Handout - K+S Aktiengesellschaft

Roadshow New York
21-22 March 2013
March 2013
Experience growth.
K+S Group

K+S Group
Content
A. Corporate Structure & Strategy 1
B. Potash and Magnesium Products 4
C. Salt 29
D. Complementary Activities 39
E. Financial Data 41
F. Outlook 52
G. K+S Share 56
March 2013 K+S Group 1

K+S Group
Why invest in K+S?
K+S…
• … has access to megatrends of growing population, increasing living standards and
changing diets toward higher meat consumption in developing countries
• … is active in the growing potash fertilizer market having an attractive consolidated supply
structure and high barriers to entry. Potash does not have any substitutes
• … is a unique strategic combination of potash and salt with considerable synergies on
production side and by being complementary on sales side
• … has leading positions in potash and magnesium (big volume player in Europe,
No. 5 worldwide)
• … has a substantial capacity growth potential with the Legacy Project (set up of a potash
solution mine) in Canada
• … is the global leader in salt with leading positions in Europe, South and North America and
with diversification through the global footprint and various end markets
• … has very strong financials
• … has a responsible management team with strong operational background and track record
of creating value
March 2013 K+S Group 2

K+S Group
Focus on two strong Pillars
K+S Group
Revenues 2012: € 3.9 billion (2011: € 4.0 billion)
EBIT I 2012: € 808,5 million (2011: € 906.2
Potash and Magnesium
Products Business Unit
Salt Business Unit
1,422
Revenue / EBIT I in € million
1,867 2,134
232 476
740
2,291
774
Revenue / EBIT I in € million
1,729 1,710
1,015
140 238
211
1,485
62
Complementary Activities (Revenues 2012: € 154 million; EBIT 2012: € 21 million)
Waste Management & Recycling
Logistik
Animal Hygiene Products
Trading business (CFK)
March 2013
K+S Group
3

K+S Group
Content
A. Corporate Structure & Strategy 1
B. Potash and Magnesium Products 4
C. Salt 29
D. Complementary Activities 39
E. Financial Data 41
F. Outlook 52
G. K+S Share 56
March 2013 K+S Group 4

Potash and Magnesium Products
What are the Demand Drivers for Fertilizers?
• Despite decreasing availability of arable farm land, global production of agricultural products
has to be increased:
• steadily increasing world population
• changing diets toward higher meat consumption (e.g. 1 kg beef = 8 kg animal feed)
• increasing importance of renewable raw materials for the production of bio energy
• Fertilizing with the key nutrients nitrogen (N), phosphate (P)
and potash (K), but also increasingly magnesium (Mg) and sulphur (S)
is necessary to cope with this challenge
• Nutrients cannot be substituted and a balanced fertilization of all nutrients is
necessary to achieve optimal yields. Emerging countries, in particular, should
significantly increase the potash proportion of their total fertilizer application
• Medium- and long-term increase in global fertilizer consumption (N, P and K)
of 2% to 3% p.a. is expected (Source: IFA)
Advantage:
K+S offers its worldwide customers important nutrients
in a market-oriented specialised product range
March 2013 K+S Group 5

Potash and Magnesium Products
Low Stocks-to-use Ratios of Agricultural Products
Production and demand development vs. stocks-to-use ratio (Wheat and coarse grains)
Production
Demand
Stocks-to-use
45.0
40.0
35.0
30.0
25.0
Critical Level
20.0
15.0
• Over the past thirty years, annual global production has often fallen short of demand.
• Despite reasonable harvest levels during the last ten years, these structural supply and
demand gaps have resulted in historically low stocks-to-use ratios. This ratio relates available
stocks to estimated demand of one year and therefore can be translated into the number of days the stocks
would last without any new harvests. A stocks-to-use ratio of 20% can be translated into 73 days.
• The production level for the agricultural year 2012/13 expected by the USDA will not be efficient to meet
consumption, so that stocks-to-use ratio will remain very low (17,8% or 65 days).
March 2013 K+S Group 6
2011/12e
Source: USDA; as of 8 March 2013
e
10.0
5.0
0.0

Potash and Magnesium Products
Prices for Agricultural Products – Spot vs. Future
Prices for Agricultural Products – spot
Prices for Agricultural Products – future
450%
400%
350%
300%
250%
200%
150%
100%
50%
2005 2006 2007 2008 2009 2010 2011 2012 March’13 Dec.’13
May.‘14
Corn
Wheat
Soybeans
Palmoil
• High price level for agricultural products in
2012, despite slight decreases towards
the end of the year
Source: Bloomberg; as of 18 March 2013
• Future prices of agricultural products
show that capital markets expect price
levels to be attractive for the next two
years
March 2013 K+S Group 7

