K+s AG · XETR:SDF
K+s — K+S Aktiengesellschaft — 10th German Corporate Conference, Deutsche Bank 2007
43 slides from K+s's conference presentation, Jun 21, 2007
Slide 1: Experience growth. 10th German Corporate Conference
Experience growth. 10th German Corporate Conference Deutsche Bank Frankfurt am Main, 21 June 2007 Dr. Ralf Bethke, CEO
Slide 2: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy and Outlook D. Financial Data E. K+S Share Appendix June 2007 K+S Group 1
Slide 3: Corporate Structure
K+S Group Corporate Structure K+S Group Revenues EBIT I Potash and Magnesium Products 1,238.9 158.6 Core business fertilizers and COMPO 552.4 29.2 plant care fertiva 556.2 16.7 Core business Salt 485.8 67.6 salt Waste Management and Recycling 69.4 13.8 Complementary businesses Services and Trading 5
Slide 4: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy and Outlook D. Financial Data E. K+S Share Appendix June 2007 K+S Group 3
Slide 5: Why Fertilize?
K+S Group Why Fertilize ? z There are only few soils on earth which have a sufficient content and availability of nutrients to achieve high yields over a longer period without fertilization z Indispensable supplement to the natural nutrient content of soils z Compensation of the nutrient losses by h
Slide 6: Yields of Cereals in Selected Regions
K+S Group Yields of Cereals in Selected Regions dt/ha 70 60 50 40 30 20 10 0 North America Latin America Western Europe Eastern Europe South Asia Far East Africa Source: FAO 1980 1985 1990 1995 2000 2004 z Highest yields of cereals per hectare to be found in Western Europe and in North America thank
Slide 7: Meat Consumption per Capita
300 K+S Group Meat Consumption 250 per Capita 200 kg / person 150 North America 100 Europe* South America 50 Asia Africa 0 1961 1970 1980 1990 2002 source: Food and Agriculture Organization of the United Nations (FAO) * comparable data for Europe is not available before 1992 z Rising prosperity goes
Slide 8: Bio Diesel Production - Objectives of the EU 25
K+S Group Bio Diesel Production - Objectives of the ‘EU 25’ 22.000 According to the EU guideline from 08.05.2003 for the promotion of the use of 20.000 bio fuels, the member states have to guarantee a minimum share of bio fuels. 18.000 1.000 t/year 16.000 14.000 14,000 13,450 12.000 12,000 11,500 10
Slide 9: World Production/Demand of Cereals and Corn
K+S Group World Production/Demand of Cereals and Corn Production, consumption, stocks of cereals Production, consumption, stocks of corn 120 40 80 50 30 60 40 80 30 20 40 20 40 m illion to n n e s m illio n ton n e s 10 20 10 0 0 0 0 % % -10 -10 -20 -40 -20 -20 -40 -30 -80 -30 -60 -40 -120 -40 -80 -
Slide 10: Rising Prices of Agricultural Products
K+S Group Rising Prices of Agricultural Products Index: January 2005 = 100 z Agricultural output cannot keep 200 Corn up with demand Palm oil +92% 180 z Low worldwide inventories Wheat of agricultural products Soybeans +68% 160 z Increasing demand of renewable raw materials 140 +28% Î Fertilizer use
Slide 11: World Potash Capacity, Production and Demand
Potash and Magnesium Products World Potash Capacity, Production and Demand Million tonnes Technically available Capacity z The shortfall of Eastern European (incl. announced capacity expansions) demand after the collapse of the Production Soviet Union was more than 70 (incl. announced capacity expan
Slide 12: 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) 280 210 Thailand/Taiwan 250 Brazil 247 190 193 243 220 170 190 150 160 130 130 110 100 90 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2003 2004 2005 200
Slide 13: Recent Price Announcements
Potash and Magnesium Products Recent Price Announcements Western Europe granular MOP z Price increase of 12 € to approximately 190 € cfr (implemented) standard MOP z Price increase of about 20 € to approximately 175 € cfr expected for the second half of the year Brazil granular MOP z Price increase
