K+s AG · XETR:SDF

K+s — K+S Aktiengesellschaft — Berenberg - Goldman Sachs German Corporate Conference 2016

26 slides from K+s's conference presentation, Sep 20, 2016

  1. Slide 1: Berenberg - Goldman Sachs German Corporate Conference Munich

    K+S Aktiengesellschaft Berenberg - Goldman Sachs German Corporate Conference Munich 20-21 September 2016 Norbert Steiner, CEO

  2. Slide 2: Investment Case

    K+S Group Two-pillar strategy Earnings-based dividend policy Positioned for growth Investment Case Balanced regional portfolio Sustainable margin growth through specialisation Attractive mid-term outlook Global Presence Cost discipline K+S Group 2

  3. Slide 3: Our Products

    K+S Group Our Products De-icing ~ 10m tons Oil & Gas Food processing Agriculture ~ 11m tons (Feed) Chemicals Pharma Fertilizer ~ 6m tons K+S Group 3

  4. Slide 4: Our Structure

    K+S Group Our Structure K+S Group Potash and Magnesium Products Salt Business Unit Business Unit Complementary Activities K+S Group 4

  5. Slide 5: Salt: Indispensable for Life ... and for K+S

    Salt Indispensable for Life … and for K+S Diverse and stable salt end Essential mineral for our life uses driving continuous growth Basic material representing Mineral without economically only a small portion of the viable substitutes production costs K+S Group 5

  6. Slide 6: Unrivalled Global Production Network

    Salt Unrivalled Global Production Network Project in Australia launched  More than 30 assets on 3 continents  Ensuring close proximity to customers  Best in class supply chain assets and competence  Industry best cost production in Chile K+S Group 6

  7. Slide 7: ¼ of a Soccer Field Remains to Feed One Person

    Potash and Magnesium Products ¼ of a Soccer Field Remains to Feed One Person 2050 K+S Group 7

  8. Slide 8: Balanced Fertilization

    Potash and Magnesium Products Balanced Fertilization  Plants need sunlight, water and minerals  Only few soils with sufficient availability of plant nutrients  Potash is an indispensable supplement to natural nutrient content of soils  Potash not substitutable K+S Group 8

  9. Slide 9: Utilizing Entire Range of Minerals in Complex Deposits

    Potash and Magnesium Products Utilizing Entire Range of Minerals in Complex Deposits Industrial Health Care & Nutrition products 0.7 Industrial potash KCL (MOP) 6.8 Kieserite 3.1 Specialties 3.0 Korn-Kali SOP K+S Group 9

  10. Slide 10: Legacy Project Strengthening our Global Presence

    Legacy Project Strengthening our Global Presence China India North America South East Asia South America K+S Group 10

  11. Slide 11: Q2/16 Results

    K+S Group Lower potash prices Mild winter weather Fit for the Future Q2/16 Results Missing deep-well injection High extraordinary impacts Full-year guidance Dry weather Cost discipline K+S Group 11

  12. Slide 12: Weak Second Quarter in Both Business Units

    K+S Group Weak Second Quarter in Both Business Units EBIT I in € million • Potash price and product mix • Mild winter in salt • Werra production standstills 179 15 Q2/15 Volume/ Price Missing deep- Fit for the Future Q2/16 well injection K+S Group 12

  13. Slide 13: Update on deep-well injection

    Potash and Magnesium Products Update on deep-well injection  Review of the application is ongoing  Originally expected to be completed in summer 2016  Currently, saline wastewater can only be disposed to a limited extent  Production largely based on water flow rate of the Werra river Water flow

  14. Slide 14: Guidance 2016: EBIT I also Influenced by Extraordinaries

    K+S Group Guidance 2016: EBIT I also Influenced by Extraordinaries € million 782 300 200 200 Main effects: - OpEx Legacy - Higher D&A Actual Volume-/ Missing deep- Other Fit for the 2016e 2016e EBIT I range 2015 price well injection effects Future permit (net) K+S Group 14