Potash and Magnesium Products
How is the Profitability of Winter Wheat in Europe?
2009
2010
2011
2012
2013e
2.000
Costs Sales
1,213 964
Costs Sales
1,067 1,595
Costs Sales
1,116 1,405
Costs Sales
1,205 1,909
Costs Sales
1,196 1,632
1.500
1.000
500
0
Risk of
loss:
-249 €
Profit
potential:
528 €
Profit
potential :
289 €
Profit
potential :
704 €
326
248 242
175 225
82 82
69 75 75
101 101 101 121 121
189 157
157 162 162
513 541 541 567 567
Profit
potential :
436 €
Wheat price: 123 €/t Wheat price: 220 €/t Wheat price: 199 €/t Wheat price: 258 €/t Wheat price: 220 €/t
2009 2010 2011 2012 2013e
Yield: 7.84 t/ha Yield: 7.25 t/ha Yield: 7.06 t/ha Yield: 7.40 t/ha Yield: 7.42 t/ha
Year
2009
2010
2011
2012
2013e
Fertilizer share of total costs
27% fertilizer costs (4% K)
16% fertilizer costs (3% K)
20% fertilizer costs (2% K)
21% fertilizer costs (3% K)
20% fertilizer costs (3% K)
Fertilization
Other costs
(e.g. insurance, water)
Seeds/plants
Plant protection agents
Variable costs
Fixed costs (inkl. lease)
March 2013
The current future curve of the wheat price should enable the farmer to realize a profit potential of around
€ 700 per hectare (excl. subsidies) in 2012 and around € 440 in 2013e. This is a high level compared to the
last years; the application of fertilizers is profitable.
Assumptions: without agricultural subsidies, incl. interest expenses for pre-financing costs, 100% use of mineral fertilizers (no organic fertilizing), straw stays in the field (straw fertilizing); fertilizer
use for 8 t/ha yield: 80 kg/ha MOP, 536 kg/ha KAS and 139 kg/ha TSP; for lower yields, lower fertilizer requirement adjusted accordingly; Sources: costs (20 ha) according to Kuratorium für
Technik und Bauwesen in der Landwirtschaft e. V. (KTBL) for winter wheat – bread quality, rotating crop growing system; yield according to statistical year book for food nutrition, agriculture and
forestry 2011 and 2012, 2013e: 10-year average; nutrient extractions according to Guidelines for Fertilizer Use in Germany; fertilizer prices taken from LAND & Forst at the point of the upcoming
fertilization (general fertilization with potash and phosphate in September; nitrogen fertilization in September, February, April and June); wheat price (bread quality B) according to LAND & Forst
(average delivery from the yard from July to February), 2012e and 2013e: Euronext price less transportation cost assumption.
K+S Group
8

Potash and Magnesium Products
How is the Supplier Structure on the Potash Market?
Figures in %
32.8 32.9
32.0
30.7 30.4
2009 2010 2011
23.0
13.9
11.2
9.9
9.5
8.6
9.5
8.6
8.5
9.3
3.1
3.6
3.7
2.7
2.6
2.6
4.7
3.2
3.0
BPC
• Belaruskali
• Uralkali/
Silvinit
Canpotex
• Potash
Corp
• Mosaic
• Agrium
K+S
ICL
• DSW
• CPL
• Iberpotash
participation
Sales volumes in metric tonnes
of Potash
Sources: IFA, K+S
Corp. in ICL
March 2013 K+S Group 9
APC
participation
of Potash
Corp.
SQM
participation
of Potash
Corp.
China
• more
than 20
producers
Others
• Intrepid
• Vale
• Compass

Potash and Magnesium Products
What are the major Production and Application Areas?
Million tonnes
20.1
19.7
28.5
10.2
7.1 5.9
4.4
10.8
10.5
2.2
0.7
Incl. sulphate of potash
and low-grade potash
Sources: IFA, K+S
World potash production:
2011: 59.9 million t
2010: 55.5 million t
2009: 33.7 million t
World potash sales:
2011: 60.2 million t
2010: 58.3 million t
2009: 31.0 million t
March 2013 K+S Group 10

Potash and Magnesium Products
Where does Demand Growth come from?
World
Developed markets
40.000
32.000
20.000
16.000
North America, Western/Central Europe, Oceania
1.000 t K 2 O
24.000
16.000
1.000 t K 2 O
12.000
8.000
8.000
4.000
0
80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f
0
80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f
Transitional markets
Emerging markets
10.000
Eastern Europe and Central Asia
24.000
Latin America, Asia, Africa
8.000
20.000
1.000 t K 2 O
6.000
4.000
2.000
1.000 t K 2 O
16.000
12.000
8.000
4.000
0
0
80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f
80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f
Source: IFA
March 2013 K+S Group 11

Potash and Magnesium Products
How much Potash is consumed in each Region?
Million tonnes
2013e
2012e
2011
2010
2009
2008
Western Europe
5.8
5.2
5.9
6.7
2.7
6.3
Central Europe / FSU
5.0
4.8
4.4
4.9
3.1
5.0
Africa
0.8
0.7
0.7
0.8
0.3
0.6
North America
10.3
8.5
10.2
10.8
4.1
10.2
Latin America
10.5
10.5
10.5
9.7
6.0
8.6
Asia
26.0
23.9
28.0
24.9
14.6
23.2
- thereof China
~ 13
12.2
12.7
10.2
5.4
8.8
- thereof India
~ 4
3.2
5.0
6.1
5.5
6.2
Oceania
0.6
0.4
0.5
0.5
0.2
0.6
World total
~ 59
~ 54
60.2
58.3
31.0
54.5
● In 2012, worldwide potash sales volumes amounted to around 54 million tonnes with declines
especially in China, India and the US.
● In 2013, we expect worldwide potash sales volumes of about 59 million tonnes.
Incl. potassium sulphate and potash grades with lower K 2 O content of around 3 million tonnes eff;
Sources: IFA, K+S
March 2013 K+S Group 12

Potash and Magnesium Products
Are new Potash Capacities needed?
Million tonnes
Greenfield projects
Brownfield projects
Available capacity
Production
Sales
China
Financial
crisis
Reliability of forecast
quality questionable
India
68
●
●
Long-term demand growth
of 3 to 5% p.a.
The available capacities
will not be sufficient.
Soviet Union
~59
64
●
IFA data (basis for capacity
expansion forecast) showed
poor forecast quality in the
past (due to project
postponements and delays).
●
Brownfield projects shown
are all in the hands of existing
producers, who proved to
consistently match supply with
market demand.
1988 ’93 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ‘13
‘14 ‘15 ‘16
(e)
Incl. potassium sulphate and potash grades with lower K 2 O content of around 3 million tonnes eff;
Capacity development 2011-2016 based on IFA supply capability data.
Sources: IFA, K+S
March 2013 K+S Group 13

