Phase 1 (Implementation: 2011 to 2017) Phase 2 (Implementation: 2016 to 2023) Outlook for Phase 3 (Implementation: 2023 to 2034) Development of infrastructure mainly for Phases 1 + 2, preparations for Phase 3 Capacity development + ramp-up of production to 2.0 mln. t KCl/a through primary mining Capacity expansion and ramp-up of production by 0.86 to 2.86 mln. t KCl/a through secondary mining (share of secondary mining in total capacity: 30%) Increase in share of secondary mining in total capacity to 50% Potential expansion of annual capacity by 1.14 to 4.0 mln. t KCl/a 31

32 Bethune - Competitive Production Costs ~ Depends on potash price ~ 40 CAD/ ton ~ 65 CAD/ ton Mining taxes/ royalties: Fluctuate with potash price, e.g. 400 USD ex works = ~ 60 CAD 300 USD ex works = ~ 40 CAD 250 USD ex works = ~ 30 CAD D&A Steady state, higher in first years of production Logistics Average from site to various target destinations ~ 90 CAD/ ton Cash costs of production Total costs (Phase 1+2) at full utilisation Based on assumptions from April 2013; at full utilisation of 2.86 million tons KCl/a (Phases 1+2) No increase in prices and costs after the construction phase 32

33 Strengthening of Specialties Portfolio (1) Huludao Magpower Fertilizers Co., one of the largest producers of synthetic magnesium sulphate (SMS) SMS is used as fertilizer for oil palms, soybeans and sugar cane as well as for industrial applications Strengthen our competitive position in specialties Improved access to growth markets of South East Asia and China Huludao Scalable low cost production assets 33

34 Strengthening of Specialties Portfolio (2) Expansion of water-soluble products to participate in fast growing fertigation markets 1 30% stake in Al-Biariq for Fertilizer Plant Co., Ltd. (Saudi Arabia) Option to acquire further 30% within 2 years Capacity of 20 kt water soluble SOP p.a. intention to double in the near future Participation in growth in Middle East, Africa and South Asia kt eff Demand for potash containing fertigation products 1 globally 1,100 1, NOP SOP MOP Source: K+S-estimation/CRU 2012 Market for potash containing fertigation products 1 expected to grow strongly Globally min. 5% p.a. Fast growing regions (e.g. India) + 25% p.a. 1 Use of fertilizers in irrigating systems 34

35 Diversified production network and portfolio Strong consumer brands Food grade salt Salt for Chemical Use Industrial salt Salt More than applications Essential mineral for our life Presence in the most attractive de-icing salt regions Low cost production De-icing salt 35

36 Why Salt? Essential mineral for our life Diverse and stable salt end uses driving continuous growth Mineral without economically viable substitutes Basic material representing only a small portion of the production costs 36

37 Long-term Dynamics in Salt Demand Demand driven by Product category Winter weather conditions De-Icing Infrastructure development Consumer products Increasing standard of living Population growth Food processing Economic growth and industrialization Industrial Urbanization Chemical Low single-digit demand growth p.a. to Source: Roskill

38 Broad Variety of Application Areas De-Icing Consumer products Food processing Industrial Chemical Main Applications: Winter road maintenance services Commercial users Private households Main Applications: Table salt Dishwasher care Water softening Pool chlorination Body care Main Applications: Food processing industry Baking industry Condiment and preservative agent Main Applications: Water treatment Drilling fluids Animal feed Infusion, dialysis solutions Pharmaceuticals Preserving of fish Dyeing works Leather treatment Main Applications: Chemical industry Chlor-Alkali processes ( PVC) Polycarbonates, MDI (Isocyanat) ( plastics, synthetic resin) Synthetic Soda Ash ( glass) 38

39 Dampier ESSA Compass Cargill American Rock Salt Artyomsol Akzo Salins Südsalz China National Salt Main Salt Suppliers Worldwide Capacity in million tons (crystallised salt and salt in brine; excl. captive use) 21 ~ Mitsui Source: Roskill 2016, K+S 39

40 Development of Salt Consumption and Production 1 Million tons Consumption Production CAGR: 2.0% CAGR CAGR: 2.1% CAGR % % 220 Other 3.3% 217 Other 4.0% Asia Asia Europe 1.0% Europe 1.3% North America 1.5% North America 0.4% excl. captive use; Source: K+S, Roskill 2011, 2014,

41 Salt Consumption by Product Group 1 Industrial salt/ Other 24% 31% 29% 17% 50% Salt for chemical use 54% 30% 53% 64% 1% 22% Food grade salt 9% De-icing salt 13% Global (Consumption 2015: 295 million tons) 38% North America (Consumption 2015: 80 million tons) 4% 14% Europe (Consumption 2015: 73 million tons) 16% 3% Asia (Consumption 2015: 118 million tons) 28% Other (Consumption 2015: 24 million tons) 1 excl. captive use; Source: Roskill

