K+s Ag · XETR:SDF

K+s — K+S Aktiengesellschaft — Q2 2022 Earnings Presentation

15 slides from K+s's earnings presentation, Aug 11, 2022

  1. Slide 1: Q2/2022 Results

    August 11, 2022 K+S Aktiengesellschaft Q2/2022 Results Dr. Burkhard Lohr CEO/CFO

  2. 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

  3. Slide 3: Low stocks-to-use ratios keep agricultural commodity prices and farmer profitability high

    Low stocks-to-use ratios and unfavorable climate around the world keep agricultural commodity prices up and farmer profitability at high level Price development of important agricultural commodities US corn farmer profitability in USD/acre since 01/1996 since 01/2020 220 Corn 200 Soybeans 180 160 14

  4. Slide 4: Strong increase of ASP in Agriculture customer segment

    Strong increase of ASP in Agriculture customer segment Development of revenues, sales volumes, and average prices by region Q1/2021 Q2/2021 H1/2021 2021 Q1/2022 Q2/2022 H1/2022 Revenues € million 469.0 473.7 942.7 2,272.1 944.1 1,244.2 2,188.3 Europe € million 250.6 202.1 452.7 956.1 349.9 543.0 892

  5. Slide 5: Q2/22 EBITDA saw six-fold increase YoY

    Q2/22 EBITDA saw six-fold increase YoY Highlights Financials (continuing operations)  Q2/22 EBITDA increased to €706m (Q2/21: €112m) € million Q2/2021 Q2/2022 %  COVID-19: Minor efficiency losses on the previous year’s Q2 level Revenues 664 1,510 > +100  FCF at €+131m despite jump in WC tie-up (Q

  6. Slide 6: FCF burdened by tie-up of working capital

    FCF burdened by tie-up of working capital Working Capital development (in €m)  During Q2/22, we saw a build-up of working capital of €418m to €1,349m (Q2/21: build-up of €109m) +702  During H1/22, we saw a build-up of working capital +418 of €702m to €1,349m, thereof €109m due to lower use of fact

  7. Slide 7: Successful H1/2022 – Attractive prospects

    Successful H1/2022 – Attractive prospects 7

  8. Slide 8: World potash supply according to IFA: Geopolitical effects

    World potash supply according to IFA: Geopolitical effects  Russia exports about 2/3 to "friendly countries" K2O ~ 60% of t eff KCl  More than 80% of the currently forecasted expansion of potash production comes from Russia  Different assumptions for the recovery of the world's potash supply  Pe

  9. Slide 9: Assumptions on gas situation

    Assumptions on gas situation Pricing Availability  §26 EnSiG to be called  Q4 scenario: 25% out as of October 1 lower gas availability  Levy: 50€/MWh, at all German sites assuming this  Certain will also be compensation applied on possibilities with contractually electricity or other fixed volum

  10. Slide 10: 2022 EBITDA outlook remains at €2.3 to €2.6 billion – even with described gas scenario

    2022 EBITDA outlook remains at €2.3 to €2.6 billion – even with described gas scenario EBITDA in €m  Even stronger increase in Agriculture ASP makes up for now assuming the described gas scenario for Q4 with + FX effects - Higher freight 25% less availability and §26 EnSiG costs - Higher energy 2,3

  11. Slide 11: Guiding principles of strategy and management focus

    Guiding principles of strategy and management focus Financial ambitions  Earn cost of capital over a 5-year cycle  At the same time, an EBITDA margin of > 20% is aimed for over this cycle  From 2023, positive free cash flow even in the event of temporarily low potash prices 11

  12. Slide 12: Optimize the existing – site strategies

    Optimize the existing – site strategies Werra  Optimize production processes  Reduce liquid residues  Reduce solid residues  Increase energy efficiency  Reduce CO2 emissions  Improve competitiveness 12

  13. Slide 13: Planned use of additional liquidity

    Planned use of additional liquidity  Repayment of factoring (done in H1/22)  Purchase of CO2 certificates for the rest of the trading period (done in H1/22)  Dividend payment for the 2021 financial year (done in H1/22)  Repayment of bond in June 2022  Repayment of bond in early 2023  Investmen

  14. Slide 14: Housekeeping items / Financial calendar

    Housekeeping items / Financial calendar Additional information on 2022 FY outlook – continuing operations  Tax rate: 30%  CapEx: a good €400m (2021: €334m)  Cash interest: ~ €-50m (2021: €-126m)  D&A: ~ €400m Financial calendar Bank of America Roadshow London – CEO 16 August 2022 Commerzbank and

  15. Slide 15: Investor Relations Contacts

    Investor Relations Contacts Nathalie Frost Julia Bock, CFA Esther Beuermann Investor Relations Manager Head of Investor Relations Investor Relations Manager Phone: + 49 561 / 9301-1403 Phone: + 49 561 / 9301-1009 Phone: + 49 561 / 9301-1679 Fax: + 49 561 / 9301-2425 Fax: + 49 561 / 9301-2425 Fax: +

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