Standardpräsentation Investor Relations - K+S Aktiengesellschaft

K+S Aktiengesellschaft · Compendium
June 2013
June 2013
Experience growth.
K+S Group

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.
June 2013 K+S Group 1

K+S Group
Content
A. Corporate Structure & Strategy 2
B. Potash and Magnesium Products 11
C. Salt 63
D. Complementary Activities 83
E. Financial Data 85
F. Outlook 97
G. K+S Share 102
June 2013 K+S Group 2

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
Complementary Activities (Revenues 2012: € 154 million; EBIT I 2012: € 21 million)
Waste Management & Recycling
Logistics
Animal Hygiene Products
Trading business (CFK)
June 2013
K+S Group
3

K+S Group
Why invest in K+S?
K+S…
• … has access to megatrends of growing population, increasing living standards and
changing diets toward higher meat consumption in developing countries
• … is active in the growing potash fertilizer market having an attractive consolidated supply
structure and high barriers to entry. Potash does not have any substitutes
• … is a unique strategic combination of potash and salt with considerable synergies on
production side and by being complementary on sales side
• … has leading positions in potash and magnesium (big volume player in Europe,
No. 5 worldwide)
• … has a substantial capacity growth potential with the Legacy Project (set up of a potash
solution mine) in Canada
• … is the global leader in salt with leading positions in Europe, South and North America and
with diversification through the global footprint and various end markets
• … has very strong financials
• … has a responsible management team with strong operational background and track record
of creating value
June 2013 K+S Group 4

K+S Group
Expansion of Core Business Segments
Start salt
joint venture
esco
100%
acquisition
esco
Acquisition
SPL
(Chile)
Acquisition
Morton Salt
(USA)
• Acquisition
Potash One
(Canada)
• Divestment
COMPO
Divestment
K+S Nitrogen
2002 2004 2006
2009 2011
2012
Our business rests on the two pillars of potash and magnesium products and salt.
This combination gives us a nearly unique position in the international marketplace:
Synergies on the production side (technology, mining and geology)
Supplementation and seasonal equilibrium as to sales volumes (potash business depending
on agronomic cycles – relatively crisis-resistant, but weather-dependent salt business)
With the acquisition of Potash One and the divestments of COMPO and K+S Nitrogen,
we consistently follow our two-pillar strategy
June 2013 K+S Group 5

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 cancels 10% own shares
2002 Foundation of salt joint venture esco - european salt company (K+S stake: 62%)
2003 K+S cancels 5.6% own shares
2004 Acquisition of 38% share in esco
2005 Share buyback and cancellation 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
June 2013 K+S Group 6

K+S Group
Board of Executive Directors
Norbert Steiner
CEO
Lawyer
Gerd Grimmig
Engineering graduate
Dr. Thomas Nöcker
Lawyer
Dr. Burkhard Lohr
CFO
Business administration
graduate
Responsible for:
• Finance and
Accounting
• Corporate Controlling
• Taxes
• Internal Audit
• Purchasing and
Procurement
• Insurance
• Data protection
Mark Roberts
Bachelor of Science
(Marketing)
Responsible for:
Responsible for:
Responsible for:
Responsible for:
• Potash and Magnesium • Waste Management and • K+S Transport
• Salt business
Products business unit Recycling business unit • CFK (Trading)
unit
• Corporate Development • Animal Hygiene Products • Human Ressources
• Legal affairs/Compliance • MSW Chemicals
(including Health
• Investor Relations • K+S Consulting
Management)
• Corporate
• Mining / Geology • IT-Services
Communications • Engineering / Energy • Organisation and
• Executive Staff
• Research and
Project Management
Matters/International HR- Development
• Real Estate
Coordination
• Environment,
Management
Occupational Safety, • Knowledge
Quality Management Management
• Inactive Plants
• Global Logistics
Strategy
• Logistic Purchasing
June 2013 K+S Group 7

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
June 2013 K+S Group 8

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
June 2013 K+S Group 9

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
June 2013 K+S Group 10

K+S Group
Content
A. Corporate Structure & Strategy 2
B. Potash and Magnesium Products 11
- Demand Drivers
- Supply Situation
- Business Unit Performance
- Legacy Project
C. Salt 63
D. Complementary Activities 83
E. Financial Data 85
F. Outlook 97
G. K+S Share 102
June 2013 K+S Group 11