Potash and Magnesium Products
How Reliable is the Forecast Quality of Capacities?
Million tonnes
85
IFA Supply Capability Data 2009
IFA Supply Capability Data 2012
80
Year 2013
Forecast 2009 vs.
2012:
estimate reduction of
> 6 million tonnes
75
70
65
Year 2012
Forecast 2009 vs.
2012:
estimate reduction of
> 7 million tonnes
60
2011 2012 2013 2014 2015
Incl. potassium sulphate and potash grades with lower K 2 O content of around 3 million tonnes eff;
Capacity development 2011-2015 based on IFA supply capability data.
Sources: IFA, K+S
March 2013
K+S Group
14

Potash and Magnesium Products
How did MOP Prices develop?
US$/t
Northwest-Europe (standard, fob)
US$/t
Overseas (cfr)
Brazil
(granular)
*
South-East Asia
(SEA, standard)
411
445-455
2003 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 2013 2003 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 2013
● Due to the tight demand-supply-situation, potash prices more than doubled between 2004 and 2007
●
●
●
The strong and in part speculatively driven raw materials boom which was observable worldwide until mid-2008
also had an effect in significant price increases to over 800 US$/tonne of granulated potassium chloride
The collapse in agricultural prices as a consequence of the financial crisis also led to a decrease in potash prices;
a price level of approximately 400 US$/tonne of granulated potassium chloride was established at the beginning of
2010. This increased gradually as part of an improving agricultural environment and thus took into account the fact
that time-consuming and capital-intensive greenfield projects for the creation of new capacities can only be realised
economically with a reasonable potash price level
Pricing pressure at the end of 2012 due to the lack of contracts with China and India, followed by a stabilisation at
the beginning of 2013 after the conclusion of new contracts
March 2013 * Until end of September 2010 MOP standard; Source: FMB
K+S Group 15

Potash and Magnesium Products
How is the Business Unit performing?
Revenues (€ billion) EBIT (€ million)
Highlights 2012
0.54
0.47
2.13
2.29
Q4/11 Q4/12 FY/11 FY/12
1.9
2.1
2.3
2010 2011 2012
181
476
166
740
774
Q4/11 Q4/12 FY/11 FY/12
740 774
2010 2011 2012
• After there was still cautious early stocking-up of
fertilizers at the start of the year, the demand
developed positively during Q2.
• In Q3/12, due to the attractive prices for agricultural
raw materials, demand was at a good level for
agricultural raw materials demand was at a good level
in the markets relevant for K+S. However, against the
backdrop of still outstanding contract conclusions in
China and India, international prices for potassium
chloride came under pressure in the fourth quarter, but
were in 2012 on average above those of 2011.
Revenue split 2012 Outlook 2013*
Industrial
products
12%
Fertilizer
specialities 37%
By product group
Potassium
chloride 51%
Asia
20%
By region
South
America
23%
North America
3%
Africa, Oceania
5%
Europe
49%
• Sales volumes expected at about 7 million t
(2012: 6.95 million t)
• Average price level expected below that of 2012
• On this basis, revenues should decrease. With
costs expected to be stable, operating earnings
should also be below the level of 2011.
March 2013 *
Outlook as of 27 February 2013
K+S Group 16

Potash and Magnesium Products
How is the Product Portfolio structured?
Non-potash-containing products
2011: 1.21 million tonnes
(2010: 1.24)
● Fertilizer specialities
- ESTA ® Kieserite
- EPSO ® Product family
● Industrial products
- Magnesium sulphate
- Magnesium chloride
Fertilizer
specialities
2.96
Industrial
products
0.74
Potassium
chloride
3.25
Potash-containing products
2011: 5.75 million tonnes
(2010: 5.70)
● Potassium chloride
- MOP - Standard
- MOP - Granular
● Fertilizer specialities
- Potassium sulphate
- Patentkali ®
- Korn-Kali ® products
- Magnesia-Kainit ®
● Industrial products
- Potassium chloride, 97% - 99% KCl
- Potassium sulphate, > 95% K 2 SO 4
- High purity salts
Broad and less cyclical product portfolio allows flexible reaction on fluctuation in demand
March 2013 K+S Group 17

Potash and Magnesium Products
How is the Cost Structure?
2008 2009 2010 2011 2012 2013e
÷
–
=
=
Revenues (€ million) 2,397.4 1,421.7 1,867.0 2,133.6 2,290.6 -
EBIT (€ million) 1,203.2 231.7 475.9 739.5 773.9 -
Costs (€ million) 1,194.2 1,190.0 1,391.1 1,394.1 1,516.7 ○
thereof personnel (€ million) 465 440 506 535 550 ○
thereof freight (€ million) 227 155 264 268 280 ○
thereof freight (€/t) 33 36 37 39 40 ○
thereof material (€ million) 265 183 229 249 257 ○
thereof energy (€ million) 186 144 172 195 230 -
thereof depreciation (€ million) 83 86 91 94 96 +
thereof other (€ million) (32) 182 129 53 104 ○
Sales Volumes (million t) 6.99 4.35 7.06 6.94 6.95 ○
Total Unit Costs (€/t) 170.8 273.6 197.0 200.9 218.2 ○
• In 2012, average unit costs rose tangibly. In 2013 in total, we expect a largely stable cost level.
March 2013 K+S Group 18

Potash and Magnesium Products
What are major Destinations for K+S?
> 1%
Sales volumes > 5%
Sales volumes by region
2012 2011
Europe 51% 54%
- of which: Germany 15% 16%
North America 2% 2%
South America 21% 18%
Asia 22% 22%
Africa, Oceania 4% 4%
March 2013 K+S Group 19