Slide 14: Potash and Magnesium Products
K+S Group Potash and Magnesium Products 1st Quarter Financial Year Revenues by product group € million 2007 2006 2006 2005 2006 (%) Revenues 368.5 336.0 1,238.9 1,197.2 EBIT I 52.8 42.1 158.6 151.8 Brief description Crude potash and magnesium salts are extracted from six mines in Germany and form th
Slide 15: Supplier Structure on the World Potash Market
Potash and Magnesium Products Supplier Structure on the World Potash Market 30.2% 23.7% 13.4% 10.6% 8.2% 9.1% 3.2% 1.6% zMosaic Belarus- z K+S zSilvinit ICL- APC SQM Others zPCS kali IPC Group participation participation China, of PCS of PCS Intrepid, zAgrium Uralkali z zDSW CVRD, Canpotex BPC zIber
Slide 16: USD Double Barrier Option System
Potash and Magnesium Products 1,65 USD Double Barrier Option System 1,60 1,55 USD/EUR 1,50 1.50 1,45 1.45 1,40 1.40 1,35 1.35 1,30 1.30 1,25 1.25 1,20 1.20 1,15 1.15 1,10 1.10 1,05 1.05 1,00 1.00 1 Jan. 1 July 1 Jan. 1 July 1 Jan. 1 July 1 Jan. 1 July 1 Jan. 1 July 1 Jan. 1 July 31 Dec. 2004 2005 20
Slide 17: USD Currency Management 2006 - 2009
Potash and Magnesium Products USD Currency Management 2006 - 2009 z Revenues less overseas freight costs and a safety margin are hedged three years in advance by means of double barrier options z Double barrier options: no classic hedging mechanism, only effective within certain barriers; restructur
Slide 18: COMPO
K+S Group COMPO 1st Quarter Financial Year Revenues by segment € million 2007 2006 2006 2005 2006 (%) Revenues 217.1 197.7 552.4 541.7 EBIT I 19.2 16.3 29.2 25.0 Brief description Consumer business: high-quality branded products such as potting soil, plant care products, lawn and garden fertilizers.
Slide 19: COMPO - Market Entrance Consolidated
COMPO COMPO - Market Entrance Consolidated z New plant protection products thanks to cooperation with Syngenta - “COMPO Axoris Insekten-frei“ introduced at the beginning of 2007 - Four further new developments based on Syngenta substances and 13 new formulae pending approval z Further development of
Slide 20: fertiva
K+S Group fertiva 1st Quarter Financial Year Revenues by product group € million 2007 2006 2006 2005 2006 (%) Revenues 150.5 132.2 556.2 568.3 EBIT I 4.4 3.8 16.7 14.8 Brief description fertiva represents the K+S Group’s nitrogen fertilizer activities. It markets the agricultural fertilizers produce
Slide 21: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy and Outlook D. Financial Data E. K+S Share Appendix June 2007 K+S Group 20
Slide 22: Salt
K+S Group Salt 1st Quarter Financial Year Revenues by product group € million 2007 * 2006 2006 * 2005 2006 (%) Revenues 176.6 157.7 485.8 398.0 EBIT I 25.0 47.5 67.6 62.7 * since 1 July 2006 including SPL Brief description Salt products of highest purity and quality are used as table salt, industria
Slide 23: Main Crystallized Salt Suppliers Worldwide
Salt Main Crystallized Salt Suppliers Worldwide Production / supply for third parties in million tonnes 18.7 12.6 12.5 12.5 11.9 6.4 7.3 7.3 6.1 4.1 3.9 3.6 CNSG Morton Compass Cargill Dampier ESSA Salins SWS Akzo Salt Minerals Salt Group (China) (USA) (USA) (GER) (USA) (AUS) (MEX) (F) (GER) (NL) ba
Slide 24: Mining Chamber in Germany
Salt Mining Chamber in Germany June 2007 K+S Group 23
Slide 25: SPL: Salt Extraction in the Atacama Desert
Salt SPL: Salt Extraction in the Atacama Desert June 2007 K+S Group 24
Slide 26: 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 27: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy and Outlook D. Financial Data E. K+S Share Appendix June 2007 K+S Group 26
Slide 28: Strategy
K+S Group Strategy z Consolidation and selective expansion of our leading market positions, particularly with regard to specialities z Further development of our core business sectors through acquisitions and cooperation arrangements z Ongoing focus on improving efficiency and cutting costs as well