Potash and Magnesium Products
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
June 2013 K+S Group 12

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
June 2013 K+S Group 13

1982/83
1987/88
1992/93
1997/98
2002/03
2007/08
2011/12
2012/13
e
in million tonnes
Potash and Magnesium Products
Low Stocks-to-use Ratios of Agricultural Products
Production and demand development vs. stocks-to-use ratio (Wheat and coarse grains)
1900
45,0 45.0
1800
Production Demand Stocks-to-use
40,0 40.0
1700
35,0 35.0
1600
30,0 30.0
1500
25,0 25.0
1400
Critical Level
20,0 20.0
1300
15,0 15.0
1200
10,0 10.0
1100
5,0 5.0
1000
0,0 0.0
Stocks-to-use ratio
• Over the past thirty years, annual global production 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. This ratio relates available
stocks to estimated demand of one year and therefore can be translated into the number of days the stocks
would last without any new harvests. A stocks-to-use ratio of 20% can be translated into 73 days.
• 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 (18.4% or 66 days).
June 2013
Source: USDA; as of 12 June 2013
K+S Group
14

Potash and Magnesium Products
Prices for Agricultural Products – Spot vs. Future
Prices for Agricultural Products – spot
Prices for Agricultural Products – future
2005 2006 2007 2008 2009 2010 2011 2012 July ’13 Sep. ‘14
March ’14
2013
Corn
Wheat
Soybeans
Palmoil
• High price level for agricultural products in
2012, despite slight decreases towards
the end of the year
Source: Bloomberg; as of 11 June 2013
• Future prices of agricultural products
show that capital markets expect price
levels to be attractive for the next two
years
June 2013 K+S Group 15

Potash and Magnesium Products
Profitability of Winter Wheat in Europe
2009
2010
2011
2012
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
1,196 1,632
1.500
1.000
500
0
Risk of
loss:
-249 €
Profit
potential:
528 €
Profit
potential:
289 €
Profit
potential:
704 €
326
248 242
175 225
82 82
69 75 75
101 101 101
121 121
189 157
157 162 162
513 541 541 567 567
Profit
potential:
436 €
Wheat price: 123 €/t Wheat price: 220 €/t Wheat price: 199 €/t Wheat price: 258 €/t Wheat price: 220 €/t
2009 2010 2011 2012 2013e
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
Year
2009
2010
2011
2012
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)
June 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 2012 and around € 440 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
16

130
Potash and Magnesium Products
120
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
June 2013 K+S Group 17

Potash and Magnesium Products
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
June 2013 K+S Group 18

Potash and Magnesium Products
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
Potash use in kg/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)
Yield in t/ha
0
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.
June 2013 K+S Group 19

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.
June 2013 K+S Group 20

Potash and Magnesium Products
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.
June 2013 K+S Group 21

1.000 t K 2 O
1.000 t K 2 O
1.000 t K 2 O
1.000 t K 2 O
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
24.000
12.000
16.000
8.000
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
Transitional markets
Emerging markets
10.000
Eastern Europe and Central Asia
24.000
Latin America, Asia, Africa
8.000
20.000
6.000
4.000
2.000
16.000
12.000
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
Source: IFA
June 2013 K+S Group 22

Potash and Magnesium Products
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%)
June 2013 K+S Group 23

Potash and Magnesium Products
World Potash Sales Volume by Region
Million tonnes
2013e
2012
2011
2010
2009
2008
Western Europe
5.8
5.6
5.9
6.7
2.7
6.3
Central Europe / FSU
5.2
5.1
4.4
4.9
3.1
5.0
Africa
0.8
0.7
0.7
0.8
0.3
0.6
North America
10.3
9.0
10.2
10.8
4.1
10.2
Latin America
10.8
10.6
10.5
9.7
6.0
8.6
Asia
25.5
23.5
28.0
24.9
14.6
23.2
- thereof China
~ 13
12.2
12.7
10.2
5.4
8.8
- thereof India
~ 4
2.8
5.0
6.1
5.5
6.2
Oceania
0.6
0.4
0.5
0.5
0.2
0.6
World total
~ 59
54.9
60.2
58.3
31.0
54.5
● In 2012, worldwide potash sales volumes amounted to around 55 million tonnes with declines
especially in China, India and the US.
● In 2013, we expect worldwide potash sales volumes of about 59 million tonnes.
Incl. potassium sulphate and potash grades with lower K 2 O content of around 3 million tonnes eff;
Sources: IFA, K+S
June 2013 K+S Group 24

