2008 - K+S Aktiengesellschaft

Experience growth.
Chemical and Ag Science Conference
Credit Suisse
New York, 17 September 2008
Experience growth.

K+S Group
Growth Lies at the Heart of Our Vision
K+S is one of the world's leading suppliers of speciality and standard fertilizers,
plant care as well as salt products.
With our products and brands, we offer our customers a range of needs-based
goods and services which provides growth opportunities in virtually every
sphere of daily life.
In doing so, we assume active responsibility for the sustained growth of our world.
Our 12,000 employees display their commitment towards this goal day in day out
by applying their knowledge and experience.
K+S
Experience growth.
September 2008 K+S Group 1

K+S Group
Content
A. Corporate Structure
B. Core Business Segments:
- Fertilizers and Plant Care
-Salt
C. Complementary Business Segments
D. Strategy
E. Financial Data and Outlook
F. K+S Share
Appendix
September 2008 K+S Group 2

K+S Group
Corporate Structure as of 1 January 2008
K+S Group
Revenues
EBIT I
Potash and Magnesium Products
1,408.0
177.9
Core business
fertilizers and
plant care
COMPO
617.4
32.0
fertiva
648.0
25.3
Core business
salt
Salt
545.1
47.8
Complementary
business
segments
KTG
Waste Management and Recycling
Logistics (KTG)
Animal hygiene products
Trading business (CFK)
125.1
37.7
Revenues and EBIT I refer to fiscal year 2007; figures in € million
September 2008 K+S Group 3

K+S Group
Worldwide Presence
Overseas
Europe
Kassel
Revenues by region (2007)
Germany 19.6%
Rest of Europe 47.1%
Overseas 33.3%
Production
Sales
September 2008 K+S Group 4

K+S Group
Content
A. Corporate Structure
B. Core Business Segments:
- Fertilizers and Plant Care
-Salt
C. Complementary Business Segments
D. Strategy
E. Financial Data and Outlook
F. K+S Share
Appendix
September 2008 K+S Group 5

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
September 2008 K+S Group 6

K+S Group
Key Drivers of the Fertilizer Business
• Despite decreasing availability of arable farm land, global production of soft
commodities has to increase:
• 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
• As a consequence, fertilizing with key nutrients nitrogen (N), phosphate (P)
and potash (K), but also increasingly magnesium (Mg) and sulphur (S)
is the solution 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 still
significantly increase the potash proportion of their total fertilizer application
• Medium- and long-term increase in global fertilizer consumption (N, P and K)
of about 3.0% p.a. expected
Advantage:
K+S offers its worldwide customers all nutrients
in a market-oriented specialised product range
September 2008 K+S Group 7

K+S Group
Yields of Cereals in Selected Regions
dt/ha
70
60
50
40
30
20
10
0
North America Latin America Western Europe Eastern Europe South Asia Far East Africa
Source: FAO
1980 1985 1990 1995 2000 2004
• Highest yields of cereals per hectare to be found in Western Europe and in North America
thanks to a balanced fertilization tradition and advanced agricultural systems as well as
favourable climatic conditions
• Assuming an increased awareness of balanced fertilization, emerging markets possess
significant catching-up potential
• In 2004, the increase in yields of cereals per hectare in Eastern Europe is to be considered
as not sustainable and was primarily caused by favourable climatic conditions. The region is
still suffering from the consequences arising out of a persistent fertilization deficit.
September 2008 K+S Group 8

300
K+S Group
Meat Consumption per Capita
250
200
kg / person
150
North America
100
Europe*
South America
50
0
Asia
Africa
1961 1970 1980 1990 2002
* comparable data for Europe is not available before 1992
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
• Still enormous potential for rising fertilizer demand in emerging countries
September 2008 K+S Group 9

K+S Group
Bio Diesel Production - Objectives of the ‘EU 25’
22.000
20.000 According to the EU guideline from 08.05.2003 for the promotion of the use of
bio fuels, the member states have to guarantee a minimum share of bio fuels.
18.000
16.000 1.000 t/year
14.000 14,000
13,450
12.000 12,000
11,500
10.000 10,000
8.000 8,000
6.000 6,000
4.000 4,000
4,250
5,950
7,750
9,550
2.000 2,000
0
2.00 % 2.75 % 3.50 % 4.25 % 5.00 % 5.75 %
2005 2006 2007 2008 2009 2010
Source: Verband Dt. Biodieselhersteller e.V.
September 2008 K+S Group 10

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, Argentina, Canada,
Brazil, China and South Africa
• In Europe, the use is ethically disputed and does virtually not exist
• Genetically modified crops are usually soybean, maize, cotton and oilseed rape
• The use of GMOs reduces the economical input and increases the yield per unit
of cultivated area
• Due to the genetic modification, the plant’s needs become similar to those of ‘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 current supply, the use of GMOs leads to an increased demand for fertilizers
September 2008 K+S Group 11

