K+s AG · XETR:SDF
K+s — K+S Aktiengesellschaft — German & Austrian Corporate Conference 2008 (Deutsche Bank)
21 slides from K+s's conference presentation, Jun 5, 2008
Slide 1: Experience growth.
Experience growth. German & Austrian Corporate Conference Deutsche Bank Frankfurt am Main, 4/5 June 2008 Norbert Steiner, CEO The slides used within this speech represent an abstract of our company presentation which is updated regularly and can be found on our website under www.k-plus-s.com Experie
Slide 2: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Outlook June 2008 K+S Group 1
Slide 3: Corporate Structure as of 1 January 2008
K+S Group Corporate Structure as of 1 January 2008 K+S Group Revenues EBIT I Potash and Magnesium Products 1,408.0 177.9 Core business fertilizers and COMPO 617.4 32.0 plant care fertiva 648.0 25.3 Core business Salt 545.1 47.8 salt Waste Management and Recycling Complementary KTG Logistics (KTG) bu
Slide 4: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Outlook June 2008 K+S Group 3
Slide 5: Key Drivers of the Fertilizer Business
K+S Group Key Drivers of the Fertilizer Business z Despite decreasing availability of arable farm land, global production of soft commodities has to increase: • steadily increasing world population • changing diets toward higher meat consumption (e.g. 1 kg beef = 8 kg animal feed) • increasing impor
Slide 6: Agricultural Supply Falls Short of Demand
K+S Group Agricultural Supply Falls Short of Demand Production, consumption, stocks of cereals Production, consumption, stocks of corn 120 40 80 50 30 60 40 80 30 20 40 20 40 10 20 10 m illion t m illion t 0 0 0 0 % % -10 -20 -10 -40 -20 -20 -40 -30 -80 -30 -60 -40 -120 -40 -80 -50 1 6 1 6 1 6 1 6 1
Slide 7: Rising Prices of Agricultural Products
K+S Group Rising Prices of Agricultural Products Index: January 2005 = 100 z Agricultural output cannot 325 Palm oil keep up with demand 300 Corn +192% z Low worldwide inventories 275 Wheat Soybeans +156% of agricultural products 250 +136% 225 z Additional and increasing 200 +113% demand of renewabl
Slide 8: Supplier Structure on the World Potash Market
Potash and Magnesium Products Supplier Structure on the World Potash Market 33.2% 22.8% 11.8% 9.3% 9.2% 9.0% 3.2% 1.5% zPCS Belarus- z K+S zSilvinit ICL- APC SQM Others zMosaic kali IPC Group participation participation China, of PCS of PCS Intrepid, zAgrium Uralkali z zDSW Vale, Canpotex BPC zIberp
Slide 9: World Potash Capacity, Production and Demand
Potash and Magnesium Products World Potash Capacity, Production and Demand Million tonnes z The shortfall of Eastern European Technically available capacity demand after the collapse of the 80 (incl. announced capacity expansions) Soviet Union was more than 74.1 compensated for by the growth Product
Slide 10: MOP Prices for Selected Markets
Potash and Magnesium Products MOP Prices for Selected Markets Overseas Northwest-Europe US$/t (standard, cfr) US$/t (standard, fob) 700 Thailand/Taiwan 688 585 Brazil 686 559 650 540 600 495 550 450 500 405 450 360 400 315 350 270 300 250 225 200 180 150 135 100 90 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q
Slide 11: USD Currency Management
Potash and Magnesium Products USD Currency Management z USD revenues are hedged after the deduction of overseas freight costs and a safety margin z US dollar hedging in 2003 to 2007 (inclusive) via double-barrier options: no classic hedging mechanism, only effective within certain barriers; barriers
Slide 12: K+S' Nitrogen Fertilizer Business
COMPO + fertiva K+S‘ Nitrogen Fertilizer Business z fertiva represents the K+S Group’s nitrogen fertilizer activities and markets the agricultural fertilizers produced exclusively by BASF. Furthermore fertiva sells limited volumes purchased from other leading European producers, too. z COMPO Profess
Slide 13: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Outlook June 2008 K+S Group 12
Slide 14: The Growth Story of Our Salt Business
Salt The Growth Story of Our Salt Business z Salt products of highest purity and quality are used as table salt, industrial salt, salt for chemical transformation and salt for winter maintenance (de-icing) z In Western Europe, by taking over the salt activities of Frisia Zout and Solvay, K+S has bec
Slide 15: SPL: The Optimal Strategic Complement for K+S
Salt SPL: The Optimal Strategic Complement for K+S z SPL has developed into a strong player in the Americas • one of the most cost effective salt producers in the world • enjoys favourable logistical location to attractive overseas markets • high earnings capacity with growth opportunities z SPL ope
Slide 16: Main Salt Suppliers Worldwide
Salt Main Salt Suppliers Worldwide Capacity in million tonnes (crystallized salt and salt in brine; excl. captive use) 18.7 16.2 6.5 14.0 13.7 13.1 9.0 9.7 7.5 7.0 5.3 4.1 3.8 3.6 China Cargill Compass Morton Dampier Artyom- Expor- Südsalz Salins Mitsui Akzo National Minerals Salt Salt sol tadora Gr
Slide 17: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Outlook June 2008 K+S Group 16
Slide 18: Strong Business Performance Expected in 2008
K+S Group Strong Business Performance Expected in 2008 (as of 6 May 2008) z In 2008, revenues should rise significantly: - Estimate is supported primarily by higher revenues in the Potash and Magnesium Products business segment due to large price increases on the world's potash markets - Negative cu
Slide 19: 2008 Perspectives by Business Segment
K+S Group 2008 Perspectives by Business Segment (as of 6 May 2008) z Potash and Magnesium Products: The prices for potash fertilizers currently attained are sig- nificantly higher than last year’s average prices. The resulting price effect should amount to at least 60%. Sales volumes are expected to
Slide 20: 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 information available to us at this moment in time. Should the assumptions u
Slide 21: K+S Aktiengesellschaft
K+S Aktiengesellschaft Bertha-von-Suttner-Straße 7 34131 Kassel (Germany) phone: +49 (0)561 / 9301-0 fax: +49 (0)561 / 9301-1753 www.k-plus-s.com Investor Relations phone: +49 (0)561 / 9301-1460 fax: +49 (0)561 / 9301-2425 email: investor-relations@k-plus-s.com Experience growth.
K+S Aktiengesellschaft — German & Austrian Corporate Conference 2008 (Deutsche Bank) on 6ix