K+S Aktiengesellschaft Compendium...K+S Group Investment Case K+S Group Potash and Magnesium Products Salt Production Financials Investor Relations What Makes Us Strong? 4 • Geographic

Experience growth.

Compendium Facts worth knowing about K+S

K+S Aktiengesellschaft

March 2016

2

Investment Case

K+S Group

Investment Case K+S Group Potash and Magnesium

Products Salt Production Financials Investor Relations

Investment Case

3

Salt Business Unit

Complementary Activities

Potash and Magnesium Products Business Unit

K+S Group

Unique position in Europe and specialty fertilizers

Legacy Project heading closer to commissioning in 2016

Salt business to improve earnings substantially

Ongoing cost reductions and efficiency improvements

Dividend payout of 40-50%

Attractive mid-term EBITDA goal: ~ € 1.6 billion in 2020

K+S Group



What Makes Us Strong?

4

• Geographic reach Our world-class production assets grant a close proximity to both core customers and attractive growth regions.

• Broad product portfolio The uniqueness of our crude salt deposits allows us to produce specialties that many of our competitors are not able to offer in the same way. Both business units offer a unique portfolio of commodity- and specialty products.

We are well positioned to participate in long-term growth trends of population growth, economic growth, industrialisation, increasing standards of living and higher protein consumption.

• Strongly positioned

K+S Group



Attractive Mid-Term Outlook

5

Group EBITDA expected to increase significantly by 2020

Despite current market turmoil, mid-term fundamentals of the potash business remain intact

Legacy will significantly contribute to the mid-term earnings goal

Our Salt business continues to grow its profitability

FY 2015 FY 2020

~ € 1.6 billion

Potash and Magnesium

Products

Salt

€ 1.1 billion

K+S Group



Management Agenda

6

Low cost commodity production with Legacy in

Canada ensuring cost competitiveness and

participation in future growth in the potash

markets

German mines remaining attractive with broad

specialty portfolio and close proximity to

customers

Salt with unrivalled footprint and product

range

Opening Legacy this summer –

production of 1st ton end of 2016

Managing environmental

challenges particularly in

Germany

Keeping cost discipline above

and beyond “Fit for the

Future”

Successful implementation of “Salt 2020“

Strategy

Enhancing portfolio of

higher yielding products

7

K+S Group Two-pillar strategy

Global Presence

Positioned for growth

Earnings-based dividend policy

Attractive mid-term outlook Balanced regional portfolio

Sustainable margin growth through specialisation

Cost discipline

K+S Group



Corporate Strategy

8

Reduction of seasonal and regional fluctuations in demand for salt and fertilizers due to a balanced regional portfolio

Fertilizers: Expansion of market presence in important overseas regions and tapping into new attractive sales regions in future growth regions

Salt: Local production in the volume-driven Salt business

Optimisation of the international production network

Generation of synergies in the exchange of technical, geological and logistics know-how between the potash and salt production

External growth in the core business sectors

Fertilizers and Salt

The goal is to be our customers’ preferred partner

Strengthening of customer loyalty through service efforts, e.g. targeted advice to customers in the use of fertilizers

Differentiation and Sustainable Margin Growth through Specialisation

Expansion of Strategic Business Sectors through Acquisitions and Cooperations

Expansion of a Balanced Regional Portfolio

Setting Standards for Quality, Reliability and Service

Increasing Efficiency and Exploiting Synergies

Consolidation and expansion of market positions by increased marketing of specialty products

Realisation of more attractive margins through refinement strategy

K+S Group



Active Portfolio Management

9

Salt

Acquisition

Salt

Foundation

Salt

Acquisition

Salt

Acquisition

Fertilizer

Divestment

Fertilizer

Divestment

Fertilizer

Acquisition

Fertilizer

Acquisiton

Fertilizer

Acquistion

1999 2002 2006 2012 2011 2009 2000

Salt

Acquisition

K+S Group



Global Presence1

10

40 %

13 %

36 %

9 %

2%

1 Revenues by Region 2015

70 % 22 % 5 % 3 %

Germany North America South America Rest of Europe

Employees by Region 2015

K+S Group



Our Products

11

in % of sales volumes , FY 2015

Potash and Magnesium Products Salt

Industrial products

Specialties

KCl (MOP)