K+S Group
Agricultural Supply Falls Short of Demand
Production, consumption, stocks of cereals
Production, consumption, stocks of corn
100
50
100
50
80
40
80
40
60
30
60
30
40
20
40
20
million t
20
0
-20
10
0
-10
%
million t
20
0
-20
10
0
-10
%
-40
-20
-40
-20
-60
-30
-60
-30
-80
-40
-80
-40
-100
1980/81
1985/86
1990/91
1995/96
2000/01
2005/06
-50
-100
1980/81
1985/86
1990/91
1995/96
2000/01
2005/06
-50
Source: USDA
Production surplus Production deficit Stocks-to-use ratio (rhs)
Production surplus Production deficit Stocks-to-use ratio (rhs)
• Over the past thirty years, annual global production of cereals and corn has often fallen
short of demand
• Despite reasonable harvest levels during the last ten years, these structural supply and
demand gaps have resulted in historically low stocks-to-use ratios
• Although “ideal” weather in 2008 (USDA-Report, 12 August 2008) will most likely help
farmers to achieve above-average yields, stocks-to-use ratios remain at historical lows
September 2008 K+S Group 12

K+S Group
Higher Prices of Agricultural Products
Index: January 2005 = 100
325
Corn
• Agricultural output cannot
keep up with demand
300
275
250
225
200
175
Palm oil
Wheat
Soybeans
+144%
+120%
+114%
+113%
• Low worldwide inventories
of agricultural products
• Additional and increasing
demand of renewable raw
materials
150
125
100
Cultivation intensity and
fertilizer use increase
75
Jan.
2005
Jan.
2006
Jan.
2007
Jan.
2008
Source: World Bank; as of August 2008
September 2008 K+S Group 13

K+S Group
Profit Dynamics of Winter Wheat (180 €/t)
€/ha Current
1600Revenues
€1,440
Expenses €1,210
1400Profit
€ 230
1200
1000
800
600
400
200
0
459
459
Scenarios
€1,440
€ 1,257 (+4%)
€ 183 (-20%)
183
183
183
Total
Total
367 30.3% 413 32.9%
321
of which
of which
21 4.1% 22
7.6%
20
110
MOP
110 MOP 110
70 70 70
€ 1,260
€ 1,163 (-4%)
€ 97 (-57%)
September 2008 K+S Group 14
459
600 € MOP, 8t/ha 1,200 € MOP, 8t/ha 600 € MOP, 7t/ha
Seeds/plants
Fertilization
Plant protection agents Variable costs of carrying out the work
Other costs
Fixed costs (incl. lease)
(e.g. insurance, water)
Total
27.6%
of which
3.8%
MOP
Potash share in total cost
structure of a farmer
currently only about 4%
A fictitious doubling of the
potash price only affects the
profit to a less than full extent
A yield reduction of a good
10% however, results in a
halving of the profit level
The challenge for
agriculture: ensuring a
high level of revenues by
means of a balanced use
of nutrients
Conservative assumptions: without agricultural subsidies, incl. interest expense for prefinancing costs, 100% use of mineral fertilizers (no organic manuring),
straw remains in the field (straw manuring), fertilizer usage for 8 t/ha yield: 80 kg/ha MOP, 536 kg/ha CAN, 139 kg/ha TSP; Sources: costs (20 ha plot) according
to Kuratorium für Technik und Bauwesen in der Landwirtschaft e. V. (KTBL), LAND & Forst, fertilizer prices: end-consumer prices, yield according to agricultural
statistics of Destatis, nutrient removal according to federal states‘ guidelines on application of fertilizers

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
(e.g. temperature, precipitation)
on yield
• Increasing additional yields
in the course of time
• A potash-cost/proceeds
ratio of 1:3
(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 has 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.
September 2008 K+S Group 15

K+S Group
Market Impact on Fertilizer Suppliers
+++ very strong
++ strong
+ low
o very low/non existent
Nitrogen
(N)
Relative market impact
per class of nutrient
Phosphate
(P)
Potash
(K)
K+S +
o
+++
Agrium +++
+/o
+
Mosaic +
+++
++
PCS ++
++
++
Uralkali o
o
+++
Yara
+++
+
o
Explanatory note:
The weighting indicates how the companies mentioned are affected by market impacts in each nutrient class.
The matrix does not show the relative importance among the companies.
September 2008 K+S Group 16

Potash and Magnesium Products
World Potash Production and Sales by Region
Million tonnes
20.6
18.9
24.7
10.8
4.7
8.2 7.4
8.6
10.4
1.5
0.7
Incl. sulphate of potash
and low grade potash
Sources: IFA, K+S
World potash production:
2007: 57.8 million t
2006: 50.9 million t
World potash sales:
2007: 58.7 million t
2006: 50.7 million t
September 2008 K+S Group 17

Potash and Magnesium Products
Supplier Structure on the World Potash Market
33.2%
22.8%
11.8%
9.3%
9.2%
9.0%
3.2%
1.5%
•PCS
•Mosaic
•Agrium
Canpotex
Year 2007
Sources: IFA, K+S
•Belaruskali
•Uralkali
BPC
(since 2006)
K+S
•Silvinit
IPC
ICL-
Group
•DSW
•Iberpotash
•CPL
participation
of PCS in ICL
APC
participation
of PCS
SQM
participation
of PCS
Others
China,
Intrepid,
Vale,
Compass
September 2008 K+S Group 18

Potash and Magnesium Products
World Potash Capacity, Production and Sales
Million tonnes
80
70
60
50
52.6
Technically available capacity
(incl. announced capacity expansions)
Production
Sales
49.1
45.5
43.9
54.2 54.4
50.7
61.0
58.7
Ø + 5%
Ø + 3%
77.9
70.7
• The shortfall of Eastern European
demand after the collapse of the
Soviet Union was more than
compensated for by the growth
in emerging markets
• Growing world population,
increasing demand for higher-quality
food especially in emerging markets
and increasing use of bio energy
40
30
36.2
• Tactical purchasing behaviour,
particularly with regard to countries
with state-driven potash importing
organizations, affected the year 2006
20
10
0
55.0 35.2 45.1 46.0 48.5 54.0 56.6 50.9 57.8 61.0
1988 ’93 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08
2013
(e)
(e)
Incl. sulphate of potash and low grade potash
Sources: IFA, K+S
• Medium-term demand growth of
approx. 3% - 5% per year expected
• All announced capacity expansions
considered until 2013
High utilization of technically
available capacity also expected
for the next years
September 2008 K+S Group 19

