Revenues and earnings down on previous year s level

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1 Kassel, 13 November 2014 Business development in the first nine months of 2014 Revenues and earnings down on previous year s level Average prices for potash and magnesium products still lower than in previous year Positive price effects in North American salt business Revenues: 9 months 2,802 million (-6%) / Q3 827 million (+1%) EBIT I: 9 months 511 million (-8%) / Q3 134 million (+16%) Further progress with Fit for the Future programme Improved outlook for 2014 following positive development of prices in the third quarter: Expected EBIT I of between 580 and 640 million including special item (2013: 656 million) Revenues and earnings for the K+S Group in the first nine months were below the respective values in the previous year. In spite of the continued recovery of potash prices during the reporting year and robust demand, the average price for potash and magnesium products was still below the comparative figure in A look at the development over the first nine months shows that we are still feeling the effects of the sharp fall in the price of potash in the second half of 2013, said Norbert Steiner, Chairman of the Executive Board of K+S Aktiengesellschaft. A slight upwards trend is now evident from the increase in operating earnings in the third quarter. Again pleasing was also the earnings development of our Salt business unit. We are continuing to make good progress with Fit for the Future and our Legacy project.

2 Page 2 of press release Revenues and earnings down on previous year s level, 13 November 2014 K+S Group revenues fell by just under 6% to 2,802 million in the first nine months. Higher sales volumes in the Salt business unit resulting from the severe winter in North America at the beginning of 2014 only partially offset the fall in price in the Potash and Magnesium Products business unit. Revenues reached 827 million in the third quarter. This figure was a good 9 million higher than in the comparable period in the previous year due mainly to higher volumes in the salt business. Operating earnings (EBIT I) of 511 million after nine months K+S Group operating earnings (EBIT I) fell by just under 8% to 511 million in the first nine months. EBIT I in the Potash and Magnesium Products business unit fell by just under 19% to 404 million. This decrease compared with the previous year was mainly the result of the lower price level for potassium chloride and slightly declining sales volumes. In the Salt business unit on the other hand, EBIT I rose to 116 million compared with 69 million in the previous year as a result of higher volume-related revenues in North America and savings associated with the Fit for the Future programme which had a positive influence on the result in both business units. The K+S Group generated operating earnings (EBIT I) of 134 million in the third quarter (Q3/13: 116 million). This represents an increase of 16% compared with the previous year. The recovery in average prices in the Potash and Magnesium Products business unit also continued in the third quarter. However, these prices were still slightly below the figures for the same period in the previous year. EBIT I for the Salt business unit improved compared with the previous year thanks to early fills in North America. The K+S Group EBIT I includes a special item of 6 million relating to an insurance gain following the business interruption at the Unterbreizbach site. A portion of the claim ( 30 million) was already taken into account in the second quarter. The total compensation claim amounted to 36 million.

3 Page 3 of press release Revenues and earnings down on previous year s level, 13 November 2014 Fit for the Future programme delivers expected results This programme to improve cost and organisational structures, which was launched in November 2013, aims to increase the efficiency of production and that of administration and sales functions. K+S is targeting total savings of 500 million by the end of 2016 compared with the previous cost planning for this period. Up to 70% of the 150 million savings target for 2014 has already been achieved. Cost reductions were achieved particularly in terms of material and energy costs, but also structurally in the area of logistics. Capital Expenditure increased strongly as planned - Legacy making good progress The K+S Group made total investments of 731 million in the first nine months of 2014 (9M/13: 489 million). Investments amounted to 295 million in the third quarter, roughly equivalent to a 60% increase on the same period in the previous year (Q3/13: 186 million). The bulk was in the Potash and Magnesium Products business unit and related mainly to the construction of a new potash mine in Canada (Legacy Project). Work there continues to progress as planned. K+S is still anticipating commissioning in summer A further sizeable share of investment related to the implementation of the package of measures for water protection in the Hesse-Thuringia potash district. Outlook raised for 2014 The K+S Group is now expecting revenues of between 3.7 and 3.9 billion for 2014 (previous forecast: 3.65 to 3.85 billion; 2013: 3.95 billion). Operating earnings (EBIT I) should be between 580 and 640 million (previous forecast: 490 to 570 million; 2013: 656 million). These include a special item relating to an insurance gain of 36 million following the business interruption at the Unterbreizbach site. The main reason for raising the outlook is the expectation that average prices in the Potash and Magnesium Products business unit will now be slightly better than previously assumed. However, prices are still expected to remain moderately below 2013.