De-icing salt

Industrial salt

Salt for chemical use

Food grade salt

46% 56%

44% 28%

10% 9%

7%

K+S Group



Leverage Customer Relationships within K+S Group

12

Significant overlap in most of our market segments

Identify and leverage which business unit has the best market access and customer relationships

Market oriented synergies

Morton selling BU Potash‘s KaliSel in the US

Operational synergies

Common production methods

Define common operational KPIs

Procurement

De-icing

Fertilizer

Food processing

Chemicals

Pharma

Oil & Gas

Agriculture (Feed)

K+S Group



Adding Value Along Our Entire Supply Chain

13

Application Our customers apply our products, use our raw materials in their processes or process them in their products. We make extensive product information available and advise our customers on the application of our products.

Sales/Marketing The K+S Group wants to be its customers’ preferred partner in the market. High product quality and reliability are decisive preconditions for this. K+S offers a comprehensive range of goods and services for agriculture, industry and private consumers.

Logistics The long-term securing of freight capacity is of strategic importance to us. A large part of our international transport volume is forwarded by service providers with which we maintain long-standing partnerships.

Production The refining of raw materials is one of our core competencies. Above ground, the crude salt is processed in complex, multi-phase, mechanical or physical processes, with the natural properties of the mineral remaining unchanged.

Mining We extract raw materials in conventional mining above and below ground as well as through solution mining. We also use the power of the sun and extract salt by vaporating sea water or saline water.

Exploration Our potash and salt deposits came into being millions of years ago. They are either our property or we have corresponding rights or approvals that allow the extraction or solution mining of the raw material reserves.

K+S Group



Key Financials

14

4,0

3,9 3,9

3,8

4,2

2011 2012 2013 2014 2015

Revenues (€ billion)

1.146 1.033

907 896 1.058

2011 2012 2013 2014 2015

EBITDA (€ million)

906 804

656 641

782

2011 2012 2013 2014 2015

EBIT I (€ million)

23 20

17 17 19

2011 2012 2013 2014 2015

EBIT Margin (%)

K+S Group



Dividend Policy

15

Target payout ratio of 40-50%

0%

2%

4%

6%

8%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2011 2012 2013 2014 2015

Payout ratio (lhs) Dividend yield (rhs) 2

1 Based on dividend proposal

Earnings-based dividend policy

Payout ratio of 40 – 50% of adjusted net profit

Dividend proposal 2015: € 1.15 per share

2 Based on year-end share prices

1

K+S Group



Board of Executive Directors

16

Norbert Steiner CEO, Potash and Magnesium

Products business unit 1

Dr. Thomas Nöcker HR, IT, Logistics, Business

Center

Dr. Burkhard Lohr CFO

Mark Roberts Salt business unit

1 Interim management

17

Potash and Magnesium Products

Specialty fertilizers

Meat consumption Population growth Protein consumption

Limited arable land Industrial applications

High purity salts

Strong and long-standing customer relationships

Established distribution networks

Unique position in Europe

Broad product portfolio

K+S Group



Why Use Fertilizers?

