K+S Aktiengesellschaft — FY2020 Earnings Presentation
18 slides from K+S Aktiengesellschaft's earnings presentation, Mar 11, 2021
Slide 1: Analyst Call Q4 and FY/2020
11 March 2021 K+S Aktiengesellschaft Analyst Call Q4 and FY/2020 Dr. Burkhard Lohr Thorsten Boeckers CEO 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: Successfully mastering the challenges of the pandemic
Sucessfully mastering the challenges of the pandemic ▪ Extensive prevention measures ▪ Successful crisis K+S is systemically relevant management ▪ Hardly any impact on production 3
Slide 4: Consistent implementation of the package of measures
Consistent implementation of the package of measures Sales agreement signed for the Americas operating unit P Joint venture with Remondis (REKS) in the waste management business P Restructuring: administrative costs reduced by 30%, resp. €60 million p.a. P Synergies > €150 million realized P Operati
Slide 5: Agreement on the sale of the OU Americas
Agreement on the sale of the OU Americas ▪ Buyer: Stone Canyon Industries ▪ Sales price: USD 3.2 billion ▪ Multiple: 12.5 times EBITDA (2019) ▪ Closing: in summer 2021 at the latest ▪ Net proceeds: approx. €2.5 billion 5
Slide 6: K+S and REMEX combine their strengths in joint venture
K+S and REMEX combine their strengths in joint venture Capacities (underground, tailings piles) for disposal and recycling to Market access to all relevant meet growing demand waste types and established distribution structure Obligation for backfilling and tailings piles covering Comprehensive mate
Slide 7: Strong partnership in waste management business
Strong partnership in waste management business + = Entsorgung ▪ Intelligent use of our infrastructure ▪ Transformation of environmental obligations into a sustainable business model ▪ Long-term prospects for covering tailings piles ▪ Attractive growth potential ▪ Closing of transaction expected in
Slide 8: Strong performance in production
Strong performance in production ▪ 2020: sales volumes in the Agriculture customer segment increased by 1 million tonnes to 7.3 million tonnes ▪ Bethune: almost 2 million tonnes produced for the first time; high product quality ▪ Average cost per tonne reduced to below €200 across all plants 8
Slide 9: Environmental issues: Important milestones
Environmental issues: Important milestones ▪ Amendment to the state treaty: important milestone for long-term storage of saline wastewater underground ▪ Tailings pile expansions at Wintershall and Zielitz provide long-term prospects for both sites 9
Slide 10: Impairment on assets
Impairment on assets ▪ Publication on 4 November 2020 that long-term assumptions for potash prices and cost of capital needed to be adjusted ▪ Non-cash impairment loss on assets of ~€2 billion accounted for in Q3 financial statements ▪ Business model remains intact ▪ Audit by the German Financial Re
Slide 11: Q4 and FY/2020 at a glance (including discontinued operations)
Q4 and FY/2020 at a glance (including discontinued operations) Highlights Financials ▪ Q4/20 EBITDA down to € 60m (2019: € 160m) € million Q4/19 Q4/20 % FY/19 FY/20 % ▪ FCF €-42m in FY/20 coming from € +140m in FY/19 Revenues 1,024 634 -38 4,071 3,698 -9 ▪ NFD/EBITDA at 7.2x (31/12/19: 4.9x) t/o Eur
Slide 12: 2020 key indicators: Continuing operations
2020 key indicators: Continuing operations REVENUES - in million EUR - 3,698 Americas EBITDA - in million EUR - OU 2,432 445 Americas* OU 267 previously new previously new 12 * After allocation of project costs related to the sale of the OU Americas
Slide 13: Q4 and FY/2020 at a glance (only continuing operations)
Q4 and FY/2020 at a glance (only continuing operations) Highlights Financials ▪ Q4/20 EBITDA down to € 39m (2019: € 76m) € million Q4/19 Q4/20 % FY/19 FY/20 % ▪ FCF €-110m in FY/20 coming from € +33m in FY/19 Revenues 540 634 +17 2,550 2,432 -5 t/o Agriculture 390 470 +21 1,716 1,702 -1 − Positive o
Slide 14: 2021 outlook: Favorable conditions for the agricultural sector
2021 outlook: Favorable conditions for the agricultural sector ▪ Significant price increases for agricultural products ▪ Positive yield situation of farmers leads to rising demand for input factors ▪ Consequently, also continuing increase in demand for potash fertilizers in all regions ▪ Substantial
Slide 15: EBITDA forecast for continuing operations for 2021
EBITDA forecast for continuing operations for 2021 ▪ Moderately higher average price for potash and in million EUR magnesium fertilizers 540 ▪ Sales volume in the Agriculture customer segment expected to be >7.5 million tonnes (2020: 7.3 million tonnes) 440 ▪ Strong de-icing salt business in Europe
Slide 16: Q&A
Q&A Dr. Burkhard Lohr Thorsten Boeckers CEO CFO
Slide 17: Housekeeping items / Financial calendar
Housekeeping items / Financial calendar Additional information on FY 2021 outlook – continued operations ▪ Tax rate: 30% ▪ Financial result: on the level of last year (2020: €-106m) ▪ CapEx: on the level of last year (2020: €428m) ▪ D&A: ~€300m Financial calendar 10th European Chemicals Conference –
Slide 18: 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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