Potash and Magnesium Products
Are there Price Differences in the Product Portfolio?
€/t
700
600
500
400
300
200
K+S Ø-Portfolio-Price vs. MOP gran. Europe
K+S Ø-Portfolio Price
MOP gran. Europe
∆
~10-20%
€/t
900
800
700
600
500
400
300
200
SOP Ø-Price vs. MOP gran. Europe
SOP Ø-Price Europe (std.and gran.)
MOP gran.
Europe
100
2006 2007 2008 2009 2010 2011 2012
100
2006 2007 2008 2009 2010 2011 2012
€/t
600
500
400
300
200
K+S Industrial Ø-Price vs. MOP gran. Europe
K+S Ø Industrial Portfolio Price
MOP gran. Europe
K+S non potash specialities Industr. vs. Fertiliz.
€/t
450
400
350
300
250
200
150
100
50
Industrial Magnesium Comp.
Fertilizer Magnesium Comp.
100
2006 2007 2008 2009 2010 2011 2012
2006 2007 2008 2009 2010 2011 2012
March 2013 Sources: K+S, FMB International Price Guide, Green Markets, Fertilizer Europe
K+S Group 20
0

Legacy Project
What Relevance do the Activities in Canada have?
• With Potash One, K+S has acquired
several potash exploration permits in
Saskatchewan/Canada (incl. the
Legacy Project and its feasibility
study).
Southern area of the potash belt of Saskatchewan
(Schematic Diagram)
• The total purchase price was
€ 322.5 million (CAD 4.50 per share).
• The Legacy Project is an advanced
greenfield project for which an
environmental permit has been granted.
• Potash One is now fully incorporated
in K+S Potash Canada GP.
Two more potash exploration licences close to Esterhazy
Reserves and Resources
in mln. t KCl % KCl % K 2
O
Reserves (Proven and Probable Reserves) Legacy Project area 160 29 18
Resources (Inferred and Indicated Resources) Legacy Project area + KLSA 009 981 27 17
The reserves figures were determined in accordance with the requirements of the Canadian standard Nl 43-101 of the “Canadian Securities Regulators”.
March 2013 K+S Group 21

Legacy Project
How is the Ramp-up of the Legacy Project planned?
Production capacity
in mln. t KCl/a
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Phase 2 – Development of secondary mining
Phase 1 – Primary mining
Outlook for Phase 3 –
Expansion of secondary mining
2011'12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35
1.14
0.86
2.00
Phase 1
(Implementation: 2011 to 2017)
Phase 2
(Implementation: 2016 to 2023)
Outlook for Phase 3
(Implementation: 2023 to 2034)
● 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
March 2013 K+S Group 22

Legacy Project
How will the Course of Capex be?
Phase 1
Phase 2
Phase 3
Activity
Primary mining: Development of
first caverns and construction
of production and
infrastructure facilities
Development of secondary mining,
expansion of production and
logistics facilities
Further expansion of secondary
mining, construction of necessary
additional production and logistics
facilities
Production
capacity after
implementation
as of 2017:
2.00 million tonnes KCl/a
as of 2023:
2.86 million tonnes KCl/a
probably as of 2034:
4.00 million tonnes KCl/a
Capex 2011 to 2016: CAD 2.90 billion* 2016 to 2022: CAD 0.35 billion* 2023 to 2034: ~ CAD 0.70 billion
Diagram of
course of
investment
2011 2012 2013 2014 2015 2016 2016 2017 2018 2019 2020 2021 2022
March 2013 * Approved by the Supervisory Board
K+S Group 23

Legacy Project
What will be the specific Cash Costs*?
CAD/tonne
175
150
125
100
75
50
25
~ 165 CAD/tonne
Average
logistic
costs
Cash costs of
production:
~ 95 CAD/tonne
● The cash costs of production will be lower for
Legacy than in our plants in Germany
● The high share of variable cost components
(incl. freight) makes possible greater flexibility in
relation to capacity utilisation:
Legacy: 2/3 variable; 1/3 fixed
Germany: 1/3 variable; 2/3 fixed
● For mining taxes/royalties, an additional approx.
CAD 70/tonne are to be recognised on the basis
of a potash price of US$ 450/tonne ex works
● Over the long term, depreciation and
amortisation will total about CAD 30/tonne after
initially higher values at the start of production
0
* At full utilisation of 2.86 million tonnes KCl/a (Phases 1+2)
Assumptions: gas price: CAD 4.30/MMBtu; exchange rate: 1.02 CAD/USD; no increase in prices and costs after the construction phase
March 2013 K+S Group 24

Legacy Project
What Potash Price is required as a Minimum for
the Profitability of the Legacy Project?
The Legacy Project requires a potash price of between USD 400 and 450/tonne MOP
gran. including freight in order to achieve a return on capital employed (ROCE) of
12% before taxes
Parameters like the level of investment, gas price or freight rates could move respectively as follows, without
jeopardising the planned target return or the range mentioned above:
Parameter Basis Tolerance
Capex (Phases 1 + 2) CAD 3.25 billion ± 15%
Gas price (Henry Hub Natural Gas Price) CAD 4.30/MMBtu ± 50%
Average freight rates ~ CAD 70/tonne ± 30%
The Legacy Project is one of the world’s economically most attractive greenfield
projects. The relatively favourable minimum price for this project cannot simply be
transferred to other greenfield projects; higher minimum prices are to be expected.
March 2013 K+S Group 25

Legacy Project
How will Earnings Develop in the coming Years?
Legacy Project Phases 1 + 2
Turnaround already in
2016/2017 with the
achievement of full ramp-up of
phase 1 (2 mln. t KCl/a)
EBITDA
EBIT
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
EBIT in 2015 expected to be
burdened due to first
depreciation charges
March 2013 K+S Group 26