18

For plants to thrive they need sunlight, water and minerals

There are only few soils on earth which have a sufficient content and availability of plant nutrients to achieve high yields over a longer period without fertilization

Potash is an indispensable supplement to the natural nutrient content of soils

Compensation of the nutrient losses by harvest and other losses is necessary

“The growth and yield of plants are limited by the nutrient which is in shortest supply”1

1 Justus von Liebig, 'The Natural Laws of Husbandry', 1863

K+S Group



Long-Term Dynamics Positive for Fertilizer

19

4.300 m2 2.100 m2 1.800 m2

Global population development

Arable Land per capita

Protein per capita

60 g/ day 80 g/ day 130 g/ day1)

Jahr

3.0 billion

Less arable land – but more protein consumption per capita

Each year additional 80m people need to

be fed – this equals to the population of

Germany

Available arable land per capita will

decrease at the same time

By 2050 an expanded world population

will be consuming two thirds more animal

protein than it does today

In 2050, less than half of a soccer field will be available to feed one person year round - 80 percent of future growth in crop production will come from yield advancements

driven by balanced use of fertilizers

6.9 billion 9.7 billion

1960 2010 2050

Sources: UN, World Population Prospects, 2012 Revision, UNDP, 2013; FAOStat 2014 1) FAO 2014 - forecasts based on the expected increase in animal protein

K+S Group



What Makes Us Different? Fertilizer Specialties vs. Potassium Chloride (MOP)

20

Potassium Chloride (MOP)

Fertilizer Specialties

• Can be applied universally to all crops not

sensitive to chloride and to all types of soil

• Standard product used for commodity crops

• Mainly used for special applications

(e.g. chloride sensitive crops)

• Products containing a broad range of nutrients

(e.g. potash, magnesium, sulphur)

• Premium products used for high-value crops

K+S Group



Unique Portfolio Makes us More Robust

21

Broad portfolio of specialty products

MOP related/ not MOP related

Flexibility

Stability

Party following different trends and seasons

Close proximity to our main customers provide logistical advantages

Shipments to overseas customers at competitive costs from Hamburg harbor

Strong and long-standing customer relationships

Europe 59%

South America

18%

Asia 16%

Other 7%

KCL (MOP) 3.1

Industrial products

0.7

Specialties 3.0

Basis: 2015 Sales volumes in million tons

6.8

SOP

Kornkali

Kieserite

Industrial potash

Health Care & Nutrition

Basis: 2015 Revenues

K+S Group


Products Salt Production Processes Financials Investor Relations

Potash Price Comparisons

22

Q1 2012 Q1 2013 Q1 2014 Q1 2015

K+S

Bas

is: Q

1 2

01

2

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

K+S

Bas

is: Q

1 2

01

4

K+S average selling price versus selected peers

MOP gran. Europe vs. Brazil (Source: FMB)

200

300

400

500

600

200

300

400

500

600

Europe (€, Granular, cfr)

Brazil (US$/t, Granular, cfr)

US$/t €/t

2011 2012 2013 2014 2015

K+S Group



World Potash Production and Sales by Region

23 January 2016

Million tons

World potash production:

2014: 66.7 million tons 2013: 58.6 million tons

World potash sales:

2014: 68.4 million tons 2013: 58.7 million tons

Incl. sulphate of potash and low-grade potash Sources: IFA, K+S

2.7

12.0

1.0

19.4

11.7

Year 2014

7.2 6.2

22.6

4.3 14.8

33.2

K+S Group



28.7%

18.0%

14.8%

8.3% 7.8%

3.0% 3.3%

12.7%

3.4%

Supplier Structure on the World Potash Market

24 January 2016

Canpotex • Potash

Corp • Mosaic • Agrium

ICL • DSW

• CPL

• Iberpotash .

APC participation

of Potash Corp.

SQM participation

of Potash Corp.

Others • Intrepid

• Vale

• Compass

• Usbekistan

• Laos

China > 20 producers

Uralkali BPC

Belaruskali K+S

Year 2014

Sources : IFA, K+S

World Potash Sales Volumes:

2014: 68.4 million tons

2013: 58.7 million tons

Incl. potassium sulphate and potash grades with lower K2O content

K+S Group



Canpotex 34%

Uralkali 16%

Belaruskali 12%

K+S 9%

ICL 8%

Others 21%

World Potash Supply and Demand

25 January 2016

1,0

00

t (

pro

du

ct)

Source: IFA, Fertecon, K+S; Incl. potassium sulphate and potash grades with lower K2O content of around 4 million tons (product)

