K+s Ag · XETR:SDF
K+s — K+S Aktiengesellschaft — FY2021 Earnings Presentation
20 slides from K+s's earnings presentation, Mar 10, 2022
Slide 1: Analysts' Conference 2021 Financial Year
March 10, 2022 K+S Aktiengesellschaft Analysts‘ Conference 2021 Financial Year Dr. Burkhard Lohr CEO
Slide 2: Clear course – consistent implementation
2021 Financial Year Clear course – consistent implementation ▪ Successful sale of Americas business ▪ New dimensioning of administration completed ▪ Waste management JV REKS launched ▪ New mission statement & strategy developed ▪ Proceedings with FREP/BaFin completed 2
Slide 3: Strong performance in production
2021 Financial Year Strong performance in production ▪ Continued strong production performance at the sites ▪ Further increase in sales volumes in the Agriculture customer segment ▪ Extensive COVID-19 prevention, vaccination campaigns at sites 3
Slide 4: Attractive market environment
2021 Financial Year Attractive market environment 900 Brazil potash price in USD (MOP gran.) 850 800 ▪ Potash prices in Brazil more than 750 700 tripled; Europe also records significant 650 increase 600 550 500 ▪ High demand for fertilizers with supply 450 at full capacity 400 350 300 ▪ Strong de-ic
Slide 5: Significant increase in EBITDA in 2021
€750 million + €220 million Significant increase in (REKS) Actual 2021 EBITDA in 2021* 3 around €630 million Outlook December 2021 K+S share price development 2 €500 - 600 million € 25 Outlook August 2021 23 21 1 €300 - 400 million 19 Outlook May 2021 17 15 €240 - 340 million 13 Outlook March 2021 1
Slide 6: Q4/21 EBITDA at €611m (Q4/20: €34m)
Q4/21 EBITDA at €611m (Q4/20: €34m) Highlights Financials (continuing operations) ▪ Q4/21 EBITDA increased to €611m (Q4/20: €34m), thereof about €220m one-off gain REKS € million Q4/2020 Q4/2021 % ▪ Adj. net profit at €469m (Q4/20: €-25m); benefitting from net Revenues 629 1,069 +70 positive effects
Slide 7: Debt significantly reduced
Debt significantly reduced Net financial liabilities / EBITDA (x times) 7.2 ▪ Net financial liabilities significantly reduced in 2021 5.3 following the sale of the 4.9 Americas business ▪ Target: rating in investment grade range 0.6 2018 2019 2020 2021 7
Slide 8: Guiding principles of strategy and management focus
Guiding principles of strategy and management focus Expansion / further development of our core New business areas business 10% REKS Optimization of the 20% existing business Recycling management Digitalization Carbon footprint Fertigation 70% Automation Ramp-up Bethune Micronutrients Decarbonizatio
Slide 9: Clear focus of our sites
Clear focus of our sites Bethune Zielitz Werra Neuhof ▪ Long-term ramp-up to up to ▪ Improvement of the cost ▪ Optimization of product mix ▪ Improvement of the mineral four million tonnes of position and production volumes content through AI capacity ▪ Optimization of maintenance ▪ Optimization of m
Slide 10: 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 11: K+S Climate Strategy
K+S Climate Strategy Short-term goal ▪ Introduction of the “K+S Climate Protection Fund” from 2022 to reduce our CO2 emissions Mid-term goal ▪ Reduction of our CO2 emissions by 10% by 2030 compared to 2020 Long-term goals ▪ Climate neutrality in 2050 is technically feasible if supported by the legal
Slide 12: Disposal secured
Disposal secured Solid residues ▪ Tailings pile expansions completed by the end of 2022 / beginning of 2023 ▪ No further permits and capex for tailings pile expansions required until the end of the 2020s ▪ Werra & Neuhof tailings pile covering underway Liquid residues Werra plant ▪ Injection termina
Slide 13: Outlook
Outlook 13
Slide 14: 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 210 potash expected 200 Soybeans 190 180 170 Palmoil Wheat ▪ Contracts in India and China are 160 150 Corn eviden
Slide 15: Best result in the Company's history expected
Best result in the Company’s history expected EBITDA in € million ▪ EBITDA expected to more than double 1,900 year-on-year to between € 1.6 billion and € 1.9 billion ▪ Adjusted free cash flow expected to range between 1,600 € 600 million and € 800 million based on € 400 million capex (2021: € 93 mil
Slide 16: Planned use of additional cash
Planned use of additional cash ▪ Repayment of bond due in June 2022 ▪ Purchase of CO2 certificates for the years 2026-2030 ▪ Accelerated Bethune ramp-up ▪ Further reduction in factoring ▪ Dividend payment for the 2021 fiscal year ▪ Investment in optimizing our existing business 16
Slide 17: Dividend proposal for 2021
Dividend proposal for 2021 ▪ Proposed dividend 20 20 cents per share ▪ Total dividend payout EUR 38 million 4 ▪ New dividend policy basic dividend (15 cents) 0 plus discretionary premium 2019 2020 2021 Dividend in cents per share 17
Slide 18: Successful year 2021 – Attractive prospects
Successful year 2021 – Attractive prospects 18
Slide 19: Q&A
Q&A Dr. Burkhard Lohr CEO
Slide 20: Housekeeping items / Financial calendar
Housekeeping items / Financial calendar Additional information on 2022 FY outlook – continuing operations ▪ Tax rate: 30% ▪ Financial result: ~ €-50m (2020: €7m) ▪ CapEx: ~ €400m (2021: €334m) ▪ D&A: ~ €400m Financial calendar Stifel Frankfurt Roadshow – CEO March 11, 2022 Goldman Sachs Eleventh Ann
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