K+s AG · XETR:SDF
K+s — K+S Aktiengesellschaft — 5th German Corporate Conference, CHEUVREUX, Kronberg (January 2006)
37 slides from K+s's conference presentation, Jan 16, 2006
Slide 1: Experience growth. 5th German Corporate Conference
K+S Group, 16 - 18 January 2006 Experience growth. 5th German Corporate Conference CHEUVREUX, Kronberg 16 January 2006 K+S Group 0
Slide 2: Growth Lies at the Heart of Our Vision
K+S Group Growth Lies at the Heart of Our Vision K+S is one of the world‘s leading suppliers of speciality and standard fertilizers, plant care and salt products. Achieving healthy and sustained growth is our goal as a company and a challenge at the same time. We offer agriculture, industry and priv
Slide 3: Content
K+S Group Content A. The K+S Group Business Model B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy D. Financial Data and Outlook E. K+S Share Appendix 16 January 2006 K+S Group 2
Slide 4: Business Model
K+S Group Business Model Core business Core business fertilizers and plant care salt Potash and Magnesium COMPO fertiva Salt Products KTG Waste K+S AG Services Management Support and and Recycling Functions Trading Complementary business and support functions 16 January 2006 K+S Group 3
Slide 5: Content
K+S Group Content A. The K+S Group Business Model B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy D. Financial Data and Outlook E. K+S Share Appendix 16 January 2006 K+S Group 4
Slide 6: Fertilizer Business
K+S Group Fertilizer Business z Global food production has to increase despite limited availibility of arable farm land worldwide (steadily increasing world population, rising qualitative demand) z As a consequence fertilizing with key nutrients nitrogen (N), phosphate (P) and potash (K), but also i
Slide 7: Effects of Balanced Fertilization
K+S Group Effects of Balanced Fertilization Robusta coffee, Vietnam N (300) P (220) K (300) N (300) P (220) N (150) P (220) Mango, India NP N P K (MOP) N P K (SOP) 16 January 2006 K+S Group 6
Slide 8: World Potash Capacity, Production and Demand
Potash and Magnesium Products World Potash Capacity, Production and Demand Million tonnes Technically available Capacity z Significant increase in demand (incl. announced capacity expansions) during the last years 70 Production z Shortfall in Eastern Europe demand (incl. announced capacity expansion
Slide 9: Agricultural Potash Consumption by Region
Potash and Magnesium Products Agricultural Potash Consumption by Region Index 1980/81 = 100 Index 1980/81 = 100 300 300 World Developed markets 250 250 North America, Western Europe, Australia, Japan 200 200 150 150 100 100 50 50 0 0 80/81 84/ 88/ 92/ 96/ 00/ 03/04 80/81 84/ 88/ 92/ 96/ 00/ 03/04 In
Slide 10: MOP Prices for Selected Markets
Potash and Magnesium Products MOP Prices for Selected Markets Overseas Northwest Europe USD / t (standard, cfr) USD / t (standard, fob) 240 160 158 Thailand/Taiwan 218 220 Brazil 150 200 213 140 180 130 160 120 140 110 120 100 100 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 11: Potash and Magnesium Products
K+S Group Potash and Magnesium Products IFRSs HGB * Key figures (€ mill.) 2004 2003 Revenues by product group Revenues 1,031.2 1,004.7 (in %) Operating earnings 69.3 31.6 * German GAAP Brief description Crude potash and magnesium salts are extracted from six mines in Germany and form the basis for t
Slide 12: Potash and Magnesium Products: Loader
Potash and Magnesium Products Loader 16 January 2006 K+S Group 11
Slide 13: Supplier Structure on the World Potash Market
Potash and Magnesium Products Supplier Structure on the World Potash Market 35.2% 22.1% 12.6% 9.6% 9.3% 6.4% 3.6% 1.2% Canpotex: IPC: K+S ICL Uralkali APC SQM Others z Mosaic Belarus- z Group: participation paticipation China, of PCS of PCS Intrepid, z PCS kali z DSW CVRD, z Agrium Silvinit z z Iber
Slide 14: COMPO
K+S Group COMPO IFRSs HGB * Key figures (€ mill.) 2004 2003 Revenues by segment Revenues 525.1 490.4 (in %) Operating earnings 23.9 25.4 * German GAAP Brief description Consumer business: comprehensive assortment of high-quality branded products such as potting soil, plant care products, lawn and ga
Slide 15: fertiva
K+S Group fertiva IFRSs HGB * Key figures (€ mill.) 2004 2003 Revenues by product group Revenues 513.8 474.1 (in %) Operating earnings 10.0 6.6 * German GAAP Brief description fertiva represents the K+S Group’s nitrogen fertilizer activities. It markets the agricultural fertilizers produced exclusiv
Slide 16: Content
K+S Group Content A. The K+S Group Business Model B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy D. Financial Data and Outlook E. K+S Share Appendix 16 January 2006 K+S Group 15
Slide 17: Salt
K+S Group Salt IFRSs HGB * Key figures (€ mill.) ** 2004 2003 Revenues by product group Revenues 357.8 206.2 (in %) Operating earnings 57.3 27.2 * German GAAP ** 2004: 100% esco; 2003: 62% esco Brief description Salt products of highest purity and quality are used as food grade salt, industrial salt
Slide 18: Salt: Mining Chamber
Salt Mining Chamber 16 January 2006 K+S Group 17
Slide 19: Main European Crystallized Salt Suppliers
Salt Main European Crystallized Salt Suppliers Supply in million tonnes 5.6 3.6 * 3.6 3.4 1.7 1.4 1.2 0.8 0.6 esco Akzo SWS/ Salins Poland Salt Italkali Salinen British Südsalz Group Union Austria Salt (GER) (NL) (GER) (F) (GB) (I) (A) (GB) * for the market basis: 2003/2004 (partly estimated) 16 Jan
Slide 20: Content
K+S Group Content A. The K+S Group Business Model B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy D. Financial Data and Outlook E. K+S Share Appendix 16 January 2006 K+S Group 19
Slide 21: K+S is the Leading Player in its Markets
K+S Group K+S is the Leading Player in its Markets Fertilizers and Plant Care: No. 2 in Europe Potash z Market leader in Europe z Leading market positions in the world Sulphate of potash and magnesium sulphate z World markt leader The green market z Market leader in Europe with COMPO Nitrogen z Very
Slide 22: 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 business sectors through acquisitions and cooperation arrangements z Ongoing focus on improving efficiency and cutting costs as well as ex
Slide 23: Content
K+S Group Content A. The K+S Group Business Model B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy D. Financial Data and Outlook E. K+S Share Appendix 16 January 2006 K+S Group 22
Slide 24: Revenues and Earnings as of September
K+S Group Revenues and Earnings as of 30 September € million, IFRSs 2005 2004 ∆ Revenues 2,099.7 1,907.9 + 191.8 Earnings before interest, taxes and depreciation (EBITDA) 297.3 227.9 + 69.4 Operating earnings (EBIT I) 202.1 132.5 + 69.6 Earnings after market value changes (EBIT II) 221.9 145.3 + 76.
