Handout - K+S Aktiengesellschaft

Jakarta 1975
Cheuvreux German Corporate Conference
Frankfurt am Main, 21 January 2013
Jakarta 2010
Experience growth.
January 2013 K+S Group 0

K+S Group
Experience Growth
K+S is one of the world's leading suppliers of standard
and speciality fertilizers. In the salt business, with sites
in Europe as well as North and South America, K+S is
the world’s leading producer.
K+S offers a comprehensive range of goods and
services for agriculture, industry and private
consumers which provides growth opportunities in
virtually every sphere of daily life.
We assume active responsibility for the sustained
growth of our world. Our more than 14,000 employees
display their commitment towards this goal day by
day – by applying their knowledge and experience.
January 2013 K+S Group 1

K+S Group
Content
A. Corporate Structure & Strategy
B. Potash and Magnesium Products
C. Salt
D. Complementary Activities
E. Financial Data and Outlook
F. K+S Share
Appendix
January 2013 K+S Group 2

K+S Group
Corporate Structure
K+S Group
Group revenues 2012e: about € 3.9 billion (2011: € 4.0 billion)
Potash and Magnesium
Products Business Segment
Salt Business Segment
Complementary
Activities
1.4
Revenue development in € bn
2.1
2.4
1.9
1.0
Revenue development in € bn
1.7 1.7 1.5
Revenue development in € bn
0.12 0.13 0.15 0.15
2009 2010 2011 LTM*
2009 2010 2011 LTM*
2009 2010 2011 LTM*
January 2013 * LTM=Last twelve months as of 30 September 2012
K+S Group 3

K+S Group
K+S is the Leading Player in its Markets
Potash and Magnesium Products
Potash
Sulphate of potash and
magnesium sulphate
One of the leading suppliers worldwide
• Leader in Europe
• Fifth-largest producer worldwide
• Leading position worldwide
Salt
Europe
The leading supplier worldwide
• With esco No. 1 in Europe
South America
North America
• With SPL No. 1 in South America
• With Morton Salt, Windsor and ISCO one of
the leading suppliers in North America
Sources: IFA, Roskill, K+S
January 2013 K+S Group 4

K+S Group
Worldwide Presence
Production Sites and Sales Offices
Kassel
Revenues by Region 2011
South America
14%
Asia
10%
Africa, Oceania
3%
Europe
44%
Production
Sales
North America
29%
January 2013 K+S Group 5

K+S Group
Corporate Strategy
Differentiation and Sustainable Margin
Growth through Specialisation
Expansion of Strategic Business Sectors
through Acquisitions and Cooperations
➨
➨
Consolidation and expansion of market
positions by increased marketing of
speciality products
Realisation of more attractive margins
through refinement strategy
➨
External growth in the core business
sectors Fertilizers and Salt
Expansion of a Balanced
Regional Portfolio
Setting Standards for Quality,
Reliability and Service
Increasing Efficiency and
Exploiting Synergies
➨
➨
➨
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
markets and tapping into new
attractive sales markets in future
growth regions
Salt: Local production in the volumedriven
Salt business
➨
➨
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
➨
➨
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
January 2013 K+S Group 6

K+S Group
Content
A. Corporate Structure & Strategy
B. Potash and Magnesium Products
C. Salt
D. Complementary Activities
E. Financial Data and Outlook
F. K+S Share
Appendix
January 2013 K+S Group 7

K+S Group
Potash and Magnesium Products
Revenues (€ billion) EBIT (€ million)
Highlights 9M/12
0.51
Industrial
products
14%
0.56
Fertilizer
specialities 38%
1.59
By product group
1.81
Q3/11 Q3/12 9M/11 9M/12
1.9
2.1
2.4
2010 2011 LTM*
• 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, but overall were
moderately above those of Q3/11.
Revenue split 2011 Outlook 2012**
Potassium
chloride 48%
171
476
2010 2011 LTM*
Asia
20%
159
By region
South
America
19%
North America
3%
558
608
Q3/11 Q3/12 9M/11 9M/12
740 789
Africa, Oceania
5%
Europe
53%
• Sales volumes expected at 6.9 million t
(2011: 6.9 million t)
• Moderately increasing average price level
expected compared to 2011**
• Moderately increasing revenues and tangibly higher
unit costs should result in stable operating earnings.
* LTM=Last twelve months as of 30 September 2012
January 2013
* * Outlook as of 6 November 2012; In line with our customary, purely technical forecast policy, which maintains the
currently achieved potash price level unchanged for the remainder of 2012
K+S Group 8

Potash and Magnesium Products
Product Portfolio 2011 (Sales volumes in million tonnes)
Non-potash-containing products
2011: 1.24 million tonnes
(2010: 1.26)
● Fertilizer specialities
- ESTA ® Kieserite
- EPSO ® Product family
● Industrial products
- Magnesium sulphate
- Magnesium chloride
Fertilizer
specialities
3.06
Industrial
products
0.81
Potassium
chloride
3.07
Potash-containing products
2011: 5.70 million tonnes
(2010: 5.80)
● 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
January 2013 K+S Group 9

Potash and Magnesium Products
Development of Selected Cost Types
2007 2008 2009 2010 2011 2012e 2013e
÷
–
=
=
Revenues (€ million) 1,408.9 2,397.4 1,421.7 1,867.0 2,133.6 + -
EBIT (€ million) 177.9 1,203.2 231.7 475.9 739.5 ○ -
Costs (€ million) 1,231.0 1,194.2 1,190.0 1,391.1 1,394.1 ++ ○
thereof personnel (€ million) 435 465 440 506 535 + +
thereof freight (€ million) 250 227 155 264 268 + ○
thereof freight (€/t) 30 33 36 37 39 + ○
thereof material (€ million) 210 265 183 229 249 ○ ○
thereof energy (€ million) 141 186 144 172 195 +++ --
thereof depreciation (€ million) 77 83 86 91 94 + ++
thereof other (€ million) 118 (32) 182 129 53 +++ -
Sales Volumes (million t) 8.22 6.99 4.35 7.06 6.94 6,9 ○
Total Unit Costs (€/t) 149.6 170.8 273.6 197.0 200.9 ++ ○
• In 2012, average unit costs are expected to rise tangibly, mainly because of strongly rising energy costs,
costs related to the Legacy Project, a negative currency result and slightly increasing personnel costs.
• In 2013, savings in energy costs will roughly make up for increasing personnel costs and depreciation. Costs connected
with the Legacy Project should also remain on the 2012 level, so that in total, we expect a largely stable cost level.
January 2013 ○: stable; -/+: slight to moderate; --/++: tangible; ---/+++: significant to strong
K+S Group 10

Potash and Magnesium Products
Major Markets Potash and Magnesium Products
> 1%
Sales volumes > 5%
Sales volumes by region
2011 2010
Europe 54% 57%
- of which: Germany 16% 18%
North America 2% 2%
South America 18% 17%
Asia 22% 22%
Africa, Oceania 4% 2%
January 2013 K+S Group 11

Potash and Magnesium Products
Key Drivers of the Fertilizer Business
• 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
January 2013 K+S Group 12

Potash and Magnesium Products
World Potash Production and Sales by Region
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
January 2013 K+S Group 13

Potash and Magnesium Products
Supplier Structure on the World 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
January 2013 K+S Group 14
APC
participation
of Potash
Corp.
SQM
participation
of Potash
Corp.
China
• more
than 20
producers
Others
• Intrepid
• Vale
• Compass

Potash and Magnesium Products
World Potash Capacity, Production and Sales
Million tonnes
100
90
80
70
60
50
40
30
20
10
0
Greenfield projects
Brownfield projects
Available capacity
Production
Sales
52.6
Soviet Union
36.2
China
54.2 54.4 50.7
49.1
43.9 45.5
58.7
Financial
crisis
54.5
31.0
60.2
58.3
~54
55.0 35.2 45.1 46.0 48.5 53.9 56.5 50.9 57.8 56.0 33.7 55.5 59.9
Reliability of forecast
quality questionable
1988 ’93 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ‘13
‘14 ‘15
● Long-term demand growth
of 3 to 5% p.a.
● Therefore, available capacities
not sufficient beyond 2015.
● 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.
(e)
Incl. potassium sulphate and potash grades with lower K 2 O content of around 3 million tonnes eff;
Capacity development 2010-2015 based on IFA supply capability data.
Sources: IFA, K+S
January 2013 K+S Group 15
India
68
65