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
6.000
4.000
2.000
0
1979/80 1990/91 2001/02 2012/13F
Sugar Crops
1%
Fruits &
Vegetables
8%
* 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
June 2013 K+S Group 25
Other
crops**
24%
Corn
7%
Oil Seed
15%
Wheat
24%
Other
Coarse
Grains
21%

Potash and Magnesium Products
Potash Market Brazil
Market Structure
Potash Use by Crop *
Structure
Products
Private trade
MOP gran. through spot
and contracts
Cotton
4%
Fruits &
Vegetables
5%
Rice
4%
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
June 2013 K+S Group 26

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
June 2013 K+S Group 27
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
-
Cotton
5%
Oil Seeds
6%
Corn
Other 1%
Coarse
Grains
2%
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
15%
Sugar Crops
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
June 2013 K+S Group 28

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
June 2013 K+S Group 29

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
June 2013 K+S Group 30

Potash and Magnesium Products
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
June 2013 K+S Group 31

Potash and Magnesium Products
MOP Price Development
US$/t
Northwest-Europe (standard, fob)
US$/t
Overseas (cfr)
Brazil
(granular)
*
South-East Asia
(SEA, standard)
405
SEA: 435-470
BRA: 440-450
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$/tonne of granulated potassium chloride
● The collapse in agricultural prices as a consequence of the financial crisis also led to a decrease in potash prices;
a price level of approximately 400 US$/tonne of granulated potassium chloride was established 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 capital-intensive greenfield projects for the creation of new capacities can only be realised
economically with a reasonable potash price level
● Pricing pressure at the end of 2012 due to the lack of contracts with China and India, followed by a stabilisation at
the beginning of 2013 after the conclusion of new contracts
June 2013
* Until end of September 2010 MOP standard; Source: FMB
K+S Group
32

Potash and Magnesium Products
World Potash Production and Sales by Region
Million tonnes
17.4
17.2
23.9
9.0
7.1 5.6
5.1
12.2
10.6
2.4
Incl. sulphate of potash
and low-grade potash
Sources: IFA, K+S
World potash production:
2012: 56.3 million t
2011: 59.9 million t
2010: 55.5 million t
World potash sales:
2012: 54.9 million t
2011: 60.2 million t
2010: 58.3 million t
June 2013 K+S Group 33

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
participation
Sales volumes in metric tonnes
of Potash
Sources: IFA, K+S
Corp. in ICL
June 2013 K+S Group 34
SQM
participation
of Potash
Corp.
APC
participation
of Potash
Corp.
China
• more
than 20
producers
Others
• Intrepid
• Vale
• Compass

Potash and Magnesium Products
New Potash Capacities are Needed
Million tonnes
Greenfield projects
Brownfield projects
Available capacity
Production
Sales
China
Financial
crisis
Reliability of forecast
quality questionable
India
68
● Long-term demand growth
of 3 to 5% p.a.
● The available capacities
will not be sufficient.
Soviet Union
~59
64
● 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.
1988 ’93 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ‘13
‘14 ‘15 ‘16
(e)
Incl. potassium sulphate and potash grades with lower K 2 O content of around 3 million tonnes eff;
Capacity development 2011-2016 based on IFA supply capability data.
Sources: IFA, K+S
June 2013 K+S Group 35

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
June 2013
K+S Group
36

Potash and Magnesium Products
Why Potash?
Profiting from megatrends
• Steadily increasing world population
• Changing diets toward higher meat consumption with rising income in developing countries
(e.g. 1 kg beef = up to 8 kg animal feed)
• Increasing importance of renewable raw materials for the production of bio energy
Due to these megatrends, global production of agricultural products has to be increased while the availability of
arable farm land per capita decreases. Therefore, the efficiency of the world’s farmland has to be improved by an
optimized and balanced use of fertilizers. The key nutrients nitrogen, phosphate and potash cannot be
substituted and a balanced fertilization of all nutrients is necessary to achieve optimal yields. Emerging
countries, in particular, can significantly reduce the yield gap by increasing the potash proportion of their total
fertilizer application.
Attractive supply structure in the potash market
• Consolidated potash market with the 5 biggest producers supplying more than two thirds of the world market
• High barriers to entry in the potash market: Viable deposits are limited worldwide, development costs are
considerable, lead times of seven years or more starting from the scratch and sufficient potash mining and
marketing know-how are required
• Rising potash demand cannot be met by currently installed capacities and calls for the investment in new
capacities
June 2013
K+S Group
37