Legacy Project
Why is the Legacy Project an important
strategic step?
Growth
Production Costs
Capacity and
Mine Life
Diversification
Specialisation
Flexibility /
Expansion Potential
• Adding substantial new capacities to the Potash and Magnesium Products
business segment in a relatively short timeframe to be able to participate in the
growth of the world potash market
• Improvement and flexibilisation of average cash costs of production in the Potash
and Magnesium Products business segment
• Substantial addition of annual capacity by up to 4 million tonnes in the long run
• Substantial extension of average mine life
• K+S will be the potash producer with the widest product portfolio as well as one of
the most diversified production networks and regional mix; share of sales volumes in
the growth markets South America and Asia will increase
• Continuation of the specialisation strategy by offering high-quality industrial
products from Canada
• Good scalability of capacity utilisation according to market development
• Improved flexibility due to higher share of variable costs
• Further expansion potential beyond the Legacy Project
With a potash price of between USD 400 and 450/tonne MOP gran. including freight, the project already
achieves a ROCE of 12% and an attractive premium on our cost of capital. The Legacy Project is thus
one of the world’s economically most attractive greenfield projects
March 2013 K+S Group 27

Legacy Project
How is the Project progressing?
• Further infrastructure measures in the areas of
water supply, electricity and road construction, as
well as the completion of first drilling activities, were
undertaken in 2012.
• About 130 employees from different countries are
currently working at K+S Potash Canada GP on the
construction of the new site. By 2023, more than
300 jobs should be created.
• In 2012, we spent an investment volume of € 143
million, which was used for infrastructure measures
and water supply, as well as engineering work and
drilling.
• In 2013, the investment level should reach
CAD 830 million* (ABOUT € 625 million) and be
used for drilling and the start of the factory’s
construction.
March 2013 * There may still be considerable shifts in the allocation of expenditure to the investment periods
K+S Group 28

K+S Group
Content
A. Corporate Structure & Strategy 1
B. Potash and Magnesium Products 4
C. Salt 29
D. Complementary Activities 39
E. Financial Data 41
F. Outlook 52
G. K+S Share 56
March 2013 K+S Group 29

Salt
What are the Demand Drivers for Salt?
• Diverse and stable salt end uses driving continuous growth
• Essential mineral without economically viable substitutes
• De-icing salt is used for public safety
• Consumption driven by winter weather
• Most economic and environmentally most friendly alternative
• Consumer / food grade salt consumption benefits from population growth and increasing
standards of living
• Industrial/chemical salt consumption driven by economic growth and industrialisation
• Rapidly industrialising regions experience high growth rates
• Salt products typically represent only a small portion of costs of production
• Regional markets due to high portion of logistics costs
March 2013 K+S Group 30

Salt
How did Salt Production and Consumption develop?
Million tonnes
North America
67 68 70
65
Europe
70
60 63
74
58
92
Asia
72
108
Ø 1.6% Ø 1.6%
Ø 0.1% Ø 0.7%
Production
Latin America
Consumption
Ø 3.2% Ø 2.9%
22
16 12 16
Production Consumption
Production
Ø 4.1% Ø 7.2%
4 6 4 8
Production
Africa
Consumption
Consumption
7.2% 8.8%
3 6 3 7
Production
Middle East
Consumption
Ø 4.7% Ø 4.1%
Production
Ø 2.9% Ø 7.2%
9
12
Production
Consumption
Oceania
1
2
Consumption
Source: K+S, USGS, Roskill 2011
Global Salt Production:
(Ø 2.4% p.a.)
2010: 276 million t
2000: 217 million t
Global Salt Consumption
(Ø 2.6% p.a.)
2010: 285 million t
2000: 220 million t
March 2013 K+S Group 31

Salt
What are the main Salt Suppliers Worldwide?
Capacity in million tonnes (crystallised salt and salt in brine; excl. captive use)
3.5
13.1
14.0
13.4
9.7
15.0
Cargill
Compass
7.5
Artyomsol
5.1
Salins
Südsalz
4.1
Akzo
3.7
China National Salt
7.0
ESSA
10.3
7.0
Dampier
3.8
Mitsui
Sources: Roskill 2011, K+S
March 2013 K+S Group 32

Salt
How is the Business Unit performing?
Revenues (€ billion) EBIT (€ million)
Highlights 2012
0.44
0.42
1.71
1.48
Q4/11 Q4/12 FY/11 FY/12
211
48 62
23
Q4/11 Q4/12 FY/11 FY/12
• Europe: As a result of the mild and dry weather
conditions at the beginning of the year, the demand
for de-icing salt was unusually weak, particularly
compared to the above-average year 2011, but also
compared to the long-term average sales volume.
1.7 1.7
1.5
238
211
62
2010 2011 2012 2010 2011 2012
• North-America: On the US East Coast, too, the
demand was very weak due to the unusually mild
winter, and it was below average in Canada. Most
producers responded to high inventories by cutting
back production.
De-icing salt
30%
Salt for
chemical use 8%
Revenue split 2012 Outlook 2012*
By product group By region • As a result of the normalisation of the de-icing salt
Other
South America Asia
5%
business, a significant increase of sales volumes is
10% 1%
expected.
Food grade
salt 23%
Industrial salt
34%
North America
64%
Europe
25%
• Sales volume forecast of a good 22 million tonnes of
crystallised salt (2012: 17.6 million tonnes).
• Increase in revenues and operating earnings
compared to below-average 2012 expected.
March 2013 * Outlook statement as of 6 November 2012
K+S Group 33

Salt
How did K+S Execute its Salt Strategy?
5
Acquired Morton Salt,
the largest salt producer
in North America
K+S
4
Morton
Salt
Acquired No.1 salt
producer in South
America through SPL
acquisition
- Market entry into U.S.
and Latin America
- Expansion potential
to Asia
SPL
1
2
3
Originally, salt
business with high
exposure to de-icing
and industrial salt in
Europe
Added salt for chemical
use through the acquisition
of Frisia Zout (NL)
Created No.1 salt
producer in Europe
through the acquisition
of Solvay salt business
March 2013 K+S Group 34

