Kassel, 14 March 2013 Successful financial year 2012 K+S Group expects slight increase in revenues and earnings in the current year At 3.9 billion, 2012 revenues almost on last year s level Operating earnings EBIT I of 809 million very close to forecast Second best year-end results with Potash and Magnesium Products Mild winter adversely affects Salt business Divestment of Nitrogen business successfully completed Higher dividend proposal of 1.40 per share intended for 2012 Forecast for 2013 confirmed: Revenues and operating earnings should increase slightly Overall, 2012 was a successful year for the K+S Group. Our Potash and Magnesium Products business unit achieved its second best result ever, states Norbert Steiner, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft, at the Company s annual results press conference. For 2012, we will propose to the Annual General Meeting a 10 cent higher dividend of 1.40 per share, continues Steiner. 2012 revenues almost at the level of the previous year At 3.9 billion, revenues for financial year 2012 were almost on the same level as the previous year ( 4.0 billion). Negative volume effects could almost be offset by positive currency and price effects. The Potash and Magnesium Products business unit achieved revenue growth mainly due to higher average prices as well as the positive development of exchange
Page 2 of press release K+S Group expects slight increase in revenues and earnings in the current year, 14 March 2013 rates. At 6.95 million tonnes of goods, the sales volume remained stable in comparison to 2011. Salt business unit revenues fell tangibly, especially as a result of mild and dry weather conditions, after having benefited from an above-average winter in the previous year. As expected, operating earnings down on previous year The key performance indicator of the K+S Group, operating earnings EBIT I, fell in 2012 by around 11 % to 808.5 million (2011: 906.2 million) and was thus very close to the most recently submitted forecast of about 820 million. The forecast figure would have been achieved without the expense of 10.7 million arising from the disposal of three vessels as part of the fleet-renewal-programme of the Chilean shipping company Empremar. At 20.5 %, the EBIT margin was again at a very high level (2011: 22.7 %). The Potash and Magnesium Products business unit was able to increase its operating earnings mainly as a result of higher average prices across the overall product range. These were able to more than compensate cost increases. With an EBIT I of 773.9 million (+4.7 % against the previous year), the business unit achieved the second best annual result since 2008. Due to the weaker de-icing business and the higher proportion of fixed costs customary in the mining industry, the earnings of the Salt business unit decreased strongly to 62.4 million (2011: 211.4 million). Cost savings were able to mitigate this decrease to some extent. Lower adjusted Group earnings Adjusted Group earnings from continued operations fell by 84.8 million or 14 % to 540.8 million (2011: 625.6 million) and thus mainly followed the development of operating earnings. This resulted in adjusted earnings per share from continued operations for the year under review of 2.83, corresponding to a decrease of 13 % (2011: 3.27). Positive effect from divestment of the Nitrogen business Due to the effect of the divestment of the nitrogen fertilizer segment, adjusted Group earnings including discontinued operations rose to 639.7
Page 3 of press release K+S Group expects slight increase in revenues and earnings in the current year, 14 March 2013 million (2011: 581.8 million). These discontinued operations accounted for 98.9 million. (Detailed information about the divestment of the Nitrogen business can be found in the Financial Report 2012 in the Notes to the consolidated financial statements on page 168). Higher dividend proposal intended for 2012 The adjusted earnings per share of the K+S Group including discontinued operations, which serve as the basis for the dividend payment, increased to 3.34 due to the effect of this divestment of the Nitrogen business, after having been 3.04 in the previous year. This places the Board of Executive Directors and the Supervisory Board in the position to propose to the Annual General Meeting an increase of the dividend for 2012 by 10 cents to 1.40 per share. This corresponds to a payout ratio of 42 %. Fourth quarter 2012: Lower revenues and decreased earnings The absence of contracts of North American and Russian potash producers to be