K+S Aktiengesellschaft — Commerzbank Corporate Conference 2020
19 slides from K+S Aktiengesellschaft's conference presentation, Sep 1, 2020
Slide 1: Commerzbank Corporate Conference 2020
1 September 2020 K+S Aktiengesellschaft Commerzbank Corporate Conference 2020 Julia Bock, CFA Janina Rochell Senior Investor Relations Manager Investor Relations Manager
Slide 2: Social contribution – operational measures
Social contribution – operational measures 1 We ensure the supply of essential goods with our products • High-purity pharmaceutical salts for medicine and use in dialysis and infusions • Potassium salts for the preparation of a wide range of medicinal products • Salts for the production of disinfect
Slide 3: Complete sale OU Americas on schedule
Complete sale OU Americas on schedule 1 Unique position in the salt market • Leading brands with high • Revenues: EUR 1.5 billion emotional customer loyalty (2019) • Established customer- • EBITDA: EUR 230 million oriented network with 29 (2019) locations in North America POINTE-CLAIRE • Stable cash
Slide 4: K+S realignment is making progress
K+S realignment is making progress Target Main target: all sites free cash flow positive even with a low potash price or weak winter business • One important step is the development of a new organization based on an SG&A cost budget of EUR 140 million (EUR 60 million less than in 2019) Approach • On
Slide 5: K+S: Focus remains on strengthening the balance sheet
K+S: Focus remains on strengthening the balance sheet Dec. 2019: Net financial liabilities: EUR 3.1 billion Net financial liabilities/EBITDA: 4.9x Sale of OU Americas OU Europe+ measures Restructuring End of 2021 • Reduction of net financial liabilities by significantly more than € 2 billion • Stabl
Slide 6: Current market assessment
Current market assessment 6
Slide 7: Customer Segment Agriculture
Customer Segment Agriculture Stable specialty business and regional diversification paying-off USD/t EUR/t Q2/2020 400 Potassium 500 • After signed contracts in Sulfate 375 (SOP) China and India, product 450 Europe flow restarted into these 350 markets 400 325 Potassium • Prices have bottomed out Ch
Slide 8: Customer Segment Agriculture: What is behind the greatly feared oversupply?
Customer Segment Agriculture What is behind the greatly feared oversupply? thousand tons 140.000 ▪ Only 5 years ago, the technically 120.000 available capacity in 2025 was estimated to be 12 million tons higher 100.000 than today +3% (Scenario 2) 80.000 +1.3% (IFA prognosis) ▪ Even now, greenfield p
Slide 9: Trading update: Communities
Trading update: Communities Pricing trends for next biddings Q2/20 update: ▪ Sales volume ~30% below previous year. Outlook: ▪ High customer inventory levels ▪ However, multi-year contracts help us prevent stronger price declines ▪ Some contracts in higher price regions (e.g. Canada) already settled
Slide 10: Current Trading Customer Segments Industry + Consumers
Current Trading Customer Segments Industry + Consumers Industry Consumers ▪ Broad portfolio of potash/salt products ▪ Good progress in the rollout of the German supplying a broad variety of industries premium table salt brand Saldoro® ▪ Examples: ▪ Strong performance in the Americas, with ▪ Food sal
Slide 11: Financials
Financials 11
Slide 12: Solid Q2/20 EBITDA despite difficult market environment
Solid Q2/20 EBITDA despite difficult market environment Highlights Financials ▪ Q2/20 EBITDA down to €88m (Q2/19: €130m) € million Q2/2019 Q2/2020 % ▪ Adj. FCF €-43m in Q2/20 Revenues 878 840 -4 ▪ COVID-19: Minor efficiency losses due to protective t/o Europe+ 627 588 -6 measures and short shutdowns
Slide 13: Outlook 2020 confirmed
Outlook 2020 confirmed¹ No effects from sale of OU Americas included Main assumptions EBITDA in €m • FY/20 Agriculture ASP expected to be slightly above Q2/20 level (€231/t) − COVID-19 • FY/20 Agriculture sales volume related − One-time efficiency expenses expected to be >7mt (2019: 6.3 mt) − Mainly
Slide 14: We are making progress with the measures that are in our hands
We are making progress with the measures that are in our hands Strong operational performance; widely COVID-19 robust No wastewater-related issues in Germany Bethune quality fulfills customers expectations; ramp-up according to plan Active working capital management to secure liquidity Package of me
Slide 15: Appendix
Appendix 15
Slide 16: Housekeeping items / Financial calendar
Housekeeping items / Financial calendar Additional information on FY 2020 outlook ▪ Tax rate: ~30% ▪ Financial result: ~€-140m-€-150m ▪ CapEx: significantly up ▪ D&A: ~€450m ▪ Reconciliation (EBITDA): €-60m to €-80m Financial calendar Berenberg Virtual Roadshow, London 18 Aug 2020 Bankhaus Lampe Deu
Slide 17: Site costs (FOB) in comparison (2020)
Site costs (FOB) in comparison (2020) USD/t -30% Best-in-class * K+S Bethune K+S Zielitz K+S Bethune BU Potash (after 2023) (Purely MOP) w/o Bethune (incl. Specialties) * column width = Source: CRU Report 2016, K+S production capability in million tonnes The Bethune ramp-up to 2.86 million tons in t
Slide 18: IR Contact Details
IR Contact Details K+S Aktiengesellschaft Bertha-von-Suttner-Str. 7 34131 Kassel (Germany) e-mail: investor-relations@k-plus-s.com homepage: www.kpluss.com IR-website: www.kpluss.com/ir Dirk Neumann Christiane Martel Head of Investor Relations Roadshow Management Phone:+49 561 / 9301-1460 Phone:+49
Slide 19: Disclaimer
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 direc
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