Potash and Magnesium Products
Market Forecast Quality: Capacity Estimates
Significantly Lower as Time Approaches
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
January 2013
K+S Group
16

Potash and Magnesium Products
World Potash Sales Volume by Region
Million tonnes 2012e 2011 2010
2009
2008
2007
Western Europe
5.2
5.9
6.7
2.7
6.3
7.4
Central Europe / FSU
4.9
4.4
4.9
3.1
5.0
4.7
Africa
0.7
0.7
0.8
0.3
0.6
0.7
North America
8.6
10.2
10.8
4.1
10.2
10.8
Latin America
10.2
10.5
9.7
6.0
8.6
10.4
Asia
24.0
28.0
24.9
14.6
23.2
24.2
- thereof China
11.3
12.7
10.2
5.4
8.8
12.6
- thereof India
3.2
5.0
6.1
5.5
6.2
3.9
Oceania
0.4
0.5
0.5
0.2
0.6
0.5
World total
~ 54
60.2
58.3
31.0
54.5
58.7
● In 2011, worldwide potash sales volumes to amount 60.2 million tonnes with increased demand in
Latin America and Asia.
● In 2012, we expect worldwide potash sales volumes of about 54 million tonnes.
Incl. potassium sulphate and potash grades with lower K 2 O content of around 3 million tonnes eff;
Sources: IFA, K+S
January 2013 K+S Group 17

Potash and Magnesium Products
Agricultural Potash Consumption by Region
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
0
80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f
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
80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f
0
80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f
Source: IFA
January 2013 K+S Group 18

Potash and Magnesium Products
MOP Price Development
US$/t
Northwest-Europe (standard, fob)
US$/t
Overseas (cfr)
1000
800
600
1000
800
600
Brazil
(granuliar)*
South-East Asia
(SEA, standard)
400
435
400
450-465
450-470 SEA
Brazil
200
200
0
0
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$/tonne of granulated potassium chloride
●
●
The collapse in agricultural prices as a consequence of the financial crisis also led to a decrease in potash prices;
following the conclusion of contracts with Chinese and Indian customers, a price level of approximately 400 US$/tonne
of granulated potassium chloride was established worldwide 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 capitalintensive
greenfield projects for the creation of new capacities can only be realised economically with a reasonable
potash price level
Due to strong demand, the global price level rose in 2011 from about US$ 400/tonne to over US$ 500/tonne
January 2013
* Until end of September 2010 MOP standard; Source: FMB; as of 17 January 2013
K+S Group
19

Potash and Magnesium Products
Price Development of Different Product Groups
K+S Ø-Portfolio-Price vs. MOP gran. Europe
SOP Ø-Price vs. MOP gran. Europe
€/t
700
600
K+S Ø-Portfolio Price
MOP gran. Europe
€/t
900
800
700
SOP Ø-Price Europe (std.and gran.)
MOP gran.
Europe
500
400
∆
~10-20%
600
500
∆ ~50 €
300
400
300
200
200
100
2006 2007 2008 2009 2010
100
2011 9M/12 2006 2007 2008 2009 2010 2011 9M/12
€/t
700
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
January 2013
2006 2007 2008 2009 2010 2011 9M/12
2006 2007 2008 2009 2010 2011 9M/12
0
Sources: K+S, FMB International Price Guide, Green Markets, Fertilizer Europe
K+S Group 20

Potash and Magnesium Products
Potash Use by Crop
7
Million tonnes K 2 O
6
5
Potash use by crop EU-27
Fruits & Vegetables
14.4%
Other crops 31.2%
Other Coarse Grains
13.7%
4
3
Sugar crops 5.9%
Oil seed 10.2%
Wheat 12.7%
Corn 11.9%
2
1
0
China India USA EU-27 Brazil Indonesia &
Malaysia
Wheat Rice Corn Soybeans
Oil palm and other oil seed Sugar crops Fruits & Vegetables Cotton
Other coarse grains Other crops
Source: IFA 2007/08, published 2009
Other crops: roots, tubers, pulses, nuts, coffee, tea, tobacco, ornamentals, turf etc.
Other oil seed: rapeseed, mustard, sunflower, groundnut etc.
Other coarse grains: barley, oat, rye, triticale, sorghum etc.
January 2013 K+S Group 21

K+S Group
Low Stocks-to-use Ratios of Agricultural Products
Production and consumption development vs. stocks-to-use ratio (Wheat and coarse grains)
1900
1800
Production Consumption Stocks-to-use
45.0 45,0
40.0 40,0
1700
35.0 35,0
in million tonnes
1600
1500
1400
1300
1200
Critical Level
30.0 30,0
25.0 25,0
20.0 20,0
15.0 15,0
10.0 10,0
Stocks-to-use ratio
1100
5.0 5,0
1000
1982/83
1987/88
1992/93
1997/98
2002/03
2007/08
2011/12e
e
2012/13
0.0 0,0
Source: USDA; as of 11 January 2013
• Over the past thirty years, annual global production of cereals has often fallen short of demand
• Despite reasonable harvest levels during the last ten years, these structural supply and
demand gaps have resulted in low stocks-to-use ratios on a historical basis
• 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
January 2013
K+S Group
22

K+S Group
Prices for Agricultural Products – Spot vs. Future
Prices for Agricultural Products – spot
Prices for Agricultural Products – future
450%
140%
400%
130%
350%
120%
300%
250%
200%
150%
110%
100%
90%
100%
80%
50%
Dec.
‘04
Dec.
‘05
Dec.
‘06
Dec.
‘07
Dec.
‘08
Dec.
‘09
Dec.
‘10
Dec.
‘11
Dec.
‘12
70%
Mar.
’13
Jul
’13
Dec.
’13
May
‘14
Corn
Wheat
Soybeans
Palmoil
• Strong increase in prices for agricultural
products since the middle of 2010
Source: Bloomberg; as of 18 January 2013
• Future prices of agricultural products
show that capital markets expect price
levels to be rather attractive for the next
two years
January 2013
K+S Group
23

Potash and Magnesium Products
Profitability of Winter Wheat in Europe
2009
2010
2011
2012e
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
1,194 1,862
1.500
1.000
500
Risk of
loss:
€ -249
Profit
potential:
€ 528
Profit
potential:
€ 289
Profit
potential:
€ 704
326
248 238
175 225
82 82
69 75 75
101 101 101 121 121
189 157
157 162 162
513 541 541 567 567
Profit
potential:
€ 668
Year
2009
2010
2011
2012e
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)
0
Wheat price: 123 €/t Wheat price: 220 €/t Wheat price: 199 €/t Wheat price: 258 €/t Wheat price: 251 €/t
2009 2010 2011 2012 2013
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
January 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 2012e and around € 670 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
24

K+S Group
Divestment of K+S Nitrogen
• On 8 May 2012, K+S Aktiengesellschaft announced an
agreement with EuroChem regarding the sale of K+S
Nitrogen, one of the leading suppliers of nitrogenous
fertilizers.
• The transaction, with an enterprise value of € 140 million,
was closed on 2 July 2012.
• For K+S, the divestment generated a book profit of
around € 66 million after taxes in Q3.
• Following the divestment of COMPO last year, the
divestment of K+S Nitrogen consequently fits into our
strategy, which pursues the goal of focusing management
and financial resources particularly on the Potash and
Magnesium Products and Salt business segments.
January 2013 K+S Group 25

K+S Group
K+S sold COMPO
• COMPO, based in Münster / Westphalia, is
one of the leading suppliers of branded goods
for home and garden and employs more than
1,000 employees globally.
• In compliance with its growth strategy, K+S
will focus its financial and management
resources in particular on the Potash and
Magnesium Products and Salt business
segments.
Therefore, on 20 June 2011, K+S announced
the sale of COMPO to the investment
company Triton for an enterprise value of €
205 million.
The closing of the transaction was
successfully completed on 18 October 2011.
Since the reporting on the second quarter,
COMPO is stated as a “discontinued
operation” in accordance with IFRS.
January 2013 K+S Group 26

