Handout - K+S Aktiengesellschaft

Roadshow Singapore, Sydney, Melbourne
June 2013 – Dr. Burkhard Lohr, CFO and Thorsten Boeckers, Head of IR
Experience growth.
K+S Group

K+S Group
Content
K+S at a Glance
Potash and Magnesium Products
Salt
Financials
Outlook 2013
Shareholder Structure and Management
1
6
16
22
27
29
K+S Group 1

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 million)
Potash and Magnesium
Products Business Unit
Salt Business Unit
Revenue / EBIT I in € million
1,867
2,134 2,291 2,334
476 740
774
772
2010 2011 2012 LTM
Revenue / EBIT I in € million
1,729 1,710 1,485 1,641
238 211
62
89
2010 2011 2012 LTM
K+S Group
2

K+S Group
Worldwide Presence
Production Sites and Sales Offices
Kassel
Revenues by Region 2012
South America
17%
North America
26%
Asia
12%
Africa, Oceania
3%
Europe
42%
Production
Sales
K+S Group 3

K+S Group
Main applications for our products
Potash and Magnesium Products
Salt
High-quality raw materials for industrial purposes
Non de-icing applications
Magnesium
Sulphate
Pulp and Paper
Detergents
Potassium
Chloride
Chlor-Alkali
Electrolysis
Oil Drilling Muds
Potassium
Sulphate
Construction
Materials
Plasterboards
High purity salts for health care and food
Epsom Salt
ABS/EPS Plastic
Production
Detergents
Food Grade Salt
Table Salt (Consumer)
Food Processing
Epsom salt
chem. pure, FCC
Food Additive
Potassium
Chloride
Insulin Production
Infusions and
Haemodialysis
Solutions
Potassium
Sulphate
Pharmaceutical
Industry
Potassium
Chloride FCC
Food Industry
Industrial Salts
Pharmaceutical
Water Treatment
Oil and Gas Drilling
Animal Feed
Salt for Chemical Use
Chlor-Alkali (PVC)
Synthetic Soda Ash (Glass)
K+S Group 4

K+S Group
Investment case
Access to
megatrends
Attractive markets
Unique portfolio
• Growing populations
• Increasing living standards
• Changing dietary patterns
• Structurally growing demand
• Consolidated supply structures
• High barriers to entry
• Focus on business units with synergies in production
• Diversified product portfolio
• Broad range of applications for products
Leading market
positions
• Leading positions in Potash and Magnesium Products
• Global leader in Salt
Substantial growth
potential
Strong balance
sheet
• Legacy project in Canada to increase potash capacity
• Growth opportunities in Asia in Salt
• Investment grade rating
• Clear financial strategy
K+S Group 5

K+S Group
Content
K+S at a Glance
Potash and Magnesium Products
Salt
Financials
Outlook 2013
Shareholder Structure and Management
1
6
16
22
27
29
K+S Group 6

Potash and Magnesium Products
Supplier Structure on the World Potash Market
Figures in %
32.9
32.0
30.9
30.7 30.4
27.9
2010 2011 2012
9.9
9.5
10.4
9.5
8.6
8.4
8.5
9.3
12.6
2.6
2.6
3.3
3.6
3.7
3.0
3.2
3.0
3.5
BPC
• Belaruskali
• Uralkali/
Silvinit
Canpotex
• Potash
Corp
• Mosaic
• Agrium
K+S
ICL
• DSW
• CPL
• Iberpotash
SQM
participation
of Potash
Corp.
APC
participation
of Potash
Corp.
China
• more
than 20
producers
Others
• Intrepid
• Vale
• Compass
Sales volumes in metric tonnes
Sources: IFA, K+S
participation
of Potash
Corp. in ICL
K+S Group 7