Salt
In which De-icing Salt Markets is K+S present?
Great Lakes
• Continental climate with
distinctly stable winters
• High population density
• Stable de-icing salt
business with high
volumes
US East Coast
• Atlantic climate
• Relatively volatile,
partly very harsh
winters
• Very high population
density
• Relatively stable
de-icing salt business
Eastern Canada
• Atlantic climate
• Relatively stable winters
• Lower population density
• Relatively stable
de-icing salt business
• Long-term contracts
Central Europe
• Atlantic climate
• Milder winters with
occasional upward
fluctuations
• Very high population
density
• Relatively fluctuating
de-icing salt business
Scandinavia
• More stable winters in
comparison with
Western Europe
• Relatively low
population density
• Relatively stable deicing
salt business
March 2013 K+S Group 35

Salt
How does the regional Diversification mitigate the
weather-related Volatility in the De-icing Business?
Sales Volume De-icing Salt SPL/ISCO*:
Sales Volume De-icing Salt Morton*:
Sales Volume De-icing Salt esco*:
10 year average sales volume (2003 – 2012) * before consolidation of intersegment sales volumes
The worldwide de-icing salt market
exhibits varying volatility
Access to the largest de-icing world
markets mitigates the overall degree
of fluctuation in the de-icing salt
business
Unique, interregional production
network (including access to salt
production from potash facilities)
allows benefiting from strong
demand surges at short notice
March 2013 K+S Group 36

Salt
How did Volumes and Prices develop?
Million tonnes Morton Salt (as of
€
1 October 2009)
SPL (as of
1 July 2006)
22.53 22.73
49.1
45.0 45.5
48.7
55.5
14.81
54.8
9.04
55.6
9.42
54.7
17.56
9.23
5.85
8.02
8.77
9.47
6.07
2.82
3.25
3.90
4.12
4.73
4.04
5.00
4.47
8.96
13.49
13.31
8.33
De-icing salt sales volume
Sales volume of industrial salt,
salt for chemical use and food grade salt
Yearly average price of de-icing salt
2005 2006 2007 2008 2009 2010
2011
2012e
• Total sales volumes increased over the past years mainly due to external growth, while the de-icing salt share
remained rather stable
• Sales volumes declined in 2012 caused by weaker de-icing salt demand due to unusually mild winter weather
March 2013 K+S Group 37

Salt
How is the Seasonality of the De-icing Salt Business?
Million tonnes
10.18
€
2.24
62.2
55.6
52.2
55.0
56.6
51.5
6.18
49.6
51.7
5.82
7.94
2.16
3.21
2.98
3.52
3.34
2.54
5.06
2.46
4.02
2.47
0.74
2.38
0.60
2.17
1.35
2.23
1.11
3.28
2.60
De-icing salt sales volume
Sales volume of industrial salt,
salt for chemical use and food grade salt
De-icing salt average price 2012
De-icing salt average price 2011
Q1/11 Q1/12 Q2/11 Q2/12 Q3/11 Q3/12 Q4/11
Q4/12
• Quarterly volumes and prices are affected by seasonal de-icing salt business which are in
general strongest in the Q1 and Q4
March 2013 K+S Group 38

K+S Group
Content
A. Corporate Structure & Strategy 1
B. Potash and Magnesium Products 4
C. Salt 29
D. Complementary Activities 39
E. Financial Data 41
F. Outlook 52
G. K+S Share 56
March 2013 K+S Group 39

Complementary Activities
How is the Business Unit performing?
Revenues (€ million)
EBIT (€ million)
Summary
38
40
150
154
-1
2
18
21
K+S is the leading provider for underground waste
management in Europe ensuring safety over long
periods of time. In addition, we offer tailor-made
solutions for recycling requirements of our customers.
Q4/11 Q4/12 FY/11 FY/12
150 154
134
Q4/11 Q4/12 FY/11 FY/12
21
18
21
Logistics activities being essential for K+S are also
bundled in this unit. Another important activity is the
granulation of CATSAN ® (cat litter).
2010 2011 2012 2010 2011 2012
Revenue split 2012 Outlook 2013 *
By product group
Trade
10%
Rest of
Europe 18%
By region
In the “Complementary Activities“ we expect from
today’s perspective stable revenues and earnings.
Animal hygiene
products
24%
Logistics 8%
Waste Mgmt.
and Recycling
58%
Germany 82%
March 2013 * Outlook statement as of 27 February 2013
K+S Group 40

K+S Group
Content
A. Corporate Structure & Strategy 1
B. Potash and Magnesium Products 4
C. Salt 29
D. Complementary Activities 39
E. Financial Data 41
F. Outlook 52
G. K+S Share 56
March 2013 K+S Group 41

K+S Group
How did Revenues and Earnings develop?
€ million
Revenues Operating earnings Group earnings, adjusted 1),2)
‘08 ‘09 ‘10 ‘11 ‘12 ‘08 ‘09 ‘10 ‘11 ‘12 ‘08 ‘09 ‘10 ‘11 ‘12
1)
2008 and 2009 include the discontinued operations of COMPO and K+S Nitrogen. 2010 still including K+S Nitrogen
2)
The adjusted figures only include the realised result from operating forecast forecast hedges of the respective reporting period. The changes in the market
value of operating forecast hedges still outstanding, however, are not taken into account in the adjusted earnings. Related effects on deferred and cash
taxes are also eliminated.
March 2013 K+S Group 42

K+S Group
How are Operating EBIT Margins?
2012 2011 2010
2009
2008
Potash and Magnesium Products
33.8%
34.7%
25.5%
16.3%
50.2%
Salt
4.2%
12.4%
13.8%
13.8%
7.3%
Complementary Business Segments
13.7%
11.9%
15.8%
12.6%
20.0%
K+S Group 1)
20.5%
22.7%
15.4%
6.7%
28.0%
1)
2008 and 2009 include the discontinued operations of COMPO.
March 2013
K+S Group
43