K+S Group
Content
A. Corporate Structure & Strategy
B. Potash and Magnesium Products
C. Salt
D. Complementary Activities
E. Financial Data and Outlook
F. K+S Share
Appendix
January 2013 K+S Group 27

K+S Group
Salt
Revenues (€ billion) EBIT (€ million)
Highlights 9M/12
1.27
1.06
0.31 0.32
Q3/11 Q3/12 9M/11 9M/12
163
39
13 5
Q3/11 Q3/12 9M/11 9M/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 9M/11, but also
compared to the long-term average sales volume.
1.7 1.7
1.5
238
211
87
2010 2011 LTM* 2010 2011 LTM*
• 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
43%
Revenue split 2011 Outlook 2012**
By product group By region • As a result of the extraordinarily weak start of the
Other
South America
4%
de-icing salt business, a significant reduction of
9%
sales volumes is expected.
Food grade
salt 18%
Industrial salt
29%
North America
64%
• Sales volume forecast of 18-19 million tonnes of
crystallised salt (2011: 22.7 million tonnes).
• Tangible decrease in revenues and strong decrease
in operating earnings compared to above-average
Salt for
chemical use 6%
2011.
January 2013 * LTM=Last twelve months as of 30 September 2012
K+S Group 28
** Outlook statement as of 6 November 2012
Europe
27%

Salt
Executing Our 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
January 2013 K+S Group 29

Salt
Mitigation of Volatility in De-icing Business
Sales Volume De-icing Salt SPL/ISCO*:
Sales Volume De-icing Salt Morton*:
Sales Volume De-icing Salt esco*:
1,000 t
1.000 t
5,000 5000
4,000 4000
3,000 3000
2,000 2000
1,000 1000
0 0
2006 2007 2008 2009 2010 2011
1,000 t
1.000 t
9,000 9000
8,000 8000
7,000 7000
6,000 6000
5,000 5000
4,000 4000
3,000 3000
2,000 2000
1,000 1000
0
2006 2007 2008 2009 2010 2011
1,000 t
1.000 t
5,000 5000
4,000 4000
3,000 3000
2,000 2000
1,000 1000
0 0
2006 2007 2008 2009 2010 2011
10 year average sales volume (2002 – 2011) * before consolidation of intersegment sales volumes
1.000 t
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2006 2007 2008 2009 2010 2011
esco Morton SPL/ISCO
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
January 2013 K+S Group 30

Salt
Morton Salt Reduces Earnings Volatility
Million €
500
EBITDA of Salt Business Segment
(without Morton Salt) ≙ esco + SPL
EBITDA of Morton Salt
%
25
400
300
Standard deviation
Salt Business Segment (without
Morton Salt): 44.0%
Salt Business Segment
(including Morton Salt): 23.1%
20
15
200
10
100
5
EBITDA-Margin of Salt Business Segment
(without Morton Salt) ≙ esco + SPL
EBITDA-Margin of Salt Business Segment
(including Morton Salt)
0
2000 2001 2002 2003 2004 2005
0
2006 2007 2008 2009 2010 2011 200820002009
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
• With the acquisition of Morton Salt, standard deviation of EBITDA more than halved to a good 20%
• In addition, Morton Salt reduces volatility in EBITDA margins significantly
• Furthermore, the level of EBITDA margin is also positively impacted by the acquisition of Morton Salt
January 2013 K+S Group 31

Salt
Historic and Recent Volume and Price Development
Million tonnes Morton Salt (as of
€
25
1 October 2009)
SPL (as of
70
1 July 2006)
22.53 22.73
20
15
49.1
45.0 45.5
48.7
55.5
14.81
54.8
9.04
55.6
9.42
18-19
~53*
~9.5
60
50
40
5.85
10
8.02
8.77
9.47
30
5
0
6.07
5.00
4.73
3.90
13.49
2.82
8.96
3.25 4.12 4.04
4.47
2005 2006 2007 2008 2009 2010
13.31
2011
>9
2012e
20
10
0
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
• Sales volumes increased over the past years mainly due to external growth, while the de-icing salt share
remained rather stable
• Sales volume 2012e based on weaker de-icing salt demand due to unusually mild winter weather at the
beginning of the year. For Q4, a somewhat reduced de-icing salt business compared to normal is assumed:
Despite the assumption of a normal winter, the reason for this are the relatively high stocks at the customers
January 2013 * LTM = Last twelve months as of 30 September 2012
K+S Group 32

Salt
Seasonality of the De-icing Salt Business
Million tonnes
10.18
10
€
70
2.24
8
55.6
52.2
55.0
56.6
60
6
51.5
6.18
49.6
51.7
5.82
50
40
4
2
0
7.94
2.16
4.02
3.21
2.47
0.74
2.98
2.38
0.60
3.52
2.17
1.35
3.34
2.23
1.11
2.54
3.28
30
20
10
0
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
January 2013 K+S Group 33

Salt
Presence in the most attractive de-icing salt
markets of the world
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
January 2013 K+S Group 34

Salt
Key Drivers of the Salt Business
• 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
January 2013 K+S Group 35

Salt
Development of Salt Production and Consumption
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
Consumption
Ø 4.1% Ø 7.2%
4 6 4 8
Production
Africa
Consumption
Middle East
7.2% 8.8%
3 6 3 7
Production
Consumption
Ø 4.7% Ø 4.1%
Production
Consumption
Oceania
Ø 2.9% Ø 7.2%
9 12
1 2
Production
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
January 2013 K+S Group 36

Salt
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
January 2013 K+S Group 37

K+S Group
Content
A. Corporate Structure & Strategy
B. Potash and Magnesium Products
C. Salt
D. Complementary Activities
E. Financial Data and Outlook
F. K+S Share
Appendix
January 2013 K+S Group 38

K+S Group
Complementary Activities
Revenues (€ million)
EBIT (€ million)
Summary
38
36
112
114
7
6
19
20
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.
Q3/11 Q3/12 9M/11 9M/12
150 152
134
Q3/11 Q3/12 9M/11 9M/12
21
18 18
Logistics activities being essential for K+S are also
bundled in this business segment. Another important
activity is the granulation of CATSAN ® (cat litter).
2010 2011 LTM* 2010 2011 LTM*
Revenue split 2011 Outlook 2012 **
Animal hygiene
products
24%
Logistics 10%
By product group
Trade
8%
Waste Mgmt.
and Recycling
58%
Rest of
Europe 18%
By region
Germany 82%
In the “Complementary Activities“ we expect from
today’s perspective stable revenues and moderately
rising earnings.
January 2013 * LTM=Last twelve months as of 30 September 2012
K+S Group 39
** Outlook statement as of 6 November 2012

K+S Group
Content
A. Corporate Structure & Strategy
B. Potash and Magnesium Products
C. Salt
D. Complementary Activities
E. Financial Data and Outlook
F. K+S Share
Appendix
January 2013 K+S Group 40

K+S Group
9.000
2.400
Development of Revenues and Earnings
8.000
€ million
7.000
6.000
5.000
4.000
3.000
2.100
Revenues 1.800 Operating earnings Group earnings, adjusted 1),2)
1.500
1221
4,015
1.200
979
3,142
900
833
2.000
600
559
1.000
300
0
0
‘08 ‘09 ‘10 ‘11 LTM
‘08 ‘09 ‘10 ‘11 LTM ‘08 ‘09 ‘10 ‘11 LTM
1)
2007 to 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.
January 2013 K+S Group 41

K+S Group
Operating EBIT Margins
2011 2010
2009
2008
2007
Potash and Magnesium Products
34.7%
25.5%
16.3%
50.2%
12.6%
Salt
12.4%
13.8%
13.8%
7.3%
8.8%
Complementary Business Segments
11.9%
15.8%
12.6%
20.0%
30.1%
K+S Group 1)
22.7%
15.4%
6.7%
28.0%
8.5%
1)
2007 to 2009 include the discontinued operations of COMPO.
January 2013 K+S Group 42