Slide 29: Outlook for the Year 2007
K+S Group Outlook for the Year 2007 (as of 2 May 2007) z Strong increase in global potash demand expected for 2007; overseas and European prices to rise significantly in the second half of the year; production level to reach 8 million tonnes in our Potash and Magnesium Products segment z COMPO will
Slide 30: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy and Outlook D. Financial Data E. K+S Share Appendix June 2007 K+S Group 29
Slide 31: Development of Revenues, Earnings and Cash Flow
5.000 500 K+S Group 4.500 450 Development of Revenues, Earnings and Cash Flow 4.000 400 € million € million 3.500 3,500 CAGR 7.0% 350 CAGR 20.2% 2,958 3,000 3.000 300 278 2,500 2.500 250 2,259 CAGR 14.1% 2,000 2.000 200 176 *** CAGR 29.0% 1,500 1.500 150 133 130 104 1,000 1.000 100 47 500 50 0 0 0 ‘
Slide 32: Capital Expenditure, Acquisitions, Share Buybacks
K+S Group Capital Expenditure, Acquisitions, Share Buybacks € million 2002-’07e 500 Share buybacks: 110 Acquisitions: 454 Expansion capex: 220 400 Maintenance capex: 606 Total cash-outflow: 1,390 300 358 200 93 43 76 1 2 67 41 33 27 22 100 21 105 109 124 88 94 86 0 2002 2003 2004 2005 2006 2007e z 2
Slide 33: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy and Outlook D. Financial Data E. K+S Share Appendix June 2007 K+S Group 32
Slide 34: Dividends and Share Buybacks (10 Years)
K+S Group Dividends and Share Buybacks (10 Years) 150 2,50 € million € per share Dividend per share (rhs) (for the prior financial year) 2.00 120 Share buybacks (lhs) 2,00 2.00 66.70 1.80 Total dividend payment (lhs) (for the prior financial year) 90 69.36 1,50 1.50 1.30 43.38 82.50 1.00 1.00 1.00 7
Slide 35: K+S Share Price Compared with DAX and MDAX
K+S Aktiengesellschaft K+S Share Price Compared with DAX and MDAX Performance of K+S share Market capitalisation (Index: 31 December 2006 = 100) (€ million) 140 130 K+S +28% 4,337 +946 120 DAX +17% 3,391 +1,285 MDAX +16% 110 2,106 100 90 80 Jan. June 2005 2006 2007 2007 2007 31 Dec. 31 Dec. 11 June
Slide 36: K+S Share Price Compared with Peer Group
K+S Aktiengesellschaft K+S Share Price Compared with Peer Group Index: 31 December 2006 = 100 180 170 Mosaic +67% 160 PotashCorp +54% 150 140 130 K+S +28% 120 Yara +21% 110 100 90 80 Jan. June 2007 2007 source: Bloomberg; as of 11 June 2007 June 2007 K+S Group 35
Slide 37: K+S Aktiengesellschaft contact details
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. June 2007 K+S Group 3
Slide 38: Content
K+S Group Content A. Corporate Structure B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy and Outlook D. Financial Data E. K+S Share Appendix June 2007 K+S Group 37
Slide 39: Key Figures as of March 2007
K+S Group Key Figures as of 31 March 2007 € million Q1/2007 Q1/2006 % Revenues 944.7 855.5 10.4 Operating earnings (EBIT I) 103.3 113.1 - 8.7 Earnings before taxes (EBT), adjusted* 93.5 107.2 - 12.8 Group earnings after taxes, adjusted* 62.6 71.2 - 12.1 Effective tax rate (%) 33.1 33.6 Capital expen
Slide 40: Shareholder Structure
K+S Aktiengesellschaft Shareholder Structure Switzerland permanent BASF France 2.1% holdings employees* (permanent 3.9% 10.3% 2.2% holdings) Rest of the World USA & Canada 10.3% 1.0% 17.9% freefloat private German institutional UK & Ireland 89.7% investors* investors 21.2% 14.4% 27.0% foreign instit
Slide 41: Financial Calendar
K+S Group Financial Calendar 14 August 2007 ¾ Interim report 30 June 2007 13 November 2007 ¾ Interim report 30 September 2007 13 March 2008 ¾ Report on business in 2007 ¾ Press and analyst conference, Frankfurt am Main 14 May 2008 ¾ Annual General Meeting 2008, Kassel ¾ Interim report 31 March 2008
Slide 42: 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 43: K+S Aktiengesellschaft contact details
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. June 2007 K+S Group 4
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