Potash and Magnesium Products
Agricultural Potash Consumption by Region
,
40.000
,
32.000
1,000 t K 2
O
World
,
20.000
,
16.000
1,000 t K 2
O
Developed markets
North America, Western Europe, Australia, Japan
,
24.000
,
12.000
,
16.000
,
8.000
,
8.000
,
4.000
,
20.000
,
16.000
0
80/81 82/ 84/ 86/ 88/ 90/ 92/ 94/ 96/ 98/ 00/ 02/ 04/ 06/07
e
1,000 t K 2
O
Transitional markets
Central and Eastern Europe, Central Asia
,
20.000
,
16.000
0
80/81 82/ 84/ 86/ 88/ 90/ 92/ 94/ 96/ 98/ 00/ 02/ 04/ 06/07
e
1,000 t K 2
O
Emerging markets
Latin America, Asia, Africa, Oceania
,
12.000
,
12.000
,
8.000
,
8.000
,
4.000
,
4.000
0
80/81 82/ 84/ 86/ 88/ 90/ 92/ 94/ 96/ 98/ 00/ 02/ 04/ 06/07
e
Sources: IFA, FAO
0
80/81 82/ 84/ 86/ 88/ 90/ 92/ 94/ 96/ 98/ 00/ 02/ 04/ 06/07
e
September 2008 K+S Group 20

Potash and Magnesium Products
MOP Prices for Selected Markets
US$/t
Overseas
(standard, cfr)
US$/t
Northwest-Europe
(standard, fob)
1000
925
850
775
700
625
550
475
400
325
250
175
100
Thailand/Taiwan
Brazil
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
956
950
September 2008 K+S Group 21
920
850
780
710
640
570
500
430
360
290
220
150
80
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
2003 ‘04 ‘05 ‘06 ‘07 2008 2003 ‘04 ‘05 ‘06 ‘07 2008
Source: FMB; as of 4 September 2008
832

Potash and Magnesium Products
Recent Price Increases/Announcements
Price quotations per tonne MOP
Western Europe
granular MOP
standard MOP
Brazil
granular MOP
South-East Asia
standard MOP
India
standard MOP
• Beginning of July ’08: price increase of € 25to € 560 cfr;
End of July ’08: latest price increase of further €40to € 600 cfr
with immediate effect
• End of June ’08: price increase of about € 260 to approx. € 540 cfr
for Q3/2008 (3 months contract to expire at the end of Sept. 2008)
• Beginning of Apr. ’08: announcement of a price increase of US$ 150
to US$ 750 cfr from 1 June ’08 (Canpotex);
End of Apr. ’08: announcement of a further price increase of US$ 250
to US$ 1,000 cfr from 1 July ’08 (BPC)
• Beginning of Apr. ’08: announcement of a price increase of US$ 125
to US$ 725 cfr from 1 June ’08 (Canpotex);
End of Apr. ’08: announcement of a further price increase of US$ 275
to US$ 1,000 cfr from 1 July ’08 (BPC)
• Mid of March ’08: price increase of US$ 355 to US$ 625 cfr as of May ’08;
valid until March 2009
Source: FMB
September 2008 K+S Group 22

Potash and Magnesium Products
Loader (up to 20 tonnes)
September 2008 K+S Group 23

K+S Group
Potash and Magnesium Products
1 st Half
Financial Year
Revenues by product group
€ million
2008
2007
2007
2006
2007 (%)
Revenues
1,135.3
708.2
1,408.0
1,238.9
EBIT I
462.3
108.7
177.9
158.6
Brief description
Crude potash and magnesium salts are
extracted from six mines in Germany and form
the basis for the production of a large number
of fertilizers. In addition, these crude salts are
also processed into products for technical,
industrial and pharmaceutical applications.
Special feature: Our deposits also contain
magnesium and sulphur, which are particularly
suitable for the production of specialities.
Potassium chloride 47.9
Fertilizer specialities 38.5
Industrial products 13.6
September 2008 K+S Group 24

Potash and Magnesium Products
Product Portfolio 2007 (Sales volumes in million tonnes)
1.4 million tonnes non-potashcontaining
products
• Fertilizer specialities
- ESTA ® Kieserite
- EPSO ® product family
• Industrial products
- magnesium sulphate
- magnesium chloride
Fertilizer
specialities
3.42
Industrial
products
1.04
Potassium
chloride
3.75
6.8 million tonnes potashcontaining
products
• Potassium chloride
- MOP - Standard
-MOP -Granulat
• Fertilizer specialities
- Potassium sulphate
- Patentkali ®
- Korn-Kali ® -products
- Magnesia-Kainit ®
- Thomaskali ®
-NPK
• Industrial products
- potassium chloride, 97% - 99% KCl
- potassium sulphate, > 95% K 2
SO 4
- high purity salts
Theoretical size for the determination of the price sensitivity of the K+S product
portfolio relating to a price increase of potassium chloride (MOP)
6.8 million tonnes x (0.53*/0.6) ≙ 6.0 million tonnes (MOP-equivalent)
* Average K 2 O content of the product mix amounts to 53%
September 2008 K+S Group 25