'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

Technical available capacity Sales volumes Production

Production is driven by demand despite continuous excess capacity

Capacity by producer

K+S Group



Other crops 42%

Other crops 15% Other crops 7%

Fruits & Vegetables 12%



Sugar crops 5%

Sugar crops 18%

Sugar crops 5%

Oilseeds 11%

Oil palm 62%

Soybean 40%

Soybean 2 %

Rice 1%

Rice 2%

Rice 11%

Corn 13%

Corn 16%

Corn 8% Wheat 16%

Wheat 2%

0%

100%

EU-28 Brazil Indonesia

Potash Use by Crop in Selected Countries

26

Source: IFA , Estimates of Fertilizer Use by Crop in Selected Countries in 2010-2010/11, published 2013;

K+S Group



Farmer Profitability of US Corn

27

67%

16%

17%

0%

100%

US Corn

Operating profit

Fertilizer costs

Other costs

thereof costs for potash: ~ 4 %

Source: USDA

in % of revenues

Expenditure on potash products accounting for just 2–4%

Earnings prospects should give the agriculture industry sufficient incentive to increase yield per hectare by using plant nutrients

K+S Group



6.2

4.3

1.0

11.7

12.0

32.5

~ 17

~ 4

0.7

68.4

2014 2010

6.7

4.9

0.8

10.8

9.7

24.9

10.2

6.1

0.5

58.3

2.7

3.1

0.3

4.1

6.0

14.6

5.4

5.5

0.2

31.0

2009

6.3

5.0

0.6

10.2

8.6

23.2

8.8

6.2

0.6

54.5

2008 2011

5.9

4.4

0.7

10.2

10.5

28.0

12.7

5.0

0.5

60.2

2012

5.6

5.1

0.7

9.1

10.5

23.4

12.0

2.8

0.4

54.8

2013

5.7

4.9

0.8

9.7

11.0

25.9

13.8

3.5

0.5

58.5

Western Europe

Central Europe / FSU

Africa

North America

Latin America

Asia

- thereof China

- thereof India

Oceania

World total

Million tons

Incl. potassium sulphate and potash grades with lower K2O content of around 4 million tons eff; Sources: IFA, K+S

World Potash Sales Volume by Region

28 January 2016

K+S Group



Legacy Project – Strengthening our Global Presence

29

China India South East Asia

North America

South America

Expanding our current production portfolio in Germany with a North American production site Second source supplier

Securing a good asset base with competitive production costs

Sales and distribution through existing distribution structures of the K+S group

Exclusive outline agreement with Koch Fertilizer about supply and sales of Potash fertilizers in the US

Regional growth projects in China and SEA

Flexible multi-product strategy Located in the Heart of Saskatchewan’s Potash-Rich Basin

Regina

Two additional potash permit areas in the Esterhazy potash region

K+S Group



Legacy Project Status – On Time and Budget

30

0%

50%

100%

~ 80% of CapEx spent

2013 2014 2015 2016 2017

2014 and 2015 years of main construction and

CapEx

Sustaining CapEx going

forward

Oct

ob

er 2

01

5

Feb

ruar

y 2

01

6

K+S Group



Legacy - Ramp-up Curve

31

0

1

2

3

4

2011 '16 '17 '18 '20 '25 '30 '35

Production capacity in milllion t KCl/a

2.00

0.86

1.14

Phase 1 (Implementation: 2011 to 2017)

Phase 2 (Implementation: 2016 to 2023)

Outlook for Phase 3 (Implementation: 2023 to 2034)

Phase 2 – Development of secondary mining

Phase 1 – Primary mining

Outlook for Phase 3 – Expansion of secondary mining

Development of infrastructure mainly for Phases 1 + 2, preparations for Phase 3

Capacity development + ramp-up of production to 2.0 mln. t KCl/a through primary mining

Capacity expansion and ramp-up of production by 0.86 to 2.86 mln. t KCl/a

through secondary mining (share of secondary mining in total capacity: 30%)