Potash and Magnesium Products
Business Unit Performance
Revenues (€ billion)
EBIT (€ million)
2.29 2.33
771 772
0.58
0.63
208
209
Q1/12 Q1/13 FY/12 LTM Q1/12 Q1/13 FY/12 LTM
1.9
2.1
2.3
476
740 771
2010 2011 2012
2010 2011 2012
Revenue split 2012
Industrial
products
12%
By product group
Potassium
chloride 51%
Asia
19%
By region
Africa, Oceania
3%
Fertilizer
specialities 37%
South
America
18%
North America
3%
Europe
57%
K+S Group 8

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
K+S Group 9

Potash and Magnesium Products
Major Destinations for K+S‘ Products
> 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%
K+S Group 10

Legacy Project
Significant Strategic Importance
• Growth
• Participate in growth of the world
potash market by adding new
capacity
• Production Costs
• Improved average cash costs
• Higher share of variable costs
• Average Mine Life
• Substantial extension of average
mine life
• Diversification
• Broader product portfolio
• Most diversified production network
and regional mix
• Specialisation
• High quality industrial products
Reserves and Resources
Regina
Southern area of the potash belt of Saskatchewan
Located in the Heart of (Schematic Saskatchewan’s Diagram) Potash-Rich Basin
Two more potash exploration licences close to Esterhazy
Two additional potash permit areas in the Esterhazy potash region
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”.
K+S Group
11

Legacy Project
Ramp-up Curve
Production capacity
in mln. t KCl/a
4.5
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
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
K+S Group 12

Legacy Project
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 2022: CAD 4.10 billion 2023 to 2034: ~ CAD 0.70 billion
Indicative
course of
investment
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
K+S Group 13

Legacy Project
Specific Cash Costs* Lower Than Previously Expected
CAD
per tonne -10
~ 165
Average
logistic
costs:
~ 70 CAD
per tonne
Production:
~ 95 CAD
per tonne
~ 155
Average
logistic
costs:
~ 65 CAD
per tonne
Production:
~ 90 CAD
per tonne
● Sustainable cash costs of production will be
CAD 10/tonne lower than previously assumed
due to
● Investments into own infrastructure and
● Modifications and optimization of plant
components
● Mining taxes/royalties of approx.
CAD 60/tonne on the basis of an exemplary
potash price of US$ 400/tonne ex works
● Over the long term, D&A of about
CAD 40/tonne after initially higher values at the
start of production
* At full utilisation of 2.86 million tonnes KCl/a (Phases 1+2)
No increase in prices and costs after the construction phase
K+S Group 14

Legacy Project
Premium of at least 15% on Group Cost of Capital
• All relevant variables included and monitored regularly
• Leeway in all components including price assumptions
Model assumptions:
CapEx
Potash
price
Logistics
Production
Taxes
• Purchase price
for PotashOne
of CAD 434m
• CAD 4.1bn for
Phase 1+2
• Includes
amounts spent
in 2011 and
2012
• Maintenance
• On CFR basis to
various
destinations
• Planned product
portfolio
• Port facility
operations
• Railroad
infrastructure
• Railcars
• Average freight
rates for
targeted regional
portfolio
• Energy prices
• Personnel costs
• Mining taxes
• Royalties
K+S Group
15

K+S Group
Content
K+S at a Glance
Potash and Magnesium Products
Salt
Financials
Outlook 2013
Shareholder Structure and Management
1
6
16
22
27
29
K+S Group 16

ESSA
Cargill
Compass
Artyomsol
Südsalz
Akzo
Salins
China National Salt
Dampier
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
7.5
5.1
4.1
3.7
7.0
10.3
7.0
3.8
Mitsui
Sources: Roskill 2011, K+S
K+S Group 17

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)
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
K+S Group 18

Salt
K+S 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
K+S Group 19

Salt
K+S De-icing Salt Markets
Great Lakes
US East Coast
Eastern Canada
Central Europe
Scandinavia
• Continental climate with
distinctly stable winters
• High population density
• Stable de-icing salt
business with high
volumes
• Atlantic climate
• Relatively volatile,
partly very harsh
winters
• Very high population
density
• Relatively stable
de-icing salt business
• Atlantic climate
• Relatively stable winters
• Lower population density
• Relatively stable
de-icing salt business
• Long-term contracts
• Atlantic climate
• Milder winters with
occasional upward
fluctuations
• Very high population
density
• Relatively fluctuating
de-icing salt business
• More stable winters in
comparison with
Western Europe
• Relatively low
population density
• Relatively stable deicing
salt business
K+S Group 20