K+S Group
Capital Expenditure and Depreciation 1)
€ million
1200
1000
Expansion capex
Maintenance capex
Depreciation
about
1,100
800
~60%
600
49
about
520
400
200
0
172
198
178
189
77 90
58 49
95 128 108 142 120
174 140
239 231 242
~50%
~50%
2007 2008 2009 2010 2011 2012e
294
63
230
~40%
2013e
240
-
250
• For 2012, we expect a capex volume of about € 520 million for the K+S Group. Of this, CAD 200 million (about
€ 160 million) should be accounted for by capex on the Legacy Project. Furthermore, the increase is attributable to
execution of the package of measures on water protection in the amount of € 50 million and the planned construction
of the saline water pipeline from the Neuhof site to the Werra plant in the amount of € 20 million
• In 2013, of the expected capex volume of € 1,100 million, CAD 830 million 2) (a good € 640 million) should be accounted
for by the Legacy Project.
1)
2006 to 2009 include the discontinued operations of COMPO. 2010 still including K+S Nitrogen. 2) There may still be
January 2013 considerable shifts regarding the allocation of the capex for the Legacy Project to the investment periods.
K+S Group 43

K+S Group
Net Indebtedness and Rating
€ million
2.000 ,
1.600 ,
1.200 ,
Provisions for pensions
Provisions for mining obligations
Non-current liabilities - non-current securities
Current liabilities - cash - current securities
Total net debt
1,085.1
125.8
194.3
419.2
1,351.3
184.8
95.3
528.4 580.6
800
400
0
-400
357.6
146.3
455.5
93.1
378.3
265.9
(167.3)
570.0
1,266.9
(529.1)
732.5
786.6
711.3
*
(767.3) (776.4)
*
610.8
-800
2007 2008 2009 2010
2011
Gearing ratio (%) 116.4 33.2 64.5 27.6
19.8
• The international rating agencies Standard & Poor’s and Moody’s have given K+S Aktiengesellschaft an
"investment grade" rating. Standard & Poor’s rates K+S as "BBB+" (outlook: stable), while Moody’s rates it
as "Baa2" (outlook: stable).
* Including reimbursement claim for the Morton Salt bond (2011: € 19.4 million; 2010: € 18.9 million)
January 2013 K+S Group 44

K+S Group
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 9M/12 2011 2010
Net indebtedness / EBITDA 1.0x – 1.5x 0.6x 0.5x 0.8x
Net indebtedness / Equity 50% – 100% 19.3% 19.8% 27.6%
Equity ratio 40% – 50% 52.8% 50.9% 47.6%
January 2013 K+S Group 45

K+S Group
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,
which can be terminated at any time.
January 2013 K+S Group 46

K+S Group
Our Aim is to maintain our Investment
Grade Rating
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
January 2013 K+S Group 47

K+S Group
Value Creation, Cash Generation, Strong Balance
Sheet and High Dividend Distribution
Mio. €
ROCE, EBIT-Margin and Value Added
Operating and Free Cash Flow
€je Aktie
€ million 1,124
% € million € million
800
80
700
ROCE (rhs)
9M Operating cash flow
1,200 1.200
EBIT-margin (rhs)
70
9M Operating cash flow
1.200 1,200
600
Value added
60 1,000 1.000
Free cash flow before acqusitions/divestments
1.000 1,000
500
50
800 800
800 800
400
40
600 600
600 600
300
200
30
20
400 400
400 400
100
10
200 200
200 200
0
0 0 0
0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM*
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM*
Gearing and Equity Ratio
Capex and Dividends
% % € million %
120
60 900
300
Gearing
800
Capex
100
Equity ratio (rhs)
50
250
700
Dividends
80
40
Capex/Depreciation (rhs)
600
200
60
30
500
400
150
40
20
300
100
20
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 9M/12
200
10
100
0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e
January 2013 K+S Group 48
* LTM=Last twelve months as of 30 June 2012
50
0

K+S Group
Currency Management
Potash and Magnesium Business Segment
US dollar
• USD revenues are hedged after the deduction of overseas freight costs, capital expenditure
for the Legacy Project and
„worst case“ for the fiscal year 2011:
a safety margin
USD/EUR 1,35 after premiums
• 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
Canadian dollar
„worst case“ for the fiscal year 2012:
USD/EUR 1,33 after premiums
„worst case“ for the fiscal year 2013
(for ~60% of expected USD net exposure):
USD/EUR 1,29 after premiums
• 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
„worst case“ for the fiscal year 2013
(for ~50% of expected capex in Canadian dollar):
CAD/EUR 1,26 after premiums
opportunity to share in any possible
depreciation of the Canadian Dollar
January 2013 K+S Group 49

K+S Group
Earnings Sensitivities to USD volatility in 2013
1.20 USD/EUR 1.30 USD/EUR* 1.40 USD/EUR
Ø USD/EUR exchange rate changes from
1.30 to 1.20 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 € 50 million.
* underlying assumption of outlook 2013
Ø USD/EUR exchange rate changes from
1.30 to 1.40 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
€ 65 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 € 35 million in 2013
(including the amount we paid for the
premiums).
January 2013 K+S Group 50

K+S Group
Market Outlook (as of 6 November 2012)
Potash and Magnesium Products Business Segment
• Due to the continuing absence of contract conclusions with Chinese and Indian customers, North American
and Russian producers announced further reductions in output in October in order to adjust supply to the
reduced demand in these markets. While demand continued to be at a good level on the markets relevant for
K+S, price negotiations in these regions will become increasingly difficult due to the missing contracts in China
and India.
• On the basis of the described developments, we assume global potash sales of about 54 million tonnes for
2012 as a whole (previously: about 56 million tonnes*; 2011: 60.2 million tonnes*).
• For 2013, we expect a tangible increase in global potash sales volumes. The estimate is based primarily on a
price level for agricultural raw materials which is continuously attractive for the earnings prospects of the
agricultural sector, and the expectation of a significant increase in demand in China and India after the buying
restraint in 2012. Against this background, worldwide capacities should once again be well utilised.
Salt Business Segment
• As a result of the exceptionally mild weather conditions at the start of the year, the demand for de-icing salt
in Europe as well as in North America should decline accordingly in 2012 compared to the above-average
year 2011.
• For the year 2013, we are assuming sales volumes to be on its multi-year average level both in the North
American and European markets. After demand was below average both in Europe and North America due
to the unusually mild weather conditions at the start of the year 2012, the sales volumes of de-icing salt in
2013 should increase again accordingly. However, prices for the tenders for the winter season 2012/13 are
overall slightly below the level of the last season with regional differences.
January 2013
* Incl. potassium sulphate and potash grades with lower K 2 O content of around 3 million tonnes eff. K+S Group 51

K+S Group
Revenues (€ billion)
EBITDA (€ million)
EBIT I (€ million)
4.0 a good
3.9
1,146.1
about
1,050
906.4
about
820
2011 2012e 2011 2012e 2011 2012e
Group earnings, adj.
(continued operations) (€ million)
EPS, adj.
(continued operations) (€)
EPS, adj. 4) (€)
625.6
about
530
3.27
about
2.75
3.04
Revenues and Earnings Expectations 2012 1,2) 52
• Potash and Magnesium Products: moderate increase 3)
• Salt: tangible decrease
• Potash and Magnesium Products: stable
• Salt: strong decrease
about
3.30
January 2013
2011 2012e
2011 2012e
2011 2012e
1)
Unless stated otherwise, information refers to continued operations (previous year‘s figures adjusted accordingly)
2)
The underlying assumptions for this outlook can be found in our Quarterly Financial Report Q3/12 on page 24
3)
In line with our customary and technical forecast policy, which maintains the currently achieved potash price level unchanged
4)
Earnings from continued and discontinued operations
K+S Group
Outlook statement as of 6 November 2012

K+S Group
Revenues and Earnings Expectations 2013
(Basis 2012) 1,2)
Potash and Magnesium Products:
• Caution against the backdrop of the continuing absence of contract conclusions by North
American and Russian producers with Chinese and Indian customers, which are of relevance
for the global price level
• Sales volumes on about the same level as the previous year (2012e: 6.9 million t) and a
slightly lower average price level
• Savings in energy costs should roughly make up for increases in the remaining cost types
Slight decrease in revenues and operating earnings expected
Salt:
• Normalisation of de-icing salt business
Tangible rise in revenues and strong increase in operating earnings expected
K+S Group:
• Slightly increasing revenues
• Slight increase in EBITDA and operating earnings EBIT I
• Moderate increase in adjusted Group earnings from continued operations
January 2013
1)
Outlook statement as of 6 November 2012
2)
The underlying assumptions for this outlook can be found in our Quarterly Financial Report Q3/12 on page 24
K+S Group
53