Increase in share of secondary mining in total capacity to 50%

Potential expansion of annual capacity by 1.14 to 4.0 mln. t KCl/a

K+S Group



Legacy - Competitive Production Costs

32

~ 90 CAD/ tonne

~ 65 CAD/ tonne

~ 40 CAD/ tonne

Total costs (Phase 1+2)

At full utilisation of 2.86 million tons KCl/a (Phases 1+2) No increase in prices and costs after the construction phase

Cash costs of production

Mining taxes/ royalties: Fluctuate with potash price, e.g.

400 USD ex works = ~ 60 CAD 300 USD ex works = ~ 40 CAD 250 USD ex works = ~ 30 CAD

D&A Steady state, higher in first years of production

Logistics Average from site to various target destinations

Depends on potash price

~ 225 - 255

at full utilisation

K+S Group



Legacy Valuation

33

Implied Value Per Share (€)

Terminal growth rate

0% 2%

WA

CC

7% ~ 21

8% ~ 11

Conservative price assumptions for Legacy based on MOP gran. Brazil

Sustaining capex approximately CAD 100 million p.a. from 2018

34

Salt More than 14.000 applications

De-icing salt

Diversified production network and portfolio

Essential mineral for our life Food grade salt

Industrial salt

Salt for Chemical Use Presence in the most attractive de-icing salt regions

Strong consumer brands Salt 2020

Low cost production

K+S Group



Why Salt?

35

Essential mineral for our life Diverse and stable salt end uses

driving continuous growth

Mineral without economically viable substitutes

Salt products typically represent only a small portion of the

production costs

K+S Group



Long-term Dynamics in Salt Demand

36

De-Icing salt

Food grade salt

Population growth

Economic growth and industrialisation

Winter weather conditions

Infrastructure development

Increasing standard of living

Industrial salt

Salt for chemical use Urbanization

Low single-digit demand growth p.a. to 20181

1 Source: Roskill

Demand driven by … Product category

K+S Group



Broad Variety of Application Areas

37

Main Applications:

Private households

Food processing industry

Baking industry

Condiment and preservative agent

Main Applications:

Chemical industry

Chlor-Alkali processes (→ PVC)

Polycarbonates and MDI (Isocyanat) (→ plastics, synthetic resin)

Synthetic Soda Ash (→ glass)

Main Applications:

Winter road maintenance services

Commercial users

Grit for private households

Main Applications:

Water treatment

Drilling fluids

Animal feed

Infusion and dialysis solutions

Pharmaceuticals

Preserving of fish

Dyeing works

Leather treatment

De-Icing salt Food grade salt Industrial salt Salt for chemical use

http://www.krv.de/images/rsgallery/original/7-KRV-PE-Vers-WKT-2.jpg

K+S Group



Main Salt Suppliers Worldwide

38

Capacity in million tons (crystallised salt and salt in brine; excl. captive use)

Sal-

in

s

16 14

14

9

5 5

8

Art

yom

sol

18

Ch

ina

Nat

ion

al S

alt

10

Dam

pie

r

4

Mitsui

8

ESSA

9

Car

gill

Co

mp

ass

Am

eri

can

R

ock

Sal

t

5

Akz

o

Süd

- sa

lz

4

~ 4

Source: Roskill 2014, K+S

K+S Group



Development of Salt Consumption and Production

39

Sources: K+S, Roskill 2011, 2014

North America

Europe

Asia

Other

2000 2009 2012

Production

CAGR: 2.1%

278 264

217

CAGR

2.5%

4.5%

0.8%

- 0.8% North America

Europe

Asia

Other

2000 2009 2012

Consumption

CAGR: 1.9%

220

268 275 CAGR

3.7%

4.1%

0.5%

- 0.6%

Million tons

K+S Group



Salt Consumption by Product Group

40

Source: Roskill 2014

Industrial salt/ Other;