Potash and Magnesium Products
Loader (up to 20 tonnes)
June 2013 K+S Group 38

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
June 2013 K+S Group 39

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
June 2013 K+S Group 40

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
June 2013 K+S Group 41

Potash and Magnesium Products
Business Unit Performance
Revenues (€ billion) EBIT (€ million)
Highlights Q1/13
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
740 771
476
• The conclusion of contracts by Potash producers with
Chinese and Indian customers at the beginning of the
year caused demand to rise significantly again – in
time with the start of the spring season in Europe and
North America as well as in South America and South
East Asia.
• Q1/13 sales volumes achieved 2.03 million tonnes
(Q1/12: 1.78). It proved possible to increase EBIT I to
€ 209 million. This was the best result ever achieved in
a Q1.
2010 2011 2012
2010 2011 2012
Revenue split 2012 Outlook 2013*
Industrial
products
12%
Fertilizer
specialities 37%
By product group
Potassium
chloride 51%
Asia
19%
By region
South
America
18%
North America
3%
Africa, Oceania
3%
Europe
57%
• Sales volumes expected at about 7 million t
(2012: 6.95 million t)
• Average price level expected below that of 2012
• On this basis, revenues should decrease. With
costs expected to be stable, operating earnings
should also be below the level of 2012.
June 2013 *
Outlook as of 07 May 2013
K+S Group 42

Potash and Magnesium Products
Revenues, Earnings and Cost Position
670
670
• In the first quarter, it was possible to
achieve a mainly volume-related increase
in revenues by 7.5% to € 626 million.
Revenues 2)
(€ million)
EBIT I
(€ million)
• The increase in operating earnings EBIT I
is particularly attributable to higher
revenues, price related cost reductions as
well as positive currency effects; these
could overcompensate the effect of the
change in inventories and higher
depreciation and amortisation.
1.78
1.96
1.69
1.52
2.03
1.96
1.69
1.52
Sales volumes
(million tonnes)
Total unit costs 1)
(€)
• Compared to one year ago, average
prices in Q1/13 increased to 308 €/t
(Q1/12: 327 €/t). Average unit costs
decreased to a level of € 205 (Q1/12: €
210).
Average price 2)
(€)
1)
Total unit costs are defined as revenues minus EBIT I divided by sales volumes.
2)
Revenues include prices both inclusive and exclusive of freight costs, and in the case of overseas revenues are based on the respective USD/EUR spot rates. For most of these revenues,
hedging transactions have been concluded. The price information is also affected by the respective product mix and is therefore to be understood as providing a rough indication only.
June 2013
K+S Group
43

Potash and Magnesium Products
Product Portfolio 2012 (Sales volumes in million tonnes)
Non-potash-containing products
2012: 1.21 million tonnes
(2011: 1.24)
● Fertilizer specialities
- ESTA ® Kieserite
- EPSO ® Product family
● Industrial products
- Magnesium sulphate
- Magnesium chloride
Fertilizer
specialities
2.96
Industrial
products
0.74
Potassium
chloride
3.25
Potash-containing products
2012: 5.75 million tonnes
(2011: 5.70)
● 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
June 2013 K+S Group 44

Potash and Magnesium Products
Well Positioned in all Product Segments
MOP
• Market leader in Europe
• Higher production costs counterbalanced by logistical advantages to regions
such as Europe or Latin America
• Strategic presence in the most important overseas markets
SOP
• World market leader for standard and granular products (approx. 20% market share)
Fertilizer
Specialities
• Unique advantage for sophisticated markets with demand for high-quality end
products (cash crops like fruits and vegetable)
Magnesium
Sulphate
• World market leader (approx. 45% market share)
• Unique position through Kieserite resources
Industrial
Products
• Market leader in Europe
• Niche products with attractive margins and premium to MOP
June 2013 K+S Group 45

