Slide 1: Analyst Call Q3/2020
12 November 2020 K+S Aktiengesellschaft Analyst Call Q3/2020 Dr. Burkhard Lohr Thorsten Boeckers CEO CFO
Slide 2: 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
Slide 3: Q3/20 EBITDA significantly improved YoY
Q3/20 EBITDA significantly improved YoY Highlights Financials Q3/20 EBITDA increased to €96m (Q3/19: €81m) € million Q3/2019 Q3/2020 % COVID-19: Minor efficiency losses Revenues 905 822 -9 One-off benefit from package of measures in Q3/20 t/o Europe+ 621 563 -9 Adj. net profit affected by no
Slide 4: Customer Segment Agriculture
Customer Segment Agriculture Stable specialty business and regional diversification paying-off USD/t EUR/t Q3/2020 400 500 • Price recovery in Brazil 375 continued on the back of 450 very strong demand 350 despite strong supply 400 325 Potassium Sulfate • Improved demand in SEA 300 (SOP) 350 • This
Slide 5: Trading update: Communities
Trading update: Communities Pricing trends for next winter season Q3/20 update: Sales volume ~30% below previous year. Weak early-fills business due to high customer inventory levels However, multi-year contracts helped us prevent stronger price declines Some contracts in higher price region
Slide 6: Current Trading Customer Segments Industry + Consumers
Current Trading Customer Segments Industry + Consumers Industry Consumers Stable demand of animal nutrition Strong demand for “stay-at-home products”, products. e.g. table salt, water softening and pool salt Demand for products for the oil and gas on the back of the corona pandemic. and chemic
Slide 7: Outlook 2020 for EBITDA confirmed
Outlook 2020 for EBITDA confirmed Main assumptions EBITDA in €m including OU Americas¹ • FY/20 Agriculture ASP expected to be slightly above Q3/20 level (€225/t) • FY/20 Agriculture sales volume COVID-19 expected to be >7mt (2019: 6.3 mt) + FX Mainly +Cost SG&A 640 restructuring pricing discip
Slide 8: K+S Cleans Up Balance Sheet
K+S Cleans Up Balance Sheet • Potash prices expected to continue to rise in the short and medium term • Long-term assumptions for potash prices and cost of capital were adjusted • Higher market risk premium increasing WACC • Non-cash impairment losses on assets of around EUR 2 billion 8
Slide 9: Signing achieved for complete OU Americas sale
Signing achieved for complete OU Americas sale Key data of the signed agreement: • Buyer: Stone Canyon Industries POINTE-CLAIRE Holdings LLC, Mark Demetree and affiliates CHICAGO • Gross proceeds: USD 3.2 bn 1 • EV/EBITDA: 12.5x 2019 EBITDA of USD 257m • Closing timeline: Summer 2021 • Exp. net proc
Slide 10: K+S investment case: Lean and more efficient K+S with solid financials
K+S investment case: Lean and more efficient K+S with solid financials Mega trends intact Products to secure world nutrition Financial and administrative restructuring More room to maneuver Focus on cash and value generation Gain value for our shareholders Optimized production footprint Posi
Slide 11: Q&A
Q&A Dr. Burkhard Lohr Thorsten Boeckers CEO CFO
Slide 12: Housekeeping items / Financial calendar
Housekeeping items / Financial calendar Additional information on FY 2020 outlook Tax rate: 3-5% Financial result: ~€-140m-€-150m CapEx: significantly up D&A: ~€450m Reconciliation (EBITDA): €-90m to €-110m Financial calendar CIBC/ Kepler Cheuvreux Global Agriculture Conference Virtual 16
Slide 13: 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