Potash and Magnesium Products
USD Currency Management
• USD revenues are hedged after the deduction of overseas freight costs and a safety margin
• US dollar hedging in 2003 to 2007 (inclusive) via double-barrier options: no classic hedging
mechanism, was only effective within certain barriers; barriers were restructured in case of
an imminent knock-out
• At the end of 2007, US dollar hedging was converted into a pure risk limitation system,
because in view of the significant US dollar depreciation the former system has
reached its limits given opportunity-risk considerations
As of 2008: use of options, which
prescribe a worst-case scenario,
but provide the opportunity to
share in any possible appreciation
of the US dollar
„worst case“ for the fiscal year 2008:
USD 932 million at USD/EUR 1.51 incl. costs
„worst case“ for the fiscal year 2009:
USD 1,320 million at USD/EUR 1.53 incl. costs
September 2008 K+S Group 26

K+S Group
COMPO
1 st Half
Financial Year
Revenues by segment
€ million
2008
2007
2007
2006
2007 (%)
Revenues
480.9
374.0
617.4
552.4
EBIT I
65.0
28.2
32.0
29.2
Brief description
Consumer business: high-quality branded products
such as potting soil, plant care products, lawn and
garden fertilizers. Recent strategic alliance with
the global plant protection player Syngenta to
become effective from 2007 onwards.
Professional business: special complex fertilizers
and stabilised ENTEC ® fertilizers for horticulture
and agricultural special crops, slow release
fertilizers for lawns, sports fields and public
green areas.
Consumer business 33.5
Professional/
Industrial business 66.5
September 2008 K+S Group 27

K+S Group
fertiva
1 st Half
Financial Year
Revenues by product group
€ million
2008
2007
2007
2006
2007 (%)
Revenues
441.3
304.5
648.0
556.2
EBIT I
21.6
9.9
25.3
16.7
Brief description
fertiva represents the K+S Group’s nitrogen
fertiizer activities and markets the agricultural
fertilizers produced exclusively by BASF. Furthermore
fertiva sells limited volumes purchased
from other leading European producers, too.
Fixed range for fertivas trading business contribution
to earnings: 50% split between K+S and BASF
within a corridor of € +/- 10 million. Since 2004,
above € + 10 million, at least 25% additional profit
share for K+S.
Complex fertilizers 32.1
Straight nitrogen fertilizers/
Ammonium sulphate nitrate 44.6
Ammonium sulphate 23.3
September 2008 K+S Group 28

K+S Group
fertiva/COMPO
Advantages of joint production
• BASF produces fertilizers on an exclusive basis for fertiva and for COMPO;
fertiva and COMPO control production volumes and product mix
• Joint use of BASF technologically leading production facilities
at competitive cost by fertiva and COMPO (economies of scale)
• Joint production planning enables COMPO and fertiva to optimise production cost
• Research agreement with BASF forms the basis for innovations at COMPO and fertiva
• For the time being, the contract is valid until the end of 2014
Sales volumes of fertiva in 2007
Sales volumes of COMPO in 2007
•
•
•
Complex fertilizers: 1.03 million tonnes
Straight nitrogen fertilizers:
1.76 million tonnes
Ammonium sulphate: 1.43 million tonnes
• Professional/industrial business:
0.99 million tonnes
e.g. stabilized fertilizer, (coated) slow-release
fertilizer, complex fertilizer specialities,
nutrient salts
September 2008 K+S Group 29

K+S Group
Content
A. Corporate Structure
B. Core Business Segments:
- Fertilizers and Plant Care
-Salt
C. Complementary Businesses
D. Strategy
E. Financial Data and Outlook
F. K+S Share
Appendix
September 2008 K+S Group 30

K+S Group
Salt
1 st Half
Financial Year
Revenues by product group
€ million
2008
2007
2007
2006
*
2007 (%)
Revenues
278.3
275.2
545.1
485.8
EBIT I
10.5
26.7
47.8
67.6
* since 1 July 2006 including SPL
Brief description
Salt products of highest purity and quality
are used as table salt, industrial salt, salt
for chemical transformation and salt for
winter maintenance (de-icing). Main production
sites are located in Germany as well as in
some Western European countries.
With the acquisition of the Chilean salt
producer Sociedad Punta de Lobos in 2006,
K+S owns additional production sites in Chile
and Brazil.
Table salt 17.0
Industrial salt 28.7
Salt for chemical
transformation 9.8
De-icing salt 33.7
Other 10.8
September 2008 K+S Group 31

Salt
Mining Chamber in Germany
September 2008 K+S Group 32

Salt
SPL: Salt Extraction in the Atacama Desert
September 2008 K+S Group 33

Salt
SPL: The Optimal Strategic Complement for K+S
• SPL has developed into a strong player in the Americas
• one of the most cost effective salt producers in the world
• enjoys favourable logistical location to attractive overseas markets
• high earnings capacity with growth opportunities
• SPL opens up new growth opportunities in the worldwide salt business
• growth potential in current SPL markets
• focus: strengthening of weather-independent product segments
(industrial salt and salt for chemical use)
• growth strategy supported by the doubling of the port capacity and the
medium-term, consistent expansion of the production capacity
K+S as a global player in salt with a strong presence in Europe
and the Americas; in the future potentials in Asia too
September 2008 K+S Group 34