Salt
Business Unit Performance
Revenues (€ billion)
EBIT (€ million)
1.48
1.64
0.46
0.61
45
73
62
89
Q1/12 Q1/13 FY/12 LTM Q1/12 Q1/13 FY/12 LTM
1.7
1.7
1.5
238
211
62
2010 2011 2012 2010 2011 2012
Revenue split 2012
By product group
Other Food grade
3% salt 13%
By region
South America Asia
5% 2%
Europe
26%
Industrial salt
21%
De-icing salt
58%
Salt for
chemical use 5%
North America
67%
K+S Group
21

K+S Group
Content
K+S at a Glance
Potash and Magnesium Products
Salt
Financials
Outlook 2013
Shareholder Structure and Management
1
6
16
22
27
29
K+S Group 22

K+S Group
Attractive margins and strong balance sheet
Mio. ROCE, € EBIT-Margin and Value Added
Operating and Free Cash € Flow je Aktie
€ million % € million € million
ROCE (rhs)
EBIT-margin (rhs)
Value added
H1 Operating cash flow
H2 Operating cash flow
Free cash flow before acqusitions/divestments
Gearing and Equity Ratio
% %
Gearing
Equity ratio (rhs)
K+S Group 23

K+S Group
Capital Expenditure and Depreciation 1)
€ million
1,200
Expansion capex
1,000
800
Maintenance capex
Depreciation
~820
600
466
400
294
200
172
198
178
189
63
2007 2008 2009 2010 2011 2012
2013e
• In 2013, of the expected capex volume of a good € 800 million, CAD 500 million 2) (€ 375 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
considerable shifts regarding the allocation of the capex for the Legacy Project to the investment periods.
K+S Group 24

K+S Group
Target 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 Q1/13 2012 2011
Net indebtedness / EBITDA 1.0x – 1.5x 0.6x 0.8x 0.5x
Net indebtedness / Equity 50% – 100% 17.0% 24.4% 21.8%
Equity ratio 40% – 50% 53.1% 51.4% 50.3%
K+S Group 25

K+S Group
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 paid.
Group Earnings and Payout Ratio
% Payout ratio
Mio. € €
Target range payout ratio ,
.
Group earnings from continued operations,
adjusted (rhs)
,
,
.
.
.
.
Dividends
Dividends in € €
Dividends from continued operations
.
Dividends from discontinued operations
.
.
.
.
640
.
.
0.21
1.19
.
.
.
.
.
.
K+S Group 26

K+S Group
Content
K+S at a Glance
Potash and Magnesium Products
Salt
Financials
Outlook 2013
Shareholder Structure and Management
1
6
16
22
27
29
K+S Group 27

K+S Group
Revenues and EBIT I Outlook 2013
• Slight increase in revenues
• Price-related decline in Potash and Magnesium Products
• Volume-related increase in Salt
• Slight increase in EBIT I
• Decrease in Potash and Magnesium Products should be more than offset by
normalisation of Salt de-icing business
• Stable financial result
• Adjusted tax rate of 26-27%
• Slight increase in Group earnings from continued operations
• Update: Capex ~EUR 820m (~EUR 1.1bn before)
Potash and Magnesium Products
• Sales volumes of 7 million tonnes (vs. 6.95 million tonnes
in 2012)
• Lower average price level for the product portfolio
Salt
• Significantly higher volume of crystalised salt of a good
22 million tonnes (2012: 17.6 million tonnes)
• Thereof de-icing salt of about 13 million tonnes (2012: 8.3
million tonnes)
• Stable development of non de-icing business
K+S Group 28