concluded with Chinese and Indian customers led to price pressure for international quotations for potassium chloride from the end of the third quarter of 2012 also in the markets relevant for K+S. On 31 December 2012, the North American export organization Canpotex then announced that it had concluded a new potash supply contract with China for the first half of 2013. In the fourth quarter, the wintry weather conditions that set in at the end of November in Western Europe led to an overall average start to the winter season 2012/13. In the United States and in Canada, the winter that began late in December was, however, not sufficient for the multi-year average sales volumes to be achieved overall in the fourth quarter. At 941.6 million, the revenues of the K+S Group in the fourth quarter of 2012 were about 8 % below the figure for the previous year of 1,021.5 million. At 183.2 million, operating earnings EBIT I remained about 12 %
Page 4 of press release K+S Group expects slight increase in revenues and earnings in the current year, 14 March 2013 below the level of the previous year. In the fourth quarter, adjusted Group earnings from continued operations fell by around 12 % to 131.6 million (Q4/2011: 149.9 million). K+S Group with attractive prospects K+S Chairman of the Board of Executive Directors Norbert Steiner anticipates a positive business development for 2013: In the Salt business unit, we expect a tangible recovery for sales volumes, if only because of the wintry weather conditions at the start of this year. In the Potash and Magnesium Products business unit, given the important agreements concluded with China and India, we expect the sales volumes to be at the high level of the previous year once again, albeit at a lower average price level. All in all, we expect the K+S Group to achieve a slight increase in revenues and operating earnings. For 2014, we also see opportunities for a slight increase in revenues and earnings in comparison to 2013, Steiner continues. (For further details about the outlook in the Financial Report 2012, see page 139.) Experience growth K+S is one of the world's leading suppliers of standard and specialty fertilizers. In the salt sector, K+S is the world s leading producer with sites in Europe as well as North and South America. K+S offers a comprehensive range of goods and services for agriculture, industry, and private consumers, which provides growth opportunities in virtually every sphere of daily life. The K+S Group employs more than 14,000 people worldwide. The K+S share the commodities stock on the German DAX index is listed on all German stock exchanges (ISIN: DE000KSAG888, symbol: SDF). More information about K+S can be found at www.k-plus-s.com.
Page 5 of press release K+S Group expects slight increase in revenues and earnings in the current year, 14 March 2013 Note to editors The Financial Report 2012, the Corporate and Sustainability Report 2012 and the K+S Q4/12 Facts & Figures are available under www.k-pluss.com/2012q4en on our website. Furthermore, a video message by Norbert Steiner, Chairman of the Board of Executive Directors, about the course of business and from 10 a.m., the talk by Norbert Steiner, Chairman of the Board of Executive Directors, and Dr. Burkhard Lohr, member of the Board of Executive Directors, for today s K+S annual results press conference in Frankfurt am Main will be available there. A analysts conference in English will be held today at 1 p.m. also in Frankfurt am Main. Norbert Steiner and the members of the Board of Executive Directors, Dr. Burkhard Lohr and Mark Roberts, will take part in it. Shareholders, investors, representatives of the press and all other interested parties are invited to follow the conference via a live webcast at (www.kplus-s.com/de/audio-und-video/cc.html) or by phone on +49-69-6677-75757; PIN 3564773#. The conference is being recorded and will also be available as a podcast. Your contact persons: Press: Investor Relations: Michael Wudonig, CFA Thorsten Boeckers Phone: +49 561 9301 1262 Phone: +49 561 9301 1460 Fax: +49 561 9301 1666 Fax: +49 561 9301 2425 michael.wudonig@k-plus-s.com thorsten.boeckers@k-plus-s.com Forward-looking statements This press release contains information 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 risks arise examples of which are mentioned in the Risk Report actual developments and events may deviate from current expectations. Outside statutory disclosure provisions, the Company does not assume any obligation to update the statements contained in this press release.