  15. Slide 15: Management Agenda

    K+S Group Commissioning Legacy Manage environmental challenges Fit for the Future Management Agenda Salt 2020 Potash fundamentals to improve Enhancing portfolio of higher yielding products Lower CapEx Cost discipline K+S Group 15

  16. Slide 16: From Capex to Cash

    K+S Group From Capex to Cash Today 2020 Managing environmental Commissioning Leverage (LTM) challenges Leverage of Legacy 3.6x particularly in 1.0-1.5x Germany Capex2 Capex € 1.3 billion Maintenance Keeping cost Enhancing Successful discipline above FCF portfolio of implementation and beyond FCF Neg

  17. Slide 17: Commissioning of Legacy Continues Despite Incident in July

    Commissioning of Legacy Commissioning Continues Despite Incident in July  No injuries  1 of 5 crystallizers dropped  Impact on ramp-up:  Commissioning continues  Production of first ton delayed into Q2/17  Production volume 2017 below previously planned (up to 1 million tons)  Capacity of 2 m

  18. Slide 18: Managing Environmental Challenges in Germany

    Managing Environmental Challenges in Germany Deep-well injection: Measures for the short-term Million m³ Identification and implementation of measures 20 to bridge 2016/2017 KCF plant 14 10 7 7 7 5.5 1997 2006 2012 2015 2016 2017 Beyond Werra + Deep-well injection Measures Gap K+S Group 18

  19. Slide 19: Two Bolt-On Acquisitions in Both Business Units

    Enhancing Portfolio of Higher Yielding Products Two Bolt-On Acquisitions in Both Business Units  Expected capacity of 3.5 million tons of salt for chemical industry in Asia Huludao  CapEx of around € 225 million  Possible production start in 2022  One of the largest producers of synthetic magnes

  20. Slide 20: Successful Implementation of Salt 2020 Strategy

    Successful Implementation of „Salt 2020“ Strategy On Track Priority areas GROWTH EFFICIENCY CULTURE  Market share growth  Fit for the Future  Safety first!  New segments  Business and technical  Remove silo thinking  New regions processes  Transparency/trust  Supply chain and  High perform

  21. Slide 21: Keeping Cost Discipline Above and Beyond Fit for the Future

    Keeping Cost Discipline Above and Beyond ‚Fit for the Future‘ Cost Discipline Will Remain High € million >180  “Fit for the Future” on track  More than 2/3 of total >150 aspirations achieved  Measures implemented will continue beyond 2016 with full effects until 2018 30  Further top-down measure

  22. Slide 22: From Capex to Cash

    K+S Group From Capex to Cash Today 2020 Managing environmental Commissioning Leverage (LTM) challenges Leverage of Legacy 3.6x particularly in 1.0-1.5x Germany Capex2 Capex € 1.3 billion Maintenance Keeping cost Enhancing Successful discipline above FCF portfolio of implementation and beyond FCF Neg

  23. Slide 23: IR Contact Details

    K+S Group IR Contact Details K+S Aktiengesellschaft Bertha-von-Suttner-Str. 7 34131 Kassel (Germany) E-Mail: investor-relations@k-plus-s.com Homepage: www.k-plus-s.com IR-website: www.k-plus-s.com/en/ir Thorsten Boeckers Andrea Rach Head of Investor Relations Investor Relations Assistant Phone: +49

  24. Slide 24: Forward-Looking Statements

    K+S Group Forward-Looking Statements 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 assumptio

  25. Slide 25: K+S Group

    K+S Group

  26. Slide 26: K+S Share, ADR and Bond Information

    K+S Group K+S Share K+S ADR K+S Bond 06/2022 K+S Bond 12/2018 K+S Bond 12/2021 • WKN: KSAG88 • CUSIP: 48265W108 • WKN: A1P GZ8 • WKN: A1Y CR4 • WKN: A1Y CR5 • ISIN: DE000KSAG888 • ADR Ticker-Symbol: • ISIN: DE000A1PGZ82 • ISIN: XS0997941199 • ISIN: XS0997941355 • Ticker-Symbols: Bloomberg: KPLUY / B

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