19%

De-icing salt; 13%

Food grade salt; 10%

Salt for chemical use;

58%

Global (Consumption 2012:

275 million tons)

Europe (Consumption 2012:

68 million tons)

Asia (Consumption 2012:

117 million tons)

Other (Consumption 2012:

30 million tons)

North America (Consumption 2012:

60 million tons)

28%

32%

2%

38%

19%

19%

5%

57%

10%

2%

15%

73%

34%

3%

19%

44%

CAGR (2009-2012)

13.1%

5.2%

1.3%

- 4.4%

K+S Group



Our Strengths

41

Production network and Know-how

Geographical diversification of production facilities within a region and

across continents

Access to multitude of technical and geological experts within the K+S Group

Mixture of own ships, medium-term sea freight contracts and

freight hedging

Utilisation of global logistic knowledge of K+S Group

Close supply chain cooperation for most efficient group-wide sourcing

Balanced and less cyclical product portfolio

Product innovations through access to group-wide R&D network

Logistics network

Product portfolio

K+S Group



Diverse Regional and Product Portfolio

42

Food grade/

Consumer

Industrial

Chemical

Normalized Revenue

Distribution

K+S Group



Unrivalled Global Production Network

43

Competitive edge: Unrivalled global

production network

More than 30 assets on 3 continents allow close proximity to customers in a business that is highly freight-cost sensitive

Broad range of products due to variety of production methods Best in class supply chain assets and competence Industry best cost production in Chile

Evaluating several opportunities that will enable K+S to

grow in Asia

K+S Group



Presence in Attractive De-Icing Markets

44

Indicative regional strength of winter

2010 2011 2012 2013 2014 2015

Europe North America

Great Lakes

US East Coast

Eastern Canada

Central Europe

Scandinavia

K+S Group


Products Salt Production Processes Financials Investor Relations

‘Salt 2020’ Strategy – On Track

45

211

62

118

173

266

250+ Normalized

2011 2012 2013 2014 2015 2020e

Equals more than € 400 million EBITDA

Expected EBIT development

Safety first!

Remove silo thinking

Transparency/trust

High performance and engaged workforce

Fit for the Future

Business and technical processes

Supply chain and distribution network improvements

Market share growth

New segments

New regions

Actual results

Salt 2020 Launched

Priority areas

GROWTH CULTURE EFFICIENCY

46

Production

K+S Group




47

Extraction Cycle Underground – Conventional mining

Cleaning Drilling

Loading with explosives

Auger drilling

Muck pile load and dump Roof scaling

Roof bolting

Blasting after shift end

1

8

7

2 3

4

5 6

K+S Group




48

Potash Processing above Ground Thermal dissolution

Flotation

Electrostatic separation (ESTA®)

25 °C 110 °C

95 °C

finely ground

crude salt

heating

undissolved residue

+ dissolved KCl

Residue (NaCl)

filtering

Potassium chloride (KCl) and Kieserite

cooling

filtering

mother brine

+ -

finely ground crude salt

conditioning

separation in a free fall separator

triboelectric charging

Residue (NaCl)


flotation brine

flotation agent

air bubbles

filtering and drying

Residue (NaCl)


finely ground

crude salt

K+S Group




49

Legacy Project – Solution Mining (Example: Primary Mining)

Reserves / Resources 160 / 982 million t

KCl product

Depth 1,500 metres

Thickness

K2O / KCl content

Mining technique Solution mining

Environmental Impact Statement

approved for up to

4 million t KCl/a

33 metres

18% / 29%

Patience Lake

Belle Plaine

Esterhazy

In solution mining, freshwater is brought into solvent (salt) rock through a drill hole, thus creating chambers filled with a water-salt solution, so-called caverns. In a subsequent step, the saturated brine is brought to the surface level along a further pipeline.

