K+S Aktiengesellschaft — Q1 2022 Earnings Presentation
16 slides from K+S Aktiengesellschaft's earnings presentation, May 11, 2022
Slide 1: Conference Call Q1/2022
May 11, 2022 K+S Aktiengesellschaft Conference Call Q1/2022 Dr. Burkhard Lohr 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: Attractive market environment
Attractive market environment Brazil potash price in USD (MOP gran.) ▪ Potash prices in Brazil more than 1.200 quadrupled; Europe also records 1.100 significant increase 1.000 900 800 ▪ High demand for fertilizers with supply 700 at full capacity 600 500 400 300 200 Source: Argus FMB 3
Slide 4: Q1/22 EBITDA more than quadrupled YoY
Q1/22 EBITDA more than quadrupled YoY Highlights Financials (continuing operations) ▪ Q1/22 EBITDA increased to €524m (Q1/21: €126m) € million Q1/2021 Q1/2022 % ▪ COVID-19: Minor efficiency losses on the previous year's Q1 level Revenues 733 1,212 +65 ▪ Adj. net profit increased to €313m (Q1/21: €49
Slide 5: Debt significantly reduced
Debt significantly reduced Net financial liabilities / EBITDA (x times) 7.2 Net financial liabilities reduced from €3.2 billion end of 2020 to €520 million in Q1/2022 5.3 4.9 Target: Rating in investment grade range 0.6 0.4 2018 2019 2020 2021 Q1/2022 Years 2018 – 2020 including discontinued operati
Slide 6: Outlook
Outlook 6
Slide 7: Substantial restraints of global potash supply
Substantial restraints of global potash supply in million tonnes ▪ Russia and Belarus each account for 16% of global potash production ▪ Most projects for capacity expansion came from Russian potash producers ▪ 28% of global wheat exports come from Russia and Ukraine 2020 World potash production 75.
Slide 8: 2022 EBITDA outlook raised to €2.3 to €2.6 billion
2022 EBITDA outlook raised to €2.3 to €2.6 billion ▪ Strong increase in average price in EBITDA in €m continuing operations Agriculture product portfolio ▪ Cost increases for energy, logistics, - Higher freight and materials to be significantly costs 2,300 exceeded - Higher energy costs - - FX effec
Slide 9: European energy supply
European energy supply ▪ Price secured for more than 90% of natural gas demand 2022 ▪ Prices secured for more than 70% of natural gas demand in 2023 and 2024 ▪ Like all industrial companies in Germany, we are dependent on the reliable supply of natural gas ▪ Canadian site Bethune independent of natu
Slide 10: Guiding principles of strategy and management focus
Guiding principles of strategy and management focus Financial ambition ▪ 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 10
Slide 11: Optimize the existing – site strategies
Optimize the existing – site strategies Bethune ▪ 2022 expense budget has been increased by €50 million ▪ Additional capex proactively target short-term acceleration as well as longer-term ramp-up ▪ Hiring process for more than 70 additional people for the further ramp-up project mainly in the f
Slide 12: Planned use of additional liquidity
Planned use of additional liquidity ▪ Repayment of factoring ▪ Purchase of CO2 certificates for the years 2026 onwards ▪ Dividend payment for the 2021 financial year ▪ Repayment of bond due in June 2022 ▪ Accelerated Bethune ramp-up ▪ Investment in optimizing our existing business ▪ Building a crisi
Slide 13: Successful start in 2022 – Attractive prospects
Successful start in 2022 – Attractive prospects 13
Slide 14: Q&A
Q&A Dr. Burkhard Lohr CEO
Slide 15: Housekeeping items / Financial calendar
Housekeeping items / Financial calendar Additional information on 2022 FY outlook – continuing operations ▪ Tax rate: 30% ▪ Cash interest: ~ €-50m (2021: €-126m) ▪ CapEx: a good €400m (2021: €334m) ▪ D&A: ~ €400m Financial calendar AGM, virtual May 12, 2022 BMO Conference, New York – CEO May 18, 202
Slide 16: 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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