K+S Aktiengesellschaft — dbAccess German Corporate Conference 2022
22 slides from K+S Aktiengesellschaft's conference presentation, May 25, 2022
Slide 1: dbAccess German Corporate Conference 2022
25 May 2022 K+S Aktiengesellschaft dbAccess German Corporate Conference 2022 Dr. Burkhard Lohr Julia Bock, CFA CEO, CFO Head of Investor Relations
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: Successful year 2021 – Attractive prospects
Successful year 2021 – Attractive prospects 3
Slide 4: Significant increase in EBITDA in 2021
€750 million Significant increase in + €220 million (REKS) EBITDA in 2021* Actual 2021 3 Around €630 million Outlook December 2021 2 €500 – 600 million Outlook August 2021 1 €300 – 400 million 40 K+S share price in € Outlook May 2021 35 30 25 €240 - 340 million Outlook March 2021 20 15 10 5 January
Slide 5: 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 6: 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 7: Rating Upgrade: Standard & Poor's
Rating Upgrade: Standard & Poor‘s upgraded K+S by two notches from B+ (stable) to BB (stable) 7
Slide 8: Trading update: Industry+
Trading update: Industry+ De-icing salt business ▪ Slightly below-average Q1 after weather-related strong performance in Q1/2021 Pharmaceutical industry ▪ Price- and volume-related increase Food industry ▪ Price- and volume-related increase Chemical industry ▪ Strong performance in Q1 Consumer produ
Slide 9: Market Environment and Outlook
Market Environment and Outlook 9
Slide 10: 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 10
Slide 11: 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 12: Continued positive environment
Continued positive environment ▪ Yield prospects for farmers remain Price development of important agricultural attractive commodities since January 2020 ▪ Continued very good demand for 240 220 potash expected Soybeans ▪ Increase in global potash supply 200 Palmoil 180 Wheat 160 Corn hardly possibl
Slide 13: 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 14: 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 15: Planned use of additional liquidity
Planned use of additional liquidity ▪ Repayment of factoring ▪ Purchase of CO2 certificates for the years 2026 onwards already completed ▪ Dividend payment for the 2021 financial year ▪ Repayment of bond due in June 2022 ▪ Accelerated Bethune ramp-up ▪ Investment in optimizing our existing business
Slide 16: 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 16
Slide 17: Optimize the existing
Optimize the existing Agriculture Industrie+ Supply Chain ▪ Increase of marketing in ▪ Focus on potash ▪ Warehouse and network USA ex Bethune product groups for optimization for industrial product sales European salt logistics ▪ Increase of trading ▪ Capacity expansion of ▪ Optimization of business
Slide 18: Clear focus of our sites
Clear focus of our sites Bethune Zielitz Werra Neuhof-Ellers ▪ Long-term ramp-up to up ▪ Improvement of the cost ▪ Optimization of product ▪ Improvement of the to four million tonnes of position mix & production volumes mineral content through AI capacity ▪ Optimization of ▪ Optimization of ▪ Increa
Slide 19: 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 20: 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 21: 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 UBS Roadshow, New York – CEO May 19, 2022 Société Générale, The Nice
Slide 22: 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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