K+S Group
How was the Cash Flow Development in 2012
Cash flow from
operating activities 1,2)
Cash flow for
investing activities 1,3) Free cash flow 1,2,3)
+744
+651
+249
+243
(495)
(408)
2012 (€ million)
2011 (€ million)
• Cash flow from
operating activities in line
with EBIT development
• 2011 includes the acquisition of
Potash One (€ 242.8 million)
• Higher capex in 2012
2012 free cash flow
almost on last years level
March 2013
1)
Information refers to the continued operations. 2) Without out-financing of pension obligations in the amount of € (43.4)
million in 2012 (2011: € (110.0) million)
3)
Without investments in/sales of securities and other financial investments in the amount of € (558.5) million in 2012
(2011: € (372.4) million)
K+S Group
44

K+S Group
How high are Capex and Depreciation? 1)
€ million
Expansion capex
almost
1,100
Maintenance capex
Depreciation
466
294
172
198
178
189
63
2007 2008 2009 2010 2011 2012
2013e
• In 2013, of the expected capex volume of almost € 1,100 million, CAD 830 million 2) (€ 625 million) should be
accounted for by the Legacy Project.
1)
2008 and 2009 include the discontinued operations of COMPO. 2010 still including K+S Nitrogen. 2) There may still be
March 2013 considerable shifts regarding the allocation of the capex for the Legacy Project to the investment periods.
K+S Group 45

K+S Group
How did Net Indebtedness develop?
€ million
Provisions for pensions
Provisions for mining obligations
Non-current liabilities - non-current securities
Current liabilities - cash - current securities
Total net debt
2008 2009 2010 2011
Gearing ratio (%) 33.2 64.5 27.6 19.8
2012
21.7
March 2013 * Including reimbursement claim for the Morton Salt bond (2012: €18,9 million; 2011: €19.4 million; 2010: €18.9 million) K+S Group 46

K+S Group
What are the Key Figures for the Management
of the Capital Structure?
In order to assure and optimise the financial capacity of the K+S Group, we aim to achieve a
situation where the K+S Group has a capital structure in the long term, which is oriented to
the usual criteria and indicators for an "investment grade" rating. The management of the
capital structure is undertaken on the basis of the following key figures:
Target corridor 2012 2011 2010
Net indebtedness / EBITDA 1.0x – 1.5x 0.7x 0.5x 0.8x
Net indebtedness / Equity 50% – 100% 21.7% 19.8% 27.6%
Equity ratio 40% – 50% 52.4% 50.9% 47.6%
March 2013 K+S Group 47

K+S Group
How is the Maturity Profile?
€ million
1000
Bonds (due 09/2014, Coupon: 5%; due 06/2022, Coupon 3%)
Revolving credit facility due 07/2015
800
600
400
750
800
200
500
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
• The revolving credit facility above shows maximum possible headroom, not the amount
actually drawn.
• In addition, there are uncommitted, bilateral credit lines of about € 200 million.
March 2013 K+S Group 48

K+S Group
How is the Rating of K+S?
Moody’s
Date Rating Outlook
November 2010 Baa2 stable
March 2010 Baa2 stable
September 2009 Baa2 negative
Standard & Poor’s
Date Rating Outlook
• We have shown a successful
track record in credit and debt
capital markets
• To ensure this position we want
to maintain a investment grade rating
• Current financial ratios support
our rating strongly
September 2011 BBB+ stable
January 2011 BBB positive
October 2010 BBB stable
March 2013 K+S Group 49

Potash and Magnesium Products
How is the Currency Exposure managed in the
Potash and Magnesium Business Unit?
US dollar
• USD revenues are hedged after the deduction of overseas freight costs, capital expenditure
for the Legacy Project and
a safety margin
• Use of options or futures, which
prescribe a worst-case scenario,
but provide the opportunity to
share in any possible appreciation
of the US dollar
„worst case“ for the fiscal year 2012:
USD/EUR 1.32 after premiums
„worst case“ for the fiscal year 2013
(for ~60% of expected USD net exposure):
USD/EUR 1.29 after premiums
Canadian dollar
• Capital expenditure in Canadian dollar for the Legacy Project expected with sufficient certainty
are also hedged with the use of options
or futures, which prescribe a worstcase
scenario, but provide the
opportunity to share in any possible
depreciation of the Canadian Dollar
„worst case“ for the fiscal year 2013
(for ~50% of expected capex in Canadian dollar):
CAD/EUR 1.26 after premiums
March 2013 K+S Group 50

K+S Group
How Sensitive are Earnings to USD Volatility
in 2013?
1.23 USD/EUR 1.33 USD/EUR* 1.43 USD/EUR
Ø USD/EUR exchange rate changes from
1.33 to 1.23 USD/EUR
• With the use of options, we still
participate in the possible appreciation
of the US dollar (less the amount we
paid for the premiums). Based on the
expected USD net exposure of the
K+S Group, the total positive effect on
EBIT I earnings of K+S Group in 2013
would be about € 70 million.
* underlying assumption of outlook 2013
Ø USD/EUR exchange rate changes from
1.33 to 1.43 USD/EUR
• Based on the expected USD net exposure
of K+S Group, the total negative effect
without hedging on EBIT I earnings of the
K+S Group in 2013 would be about
€ 90 million.
• As options in place cover our expected
net exposure from today’s perspective
to a large degree, the above-mentioned
risk reduces to about € 55 million in 2013
(including the amount we paid for the
premiums).
March 2013 K+S Group 51

K+S Group
Content
A. Corporate Structure & Strategy 1
B. Potash and Magnesium Products 4
C. Salt 29
D. Complementary Activities 39
E. Financial Data 41
F. Outlook 52
G. K+S Share 56
March 2013 K+S Group 52