4 Page 4 of press release Revenues and earnings down on previous year s level, 13 November 2014 About K+S K+S is an international resources company. We have been mining and processing mineral raw materials for 125 years. The products we produce from them are used worldwide in agriculture, food and road safety and are important elements in numerous industrial processes. The nutrients potash and salt are accompanying the megatrend for the future: A constantly growing global population is becoming increasingly prosperous and striving for a more modern standard of living, which results in an increasing consumption of mineral raw materials. We serve the resulting growth in demand from production sites in Europe, North America and South America as well as through a global distribution network. K+S is the world s largest salt producer and one of the top potash providers worldwide. With more than 14,000 employees, K+S achieved revenues in financial year 2013 of about 4 billion and an EBIT of 656 million. K+S is the commodities stock on the German DAX index. Learn more about K+S at Note to editors: The quarterly financial report (Q3/2014), a video webcast by Dr. Burkhard Lohr, the Chief Financial Officer of K+S Aktiengesellschaft, and up-to-date press photos around the K+S Group are available at We are offering a conference call for analysts in English today at 2 p.m. Dr. Burkhard Lohr, member of the Board of Executive Directors, will participate in the conference call. Investors, representatives of the press and all other interested parties are invited to follow the conference via a live webcast ( or by phone on The conference is being recorded and will then also be available as a podcast.

5 Page 5 of press release Revenues and earnings down on previous year s level, 13 November 2014 Your contact persons: Press: Investor Relations: Michael Wudonig Thorsten Boeckers Phone: Phone: michael.wudonig@k-plus-s.com thorsten.boeckers@k-plus-s.com Forward-looking statements This press release 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 Risk Report - materialise, actual developments and events may deviate from current expectations. The Company assumes no obligation to update the statements contained in this press release, save for the making of such disclosures as are required by the provisions of statute.

6 Page 6 of press release Revenues and earnings down on previous year s level, 13 November 2014 K+S Group Summary Q3 Q3 Q3/2014 July-Sept. July-Sept Change All figures in accordance with IFRS million million in % Revenues Potash and Magnesium Products Salt Complementary Activities Reconciliation Earnings before interest, taxes, depreciation and amortisation (EBITDA) Operating earnings (EBIT I) Potash and Magnesium Products Salt >100 Complementary Activities Reconciliation Financial result Earnings before income taxes Group earnings after taxes, adjusted 1), 2) Group earnings from continued operations, adjusted 1) Earnings per share, adjusted ( ) 1), 2) Earnings per share from continued operations, adjusted ( ) 1) Capital expenditure 3) ) The adjusted key figures only include the result from operating anticipatory hedges in the respective reporting period reported in EBIT I, which eliminates effects from changes in the market value of the hedges, as well as effects from the exchange rate hedging of future capital expenditure in Canadian dollars (Legacy Project). Related effects on deferred and cash taxes are also eliminated; tax rate for Q3/14: 28.6% (Q3/13: 28.5%). 2) Earnings from continued and discontinued operations. 3) Capital expenditure in or depreciation affecting net income on property, plant and equipment, intangible assets and investment properties, as well as depreciation on financial assets.

7 Page 7 of press release Revenues and earnings down on previous year s level, 13 November 2014 K+S Group Summary 9M 9M January-September 2014 Jan.-Sept. Jan.-Sept Change All figures in accordance with IFRS million million in % Revenues 2.801,6 2, Potash and Magnesium Products 1.419,5 1, Salt 1, , Complementary Activities Reconciliation Earnings before interest, taxes, depreciation and amortisation (EBITDA) Operating earnings (EBIT I) Potash and Magnesium Products Salt Complementary Activities Reconciliation Financial result Earnings before income taxes Group earnings after taxes, adjusted 1), 2) Group earnings from continued operations, adjusted 1) Earnings per share, adjusted ( ) 1), 2) Earnings per share from continued operations, adjusted ( ) 2) Capital expenditure 3) Employees as of 30 September 4) (number) , of which trainees (number) ) The adjusted key figures only include the result from operating anticipatory hedges in the respective reporting period reported in EBIT I, which eliminates effects from changes in the market value of the hedges, as well as effects from the exchange rate hedging of future capital expenditure in Canadian dollars (Legacy Project). Related effects on deferred and cash taxes are also eliminated; tax rate for Q3/14: 28.6% (Q3/13: 28.5%). 2) Earnings from continued and discontinued operations. 3) Capital expenditure in or depreciation affecting net income on property, plant and equipment, intangible assets and investment properties, as well as depreciation on financial assets. 4) FTE: Full-time equivalents; part-time positions are weighted in accordance with their respective share of working hours.