Standardpräsentation Investor Relations - K+S Aktiengesellschaft
Standardpräsentation Investor Relations - K+S Aktiengesellschaft
Standardpräsentation Investor Relations - K+S Aktiengesellschaft
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Potash and Magnesium Products<br />
Why Potash?<br />
Profiting from megatrends<br />
• Steadily increasing world population<br />
• Changing diets toward higher meat consumption with rising income in developing countries<br />
(e.g. 1 kg beef = up to 8 kg animal feed)<br />
• Increasing importance of renewable raw materials for the production of bio energy<br />
Due to these megatrends, global production of agricultural products has to be increased while the availability of<br />
arable farm land per capita decreases. Therefore, the efficiency of the world’s farmland has to be improved by an<br />
optimized and balanced use of fertilizers. The key nutrients nitrogen, phosphate and potash cannot be<br />
substituted and a balanced fertilization of all nutrients is necessary to achieve optimal yields. Emerging<br />
countries, in particular, can significantly reduce the yield gap by increasing the potash proportion of their total<br />
fertilizer application.<br />
Attractive supply structure in the potash market<br />
• Consolidated potash market with the 5 biggest producers supplying more than two thirds of the world market<br />
• High barriers to entry in the potash market: Viable deposits are limited worldwide, development costs are<br />
considerable, lead times of seven years or more starting from the scratch and sufficient potash mining and<br />
marketing know-how are required<br />
• Rising potash demand cannot be met by currently installed capacities and calls for the investment in new<br />
capacities<br />
June 2013<br />
<strong>K+S</strong> Group<br />
37