Potash and Magnesium Products
K+S fertilizer Portfolio – More than just potash
Product Nutrients (%)
K 2 O MgO S Na
60
B
Mn; Zn
50
18
30
10
17
40
6
4
3
0-0,25
11
5
4
20
25-27
20-22
16
13
13-15
12-13
0-0,9
1-4; 0-1
June 2013 K+S Group 46

Potash and Magnesium Products
Leading Position in Fertilizer Specialities
SOP
capacities worldwide
(~6.7 million tonnes)
Potash Specialities
capacities worldwide
(~3.7 million tonnes without SOP)
Magnesium Sulphate
capacities worldwide
(~3.0 million tonnes)
~80%
~20%
~60%
~40%
~60%
~40%
K+S
Competitors
Source: CRU, K+S (2011)
Source: Ifa, CRU K+S (2011)
Source: K+S estimates
June 2013 K+S Group 47

Potash and Magnesium Products
Non-fertilizer Products
High-quality raw materials for industrial purposes
Magnesium Sulphate
Pulp and Paper
Detergents
Potassium Chloride
Chlor-Alkali Electrolysis
Oil Drilling Muds
Potassium Sulphate
Construction Materials
Plasterboard Production
Epsom Salt
ABS/EPS Plastic Production
Detergents
High purity salts for health care and food
June 2013
Epsom salt
chem. pure, FCC
Food Additive
Potassium Chloride
99.9 % KCl, Ph. Eur., USP
Insulin Production
Production of Infusions and
Haemodialysis Solutions
Potassium Sulphate
99.9 % K 2 SO 4 ,
Ph. Eur., DAC, FCC, E 515
Pharmaceutical Industry
Potassium Chloride FCC
Food Industry
K+S Group
48

Potash and Magnesium Products
Price Development of Different Product Groups
€/t
700
600
500
400
300
200
K+S Ø-Portfolio-Price vs. MOP gran. Europe
K+S Ø-Portfolio Price
MOP gran. Europe
Δ
~10-20%
€/t
900
800
700
600
500
400
300
200
SOP Ø-Price vs. MOP gran. Europe
SOP Ø-Price Europe (std. and gran.)
MOP gran.
Europe
100
2006 2007 2008 2009 2010 2011 2012 Q1/13 2006 2007 2008 2009 2010 2011 2012 Q1/13
100
K+S Ø-Portfolio-Price vs. K+S Industrial Ø-Price
€/t
K+S Ø-Portfolio Price
K+S Ø Industrial Portfolio Price
€/t
450
400
350
K+S non potash specialities Industr. vs. Fertiliz.
Industrial Magnesium Comp.
Fertilizer Magnesium Comp.
2006 2007 2008 2009 2010 2011 2012 Q1/13 2006 2007 2008 2009 2010 2011 2012 Q1/13
300
250
200
150
100
50
0
June 2013
Sources: K+S, FMB International Price Guide, Green Markets, Fertilizer Europe
K+S Group
49

Potash and Magnesium Products
Development of Selected Cost Types
2008 2009 2010 2011 2012 2013e
÷
–
=
=
Revenues (€ million) 2,397.4 1,421.7 1,867.0 2,133.6 2,290.6 -
EBIT (€ million) 1,203.2 231.7 475.9 739.5 773.9 -
Costs (€ million) 1,194.2 1,190.0 1,391.1 1,394.1 1,516.7 ○
thereof personnel (€ million) 465 440 506 535 550 ○
thereof freight (€ million) 227 155 264 268 280 ○
thereof freight (€/t) 33 36 37 39 40 ○
thereof material (€ million) 265 183 229 249 257 ○
thereof energy (€ million) 186 144 172 195 230 -
thereof depreciation (€ million) 83 86 91 94 96 +
thereof other (€ million) (32) 182 129 53 104 ○
Sales Volumes (million t) 6.99 4.35 7.06 6.94 6.95 ○
Total Unit Costs (€/t) 170.8 273.6 197.0 200.9 218.2 ○
• In 2012, average unit costs rose tangibly. In 2013 in total, we expect a largely stable cost level.
June 2013 K+S Group 50