42 Our Strengths Production network and know-how Geographical diversification of production facilities within a region and across continents Access to multitude of technical and geological experts within the Logistics network Mixture of own ships, medium-term sea freight contracts and freight hedging Utilisation of global logistic knowledge of Close supply chain cooperation for most efficient group-wide sourcing Product portfolio Balanced and less cyclical product portfolio Product innovations through access to group-wide R&D network 42

43 Diverse Regional and Product Portfolio Salt for chemical use Normalized Revenue Distribution Food processing Industrial Consumer products 1 De-icing adjusted to normal winter 43

44 Unrivalled Global Production Network Potential Expansion into Asia-Pacific 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 Broad range of products due to variety of production methods Best in class supply chain assets and competence Industry best cost production in Chile 44

45 Presence in Attractive De-Icing Markets Eastern Canada Scandinavia Great Lakes US East Coast Central Europe Indicative regional strength of winter 2011/ / / / / /17 Europe North America 45

46 Production 46

47 Production Sites in Germany Potash mining in the Werra Fulda Region Kassel Potash Seam Hesse Share of annual production capacity (in %) 1. Wintershall 2. Unterbreizbach Integrated Werra Plant ~ Hattorf 4. Zielitz ~ Neuhof-Ellers ~ Sigmundshall ~ Bergmannssegen-Hugo ~ 5 (pure production site, no mining) Potash Seam Thuringia 47

48 Extraction Cycle Underground Conventional mining 1 Blasting after shift end 2 3 Muck pile load and dump Roof scaling 8 Loading with explosives 4 Roof bolting 7 Drilling 6 Cleaning 5 Auger drilling 48

49 Potash Processing above Ground Thermal dissolution Flotation Electrostatic separation (ESTA ) heating 25 C 110 C flotation brine finely ground crude salt mother brine undissolved residue + dissolved KCl 95 C finely ground crude salt filtering flotation agent air bubbles finely ground crude salt triboelectric charging - conditioning + filtering cooling filtering and drying separation in a free fall separator Potassium chloride (KCl) and Kieserite Residue (NaCl) Residue (NaCl) Potassium chloride (KCl) and Kieserite Residue (NaCl) Potassium chloride (KCl) and Kieserite 49

50 Bethune Solution Mining (Example: Primary Mining) Patience Lake Belle Plaine Esterhazy Mining technique Reserves / Resources Depth Thickness K 2 O / KCl content Environmental Impact Statement Solution mining 160 / 982 million t KCl product 1,500 metres 33 metres 18% / 29% approved for up to 4 million t KCl/a In solution mining, freshwater is brought into solvent (salt) rock through a drill hole, thus creating chambers filled with a water-salt solution, so-called caverns. In a subsequent step, the saturated brine is brought to the surface level along a further pipeline. 50

51 Saline waste water halved Package of measures successfully concluded Initiated 2008 CapEx: ~400 million Reduction of more than 65 percent since 1997 Million cubic meter 20 Saline waste water significantly reduced Mid-term goal Long-term goal Further investments and reduction of saline waste water according to Four- Phase-Plan Deep-well injection permit (Werra plant) until end of 2021 and no additional permit afterwards 51

52 Salt Main Production Methods Rock Salt Sea-/Solar Salt Evaporated Salt Brine Conventional mining Crystallisation from sea water Recrystallisation of purified brine Controlled borehole-brining Around 70 % of worldwide salt production (more than 290 million tons including brine) is obtained from rock salt mining and solution mining. Approximately 30 % of production is obtained from seawater and salt lakes. Salt is produced in almost every country on Earth. Due to the high share of transport costs in production costs, markets are generally regionally limited to the area around the production locations. 52

53 Financials 53

54 Financing Strategy Maintain dividend policy 40 50% of net profit Rating Return to Investment grade Excess cash Funding further growth Share buybacks Special dividends Key figures Target range Net debt/ebitda 1.0 to Net debt/equity (%) max Equity ratio (%) 40 to

55 EUR/USD Currency Management , , Limitation of risk 1, , , , Actual EUR/USD exchange rate Planned EUR/USD rate Worst Case Best Case 1, , , Limitation of chance Q1 Q2 Q3 Q4 Anticipated average exchange rate (full year): 1.12 EUR/USD (incl. premium) Premise: based on planned rate of 1.15 EUR/USD for the second half of the year 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 55

56 Debt Profile Debt Instruments Bond IV 500 million (mat. 2018; coupon 3.125%) Schuldschein 325 million (mat. 2019) Schuldschein 335 million (mat. 2021) Bond III 500 million (mat. 2021; coupon 4.125%) Bond II 500 million (mat. 2022; coupon 3.000%) Bond I 625 million (mat. 2023, coupon 2.625%) Schuldschein 40 million (mat. 2023) As further liquidity source a syndicated credit line facility amounting to 1 billion is in place until

