K+s Ag · XETR:SDF
K+s — K+S Aktiengesellschaft — Investor Day (December 2010)
22 slides from K+s's investor day presentation, Dec 8, 2010
Slide 1: Capital Markets Day: K+S Group Perspectives
Capital Markets Day K+S Group Perspectives Norbert Steiner, CEO Berlin, 8 December 2010 Experience growth.
Slide 2: Content
K+S Group Content A. Our Way through the Crisis B. Vision and Strategy C. Consistent Implementation of our Strategy D. Outlook December 2010 K+S Group 1
Slide 3: Retrospective Glance at the Crisis Year 2009
Retrospective Glance at the Crisis Year 2009 Difficult Conditions on Agricultural Markets Million tonnes World Potash Sales z The sudden burst of the speculative bubble that had formed on the commodity futures 54.2 54.4 58.7 54.8 exchanges during 2008 triggered a strong 50.7 52 - 53 49.1 purchasing
Slide 4: Impact of Crisis: Active Countermeasures in 2009
Impact of Crisis Active Countermeasures in 2009 Capacity Î Output cutbacks in fertilizers and use of short-time working utilisation Costs Î Reduction in planned maintenance measures Capital Î Postponement of capital expenditure projects expenditure Î Strengthening of the financial structure through
Slide 5: Back on Track: Way out of Crisis in 2010
Back on Track Way out of Crisis in 2010 z Strengthened by the active countermeasures in 2009, we had a very successful start into the financial year 2010: a good de-icing salt business in the first quarter positive consolidation effects on revenues and earnings from the first-time inclusion of M
Slide 6: Development of Revenues and Earnings
K+S Group Development of Revenues and Earnings 7000 2100 Revenues Operating Earnings 6000 € million 1800 € million 4,900* 5000 1500 % R 8.9 G 4000 CA 1200 3000 900 2,088 650* 2000 600 7.8% G R1 CA 1000 300 127 0 0 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10e ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘
Slide 7: K+S share performance: Investing in K+S has Paid Off
K+S share performance Investing in K+S has Paid Off – In Absolute and Relative Terms! Boom & bust perspective (31.12.2007 – 30.11.2010) 250 K+S +33% Yara +18% ICL +8% 200 Average PotashCorp ±0% Uralkali -28% peer group Mosaic -29% Ø -6% 150 100 50 0 2008 2009 2010 Index: 31 December 2007 = 100; Sour
Slide 8: Content
K+S Group Content A. Our Way through the Crisis B. Vision and Strategy C. Consistent Implementation of our Strategy D. Outlook December 2010 K+S Group 7
Slide 9: Our Vision: Source of Growth and Life Through Nutrients and Minerals
K+S Group Our Vision: Source of Growth and Life Through Nutrients and Minerals z For more than 100 years, we have been mining, processing and selling raw materials Î To feed the world’s population, we offer all nutrients in a specialised fertilizer assortment that meets people’s needs Î Our salt pro
Slide 10: Two-Pillar Strategy
K+S Group Two-Pillar Strategy K+S Group Core Business Complementary Core Business Sector Fertilizers Sector Salt Business Segments Waste Mgmt. & Logistics Potash and Nitrogen Recycling Salt Magnesium Products Fertilizers Animal hygiene Trading products business (CFK) z The basis for securing our fut
Slide 11: Content
K+S Group Content A. Our Way through the Crisis B. Vision and Strategy C. Consistent Implementation of our Strategy D. Outlook December 2010 K+S Group 10
Slide 12: Consistent Implementation of our Strategy
Experience growth. Consistent Implementation of our Strategy z Acquisition of two salt z Acquisition of SCPA z Acquisition of Chilean z Intended acquisition of Potash One solution mine caverns potash activities salt producer SPL for announced for a total consideration of and formation of in France U
Slide 13: K+S is Considering the Sale of COMPO
K+S Group K+S is Considering the Sale of COMPO z COMPO is a leading provider in a market that requires consolidation z In compliance with our growth strategy, we will focus our financial and management resources in particular on the Potash and Magnesium Products and Salt business segments z On the o
Slide 14: Potash One – Consistent with our Growth Strategy
K+S Group Potash One – Consistent with our Growth Strategy z Expansion of potash capacities and average mine life z Average production costs of K+S’ Potash and Magnesium Products business segment will successively and tangibly improve with the inclusion of the Legacy project z Production on two cont
Slide 15: Content
K+S Group Content A. Our Way through the Crisis B. Vision and Strategy C. Consistent Implementation of our Strategy D. Outlook December 2010 K+S Group 14
Slide 16: Revenues and Earnings Expectations for 2010
K+S Group Revenues and Earnings Expectations for 2010* Outlook for the entire year of K+S Group: - Revenues: € 4.8 - 5.0 billion (2009: € 3.6 bn) - EBITDA: € 880 - 920 million (2009: € 411.8 m) - Operating earnings (EBIT I): € 630 - 670 million (2009: € 238.0 m) - Group earnings, adjusted: € 375 - 4
Slide 17: Revenues and Earnings Expectations for 2011
K+S Group Revenues and Earnings Expectations for 2011* K+S Group: - Moderate increase in revenues - Significantly higher operating earnings (EBIT I) and adjusted Group earnings after taxes - Assumption: Continued attractive agricultural prices Underlying assumptions Fertilizer Business Sector Salt B
Slide 18: Value Creation, Cash Generation, Strong Balance Sheet and High Dividend Distribution
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 320 80 ROCE (rhs) 1200 H1 Operating cash flow 1200 280 EBIT-margin (rhs) 70 H2 Operating
Slide 19: Attractive Dividend Policy
K+S Group Attractive Dividend Policy 2005 2006 2007 2008 2009 Dividend Policy 0.45 0.50 0.50 2.40 0.20 To pay out „in principle 40-50% of K+S (EUR) (47%) (47%) (47%) (40%) (41%) the adjusted Group earnings“ 0.20 0.20 0.35 0.40 0.40 „Cash dividends […] are conditioned Potash Corp. (USD) (12%) (10%) (
Slide 20: K+S Share Price compared with DAX
K+S Aktiengesellschaft K+S Share Price compared with DAX Performance of K+S share * Market capitalisation (Index: 31 December 2009 = 100) (as of 31 December, € billion) 140 9.8 130 K+S +29% 7.7 120 6.7 6.6 110 DAX +12% 3.4 100 2.1 1.7 90 1.0 0.8 0.8 0.9 80 2010 2010 2000 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07
Slide 21: Forward-Looking Statements
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 assumptio
Slide 22: K+S Aktiengesellschaft contact details
K+S Aktiengesellschaft Bertha-von-Suttner-Straße 7 34131 Kassel | Germany phone: +49 (0)561 / 9301-0 fax: +49 (0)561 / 9301-1753 Investor Relations phone: +49 (0)561 / 9301-1100 fax: +49 (0)561 / 9301-2425 email: [email protected] Internet: www.k-plus-s.com Experience growth.
K+S Aktiengesellschaft — Investor Day (December 2010) on 6ix