Salt
Main Salt Suppliers Worldwide
Capacity in million tonnes (crystallized salt and salt in brine; excl. captive use)
18.7
16.2
6.5
14.0
13.7
13.1
9.7
9.0
7.5
7.0
5.3
4.1
3.8
3.6
China
National
Salt Ind.
(China)
(GER)
Cargill
(USA)
Compass
Minerals
(USA)
Morton
Salt
(USA)
Dampier
Salt
(AUS)
Artyomsol
(Ukraine)
Exportadora
del Sal
(MEX)
Südsalz
(GER)
Salins
Group
(F)
Mitsui
& Co.
(AUS)
Akzo
(NL)
Year 2007
Sources: Roskill 2007, K+S
September 2008 K+S Group 35

K+S Group
Content
A. Corporate Structure
B. Core Business Segments:
- Fertilizers and Plant Care
-Salt
C. Complementary Business Segments
D. Strategy
E. Financial Data and Outlook
F. K+S Share
Appendix
September 2008 K+S Group 36

K+S Group
Complementary Business Segments
1 st Half
Financial Year
Revenues by segment
€ million
2008
2007
2007
2006
2007 (%)
Revenues
61.3
61.2
125.1
123.9
EBIT I
14.2
18.0
37.7
37.1
Brief description
Waste Management and Recycling uses the caverns
as well as the existing infrastructure in the active
mines created by underground extraction of crude
salts. The K+S Group 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 the recycling requirements
of our customers.
Logistics activities being essential for K+S are also
bundled in this business segment. Another important
activity is the granulation of CATSAN® (cat litter).
Waste Management
and Recycling 56.4
Logistics 13.6
Granulation 22.9
Trading business 5.3
Other 1.8
September 2008 K+S Group 37

Waste Management and Recycling
Raw Material Prices Favour Recycling Business
Index: January 2003 = 100
700
600
500
400
300
200
100
Price of copper
Price of aluminium
• Recycling: high prices for
aluminium granulate being obtained
by the recycling of salt slag
• Reutilisiation: stricter legal
requirements for the treatment of
household waste help to increase
prices and volumes of underground
reutilisation of flue gas ashes
• Disposal: high prices for copper
being obtained by retrieval of
contaminated copper transformers
0
Jan.
2003
Jan.
2004
Jan.
2005
Jan.
2006
Jan.
2007
Jan.
2008
Source: Bloomberg, London Metals Exchange
September 2008 K+S Group 38

K+S Group
Content
A. Corporate Structure
B. Core Business Segments:
- Fertilizers and Plant Care
-Salt
C. Complementary Business Segments
D. Strategy
E. Financial Data and Outlook
F. K+S Share
Appendix
September 2008 K+S Group 39

K+S Group
K+S is the Leading Player in its Markets
Fertilizers and Plant Care:
Potash
One of the leading suppliers worldwide
• Leader in Europe
• Fourth-largest producer worldwide
Sulphate of potash
and magnesium sulphate • Leading position in the World
The green market
Nitrogen
Salt:
esco
SPL
• Leader in Europe with COMPO
• Very well positioned with fertiva
One of the leading suppliers worldwide
• No. 1 in Europe
• One of the leading suppliers
on the American continent
September 2008 K+S Group 40

K+S Group
Strategy
• Consolidation and selective expansion of our leading market positions,
particularly with regard to specialities
• Further development of our core business sectors through acquisitions
and cooperation arrangements
• Ongoing focus on improving efficiency and cutting costs
as well as exploiting synergies
September 2008 K+S Group 41

K+S Group
Content
A. Corporate Structure
B. Core Business Segments:
- Fertilizers and Plant Care
-Salt
C. Complementary Business Segments
D. Strategy
E. Financial Data and Outlook
F. K+S Share
Appendix
September 2008 K+S Group 42

K+S Group
500
Development of Revenues and Earnings
5.000
4.500
450
4.000 € million € 400 million
CAGR 10.0% CAGR 25.3%
CAGR 14.7%
3.500 3,500
3,344 350
3.000 3,000
300
286
2.500 2,500
2,288
250
2.000 2,000
200
**
175
1.500 1,500
1.000 1,000
150
100
116
101
500
50
0
‘03 ‘05
’07
0
‘03 ‘05 ’07 ‘03 ‘05 ’07
Revenues
Operating
earnings
Group earnings,
adjusted *
2003: German GAAP; since 2004: IFRSs
* 2003: net income; since 2004: adjusted for the effect of market value changes in hedging transactions;
in the case of adjusted Group earnings, the resulting tax effects were also eliminated
** excluding non-recurrent deferred tax income of € 41.9 million or € 0.25 per share
September 2008 K+S Group 43

K+S Group
Capital Expenditure, Acquisitions, Share Buyback
€ million
500
400
300
2003-’08e
Share buybacks: 110
Acquisitions: 454
Expansion capex: 272
Maintenance capex: 597
Total cash-outflow: 1,433
358
200
100
0
93
1
43
92
2
67
27
22
77
33
21
94 105 86
109 95 108
2003 2004 2005 2006 2007 2008e
• 2003-2008e: depreciation > maintenance capex
2003: German GAAP; since 2004: IFRSs
September 2008 K+S Group 44

