Standardpräsentation Investor Relations - K+S Aktiengesellschaft

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