K+S Group




Saline waste water halved

50

Further investments and reduction of saline waste water according to Four-Phase-Plan

Transitional permit for deep-well injection (Werra plant) Permit until End of 2021 expected by this summer

20

14

7 1.5

1997 2006 2015

Saline waste water significantly reduced Million cubic meter

Package of measures successfully concluded Initiated 2008 CapEx: € ~400 million

Reduction of more than 65 percent since 1997

Long-term goal

K+S Group



Salt

51

Main Production Methods

Rock Salt

Conventional

mining

Evaporated Salt

Recrystallisation

of purified brine

Brine

Controlled

borehole-brining

Sea-/Solar Salt

Crystallisation

from sea water

Around 70 % of worldwide salt production (more than 250 million tons) is obtained from rock salt mining

and solution mining.

Approximately 30 % of production is obtained from seawater and salt lakes.

Salt is produced in almost every country on Earth. Due to the high share of transport costs in production

costs, markets are generally regionally limited to the area around the production centres.

52

Financials

K+S Group



Financing Strategy

53

40–50% of net profit

Maintain dividend

policy

Investment grade

Maintain rating

Funding further growth

Share buybacks

Special dividends

Excess cash

Key figures

Target range 2015 2014 2013 2012 2011

Net debt/EBITDA 1.0 to 1.5 2.3 1.8 1.2 0.8 0.5

Net debt/Equity (%) max. 100 55.7 42.2 30.5 24.4 19.8

Equity ratio (%) 40 to 50 51.9 50.6 45.3 51.4 50.9

K+S Group



Capex

54

Cash flow from operating activities Capital Expenditure Depreciation / Amortisation

633

607

756

719

669

239

229

251

254

276

293

466

743

1,153

1,279

0 200 400 600 800 1.000 1.200 1.400

(€ million)

2015

2014

2013

2012

2011

K+S Group



From Capex to Cash

55

1 FY 2015

Capex Phase1 Cash Phase 2020

Successful ramp-up Legacy

Salt 2020

Deleverage balance sheet

Currency management

Fit for the future

Net debt:

< € 2.0 billion

Leverage:

1.0-1.5x

CapEx:

Maintenance

FCF:

Positive

EBITDA:

~ € 1.6 billion

Net debt:

€ 2.4 billion

Leverage:

2.3x

CapEx:

€ 1.3 billion

FCF:

€ -636 million

EBITDA:

€ 1.1 billion

K+S Group



Operating and Free Cash Flow (adjusted)

56

(€ million)

633 607

756 719 669

217 199

49

-306

-636

2011 2012 2013 2014 2015

Operating Cash Flow Free Cash Flow (adjusted)

Significantly negative due to capital

expenditure for the Legacy Project

57

Investor Relations

K+S Group



IR Contact Details

58

E-Mail: [email protected] Homepage: www.k-plus-s.com IR-website: www.k-plus-s.com/en/ir

K+S Aktiengesellschaft Bertha-von-Suttner-Str. 7 34131 Kassel (Germany)

Martin Heistermann Investor Relations Manager

Phone.: +49 561 / 9301-1403 Fax: +49 561 / 9301-2425 [email protected]

Thorsten Boeckers Head of Investor Relations

Phone: +49 561 / 9301-1460 Fax: +49 561 / 9301-2425 [email protected]

Andrea Rach Investor Relations Assistant

Phone: +49 561 / 9301-1100 Fax: +49 561 / 9301-2425 [email protected]

Matthias Jelden Investor Relations Manager


Patrick Kofler Senior Investor Relations Manager


K+S Group



K+S Share

59

Key Data

WKN: KSAG88

ISIN: DE000KSAG888

Type of shares: Registered shares of no- par value

Total number of shares:

191,400,000

Trading segment: Prime Standard

Ticker symbols: Bloomberg SDF / Reuters SDFG

Quoted in the following indices MDAX DJ STOXX 600 DJ EURO STOXX HDAX CDAX Prime Allshare Index Classic Allshare Index