K+S Group
Potash One and the Legacy Project
• 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”.
January 2013 K+S Group 54

K+S Group
Ramp-up Curve
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
January 2013 K+S Group 55

K+S Group
Course of Capex
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
January 2013 * Approved by the Supervisory Board
K+S Group 56

K+S Group
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
January 2013 K+S Group 57

K+S Group
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.
January 2013 K+S Group 58

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
January 2013 K+S Group 59

Legacy Project
New, State-of-the-art Potash Capacities
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
January 2013 K+S Group 60

Legacy Project
Project Progress
• The first infrastructure measures in the areas of
water supply, electricity and road construction, as
well as the first drilling activities, were undertaken
in 2011.
• About 120 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 anticipate an investment volume of
CAD 200 million (about € 160 million), which will
continue to be used for infrastructure measures
and water supply, as well as engineering work and
drilling.
• In 2013, the investment level should reach
CAD 830 million* (a good € 640 million) and be
used for drilling and the start of the factory’s
construction.
* There may still be considerable shifts in the allocation of expenditure to the investment periods
January 2013 K+S Group 61

K+S Group
Content
A. Corporate Structure & Strategy
B. Potash and Magnesium Products
C. Salt
D. Complementary Activities
E. Financial Data and Outlook
F. K+S Share
Appendix
January 2013 K+S Group 62

K+S Aktiengesellschaft
K+S Share / Bond information
The K+S share at a glance:
• Stock identification number: KSAG88 / ISIN: DE000KSAG888
• Type of shares: Registered unit shares of no-par value
• Total number of shares: 191,400,000
• Trading segment: Prime Standard
• Prime Sector: Chemicals / Industry group: Chemicals, Commodities
• Listings: all stock exchanges in Germany
• Ticker symbols: Bloomberg SDF / Reuters SDFG
• ADR symbol: KPLUY
• ADR CUSIP: 48265W108 / ISIN: US48265W1080
• ADR listing: OTC market in the US
• ADR ticker symbols:
- Bloomberg: KPLUY
- Reuters: KPLUY.PK
• ADR depositary bank: The Bank of New York Mellon
The K+S Bonds:
Maturity: September 2014
• Stock ID: A1A 6FV / ISIN: DE000A1A6FV5
• Issuing volume: € 750 million
• Issue price: 99.598%
• Interest coupon: 5.000%
Maturity: June 2022
• Stock ID: A1P GZ8 / ISIN: DE000A1PGZ82
• Issuing volume: € 500 million
• Issue price: 99.422%
• Interest coupon: 3.000%
in %
110
105
100
95
90
Sep.
09
Dez. Dec. Mrz. Mar. Jun. Sep. Dez. Dec. Mrz. Mar. Jun. Sep. Dez. Dec. Mrz. Mar. Jun.
09 10 10 10 10 11 11 11 11 12 12
As of 17 January 2013
Bond 09/2014
Price: 106.651%
Yield: 0.82% p.a.
Bond 06/2022
Price: 103.047%
Yield: 2.43% p.a.
Sep.
12
Dez.
12
January 2013 K+S Group 63

K+S Aktiengesellschaft
Key Data of the K+S Share
9M/12
2011
2010
2009
2008
Earnings per share, adjusted (€) 1),2),3)
2.14
3.27
2.34
0.56
5.94
Dividend per share (€) 3)
-
1.30
1.00
0.20
2.40
Book value per share, adjusted (€) 2),3)
17.76
16.12
13.85
10.94
10.41
Year-end closing price (XETRA, €) 3)
38.27
34.92
56.36
39.99
39.97
Total stock exchange turnover (€bn)
8.7
17.7
16.8
16.9
33.4
Average daily turnover (€m)
45.3
68.7
65.7
66.4
131.6
Average number of shares (m)
191.40
191.33
191.34
166.15
164.95
Dividend yield (on closing price, %)
-
3.7
1.8
0.5
6.0
Return on equity after taxes (%) 2),4)
21.6
20.2
18.7
8.4
68.6
1)
2007 to 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.
3)
Historical data not adjusted for the capital increase 2009
January 2013 K+S Group 64

K+S Aktiengesellschaft
Dividend Policy and History
• 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 2011, a dividend of € 1.30 per share (+ 30%) was paid.
• For 2012, on the basis of the described earnings expectations, there is still a chance for a higher dividend, since the
income from the divestment of K+S Nitrogen and the cessation of the adverse effects from the divestment of the
COMPO business should have a impact on Group earnings. Based on our earnings expectations, good opportunities
for a higher dividend in 2012.
Group Earnings and Payout Ratio
Dividends
%
100
90
80
70
60
50
40
30
20
10
0
Payout ratio
Target range payout ratio
Group earnings from continued operations,
adjusted (rhs)
979
582 ~630
445
161 176 175
101 104
94
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e
Mio. € €
1.400 , 4,00 .
1.200 ,
1.000 ,
800
600
400
200
0
3,50 .
3,00 .
2,50 .
2,00 .
1,50 .
1,00 .
0,50 .
0,00 .
Dividends in €
2.40
1.30
1.00
0.45
0.50 0.50
0.33
0.20
0.25 0.25
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
€
4,00 .
3,50 .
3,00 .
2,50 .
2,00 .
1,50 .
1,00 .
0,50 .
0,00 .
January 2013 K+S Group 65

K+S Aktiengesellschaft
Attractive Dividend Policy
K+S (EUR) 0.50
(47%)
Potash
Corp. (USD)
Mosaic
(USD)
Uralkali
(RUR)
ICL
(USD)
Compass
(USD)
Yara
(NOK)
2007 2008 2009 2010 2011 Dividend Policy
0.12
(11%)
1.90
(50%)
0.42
(98%)
1.28
(53%)
4.00
(19%)
2.40
(40%)
0.13
(4%)
0.20
(41%)
0.13
(12%)
- - 0.20
(4%)
4.00
(38%)
0.75
(48%)
1.34
(28%)
4.50
(16%)
1.70
(39%)
0.44
(72%)
1.42
(29%)
4.50
(34%)
1.00
(43%)
0.13
(7%)
1.50*
(81%)
4.55
(57%)
0.92**
(114%)
1.56
(35%)
5.50
(18%)
1.30
(43%)
0.28
(8%)
0.20
(4%)
4.00
(31%)
0.75
(63%)
1.80
(41%)
7.00
(17%)
To pay out „in principle 40-50% of the adjusted
Group earnings“
„Cash dividends […] are conditioned upon […]
available earnings.“
The „board of directors approved an annual dividend
program of $0.50 per share.“
To pay out „at least 50% of net profit“
• K+S has communicated a precise dividend policy
• Dividend payouts complied with the policy in times of boom and bust
• Reliable payout ratios provide investors with better predictability
• K+S will continue its proven and well-acknowledged dividend policy
To pay out a „quarterly dividend at a rate of up to 70%
of […] net profit“
„The declaration an payment of future dividends […]
will be at the discretion of our board of directors.“
„Return 40-45% of net income measured as
the sum of dividends and share buy-backs
[…] averaged over the business cycle.“
* Special dividend of USD 1.30
** incl. Special dividend of USD 0.42
*** Incl. share buy-backs: 2007: 27%; 2008: 26%;
2009: 19%; 2010 37%; 2011:27%
Source: company reports
January 2013 K+S Group 66

K+S Aktiengesellschaft
K+S Share Price compared with DAX
Performance of K+S share
(Index: 31 December 2011 = 100)
Market capitalisation
(as of 31 December, € billion)
DAX
+31%
K+S
2012
Jan.
2013
Jan.
2003 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 2013
17 Jan.
* Including dividends
Source: Bloomberg; as of 17 January 2013
January 2013
K+S Gruppe
67

