K+S Aktiengesellschaft

K+S Aktiengesellschaft — Kepler Cheuvreux Virtual Roadshow Frankfurt 2020

17 slides from K+S Aktiengesellschaft's conference presentation, Aug 14, 2020

  1. Slide 1: Kepler (Virtual) Roadshow Frankfurt

    August 2020 K+S Aktiengesellschaft Kepler (Virtual) Roadshow Frankfurt Thorsten Boeckers Alexander Enge CFO Investor Relations Manager

  2. Slide 2: Social contribution – operational measures

    Social contribution – operational measures 1 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 disinfect

  3. Slide 3: 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

  4. Slide 4: K+S realignment is making progress

    K+S realignment is making progress Target Main target: all sites free cash flow positive even with a low potash price or weak winter business • One important step is the development of a new organization based on an SG&A cost budget of EUR 140 million (EUR 60 million less than in 2019) Approach • On

  5. Slide 5: K+S: Focus remains on strengthening the balance sheet

    K+S: Focus remains on strengthening the balance sheet Dec. 2019: Net financial liabilities: EUR 3.1 billion Net financial liabilities/EBITDA: 4.9x Sale of OU Americas OU Europe+ measures Restructuring End of 2021 • Reduction of net financial liabilities by significantly more than € 2 billion • Stabl

  6. Slide 6: Current market assessment

    Current market assessment 6

  7. Slide 7: Customer Segment Agriculture

    Customer Segment Agriculture Stable specialty business and regional diversification paying-off USD/t EUR/t Q2/2020 400 Potassium 500 • After signed contracts in Sulfate 375 (SOP) China and India, product 450 Europe flow restarted into these 350 markets 400 325 Potassium • Prices have bottomed out Ch

  8. Slide 8: Trading update: Communities

    Trading update: Communities Pricing trends for next biddings Q2/20 update:  Sales volume ~30% below previous year. Outlook:  High customer inventory levels  However, multi-year contracts help us prevent stronger price declines  Some contracts in higher price regions (e.g. Canada) already settled

  9. Slide 9: Current Trading Customer Segments Industry + Consumers

    Current Trading Customer Segments Industry + Consumers Industry Consumers  Broad portfolio of potash/salt products  Good progress in the rollout of the German supplying a broad variety of industries premium table salt brand Saldoro®  Examples:  Strong performance in the Americas, with  Food sal

  10. Slide 10: Financials

    Financials 10

  11. Slide 11: Solid Q2/20 EBITDA despite difficult market environment

    Solid Q2/20 EBITDA despite difficult market environment Highlights Financials  Q2/20 EBITDA down to €88m (Q2/19: €130m) € million Q2/2019 Q2/2020 %  Adj. FCF €-43m in Q2/20 Revenues 878 840 -4  COVID-19: Minor efficiency losses due to protective t/o Europe+ 627 588 -6 measures and short shutdowns

  12. Slide 12: Outlook 2020 confirmed

    Outlook 2020 confirmed¹ No effects from sale of OU Americas included Main assumptions EBITDA in €m • FY/20 Agriculture ASP expected to be slightly above Q2/20 level (€231/t)  COVID-19 • FY/20 Agriculture sales volume related  One-time efficiency expenses expected to be >7mt (2019: 6.3 mt)  Mainly

  13. Slide 13: We are making progress with the measures that are in our hands

    We are making progress with the measures that are in our hands Strong operational performance; widely COVID-19 robust No wastewater-related issues in Germany Bethune quality fulfills customers expectations; ramp-up according to plan Active working capital management to secure liquidity Package of me

  14. Slide 14: Appendix

    Appendix 14

  15. Slide 15: Housekeeping items / Financial calendar

    Housekeeping items / Financial calendar Additional information on FY 2020 outlook  Tax rate: ~30%  Financial result: ~€-140m-€-150m  CapEx: significantly up  D&A: ~€450m  Reconciliation (EBITDA): €-60m to €-80m Financial calendar Kepler Cheuvreux Virtual Roadshow, Frankfurt 14 Aug 2020 Berenber

  16. Slide 16: 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

  17. Slide 17: 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

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