Page 6 of press release K+S Group expects slight increase in revenues and earnings in the current year, 14 March 2013 K+S Group Summary Q4 Q4 4 th Quarter 2012 1) Oct.-Dec. Oct.-Dec. 2012 2011 Change All figures in accordance with IFRS million million in % Revenues 941.6 1,021.5 (7.8) Potash and Magnesium Products 478.7 543.2 (11.9) Salt 420.1 438.7 (4.2) Complementary Activities 40.1 38.1 +5.2 Reconciliation 2.7 1.5 +80.0 Earnings before interest, taxes depreciation and amortisation (EBITDA) 243.9 281.2 (13.3) Operating earnings (EBIT I) 183.2 207.8 (11.8) Potash and Magnesium Products 165.9 181.4 (8.5) Salt 23.2 48.0 (51.7) Complementary Activities 1.5 (1.4) - Reconciliation (7.4) (20.2) +63.4 Financial result (18.6) (19.7) +6.1 Earnings before income taxes, adjusted 2) 164.6 188.1 (12.5) Group earnings, adjusted 2), 3) 130.6 158.9 (17.8) Group earnings from continued operations, adjusted 2) 131.6 149.9 (12.2) Earnings per share, adjusted ( ) 2), 3) 0.68 0.83 (18.1) Earnings per share from continued operations, adjusted ( ) 2) 0.69 0.78 (11.5) Capital expenditure 4) 244.1 123.5 +97.7 1) Unless stated otherwise, information refers to the continued operations of the K+S Group. 2) The adjusted key figures only include the result from operating forecast hedges of the respective reporting period reported in EBIT I, which eliminated effects from changes in the market value for the hedges. Related effects on deferred and cash taxes are also eliminated; tax rate for 2012: 28.5 % (2011: 28.4 %). 3) Earnings from continued and discontinued operations. 4) Capital expenditure in property, plant and equipment, intangible assets and investment properties.
Page 7 of press release K+S Group expects slight increase in revenues and earnings in the current year, 14 March 2013 K+S Group Summary 12M 12M January-December 2012 1) Jan.-Dec. Jan.-Dec. 2012 2011 Change All figures in accordance with IFRS million million in % Revenues 3,935.3 3,996.8 (1.5) Potash and Magnesium Products 2,290.6 2,133.6 +7.4 Salt 1,484.8 1,710.1 (13.2) Complementary Activities 153.7 150.4 +2.2 Reconciliation 6.2 2.7 >+100.0 Earnings before interest, taxes, depreciation and amortisation (EBITDA) 1,037.7 1,146.0 (9.5) Operating earnings (EBIT I) 808.5 906.2 (10.8) Potash and Magnesium Products 773.9 739.5 +4.7 Salt 62.4 211.4 (70.5) Complementary Activities 21.1 17.9 +17.9 Reconciliation (48.9) (62.6) +21.9 Financial result (79.6) (64.2) (24.0) Earnings before income taxes, adjusted 2) 728.9 842.0 (13.4) Group earnings, adjusted 2), 3) 639.7 581.8 +10.0 Group earnings from continued operations, adjusted 2) 540.8 625.6 (13.6) Earnings per share, adjusted ( ) 2), 3) 3.34 3.04 +9.9 Earnings per share from continued operations, adjusted ( ) 2) 2.83 3.27 (13.5) Capital expenditure 4) 465.5 293.1 +58.8 Employees as of 31 December (number) 14,362 14,338 +0.2 of which trainees (number) 607 631 (3.8) 1) Unless stated otherwise, information refers to the continued operations of the K+S Group. 2) The adjusted key figures only include the result from operating forecast hedges of the respective reporting period reported in EBIT I, which eliminated effects from changes in the market value for the hedges. Related effects on deferred and cash taxes are also eliminated; tax rate for 2012: 28.5 % (2011: 28.4 %). 3) Earnings from continued and discontinued operations. 4) Capital expenditure in property, plant and equipment, intangible assets and investment properties.