Covered by

Baader Bank AG Bank of America / Merrill Lynch B. Metzler seel. Sohn & Co. Bankhaus Lampe Berenberg Bank BMO Bank of Montreal Citigroup Commerzbank Credit Suisse Deutsche Bank DZ Bank

Prime Sector Chemicals Industry Group Chemicals / Commodity DJ STOXX TMI MSCI World Standard MSCI Europe Standard MSCI Germany Standard ECPI Ethical Index Global

Equinet Equita Exane BNP Paribas Hauck & Aufhäuser Institutional

Research AG HSBC Trinkaus & Burkhardt Independent Research J.P. Morgan Cazenove Kepler Cheuvreux LBBW Liberum

M.M. Warburg Morgan Stanley Nord/LB Redburn Sanford C. Bernstein Scotiabank Société Générale SRH Alsterresearch UBS Investment Research

K+S Group



Shareholder Structure

60

Institutional Shareholders 61 % Retail Shareholders 39 % Freefloat 100 %

K+S Group



K+S ADR Programme

61

The K+S ADR Programme offers North American investors the opportunity to take stock in K+S. Since the ADRs are quoted in US dollars and dividends are also distributed in US dollars, this financial instrument resembles an American share closely. Two ADRs represent one K+S ordinary share. The K+S ADRs are traded in the United States under a level 1 ADR Programme in the over the counter market (OTC).

Trade on OTCQX Symbol: KPLUY CUSIP: 48265W108 Ratio: 2 ADRs = 1 Share Country: Germany ISIN: DE000KSAG888 Depositary: The Bank of New York Mellon

Benefits to North American investors

Clear and settle according to normal U.S.

standards Stock quotes and dividend payments in U.S.

dollars Can be purchased/sold in the same way as

other U.S. stocks via a U.S. broker Cost-effective means of international

portfolio diversification

Further information: http://www.k-plus-s.com/en/ks-aktie/adr/faq.html

K+S Group



K+S Bonds and Issuer Rating

62

Bond 12/2018 Bond 12/2021 Bond 06/2022

WKN A1Y CR4 A1Y CR5 A1P GZ8

ISIN XS0997941199 XS0997941355 DE000A1PGZ82

Listing Luxembourg Stock Exchange Luxembourg Stock Exchange Luxembourg Stock Exchange

Volume EUR 500 million EUR 500 million EUR 500 million

Issue price 99.777% 99.539% 99.422%

Coupon payment 3.125% 4.125% 3.000%

Maturity 06.12.2018 06.12.2021 20.06.2022

Face value EUR 1,000 EUR 1,000 EUR 100,000

Rating S&P: BBB S&P: BBB S&P: BBB; Moody's: Ba1

Issuer Rating (S&P): BBB (outlook: negative), August 2015

K+S Group



Further information

63

K+S Website: www.k-plus-s.com

Financial Reports: www.k-plus-s.com/en/publikationen

Newsletter Subscription: www.k-plus-s.com/en/news/newsletter

Social Media:

Financial Calendar 2016/2017

Quarterly Financial Figures, 31 March 2016 10 May 2016

Annual General Meeting, Kassel 11 May 2016

Dividend Payment 12 May 2016

Half-yearly Financial Report, 30 June 2016 11 August 2016

Quarterly Financial Figures, 30 September 2016 10 November 2016

Report on Business in 2016 16 March 2017

More Content Available Online

http://www.kununu.com/de/all/de/id/ks

https://www.xing.com/company/ks-gruppe

https://www.youtube.com/channel/UCj5n0V0dukLmqlowA8aZB6A

K+S Group



Forward-looking Statements

64

This presentation contains facts and forecasts that relate to the future

development of the K+S Group and its companies. The forecasts are estimates

that we have made on the basis of all the information available to us at this

moment in time. Should the assumptions underlying these forecasts prove

not to be correct or should certain risks – such as those referred to in

the Risk Report – materialise, actual developments and events may deviate

from current expectations. The Company assumes no obligation to update the

statements, save for the making of such disclosures as are required by the

provisions of statute.

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