K+S Aktiengesellschaft — Kepler Cheuvreux German Corporate Conference 2021
17 slides from K+S Aktiengesellschaft's conference presentation, Jan 18, 2021
Slide 1: Kepler Cheuvreux German Corporate Conference
18 January 2021 K+S Aktiengesellschaft Kepler Cheuvreux German Corporate Conference Dr. Burkhard Lohr Julia Bock, CFA CEO Senior Investor Relations Manager
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: K+S at a Glance
K+S at a Glance K+S Group financials 2019 Revenues EBITDA EBITDA-Margin Earnings after taxes, adj. € 4.07 billion € 640 million 16% € 78 million OU Europe+: Revenues: € 2.54 billion; EBITDA: € 437 million; Margin: 17% OU Americas: € 1.53 billion; EBITDA: € 230 million; Margin: 15% Customer Segments
Slide 4: Agricultural markets in very good shape
Agricultural markets in very good shape % ► Recovery of crop prices on back of falling 220 stock-to-use ratios, mainly corn and soybean below 5-year-average 200 ► Poor global harvest, notably in China and 180 recovering demand 160 ► First meaningful step-up in farm profitability since 2015 140 ► Ups
Slide 5: Customer Segment Agriculture
Customer Segment Agriculture Stable specialty business and regional diversification paying-off Q3/2020 USD/t EUR/t • Price recovery in Brazil 400 500 continued on the back of Potassium Sulfate very strong demand 375 (SOP) Europe 450 despite strong supply 350 • Improved demand in SEA 400 325 Potassiu
Slide 6: Trading update: Communities
Trading update: Communities Q3/20 update: ▪ Sales volume ~30% below previous year Pricing trends for current winter season ▪ 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 regi
Slide 7: Outlook 2020 for EBITDA confirmed
Outlook 2020 for EBITDA confirmed (as of 12 November 2020) 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 640 − Mainly +Cost − SG&A • F
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: Partnering with REMEX is one important step to reduce debt
Partnering with REMEX is one important step out of the package of measures to reduce debt ► One focus of the package of measures to reduce debt was on future-oriented environmental solutions ► K+S and REMEX found joint venture REKS to join their powers in the waste management business ˃ K+S with sig
Slide 11: Transforming environmental obligations into a solution-oriented business model
Transforming environmental obligations into an intelligent and solution-oriented business model • For reasons of water, environmental and nature conservation law, K+S is obliged to keep the impact of its mining activities on nature as low as possible • In connection with the tailings piles, there ar
Slide 12: Impact of the transaction on K+S
Impact of the transaction on K+S ► Business contributed by K+S valued with an average EBITDA multiple of 20 times ► All underground assets as well as overground facilities of underground reutilisation and disposal stay with K+S ► K+S will realize a considerable book gain ► With closing of the transa
Slide 13: 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 14: Q&A
Q&A Dr. Burkhard Lohr Julia Bock, CFA CEO Senior Investor Relations Manager
Slide 15: Housekeeping items
Housekeeping items Additional information on FY 2020 outlook (including OU Americas) ▪ Tax rate: 3-5% ▪ Financial result: ~€-140m-€-150m ▪ CapEx: significantly up ▪ D&A: ~€450m ▪ Reconciliation (EBITDA): €-90m to €-110m 15
Slide 16: Site costs (FOB) in comparison (2020)
Site costs (FOB) in comparison (2020) USD/t -30% Best-in-class * K+S Bethune K+S Zielitz K+S Bethune BU Potash (after 2023) (Purely MOP) w/o Bethune (incl. Specialties) * column width = Source: CRU Report 2016, K+S production capability in million tonnes The Bethune ramp-up to 2.86 million tons in t
Slide 17: 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 Newsletter: https://www.kpluss.com/newsletter Dirk Neumann Head of Investor Relations Phone:+49 561 / 9301-1460 Fa
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