K+S Aktiengesellschaft
K+S Share Price compared with Peer Group
Index: 31 December 2011 = 100
Yara
ICL
Mosaic
Uralkali
Compass
PotashCorp
K+S
+21%
+20%
+17%
+5%
+5%
+2%
(4%)
2012
Jan.
2013
Jan.
Source: Bloomberg; as of 17 January 2013
January 2013
K+S Gruppe
68

K+S Aktiengesellschaft
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
Free float 90.1%
Meritus Trust /
OJSC MCC „EuroChem“ 9.9%
• The free float of K+S AG amounts to approx. 90%
• Investment companies, that have exceeded
the 3% threshold:
- BlackRock Inc.: 5.08%
- Prudential plc. via M&G Investment
Management Limited: 3.01%
January 2013 K+S Group 69

K+S Group
Financial Calendar
14 March 2013 ‣ Report on business 2012
‣ Press and analyst conference, Frankfurt am Main
14 May 2013 ‣ Annual General Meeting 2013, Kassel
‣ 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
January 2013 K+S Group 70

Jakarta 1975
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
Jakarta 2010
Experience growth.
January 2013 K+S Group 71

K+S Group
Content
A. Corporate Structure & Strategy
B. Potash and Magnesium Products
C. Salt
D. Complementary Activities
E. Financial Data and Outlook
F. K+S Share
Appendix
January 2013 K+S Group 72

K+S Group
History
1889 Formation of „Aktiengesellschaft für Bergbau und Tiefbohrung“, the eldest predeceasing
company of today’s K+S Aktiengesellschaft
1970/71 Merger of all three West-German potash producers to Kali und Salz GmbH; BASF is majority
shareholder / change of corporate form into Kali und Salz AG
1993 Merger of the potash and rock salt activities of Kali und Salz AG and the East-German
Mitteldeutsche Kali AG into the Kali und Salz GmbH (Kali und Salz AG share: 51%)
1997 BASF reduces its stake of Kali und Salz AG below 50%
1998 Purchase of the remaining share capital (49%) of Kali und Salz GmbH;
K+S is included in the MDAX
1999 Change of company name to K+S Aktiengesellschaft; acquisition of COMPO and fertiva;
2000 K+S cancelled 10% own shares
2002 Foundation of salt joint venture esco - european salt company (K+S stake: 62%)
2003 K+S cancelled 5.6% own shares
2004 Acquisition of Solvay’s 38% share in esco
2005 Share buyback of 1.25 million shares
2006 Acquisition of the Chilean salt producer Sociedad Punta de Lobos
2008 Inclusion in the DAX
2009 Acquisition of the North American salt producer Morton Salt
2011 Acquisition of the Canadian potash exploration company Potash One, Divestment of COMPO
2012 Divestment of K+S Nitrogen
January 2013 K+S Group 73

K+S Group
Why Fertilize?
There are only few soils on earth
which have a sufficient content and
availability of nutrients to achieve
high yields over a longer period
without fertilization
Indispensable supplement to the natural
nutrient content of soils
Compensation of the nutrient losses
by harvest and other losses
January 2013 K+S Group 74

130
K+S 120 Group
110
Yields of Cereals in Selected Regions
100
90 dt/ha
80
70
60
50
40
30
20
10
0
Northern
America
South America Western Europe Eastern Europe Asia Africa
Source: FAO 2010
1980 1985 1990 1995 2000 2005 2010
• Highest yields of cereals per hectare worldwide to be found in Western Europe and in North
America thanks to a balanced fertilization tradition and professional agricultural systems as
well as favourable climatic conditions
• Assuming an increasing application of balanced fertilization, emerging market countries
possess significant catching-up potential
January 2013 K+S Group 75

K+S Group
Meat consumption per Capita
kg / person
150
North America
100
Europe
South America
50
Asia
Africa
0
1961 1970 1980 1990 2000 2007
Source: Food and Agriculture Organization of the United Nations (FAO)
• Rising prosperity goes along with rising meat consumption
• Production of 1 kilogram of meat requires multiple kilograms of animal feed
• We believe there is significant potential for rising fertilizer demand in emerging
market countries
January 2013 K+S Group 76

K+S Group
Fertilizer Business - Gene Technology
• Objectives of gene technology:
• improved crop resistance against broad-band herbicides as well as pests and diseases
• breeding of plants with elevated use value for the customer
• Cultivation of genetically modified crops (GMO) mainly in the USA, in Argentina, Canada,
Brazil, China and South Africa
• In Europe, the use is ethically disputed and does virtually not exist
• Genetically modified crops are usually soybeans, corn, cotton and oilseed rape
• The use of GMOs increases the yield per unit of cultivated area
• Due to the genetic modification, the plant’s nutrient needs become similar to those of a ‘top
athletes. The increased removal of mineral nutrients from the soil has to be supplemented
in form of fertilizers
As long as the demand for food of the increasing world population is larger than
the supply, the use of GMOs leads to an increased demand for fertilizers
January 2013 K+S Group 77

K+S Group
Potash Fertilization and Yields for Corn
Potash use by crop
in 2007/08
Potash use and yield for corn
in 2007/08
Wheat 6%
Cotton
2%
Other cereals
3%
Fruits & Vegetables
22%
Potash use
kg/ha
60
Yield
t/ha
10
Soybeans 8%
8
Oil palm and
other oil seed 8%
40
6
Sugar crops 9%
Corn 15%
20
4
2
Rice 13%
Other crops 14%
0
USA China India
0
Potash use in kg/ha
Yield in t/ha
Balanced fertilizer use which is suited to plants results in higher yields
and a lessening of the effects of negative factors (e.g. temperature, rainfall)
Sources: USDA, FAO, IFA, K+S, 2007-09
Other crops: roots, tubers, pulses, nuts, coffee, tea, tobacco, ornamentals, turf etc.
Other oilseed: rapeseed, mustard, sunflower, groundnut etc.; Other cereals: barley, oat, rye, triticale, sorghum etc.
January 2013 K+S Group 78

K+S Group
Effect of Potash Fertilization on Yield
t/ha
12
10
8
6
4
2
0
Winter wheat – Series of experiments
(Germany)
Additional yield
t/ha
1,5
1978 1981 1984 1987 1990 1993 1996 1999
K 2 O = 0 kg K 2 O = 100 kg Linear (addit. yield, rhs.)
1,0
0,5
0,0
Functional and sustainable
potassium fertilization results in:
• Mitigation of the effects of
negative factors on yield
• Increasing additional yields
in the course of time
• A potash-cost/proceeds
ratio of 1:2
(taking into account the
current price level)
Technical progress, plant
protection and progress in cultivation
enhance the potential of the plant
over time. The exploitation of this
potential depends on a balanced
supply of nutrients!
Series of experiments in Niestetal, Germany, Kassel, average annual precipitation: 647 mm, average annual temperature: 8.7°C:
The geological starting material is a soil texture of silty loam. In agricultural practice, this soil has the reputation of supplying all nutrients particularly well, so that
even reduced potassium fertilization need not necessarily result in corresponding declines in yield. The soil had a high supply class (E) prior to the start of the
experiment. In contrast to nitrogen, the effect of potassium fertilization can only be assessed accurately in the long term. Only long-term field trials also identify the
reciprocal effects (e.g. weather conditions) of all location factors.
January 2013 K+S Group 79

K+S Group
Strong Impact on Soybean Yield
under Continued Elimination of Potash
Grain yield (kg/ha)
3500
3000
• Regular potash application of
approx. 80 kg/ha of K 2 O in 5
years before trial in Brazil
2500
2000
• Climate conditions can cause
volatility in yield
1500
1000
500
3,135 2,965 2,223 2,214
(-5%) (-29%) (-29%)
last yield
with K
Year 1
without K
Year 2
without K
Year 3
without K
772 (-75%)
Year 4
without K
Year 5
without K
830 (-74%)
Years of cultivation under declining K effect
Source: Borkert, C.M., et al. 2005, Potash in soybean crop. In: Potassium in Brazilian agriculture, eds. T. Yamada and T.L. Roberts, 671-722. Piracicaba,
Brazil: Potafos. (In Portugese); Embrapa Soybean, IPNI, personal correspondence with Paul E. Fixen, Ph.D., Dr. Adilson de Oliveira Junior, Dr. Luís I.
Prochnow; The experiment took place in Ponta Grossa, Paraná, Brasil; Soil classification: Oxysol, clayed texture (clay content = 38%)
January 2013
K+S Group
80

