Annual Report Press Conference of K+S Aktiengesellschaft on in Frankfurt am Main
Report on business for the year 2001 1 People. Nature. Our World.
What we want to inform you about today 2 K+S achieved its aims in 2001 Market penetration and strategic intermeshing further improved Favourable overall prospects for 2002
Economic environment 3 Worldwide slowdown in overall economic growth K+S nevertheless well positioned Robust and broadly defined portfolio of businesses Innovations speeded up Proven market competence and strength
Sales and earnings 2001 4 - million - 2001 2000 Changes Sales 2,179.4 2,087.9 + 4 % Earnings before interest and taxes 120.6 126.8-5 % Net income 118.3 119.8-1 % Net income per share ( ) 2.73 2.72 + 0 % Return on equity (%) 22.9 22.6 + 1 %
The year 2001 5 New production plant for fertilizer speciality Acquisitions to strengthen COMPO business esco salt joint venture successfully prepared Streamlining of corporate structures New share buy-back programme started
Growth through acquisitions million * Frisia Zout B.V. 6 168 149 foreign COMPO subsidiaries AAE GmbH 97 83 0 1997 1998 1999 * 49 % interest in Kali und Salz GmbH Total expenditures: 497 million
The esco salt joint venture 7 62% 38% Approval granted by EU competition authorities Start with economic effect from January 1, 2002 Particular strengths: Customer-oriented products and logistical advantages
Our strategic competence arch 8 healthy, controlled growth KTG
Potash and Magnesium Products 2001 million 963 967 Fertilizer business affected by the weather Sharp increase in energy costs 9 77 67 Further growth in industrial business Market positions well maintained Potentials for further savings affecting earnings identified Sales EBIT
COMPO 2001 million 332 436 Sharp increase in sales Hobby business grew perceptively with acquisitions 10 Brand portfolio and regional presence selectively strengthened Sales 22 20 EBIT ENTEC fertilizers drove professional business EBIT burdened by one-off effects Sharp increases in raw material prices
fertiva 2001 million 552 500 Decline in consumption in Western Europe due to the weather Further consolidation in Western European fertilizer industry Positions in key overseas markets maintained 11 BASF solely entitled to pleasing contribution to earnings for last time Sales EBIT
Salt 2001 million 115 165 De-icing salt business profited from severe winter and early purchases Business with salt for chemical transformation considerably expanded by Frima acquisition 12 Sales 28 5 EBIT Further growth of table and industrial salts Product quality, proximity to customers and especially high ability to deliver prove to be particular strengths
Waste Management and Recycling 2001 million 77 Sales and earnings as expected reduced to normal level 13 63 Exploitation of European markets expanded 25 11 Waste reutilization and recycling with overall growth Development to system provider continued with commencement of thermal soil cleaning Sales EBIT
Services and Trading 2001 million 49 47 EBIT growth benefits from great demand for IT expertise within K+S Group 14 10 15 Experience within group successfully applied Trading business and granulation of Catsan higher Analytical services strengthened Sales EBIT
K+S is strong in the market 15 For potash For water-soluble magnesium sulphate In the green market For nitrogen For salt For underground disposal Market leader in Europe Number three in the world World market leader Market leader in Europe with COMPO Very well positioned with fertiva With esco in leading European group Market leader in Germany
K+S Aktiengesellschaft 16 Net dividend and total dividend payment 1998 1999 2000 2001 43.4 ** 37.6 25.6 Dividend payment 17.9 - million Net dividend - per share - 0.36 0.57 * proposal ** according to the number of shares entitled to dividends on the day of the Annual Meeting (prel. as of March 8, 2002) 0.85 1.00 *
K+S Aktiengesellschaft K+S share price compared with DAX and MDAX Index: January 2, 2001 = 100 17 2001 2002 140 130 120 110 100 90 80 70 60 50 K+S MDAX DAX Jan. July Jan. July source: Deutsche Börse AG; basis March 7, 2002
K+S Aktiengesellschaft K+S market capitalization million 18 986 1,042 591 703 797 * 45 million shares 1998 1999 2002 * * * Year-end March 7
Start to 2002 19 Potash and Magnesium Products COMPO Fertilizers above last year s level Industrial business cyclically weaker Professional business with marked growth Hobby business at higher level fertiva Good overseas business Difficult European business Salt Good de-icing salt business Integration of esco Waste Management and Recycling Normalized level
Aims for 2002 20 Further development of our business segments Extension of our market positions with innovations and regional expansion Acquisitions and cooperation agreements Internally, continued focus on increases in efficiency and cost savings
21 People. Nature. Our World.