Slide 25: Development of Cash Flow
K+S Group Development of Cash Flow € million Cash flow provided 300 by operating activities 285 Cash flow used 250 249 261 in investing activities 200.7 excl. acquisitions 200 203 201 197 Acquisitions 151.2 183 150 126.6 Free cash flow 125 incl. acquisitions 100 72.6 67.7 Free cash flow 47.3 excl. a
Slide 26: Balance Sheet Key Data as of September
K+S Group Balance Sheet Key Data as of 30 September € million, IFRSs 2005 2004 Fixed assets 924.4 914.9 Securities 133.6 151.4 Cash and cash equivalents 217.2 151.5 Equity 986.2 884.8 Provisions 596.2 636.7 Bank loans and overdrafts 30.0 19.0 Balance sheet total 2,301.4 2,100.2 Working capital 309.7
Slide 27: Free Cash Flow Use
K+S Group Free Cash Flow Use € million € per share Total dividend payment 175 1.50 1,50 (for the prior financial year) 1.30 Taking out / repayment 140 1.20 1,20 of loans 1.00 1.00 1.00 111.9 66.60 Share buybacks 105 0.85 0.90 0,90 86.8 69.36 84.9 Dividend per share 0.57 43.38 (for the prior financia
Slide 28: Outlook for the Year 2005
K+S Group Outlook for the Year 2005 (as of 4 Nov. 2005) z Business will continue to develop positively over the remaining weeks z Additional sylvinite capacity improves cost structure z Further implementation of efficiency enhancement programmes z US dollar hedging rate for 2005 at attractive 1.15 U
Slide 29: Content
K+S Group Content A. The K+S Group Business Model B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy D. Financial Data and Outlook E. K+S Share Appendix 16 January 2006 K+S Group 28
Slide 30: K+S Share Price Compared with DAX and MDAX
K+S Aktiengesellschaft K+S Share Price Compared with DAX and MDAX Index: 30 December 2004 = 100 2005 2006 150 K+S +44% 140 MDAX +40% 130 DAX +29% 120 110 100 90 Jan. Apr. July Oct. Jan. April source: Bloomberg; as of 10 January 2006 16 January 2006 K+S Group 29
Slide 31: Experience growth.
www.k-plus-s.com Experience growth. K+S Aktiengesellschaft Investor Relations Bertha-von-Suttner-Straße 7 phone: +49 (0)561 / 9301-1460 34131 Kassel (Germany) fax: +49 (0)561 / 9301-2425 phone: +49 (0)561 / 9301-0 email: investor-relations@k-plus-s.com fax: +49 (0)561 / 9301-1753 16 January 2006 K+S
Slide 32: Content
K+S Group Content A. The K+S Group Business Model B. Core Business Segments: - Fertilizers and Plant Care - Salt C. Strategy D. Financial Data and Outlook E. K+S Share Appendix 16 January 2006 K+S Group 31
Slide 33: USD Currency Management 2005-2008
Potash and Magnesium Products USD Currency Management 2005-2008 z Revenues less overseas freight costs and a safety margin are hedged 3 years in advance by means of double barrier options z Double barrier options: no classic hedging mechanism, only effective within certain barriers; restructuring in
Slide 34: USD Double Barrier Option System
Potash and Magnesium Products 1,60 USD Double Barrier Option System 1,55 1,50 USD/€ 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 30 Dec. 2004 2004 2005 2005 2006 2006 2007 200
Slide 35: Financial Calendar
K+S Aktiengesellschaft Financial Calendar 16 March 2006 ¾ Report on business in 2005 ¾ Annual report and analyst conference, Frankfurt 10 May 2006 ¾ Annual General Meeting 2006, Kassel ¾ Interim report 31 March 2006 11 May 2006 ¾ Dividend payment for the year 2005 10 August 2006 ¾ Interim report 30
Slide 36: 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 37: Experience growth.
www.k-plus-s.com Experience growth. K+S Aktiengesellschaft Investor Relations Bertha-von-Suttner-Straße 7 phone: +49 (0)561 / 9301-1460 34131 Kassel (Germany) fax: +49 (0)561 / 9301-2425 phone: +49 (0)561 / 9301-0 email: investor-relations@k-plus-s.com fax: +49 (0)561 / 9301-1753 16 January 2006 K+S
K+S Aktiengesellschaft — 5th German Corporate Conference, CHEUVREUX, Kronberg (January 2006) on 6ix