Potash and Magnesium Products
Potash Market Europe (EU 27)
Structure
Products
Market Structure
Private trade with countryspecific
regulations
MOP standard, gran. and
specialities through spot
and contracts
Agricultural Potash Consumption ***
Other
crops**
31%
Sugar Crops
6%
Potash Use by Crop *
Oil Seed
10%
Fruits &
Vegetables
14%
Corn
12%
Other
Coarse
Grains
14%
Wheat
13%
Cultivated Crops ****
kt K 2 O
8.000
Other
crops**
24%
Wheat
24%
6.000
4.000
Sugar Crops
1%
2.000
0
1979/80 1990/91 2001/02 2012/13F
Fruits &
Vegetables
8%
Corn
7%
Oil Seed
15%
Other
Coarse
Grains
21%
* Incl. sulphate of potash and low-grade potash, apparent consumption, % of total K 2 O, Source: IFA 2007/08, published 2009 ** incl.
potatoes, pastures and forestry *** Fertilizer years Western and Central Europe, Source: IFA December 2011 **** % of arable land,
Source: FAO 2009/2010
January 2013 K+S Group 81

Potash and Magnesium Products
Potash Market Brazil
Market Structure
Potash Use by Crop *
Structure
Products
Private trade
MOP gran. through spot
and contracts
Rice
4%
Cotton
4%
Fruits &
Vegetables
5%
Other crops
14%
Soybeans
35%
Corn
17%
Sugar Crops
21%
Agricultural Potash Consumption **
Cultivated Crops ***
kt K 2 O
5.000
4.000
3.000
Rice
5%
Fruits &
Vegetables
5%
Cotton
2%
Other crops
6%
Soybeans
42%
2.000
Sugar Crops
17%
1.000
0
1979/80 1990/91 2001/02 2012/13F
Corn
23%
* Incl. sulphate of potash and low-grade potash, apparent consumption, % of total K 2 O, Source: IFA 2007/08, published 2009
** Fertilizer years Brazil, Source: IFA December 2011 *** % of total area harvested, Source: FAO 2010
January 2013 K+S Group 82

Potash and Magnesium Products
Potash Market Southeast Asia
Market Structure
Potash Use by Crop *
Structure
Products
Private trade
MOP standard and
specialities through spot
and contracts
Other crops
10%
Sugar Crops
6%
Corn
6%
Fruits &
Vegetables
12%
Oil Seed
49%
Rice
17%
Agricultural Potash Consumption **
Cultivated Crops ***
kt K 2 O
4.000
3.000
2.000
Other crops
Sugar Crops 6%
3%
Fruits &
Vegetables
8%
Corn
11%
Rice
47%
1.000
0
1979/80 1990/91 2001/02 2012/13F
* Incl. sulphate of potash and low-grade potash, apparent consumption, % of total K 2 O, Source: IFA 2007/08, published 2009
** Fertilizer years East Asia excl. China, Japan, Source: IFA December 2011 *** % of total area harvested, Source: FAO 2010
January 2013 K+S Group 83
Oil Seed
25%

Potash and Magnesium Products
Potash Market India
Market Structure
Potash Use by Crop *
Structure
Products
Predominantly centralised,
subsidised
MOP standard through
contracts
-
Corn
Other 1%
Coarse
Grains
2%
Cotton
5%
Oil Seeds
6%
Other crops
11%
Rice
35%
Agricultural Potash Consumption **
Sugar Crops
10%
Wheat
8%
Fruits &
Vegetables
22%
Cultivated Crops ***
kt K 2 O
4.000
3.000
2.000
1.000
0
1979/80 1990/91 2001/02 2012/13F
Other crops
Sugar Crops
15%
2%
Corn
4%
Cotton
6%
Fruits &
Vegetables
8%
Other
Coarse
Grains
11%
Oil Seeds
19%
Wheat
15%
Rice
20%
* Incl. sulphate of potash and low-grade potash, apparent consumption, % of total K 2 O, Source: IFA 2007/08, published 2009
** Fertilizer years India, Source: IFA December 2011 *** % of total area harvested, Source: FAO 2010
January 2013 K+S Group 84

Potash and Magnesium Products
Potash Market China
Market Structure
Potash Use by Crop *
Structure
Products
Predominantly centralised
MOP standard through
long-term contracts
Sugar Crops
5%
Corn
2%
Oil Seeds
3%
Wheat
4%
Other crops
7%
Fruits &
Vegetables
51%
Rice
28%
Agricultural Potash Consumption **
Cultivated Crops ***
kt K 2 O
7.000
6.000
Sugar Crops
1%
Other crops
12%
Corn
20%
5.000
4.000
3.000
2.000
1.000
0
1979/80 1990/91 2001/02 2012/13F
Wheat
14%
Oil Seeds
16%
Rice
18%
Fruits &
Vegetables
19%
* Incl. sulphate of potash and low-grade potash, apparent consumption, % of total K 2 O, Source: IFA 2007/08, published 2009
** Fertilizer years China, Source: IFA December 2011 *** % of total area harvested, Source: FAO 2010
January 2013 K+S Group 85

Potash and Magnesium Products
Potash Market North America
Market Structure
Potash Use by Crop *
Structure
Private Trade
Other crops
24%
Products
MOP gran. and
specialities through
spot and contracts
Sugar Crops
3%
Cotton
3%
Wheat
5%
Fruits &
Vegetables
6%
Soybeans
11%
Corn
48%
Agricultural Potash Consumption ** Cultivated Crops ***
kt K 2 O
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
1979/80 1990/91 2001/02 2012/13F
Other crops
15%
Fruits &
Vegetables
2%
Cotton
3%
Other
Coarse
Grains
7%
Wheat
21%
Corn
27%
Soybeans
25%
* Incl. sulphate of potash and low-grade potash, apparent consumption, % of total K 2 O, Sources: IFA 2007/08, published 2009
** Fertilizer years North America, Source: IFA December 2011 *** % of total area harvested, Source: FAO 2010
January 2013 K+S Group 86

Potash and Magnesium Products
Loader (up to 20 tonnes)
January 2013 K+S Group 87

Potash and Magnesium Products
Production Sites in Germany
Potash mining in the Werra Fulda Region
6
7 4
Kassel
1
5 3 2
Potash
Seam Hesse
Share of production capacity (in %)
1. Wintershall
2. Unterbreizbach Integrated Werra Plant 44
3. Hattorf
4. Zielitz 24
5. Neuhof-Ellers 16
6. Sigmundshall 11
7. Bergmannssegen-Hugo 5
(pure production site, no mining)
Potash Seam
Thuringia
Source: Mainova AG
January 2013 K+S Group 88

Potash and Magnesium Products
Extraction Cycle Underground
0
Blasting after
shift end
4
Auger drilling
1
Muck pile load and dump
5
Cleaning
2
Roof scaling
6
Drilling
3
Roof bolting
7
Loading with explosives
0
January 2013 K+S Group 89

Potash and Magnesium Products
Potash Processing above Ground
Thermal
dissolution
Flotation
Electrostatic
separation
(ESTA ® )
heating
25 °C 110 °C
mother brine
undissolved
residue
+ dissolved
KCl
95 °C
finely
ground
crude salt
filtering
flotation
agent
air
bubbles
flotation
brine
finely
ground
crude salt
triboelectric
charging
finely ground
crude salt
-
conditioning
+
filtering
cooling
filtering
and
drying
separation
in a free
fall separator
Potassium chloride
(KCl) and Kieserite
Residue
(NaCl)
Residue
(NaCl)
Potassium chloride
(KCl) and Kieserite
Residue
(NaCl)
Potassium chloride
(KCl) and Kieserite
January 2013 K+S Group 90