K+S Group
Key Figures as of 30 June 2008
€ million
H1/2008 H1/2007 %
Revenues
2,397.5
1,723.3
+ 39.1
Operating earnings (EBIT I)
552.7
172.7
+220.0
Earnings before income taxes (EBT), adjusted *
538.5
156.6
+ 243.9
Group earnings after taxes, adjusted *
393.7
104.8
+ 275.7
Effective tax rate (%)
26.9
33.1
Capital expenditure
84.7
50.8
+ 66.7
Free cash flow before acquisitions/divestments
285.3
65.0
+338.9
Net indebtedness **
904.4
741.6
+ 22.0
Earnings per share, adjusted (€) * , ***
2.39
0.64
+ 273.4
Average number of shares (million) ***
164.89
164.88
-
* adjusted for the effect of market value changes for exchange rate hedging transactions;
in the case of adjusted Group earnings, the resulting tax effects were also eliminated
** including pension provisions and provisions for mining obligations
*** adjusted for share split in the ratio 1 to 4 (technical execution: 21 July 2008)
September 2008 K+S Group 45

K+S 2.900
Group
Changes in Revenues as of 30 June 2008
2.700
€ million
2,500 2.500
2,300 2.300
+812.3 -68.3 +2.1
2,397.5
2,100 2.100
1,900 1.900
+674.2
1,700 1.700
1,723.3 -71.9
1,500 1.500
1,300 1.300
Revenues
H1
2007
Volume/
structure
Prices
Exchange
rates
Consolidation
Revenues
H1
2008
September 2008 K+S Group 46

K+S Group
2,10
Development of Earnings per Share, Adjusted *
1,80
€
1,50 1.50
1.40
1,20 1.20
0.99
0,90 0.90
0,60 0.60
0,30 0.30
0,00 0.00
0.43
0.46
0.24
0.19
0.21
**
0.38
0.26 0.29
0.14
Q1 - Q4 2006 Q1 - Q4 2007 Q1 - Q2 2008
EPS H1 * €0.67 €0.64 €2.39
**
EPS FY * €1.07 €1.06 -
* adjusted for the effect of market value changes in hedging transactions; in the case of adjusted Group earnings,
the resulting tax effects were also eliminated; from 21 July 2008 onwards: adjusted for share split in the ratio 1 to 4 (21 July 2008
** excluding non-recurrent deferred tax income of € 41.9 million or € 0.25 per share
September 2008 K+S Group 47

K+S Group
Outlook for the Year 2008 (as of 6 August 2008)
• Revenues of the K+S Group expected to increase considerably due to higher revenues in
the Potash and Magnesium Products, fertiva and COMPO business segments.
Countervailing currency and volume effects will only have a disproportionate impact
• Much higher operating earnings EBIT I expected for 2008 primarily due to the sharply
increasing average prices in the Potash and Magnesium Products business segment, which
are by far exceeding the rise in operating costs and dampening currency effects
• With an essentially unchanged financial result and a corporate tax rate of about 27% to 29%
(2007: 29.9%), adjusted Group earnings after taxes also expected to increase considerably
• Outlook for the entire year for K+S Group:
- Revenues: € 5.3 - 5.5 billion (2007: € 3.3 bn )
- Operating earnings (EBIT I): € 1.4 - 1.6 billion (2007: € 285.7 m )
- Group earnings, adjusted: € 1.0 - 1.1 billion (2007: € 175.3 m )
- Earnings per share, adjusted *: € 6.00 - 6.65 (2007: € 1.06 )
* adjusted to share split in the ratio 1 to 4 (entry in Commercial Register: 24 June 2008; technical execution: 21 July 2008)
• The outlook for 2008 is based on the following premises:
- an average US dollar exchange rate of 1.53 USD/EUR during the year as a whole
- strong global demand for potash fertilizers, persistent scarcity and thus a high utilisation of
potash capacities
- oil and gas prices remaining at their current levels
- an average de-icing salt business in Europe and North America in the fourth quarter
September 2008 K+S Group 48

K+S Group
2008 Perspectives by Business Segment
• Potash and Magnesium Products: The potash fertilizers prices currently achieved are clearly
higher than the average prices of the past year. The resultant price effect on revenues should
amount to at least 90% in 2008. For 2008, we expect a level of about 7.9 million tonnes of
goods (2007: 8.22 million tonnes). Currency and volume effects will admittedly have a dampening
effect, but the expected price effect should by far more than make up for these effects and
for the increase in operating costs.
• COMPO: Revenues should increase tangibly in 2008, especially in the professional segment.
Though the prices for raw materials rise steeply, operating earnings should significantly increase.
• fertiva: Higher average prices for nitrogenous fertilizers should result in a strong increase in
revenues of fertiva’s trading business. Despite significantly higher than expected raw material
costs, operating earnings should also clearly rise in comparison with last year.
• Salt: Despite a slow start for de-icing salt due to weather conditions, we anticipate a moderate
increase in revenues during the year as a whole. The cost side will be impacted this year by
higher energy and freight costs as well as a lower currency result. Operating earnings should
therefore be significantly lower.
• Complementary business segments: Course of business expected to remain stable; with
regard to operating earnings, we anticipate a noticeable decrease compared with the previous
year resulting from a lower level of overseas deliveries that can be expected. Previous year’s
figures benefited from the proceeds of the sale of biodata Analytik GmbH.
September 2008 K+S Group 49

K+S Group
Content
A. Corporate Structure
B. Core Business Segments:
- Fertilizers and Plant Care
-Salt
C. Complementary Business Segments
D. Strategy
E. Financial Data and Outlook
F. K+S Share
Appendix
September 2008 K+S Group 50

