K+s Ag · XETR:SDF
K+s — K+S Aktiengesellschaft — Q1 2020 Earnings Presentation
15 slides from K+s's earnings presentation, May 11, 2020
Slide 1: Analyst Call Q1/2020
11 May 2020 K+S Aktiengesellschaft Analyst Call Q1/2020 Thorsten Boeckers 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: Social contribution
Social contribution We ensure the supply of essential goods with our products. • High-purity pharmaceutical salts for medicine and use in dialysis and infusions • Potassium salts for the preparation of a wide range of medicinal products • Salts for the production of disinfectant materials, soaps and
Slide 4: Operational Measures
Operational Measures • Corona prevention teams established • Shift times shortened and staggered • Number of shift interactions reduced • Respiratory masks used when in close proximity (e.g. when entering or leaving a mine) • Gloves also used when operating machines and vehicles • Additional disinfe
Slide 5: K+S: Revenue exposure to GDP cycles
K+S: Revenue exposure to GDP cycles 77% of group revenues are non-cyclical K+S Group: € 4.1 bn 10% Non-cyclical: Cyclical: 6% Potassium Chloride Chemical Fertilizer Specialties Water softening 23% De-icing Water and Pool Pharma Oil and gas Food, Culinary Others 14% Complementary 85% Animal Nutrition
Slide 6: Complete Sale OU Americas on schedule
Complete Sale OU Americas on schedule 1 Unique position in the salt market • Leading brands with high • Revenues: EUR 1.5 billion emotional customer loyalty (2019) • Established customer- • EBITDA: EUR 230 million oriented network with 29 (2019) locations in North America POINTE-CLAIRE • Stable cash
Slide 7: Realigning of K+S has started
Realigning of K+S has started • Restructuring project of administrative functions started • Focus on the core business by selling non-core activities • Future-oriented solutions in the environmental sector • Capital expenditure under review • Sustained positive free cash flows at all German producti
Slide 8: Strong Q1/20 EBITDA despite difficult market environment
Strong Q1/20 EBITDA despite difficult market environment Highlights Financials ▪ Q1/20 EBITDA down to € 201m (Q1/19: € 270m) € million Q1/19 Q1/20 % ▪ FCF € 204m in Q1/20 Revenues 1,264 1,089 -14 ▪ COVID-19: Minor efficiency losses due to protective t/o Europe+ 692 645 -7 measures and short shutdown
Slide 9: Customer Segment Agriculture
Customer Segment Agriculture Stable specialty business and regional diversification paying-off USD/t EUR/t Q1 2020 400 Potassium 500 • Good spring fertilization in Sulfate 375 (SOP) Europe due to favorable 450 Europe weather conditions 350 • High demand in Brazil 400 325 Potassium • Demand rebound i
Slide 10: Trading update: Communities
Trading update: Communities Q1/20 update: Pricing trends in customer segment Communities ▪ Sales volume almost 50% below the high level of the previous year. Outlook: ▪ High customer inventory levels ▪ However, multi-year contracts help us to keep prices stable ▪ Some contracts in higher price regio
Slide 11: Current Trading Customer Segments Industry + Consumers
Current Trading Customer Segments Industry + Consumers Industry Consumers ▪ Broad portfolio of products containing ▪ Good progress in the rollout of the German potassium- and salt premium table salt brand Saldoro® ▪ Broad variety of industries supplied ▪ Stable or even higher demand situation in ▪ R
Slide 12: Outlook 2020
Outlook 2020¹ ¹Impacts from Corona-related shutdowns not included; Main assumptions no effects from restructuring or sale of OU Americas included EBITDA in €m • FY/20 Agriculture ASP expected to be slightly above Q1/20 level (€239/t) − Mainly pricing • Below average de-icing salt business +Volume +F
Slide 13: Q&A
Q&A Thorsten Boeckers CFO
Slide 14: Housekeeping Items / Financial Calendar
Housekeeping Items / Financial Calendar Additional information on Outlook FY 2020 ▪ Tax rate: ~30% ▪ Customer segment Agriculture: ▪ Financial result: ~€-140m-€-150m Sales volume: >7.0mt (2019: 6.3mt) ▪ CapEx: significantly up ▪ Customer segment Communities: Sales volume: ~8mt (2019: 12.7mt) ▪ D&A:
Slide 15: 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 Dirk Neumann Christiane Martel Head of Investor Relations Roadshow Management Phone:+49 561 / 9301-1460 Phone:+49
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