57 Cash Flow and Balance Sheet million FY/15 Q1/16 H1/16 9M/16 FY/16 Q1/17 H1/17 Operating cash flow Investing cash flow (pre sale/ purchase of securities) -1, , Adjusted free cash flow CapEx 1, , Net debt (-) -2,400-2,367-2,860-3,180-3,584-3,614-3,745 t/o Net financial debt (-) -1,364-1,315-1,756-2,052-2,401-2,440-2,592 Net debt/ EBITDA (LTM) Equity ratio 52% 52% 49% 48% 47% 48% 45% 57

58 Capex ( million) , , , Capital Expenditure Depreciation / Amortisation Cash flow from operating activities 58

59 Operating and Free Cash Flow (adjusted) million Significantly negative due to capital expenditure for the Legacy Project Operating Cash Flow Free Cash Flow (adjusted) 59

60 Investor Relations 60

61 IR Contact Details K+S Aktiengesellschaft Bertha-von-Suttner-Str Kassel (Germany) Homepage: IR-website: investor-relations@k-plus-s.com Lutz Grüten Head of Investor Relations Phone: / Fax: / lutz.grueten@k-plus-s.com Katharina Volkmar Roadshow Management Phone: / Fax: / katharina.volkmar@k-plus-s.com Laura Schumbera Junior Investor Relations Manager Phone: / Fax: / laura.schumbera@k-plus-s.com Martin Heistermann Senior Investor Relations Manager Phone: / Fax: / martin.heistermann@k-plus-s.com Alexander Enge Investor Relations Manager Phone: / Fax: / alexander.enge@k-plus-s.com 61

62 K+S Share Key Data WKN: ISIN: Type of shares: Total number of shares: Trading segment: Ticker symbols: KSAG88 DE000KSAG888 Registered shares of no-par value 191,400,000 Prime Standard Bloomberg SDF / Reuters SDFG Quoted in the following indices MDAX DJ STOXX 600 DJ EURO STOXX HDAX CDAX Prime Allshare Index Classic Allshare Index Prime Sector Chemicals Industry Group Chemicals / Commodity DJ STOXX TMI MSCI World Standard MSCI Europe Standard MSCI Germany Standard ECPI Ethical Index Global Covered by AlphaValue Baader Helvea Equity Research Bank of America / Merrill Lynch Bankhaus Lampe BMO Capital Markets Citi Research Commerzbank Credit Suisse Deutsche Bank DZ Bank AG Equita Sim SpA Equinet Bank AG Goldman Sachs Hauck & Aufhäuser Institutional Research AG Independent Research J.P. Morgan Cazenove Kepler Cheuvreux LBBW Liberum M.M. Warburg MainFirst Bank AG Metzler Capital Markets Morgan Stanley & Co International PLC+ Morningstar Nord/LB Redburn Sanford C. Bernstein Limited Scotia Capital Société Générale UBS 62

63 Shareholder Structure Retail Shareholders 42% Freefloat 100 % Institutional Shareholders 58% As of 10 August

64 K+S ADR Programme The K+S ADR Programme offers North American investors the opportunity to take stock in K+S. Since the ADRs are quoted in US dollars and dividends are also distributed in US dollars, this financial instrument resembles an American share closely. Two ADRs represent one K+S ordinary share. The K+S ADRs are traded in the United States under a level 1 ADR Programme in the over the counter market (OTC). Trade on OTCQX Symbol: KPLUY CUSIP: 48265W108 Ratio: 2 ADRs = 1 Share Country: Germany ISIN: DE000KSAG888 Depositary: The Bank of New York Mellon Benefits to North American investors Clear and settle according to normal U.S. standards Stock quotes and dividend payments in U.S. dollars Can be purchased/sold in the same way as other U.S. stocks via a U.S. broker Cost-effective means of international portfolio diversification Further information: 64

65 K+S Bonds and Issuer Rating Bond 12/2018 Bond 12/2021 Bond 06/2022 Bond 04/2023 WKN A1Y CR4 A1Y CR5 A1P GZ8 A2E 4U9 ISIN XS XS DE000A1PGZ82 XS Listing Luxembourg Stock Exchange Luxembourg Stock Exchange Luxembourg Stock Exchange Luxembourg Stock Exchange Volume 500 Mio. EUR 500 Mio. EUR 500 Mio. EUR 625 Mio. EUR Issue price % % % % Coupon payment 3.125% 4.125% 3.000% 2.625% Maturity Face value 1,000 EUR 1,000 EUR 100,000 EUR 1,000 EUR Rating S&P: BB+ S&P: BB+ S&P: BB+ S&P: BB+ Issuer Rating (S&P): BB (outlook: stable), August

66 Further information Financial Calendar 2017/2018 Quarterly Report, 30 September November 2017 Annual Report March 2018 Quarterly Report, 31 March May 2018 Annual General Meeting, Kassel 15 May 2018 Dividend Payment (subject to resolution of the AGM) 18 May 2018 More Content Available Online K+S Website: Annual Reports: Newsletter Subscription: Social Media: 66

67 Disclaimer 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 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 in any jurisdiction. 67