K+S Aktiengesellschaft
Key Data of the K+S Share
****
2008
2007
2006
2005
2004
2003
Earnings per share, adjusted (€) * , **
1.06
***
1.07
0.95
0.61
0.61
Dividend per share (€) **
0.50
0.50
0.45
0.33
0.25
Book value per share, adjusted (€) * , **
6.71
6.81
6.43
5.65
5.19
3.44
Year-end closing price (XETRA, €) **
40.69
20.55
12.76
9.78
5.44
Total stock exchange turnover (€bn)
15.6
10.2
4.3
1.9
1.0
0.4
Average daily turnover (€m)
124.2
40.6
16.9
7.4
3.9
1.6
Average number of shares (m) **
164.89
164.96
164.96
169.24
170.00
167.08
Dividend yield (closing price, %)
Return on equity after taxes (%) *
1.2
16.1
2.4
***
17.7
3.5
17.8
3.3
12.1
4.6
17.7
* 2003: German GAAP; since 2004: IFRSs, adjusted for the effect of market value changes in hedging transactions;
in the case of adjusted Group earnings, the resulting tax effects were also eliminated
** adjusted for share split in the ratio 1 to 4 (technical execution: 21 July 2008)
*** excluding non-recurrent deferred tax income of 0.25 € per share
**** as of 30 June
September 2008 K+S Group 51

K+S Aktiengesellschaft
Dividends and Share Buybacks (10 Years)
150
€ million
120
90
60
Dividend per share (rhs) *
(for the prior financial year)
Share buybacks (lhs)
Total dividend payment (lhs)
(for the prior financial year)
69.36
0.21
0.25
43.38
0.25
0.25
66.70
0.33
55.25
0.45
74.25
0.50
82.50
0,75
€ per share
0.60 0,60
0.50
0.45 0,45
82.50
0.30 0,30
30
0.09
17.90
0.14
25.65
37.61
43.40
41.47
42.50
0.15 0,15
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
0.00 0,00
* adjusted for share split in the ratio 1 to 4 (technical execution: 21 July 2008)
September 2008 K+S Group 52

K+S Aktiengesellschaft
K+S Share Price Compared with DAX and MDAX
Performance of K+S share
(Index: 31 December 2007 = 100)
Market capitalisation
(€ million)
240
220
200
180
160
K+S
+67%
+4,515
11,228
140
120
+3,322
6,713
100
80
60
Jan.
2008
Source: Bloomberg; as of 12 September 2008
Sept.
MDAX -18%
DAX -23%
3,391
2006
31 Dec.
2007
31 Dec.
2008
12 Sept.
September 2008 K+S Group 53

K+S Aktiengesellschaft
K+S Share Price Compared with Peer Group
Index: 31 December 2007 = 100
250
225
200
175
150
K+S
+67%
125
100
75
Jan.
2008
Sept.
PotashCorp +13%
Yara +8%
Mosaic -3%
Uralkali -9%
Source: Bloomberg; as of 12 September 2008
September 2008 K+S Group 54

K+S Aktiengesellschaft
Shareholder Structure
• BASF holds approx. 10% of our shares
• MCC Holding Limited (Linea Ltd.), an investment
vehicle of Andrey Melnichenko, which is also
invested in the Russianagrochemical enterprise
EuroChem, holds 10.43% of our shares
Freefloat 79.27%
• The freefloat of K+S AG amounts to a good 79%
MCC Holding Ltd.
(Linea Ltd.) 10.43%
BASF SE 10.30%
September 2008 K+S Group 55

K+S Group
Financial Calendar
12 November 2008 ‣ Interim report 30 September 2008
12 March 2009 ‣ Report on business in 2008
‣ Press and analyst conference, Frankfurt am Main
13 May 2009 ‣ Annual General Meeting 2009, Kassel
‣ Interim report 31 March 2009
14 May 2009 ‣ Dividend payment for the year 2008
13 August 2009 ‣ Interim report 30 June 2009
September 2008 K+S Group 56

K+S Aktiengesellschaft
Bertha-von-Suttner-Straße 7
34131 Kassel (Germany)
phone: +49 (0)561 / 9301-0
fax: +49 (0)561 / 9301-1753
www.k-plus-s.com
Investor Relations
phone: +49 (0)561 / 9301-1460
fax: +49 (0)561 / 9301-2425
email: investor-relations@k-plus-s.com
Experience growth.

K+S Group
Content
A. Corporate Structure
B. Core Business Segments:
- Fertilizers and Plant Care
-Salt
C. Complementary Business Segments
D. Strategy
E. Financial Data and Outlook
F. K+S Share
Appendix
September 2008 K+S Group 58

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 to 49.5%
1998 Purchase of the remaining share capital (49%) of Kali und Salz GmbH;
BASF reduces its stake to 25.1%; K+S is included in the MDAX
1999 Change of company name to K+S Aktiengesellschaft; acquisition of COMPO and
fertiva; BASF reduces its stake to approx. 15%
2000/2001 K+S cancelled 10% own shares (2000); expansion of the business segments COMPO
and salt by further acquisitions
2002 Foundation of salt joint venture esco - european salt company (K+S stake: 62%)
2003 K+S cancelled 5.6% own shares; BASF reduces its stake to approx. 10%
2004 Acquisition of Solvay’s 38% share in esco
2005 Share buyback of 1.25 million shares; Cooperation between COMPO and Syngenta in the area
of plant protection products
2006 Acquisition of the Chilean salt producer Sociedad Punta de Lobos
2008 Inclusion in the DAX
September 2008 K+S Group 59