Salt
Mining Chamber in Germany
January 2013 K+S Group 91

Salt
SPL: Salt Extraction in the Atacama Desert
January 2013 K+S Group 92

Salt
Details of De-icing Salt Bidding Processes
defined by
Details specified in typical
bid document
volume
destination
delivery
product and service
specifications
guaranteed minimum
purchase requirement
maximum delivery
requirement
price
vendor purchaser
• Government de-icing contracts are awarded in
Europe, the US and Canada in the form of public
bids
• Government purchaser issues bid documents in
late spring/early summer
• Vendors hand in sealed bids, which will be
opened at date and time specified in the bid
documents
• Lowest priced bid that satisfies all requirements
will be awarded
• In the US, Canada and most parts of Europe, all
vendor’s bids will become public
• In the US most bids are valid for one year/season
• In Canada and some parts of Europe contracts
might be awarded for a duration of up to 4 years
January 2013 K+S Group 93

Salt
K+S Production Sites in Europe as well as
Winter Regions relevant for K+S
Production method
Rock salt
Solar evaporation salt
Vacuum salt
Production of de-icing salt
K+S winter regions
(…) Ø extraction 2002-2011 in t million
*
Processing
Frisia, NL (1.0 million t)
Borth, D (1.59 million t)
Dombasle, F*
Braunschweig-
Lüneburg, D (0.69 million t)
Bernburg, D (2.14 million t)
Torrelavega, E*
Povoa, P*
Olhao, P*
January 2013
K+S Group
94

Salt
K+S Production Sites in North and South America
and Winter Regions in North America relevant for K+S
Lindbergh, AB (0.13 million t)
Regina, SK*
Grantsville, UT
(0.58 million t)
Newark, CA*
Manistee, MI (0.28 million t)
Ojibway, ON (2.66 million t)
Windsor, ON (0.23 million t)
Great Lakes/
Ontario
River
System
Quebec/
Maritime
New
York
Silver Springs, NY (0.34 million t)
Perth Amboy, NJ*
Fairport,OH (1.16 million t)
Rittman, OH (0.51 million t)
Mines Seleine, QC
(1.54 million t)
Pugwash, NS (1.15 million t)
Long Beach, CA*
US East Coast
Glendale, AZ (0.12 million t)
Hutchinson, KS (0.33 million t)
Natal, Brasilien
(0.50 million t)
Production method
Rock salt
Grand Saline, TX (0.37 million t)
Port Canaveral, FL*
Solar evaporation salt
Weeks Island, LA (1.43 million t)
Vacuum salt
Inagua, BH
Production of de-icing salt
(0.89 million t)
Salar Grande
de Tarapacá,
K+S winter regions
Chile (7.00 million t)
(…) Ø extraction 2002-2011 in t million
* Processing
January 2013 K+S Group 95

Salt
Comparison of portfolios with competitors
K+S
China National
Salt
Compass
Minerals
Dampier
Salt
Number of production sites
of which
34
14
8
3
Rock salt
10
-
3
-
Solar evaporation salt
7
4
1
3
Vacuum salt
17
10
4
-
Product portfolio (% of revenues; K+S: 2011)
De-icing salt
Industrial salt
Salt for chemical use
Food grade salt
Other
K+S‘ competitive advantages:
A diversified production network reduces the risk of dependency on a single production centre
Geographic dispersal of production centres makes regional production close to customers with advantages
in transport costs possible
A broad product portfolio reduces the volatility of sales
Source: company information, own estimates
January 2013 K+S Group 96

Salt
Morton Salt, an Excellent Opportunity –
Balancing Growth, Enhancing Profitability
Growth
Asset Quality
Diversification
Operational Synergies
Financials Benefits
Execution
• Combines highly complementary operations to create the North American
and global leader in salt
• Offers widespread, close-to-customer production sites in the U.S. and Canada
• Adds the leading salt consumer brand and a nationwide distribution network
• Extends and diversifies geographic presence in the North American salt market
• Enhances access to North American industrial and consumer markets
• Provides access to new and less volatile de-icing regions
• Strengthens K+S Group overall, in Europe and Overseas
• Leverages the leading salt consumer brand to existing product portfolio
• Optimizes logistics between Chile, Brazil and North America
• EPS will be clearly accretive from 2010 onwards; consistent with acquisition criteria
• Benefits from profitable salt business with strong cash flow generation
• Maintains a strong, flexible balance sheet
• Limited overlap facilitates smooth integration
• Immediate delivery of benefits to employees, customers and shareholders
Morton Salt – another milestone of our growth strategy
January 2013 K+S Group 97

Salt
Morton Salt at a glance
• Largest producer of food grade salt, industrial
and de-icing salt in North America
• North America’s favorite salt consumer brand
(“The Morton
Umbrella Girl”)
Revenues by product group *
2009
De-icing salt
38%
Food grade salt
26%
• 6 rock salt mines, 7 solar evaporation facilities
and 10 vacuum salt operations as well as
62 salt stockpiles and 61 distribution centers
Salt for chemical use
2%
Industrial salt
34%
• Annual salt production capacity
of 13.1 million tonnes
• 2,900 employees
• Headquartered in Chicago; founded in 1848
Key figures
USD million
Sales volume
(million tonnes)
2009
10.1
2008
12.7
2007
11.9
Revenues 1,134 1,220 1,059
EBITDA 283
270
204
* Adjusted to K+S classification
January 2013 K+S Group 98

3,50
K+S Group
Development
3,00
of Earnings per Share, Adjusted *
2,50
€
2.00 2,00
1.50 1,50
1.24
1,00 1.00
0,50 0.50
0.89
0.45
0.25
0.75
0.63
0.62
0.78
0.88
0.74
0.52
0.00 0,00
Q1 - Q4/2010 Q1 - Q4/2011 Q1 - Q4/2012
FY * 2.34 € 3.27 €
9M/12: 2.14 €
* Information refers to the continued operations of K+S Group. The adjusted figures unalteredly 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.
January 2013 K+S Group 99

K+S Group
Revenues and Earnings 1)
€ million
2011
2010
Revenues
Earnings before interest, taxes,
depreciation and amortisation (EBITDA)
Operating earnings (EBIT I)
Result after operating hedges (EBIT II)
Financial result
Earnings before income taxes (EBT)
Taxes on income
of which deferred taxes
Group earnings after taxes & minority interests
Earnings before income taxes, adjusted 2)
Group earnings after taxes, adjusted 2)
3,996.8
1,146.0
906.2
882.8
(64.2)
818.6
209.3
(5.3)
609.3
842.0
625.6
4,632.7
953.0
714.5
719.1
(120.0)
599.1
141.2
(33.7)
457.1
594.5
453.8
1)
Infomation refers to the continued operations of K+S Group. 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.
January 2013 K+S Group 100

K+S Group
Cash Flow Statement 1,2)
€ million
2011 2010
Gross cash flow
Cash flow from operating activities
Cash flow for investing activities
- of which acquisitions/divestments
Free cash flow
Free cash flow before acquisitions/divestments
Cash flow from/for financing activities
859.0
776.3
(494.7)
(242.8)
281.6
524.4
(261.7)
812.7
829.1
(177.7)
-
651.4
651.4
(439.7)
1)
Information refers to the continued operations of the K+S Group. 2010 still including K+S Nitrogen.
2)
Adjusted for the out-financing of pension provisions (2011: € 110.0 million; 2010: € 2.7 million) as well as the purchase of securities
(2011: 372.4 Mio. €; 2010: 0.0 Mio. €)
January 2013 K+S Group 101

K+S Group
Balance Sheet
€ million
Non-current assets
of which Intangible assets
Property, plant and equipment
Deferred tax assets
Securities and other financial investments
Current assets
of which Inventories
Accounts receivable - trade
Cash, securities and other financial investments
Equity
Non-current debt
of which Financial liabilities
Provisions (pensions and mining obligations)
Deferred tax liabilities
Current debt
of which Financial liabilities
Balance sheet total
31.12.11
3,448.5
1,020.9
2,227.0
55.3
58.5
2,608.4
730.0
928.8
757.8
3,084.6
1,953.6
769.8
675.9
342.3
1,018.7
0.8
6,056.9
31.12.10
2,936.4
999.7
1.803.6
57.8
0.0
2,637.3
740.2
949.8
748.4
2,651.6
1,919.1
769.1
713.2
261.6
1,003.0
17.5
5,573.7
January 2013 K+S Group 102

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.
January 2013 K+S Group K+S Group 103

January 2013 K+S Group 104

Jakarta 1975
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
Jakarta 2010
Experience growth.
January 2013 K+S Group 105