Slide 1: Analyst Call Q2/2020
13 August 2020 K+S Aktiengesellschaft Analyst Call Q2/2020 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: 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
Slide 4: 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
Slide 5: 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
Slide 6: 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
Slide 7: 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
Slide 8: 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 9: 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
Slide 10: 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
Slide 11: Q&A
Q&A Dr. Burkhard Lohr Thorsten Boeckers CEO CFO
Slide 12: 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
Slide 13: 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