K+S Group
Revenues and Earnings as of 31 December 2007
€ million
2007 2006
%
Revenues
3,344.1
2.957.7
+ 13.1
Operating earnings (EBIT I)
285.7
278.0
+ 2.8
Earnings after market value changes (EBIT II)
- 106.9
361.6
-
Financial result
- 35.7
- 20.1
- 77.6
Earnings before income taxes (EBT)
Income taxes
of which: deferred taxes
Group earnings after taxes
- 142.6
- 49.5
- 68.9
- 93.3
341.5
112.2
62.3
228.9
**
**
**
-
-
-
-
Earnings before income taxes, adjusted *
250.0
257.9
**
- 3.1
Group earnings after taxes, adjusted *
175.3
176.2
- 0.5
* adjusted for the effect of market value changes in hedging transactions;
in the case of adjusted Group earnings, the resulting tax effects were also eliminated
** excluding non-recurrent deferred tax income of € 41.9 million
September 2008 K+S Group 60

K+S 3.700 Group
Changes in Revenues as of 31 December 2007
3.600
€ million
3.500
3.400 3,400
3,344.1
3.300 3,300
3.200 3,200
3.100 3,100
+267.8
-76.0
+126.4
+386.4
3.000 3,000
+68.2
2.900 2,900
2,957.7
2.800 2,800
2.700 2,700
2.600 2,600
Revenues
2006
Volume/
structure
Prices
Exchange
rates
Consolidation
Revenues
2007
September 2008 K+S Group 61

K+S Group
Balance Sheet as of 31 December 2007
€ million
Non-current assets
of which: Intangible assets
Property, plant and equipment
Securities
Deferred tax assets
Current assets
of which: Inventories
Accounts receivable - trade
Securities and cash and cash equivalents
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
Net indebtedness (including pension provisions for mining obligations)
2007
1,440.2
172.5
1,124.8
37.1
70.0
1,524.6
368.6
757.2
53.1
931.8
1,004.2
360.2
483.3
21.7
1,028.8
328.1
2,964.8
1,086.5
2006
1,396.6
189.0
1,082.6
42.1
52.0
1,434.3
370.2
628.8
79.6
1,124.3
822.1
136.8
466.4
79.5
884.5
233.9
2,830.9
718.2
September 2008 K+S Group 62

K+S Group
Cash Flow Statement as of 31 December 2007
€ million
2007 2006 +/-
Gross cash flow
372.1
342.7
+ 29.4
Cash flow provided by operating activities *
258.7
227.6
+ 31.1
Cash flow used in investing activities
- 140.7
- 429.8
+ 289.1
- of which: acquisitions/divestments
2.6
- 357.7
+ 360.3
Free cash flow before acquisitions/divestments *
115.4
155.6
- 40.2
Free cash flow
- 249.0
- 227.4
- 21.6
Cash flow used in financing activities
81.7
170.9
- 89.2
Change in cash and cash equivalents
- 167.8
- 53.4
- 114.4
* adjusted for the tie-up of funds for premium payments for hedging transactions
September 2008 K+S Group 63

K+S Group
Operating EBIT Margins as of 31 December 2007
Operating
earnings
Revenues
Operating
EBIT margin
€ million
2007 2007
2007
2006
Potash and Magnesium Products
177.9
1,408.0
12.6%
12.8%
COMPO
32.0
617.4
5.2%
5.3%
fertiva
25.3
648.1
3.9%
3.0%
Salt
47.8
545.1
8.8%
13.9%
Waste Management and Recycling
Services and Trading
11.5
27.7
70.5
55.0
16.3%
50.4%
*
19.9%
*
46.2%
Reconciliation
-36.5
-
-
-
K+S Group
285.7
3,344.1
8.5%
9.4%
* incl. internal revenues: 20.5% (as of 31 Dec. 2007) and 19.3% (as of 31 Dec. 2006)
September 2008 K+S Group 64

K+S Group
ROCE as of 31 December 2007
Operating
earnings
Net
assets
*
Return on
capital employed
€ million
2007 2007
2007
2006
Potash and Magnesium Products
177.9
861.0
20.7%
18.6%
COMPO
32.0
300.5
10.7%
10.3%
fertiva
25.3
-94.9
-
-
Salt
47.8
693.5
6.9%
14.1%
Waste Management and Recycling
11.5
28.1
40.9%
55.2%
Services and Trading
27.7
34.1
-
-
Reconciliation
- 36.5
20.0
-
-
K+S Group
285.7
1,842.3
15.5%
17.4%
* average (1 Jan. + 31 Dec.) : 2
September 2008 K+S Group 65

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 information available to us at this moment in time.
Should the assumptions underlying these forecasts prove not to be correct,
actual events may deviate from expectations as set forth at the present time.
September 2008 K+S Group K+S Group 66

K+S Aktiengesellschaft
Bertha-von-Suttner-Straße 7
34131 Kassel (Germany)
phone: +49 (0)561 / 9301-0
fax: +49 (0)561 / 9301-1753
www.k-plus-s.com
Investor Relations
phone: +49 (0)561 / 9301-1460
fax: +49 (0)561 / 9301-2425
email: investor-relations@k-plus-s.com
Experience growth.