Attractive Prospects
What is the Outlook for the Potash and
Magnesium Products Business Unit?
Outlook 2013:
●
Declining revenues
• Lower average price
• Stable sales volumes at about 7 million t
(2012: 6.95 million t)
● Operating earnings below 2012
• Price related decrease in revenues
• Stable overall cost level
Outlook 2014:
●
●
Price and volume related rise in
revenues
Higher operating earnings
March 2013
K+S Group
53

Attractive Prospects
What is the Outlook for the Salt Business Unit?
Outlook 2013:
●
●
Higher revenues
Normalisation of de-icing salt sales volumes
(increase to 12-13 million t; 2012: 8,33 million t)
Improving operating earnings
• Higher revenues due to normalisation of
de-icing salt business
• Significantly higher capacity utlisation and
fixed cost coverage
Outlook 2014:
● Increasing revenues due to price factors 1)
● Higher operating earnings 1)
1)
Assumption: Average de-icing salt business
March 2013
K+S Group
54

Attractive Prospects
How is the Revenue and Earnings Outlook for the
K+S Group?
Outlook 2013:
●
Pricing related lower revenues and earnings in the Potash and Magnesium Products
business unit should be overcompensated by volume driven increase in the Salt
business unit
Slightly higher revenues
Operating earnings EBIT I slightly higher
●
Capex of almost € 1.1 billion (Legacy: € about 625 million ≙ CAD 830 million)
Outlook 2014:
Slight increase in revenues and earnings
March 2013
K+S Group
55

K+S Group
Content
A. Corporate Structure & Strategy 1
B. Potash and Magnesium Products 4
C. Salt 29
D. Complementary Activities 39
E. Financial Data 41
F. Outlook 52
G. K+S Share 56
March 2013 K+S Group 56

K+S Group
What are the Analysts‘ Estimates?
As of 1 March 2013
2012
2013e
2014e
Revenues
(€ million)
3,953.3
Median
Number of estimates
4,025.5
26
4,159.5
25
Operating earnings
EBIT I (€ million)
808.5
Median
Number of estimates
785.6
26
832.8
25
Group earnings from
continued operations
adjusted (€ million)
540.8
Median
Number of estimates
526.0
25
546.7
24
Earnings per share
from continued
operations,
adjusted (€)
2.83
Median
Number of estimates
2.75
25
2.86
24
Dividend (€)
1.40
Median
Number of estimates
1.20
25
1.30
23
Target price (€)
Median
Number of estimates
39.00
26
March 2013
K+S Group
57

K+S Group
How is the Dividend Policy?
• We pursue a dividend policy that is in principle earnings-based. According to this, a dividend
payout rate of between 40% and 50% of the adjusted Group earnings after taxes forms the
basis for future dividend recommendations.
• For the year 2012, a dividend of € 1.40 per share (+ 8%) was proposed.
Group Earnings and Payout Ratio
Dividends
%
Payout ratio
Target range payout ratio
Group earnings from continued operations,
adjusted (rhs)
Mio. € €
, .
,
.
.
,
Dividends in €
€
.
.
.
.
.
.
.
640
.
.
.
.
.
.
.
.
March 2013 K+S Group 58

K+S Group
How is the Shareholder Structure?
• Meritus Trust Company Limited holds 9.88%
of K+S shares via EuroChem Group SE, including
OJSC MCC “EuroChem”; Meritus Trust manages
industrial holdings of Andrei Melnichenko on a
fiduciary basis
• The free float of K+S AG amounts to approx. 90%
Free float 90.1%
Meritus Trust /
OJSC MCC „EuroChem“ 9.9%
• Investment companies, that have exceeded
the 3% threshold:
- BlackRock Inc.: 5.08%
- Prudential plc. via M&G Investment
Management Limited: 3.01%
March 2013 K+S Group 59

K+S Group
What are the Upcoming Events?
14 May 2013 ‣ Annual General Meeting 2013, Kassel
14 May 2013 ‣ Quarterly Financial Report, 31 March 2013
15 May 2013 ‣ Dividend payment
13 August 2013 ‣ Half-yearly Financial Report, 30 June 2013
14 November 2013 ‣ Quarterly Financial Report, 30 September 2013
13 March 2014 ‣ Report on business in 2013
March 2013 K+S Group 60

K+S Investor Relations
Who are my Contact Persons?
K+S Aktiengesellschaft
Bertha-von-Suttner-Str. 7
34131 Kassel (Germany)
E-Mail: investor-relations@k-plus-s.com
Homepage: www.k-plus-s.com
IR-website: www.k-plus-s.com/de/ir
Thorsten Boeckers
Head of Investor Relations
Phone: +49 561 / 9301-1460
Fax: +49 561 / 9301-2425
thorsten.boeckers@k-plus-s.com
Andrea Rach
Investor Relations Assistant
Phone: +49 561 / 9301-1100
Fax: +49 561 / 9301-2425
andrea.rach@k-plus-s.com
Julia Bock, CFA
Senior Investor Relations Manager
Phone: +49 561 / 9301-1009
Fax: +49 561 / 9301-2425
julia.bock@k-plus-s.com
Kai Kirchhoff
Senior Investor Relations Manager
Phone: +49 561 / 9301-1885
Fax: +49 561 / 9301-2425
kai.kirchhoff@k-plus-s.com
Matthias Jelden
Investor Relations Manager
Phone.: +49 561 / 9301-2204
Fax: +49 561 / 9301-2425
matthias.jelden@k-plus-s.com
March 2013 K+S Group 61

K+S Group
Forward-looking Statements
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.
March 2013 K+S Group 62

March 2013 K+S Group 63

K+S Aktiengesellschaft · Bertha-von-Suttner-Strasse 7 · 34131 Kassel | Germany · Internet: www.k-plus-s.com
Investor Relations · phone: +49 (0)561 / 9301-1100 · fax: +49 (0)561 / 9301-2425 · email: investor-relations@k-plus-s.com
March 2013
Experience growth.
K+S Group