K+S Group
Content
K+S at a Glance
Potash and Magnesium Products
Salt
Financials
Outlook 2013
Shareholder Structure and Management
1
6
16
22
27
29
K+S Group 29

K+S Group
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%
K+S Group 30

K+S Group
Board of Executive Directors
Norbert Steiner
CEO
Gerd Grimmig
Dr. Thomas Nöcker
Dr. Burkhard Lohr
CFO
Mark Roberts
Responsible for:
• Potash and Magnesium
Products business unit
• Corporate Development
• Legal affairs/Compliance
• Investor Relations
• Corporate
Communications
• Executive Staff
Matters/International HR-
Coordination
Responsible for:
• Waste Management and
Recycling business unit
• Animal Hygiene Products
• MSW Chemicals
• K+S Consulting
• Mining / Geology
• Engineering / Energy
• Research and
Development
• Environment,
Occupational Safety,
Quality Management
• Inactive Plants
Responsible for:
• K+S Transport
• CFK (Trading)
• Human Ressources
(including Health
Management)
• IT-Services
• Organisation and
Project Management
• Real Estate
Management
• Knowledge
Management
• Global Logistics
Strategy
• Logistic Purchasing
Responsible for:
• Finance and
Accounting
• Corporate Controlling
• Taxes
• Internal Audit
• Purchasing and
Procurement
• Insurance
• Data protection
Responsible for:
• Salt business
unit
K+S Group 31

K+S Investor Relations
Your 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/ir
Thorsten Boeckers
Head of Investor Relations
Andrea Rach
Investor Relations Assistant
Phone: +49 561 / 9301-1460
Fax: +49 561 / 9301-2425
thorsten.boeckers@k-plus-s.com
Phone: +49 561 / 9301-1100
Fax: +49 561 / 9301-2425
andrea.rach@k-plus-s.com
Julia Bock, CFA
Senior Investor Relations Manager
currently on maternity leave
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
Martin Heistermann
Investor Relations Manager
Phone.: +49 561 / 9301-1403
Fax: +49 561 / 9301-2425
martin.heistermann@k-plus-s.com
K+S Group 32

K+S Group
Stock Market Indices and Analysts’ coverage
The K+S share is quoted in the following stock market index:
• DAX
• DJ STOXX 600
• DJ EURO STOXX
• HDAX
• CDAX Gesamtindex
• Prime Allshare Index
• Classic Allshare Index
Banks presently publishing reports on K+S:
• Prime Sector Chemicals
• Industry Group Chemicals / Commodity
• DJ STOXX TMI
• MSCI World Standard
• MSCI Europe Standard
• MSCI Germany Standard
• ECPI Ethical Index Global
• Baader Bank AG
• Bank of America / Merrill Lynch
• B. Metzler seel. Sohn & Co.
• Bankhaus Lampe
• Barclays
• Berenberg Bank
• BMO Bank of Montreal
• CA Cheuvreux
• Citigroup
• Commerzbank
• Deutsche Bank
• DZ Bank
• equinet
• Equita
• Exane BNP Paribas
• Goldman Sachs
• Hauck & Aufhäuser Institutional Research AG
• HSBC Trinkaus & Burkhardt
• Independent Research
• J.P. Morgan Cazenove
• Kepler Capital Markets
• LBBW
• Liberum
• Macquarie
• Main First Bank
• M.M. Warburg
• Morgan Stanley
• Morningstar
• Nomura
• Redburn
• Sanford C. Bernstein
• Scotiabank
• UBS Investment Research
Analysts’ recommendations of the last 12 months and an always current consensus estimate you can find at
http://www.k-plus-s.com/en/ks-aktie/bewertungen/analysten.html. Furthermore you can download all publications and
presentations of our company from the Investor Relations section of our website (http://www.k-plus-s.com/en/investorrelations/index.html),
where you also find answers to frequently asked questions.
K+S Group 33

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.
K+S Group 34

K+S Group 35

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
Experience growth.
K+S Group