K+s Ag · XETR:SDF
K+s — K+S Aktiengesellschaft — Q4 2022 Earnings Presentation
17 slides from K+s's earnings presentation, Mar 16, 2023
Slide 1: Q4/2022 Results
March 15, 2023 K+S Aktiengesellschaft Q4/2022 Results Dr. Burkhard Lohr Dr. Christian H. Meyer 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: Best EBITDA in K+S' history exceeded by about €1 billion
Best EBITDA in K+S’ history previous best-ever FY EBITDA of 2008 exceeded by about €1 billion EBITDA in € billion 2.4 1.5 * 1.1 ** FY/2008 FY/2021 FY/2022 * thereof €134m former Group companies K+S Nitrogen and Compo ** thereof €219m one-off gain from the REKS transaction 3
Slide 4: Q4/22 EBITDA increased YoY
Q4/22 EBITDA increased YoY Highlights Financials ▪ Q4/22 EBITDA increased to €559m (Q4/21: €490m; excl. REKS gain) € million Q4/2021 Q4/2022 % ▪ Still stressed logistics system, two postponed ships in CA due to Revenues 1,069 1,484 +39 weather and a wait-and-see attitude on the part of the customers
Slide 5: Strong increase of natural gas price during 2022
Strong increase of natural gas price during 2022 ▪ Due to our long-term supply contracts, 90% of our natural gas demand in Europe (6 TWh) were hedged at around 40 €/MWh. ▪ Compared to the average TTF natural gas price of about 120 €/MWh in 2022, we saved more than €400 million of opex. ▪ Hedging rat
Slide 6: Further increase of ASP in Agriculture customer segment
Further increase of ASP in Agriculture customer segment Development of revenues, sales volumes, and average prices by region Q1/2021 Q2/2021 Q3/2021 Q4/2021 2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 2022 Revenues € million 469.0 473.7 529.1 800.3 2,272.1 944.1 1,244.2 1,162.8 1,114.6 4,465.6 Europe € mil
Slide 7: Net financial liabilities turned into a net financial asset position
Net financial liabilities turned into a net financial asset position Net financial liabilities (-); net financial assets (+) 2018 2019 2020 2021 2022 in € + 245m ▪ Net financial liabilities significantly reduced in 2021, following the sale of the -606m Americas business ▪ High cash flows from favora
Slide 8: Outlook
Outlook 8
Slide 9: Low stocks-to-use ratios and unfavorable climate keep agricultural commodity prices up
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
Slide 10: World potash production and sales volumes by region
World potash production and sales volumes by region in million tonnes ▪ Even before limitation of Russian 28 exports and sanctions against Belarus, the potash market was fully used at 25 capacity limit. 33 6 ▪ Russia and Belarus each account for 12 7 7 approx. 16% of global potash 16 production. 17
Slide 11: World potash supply according to IFA: Geopolitical effects
World potash supply according to IFA: Geopolitical effects ▪ Russia exports about 2/3 to "friendly countries" K2 O ~ 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 ▪ P
Slide 12: 2023: Very good Group earnings expected again
2023: Very good Group earnings expected again ▪ 2023 EBITDA expected to range between EBITDA in € billion €1.3 billion and €1.5 billion ▪ Adjusted free cash flow expected to range between €700 million and €900 million, based on a mid triple-digit-million-euro amount of capex 1,600 ▪ Agriculture cust
Slide 13: Planned use of additional liquidity
Planned use of additional liquidity ▪ Participation of shareholders for the 2022 financial year → €1.00 dividend per share and → additional share buyback of up to €200m (about €1.00 per share) ▪ Investment in optimizing our existing business (Bethune, Werra 2060) ▪ Securing crisis-proof balance shee
Slide 14: Shareholder's participation in the Company's success
Shareholder’s participation in the Company’s success Combination of dividend payment and share buyback in € million in €/share Total distribution 400 2,00 Dividend €191.4 million 300 Share Share buyback up to €200.0 million * 1,50 buyback ► up to €391.4 million, respectively about €2 per share 200 1
Slide 15: Significant returns for investors in recent years
Significant returns for investors in recent years Total Shareholder Return; cumulative * 200% +209% ▪ Total Shareholder Return (TSR) comprises dividend income as well as the development of the share price. 150% ▪ Despite lower dividend payments per share, TSR for K+S‘ investors was above TSR of our
Slide 16: Housekeeping items / Financial calendar
Housekeeping items / Financial calendar Additional information on 2023 FY outlook ▪ Tax rate: 30% ▪ CapEx: mid triple-digit million € (2022: €404m) ▪ Cash interest: ~ €-20m (2022: €-53) ▪ D&A: ~ €450m Financial calendar Kepler Cheuvreux Frankfurt Roadshow – CEO, CFO March 16, 2023 UBS London Roadsho
Slide 17: Investor Relations Contacts
Investor Relations Contacts Nathalie Frost Julia Bock, CFA Esther Beuermann Senior 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
K+S Aktiengesellschaft — Q4 2022 Earnings Presentation on 6ix