Potash and Magnesium Products
Major Markets
> 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%
June 2013 K+S Group 51

Potash and Magnesium Products
Currency Management
US dollar
• USD revenues are hedged after the deduction of overseas freight costs, capital expenditure
for the Legacy Project and
a safety margin
• 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
„worst case“ for the fiscal year 2012:
USD/EUR 1.32 after premiums
„worst case“ for the fiscal year 2013
(for ~60% of expected USD net exposure):
USD/EUR 1.29 after premiums
Canadian dollar
• 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
opportunity to share in any possible
depreciation of the Canadian Dollar
„worst case“ for the fiscal year 2013
(for ~80% of expected capex in Canadian dollar):
CAD/EUR 1.30 after premiums
June 2013 K+S Group 52

Legacy Project
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
Located in the Heart of (Schematic Saskatchewan’s Diagram) Potash-Rich Basin
• 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.
Regina
Two more potash exploration licences close to Esterhazy
Two additional potash permit areas in the Esterhazy potash region
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”.
June 2013 K+S Group 53

Legacy Project
Expansion of Global Presence of K+S
Strengthen global presence!
• Expansion of our existing production network by a North
American production site Potash supplier with
production on two continents
China
India
South East Asia
North America
• Increasing diversification of the country portfolio of the
K+S Group:
- North and South America
- China, India and South East Asia
South America
• Sale and distribution via existing distribution structures of
the K+S Group
• Flexible multi-product strategy:
- MOP standard pink
- MOP granulated pink
- KCl 99 granulated
June 2013
K+S Group
54

Legacy Project
Why is the Legacy Project an important
strategic step?
Growth
Production Costs
Capacity and
Mine Life
Diversification
Specialisation
Flexibility /
Expansion Potential
• Adding substantial new capacities to the Potash and Magnesium Products
business unit 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 unit
• 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
June 2013 K+S Group 55

Legacy Project
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
Phase 2 – Development of secondary mining
Phase 1 – Primary mining
Outlook for Phase 3 –
Expansion of secondary mining
0,0
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
June 2013
K+S Group
56

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
June 2013 * Approved by the Supervisory Board
K+S Group 57

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
June 2013 K+S Group 58

Legacy Project
What Potash Price is required as a Minimum for the
Profitability of the Legacy Project?
• We generally want to earn a premium of 15% on the cost of capital of K+S Group.
• The Legacy project will achieve this target!
Basis for the calculation of profitability are:
- Capex (Phases 1 + 2): CAD 4.1 billion
- Gas price (Henry Hub Natural Gas Price): CAD 4.00/MMBtu
- Average freight rates: ~ CAD 65/tonne
Even if gas prices would change by ± 50% or average freight rates by ± 30%, we would
still earn the targeted premium on our costs of capital at a price of USD 420 or 460/tonne
MOP gran. including freight, respectively.
June 2013 K+S Group 59

Legacy Project
Project Progress
• Further infrastructure measures in the areas of
water supply, electricity and road construction, as
well as the completion of first drilling activities, were
undertaken in 2012.
• About 130 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 spent an investment volume of € 143
million, which was used for infrastructure measures
and water supply, as well as engineering work and
drilling.
• In 2013, the investment level should reach
CAD 500 million* and be used for drilling and the
start of the factory’s construction.
June 2013 * There may still be considerable shifts in the allocation of expenditure to the investment periods
K+S Group 60

Legacy Project
Geological Overview
Legacy Project
Patience Lake
Belle Plaine
Esterhazy
Mining technique
Reserves / Resources
Depth
Thickness
K 2 O / KCl content
Environmental
Impact Statement
Solution mining
160 / 982 mln. t KCl product
1,500 metres
33 metres
18% / 29%
approved for up to
4 mln. t KCl/a
June 2013
K+S Group
61

Legacy Project
Primary and Secondary Mining
Patience Lake Seam
Belle Plaine Seam
Esterhazy Seam
Primary Mining (Freshwater mining / Vacuum cooling crystallisation)
• Primary mining uses freshwater. The connection of two boreholes to a
cavern with the corresponding creation of a surface is initially created by NaCl
solution mining below the KCl-rich Esterhazy Seam. The deposit is gradually
solution-mined in up to 3 m thick horizontal layers through the three potash
seams. This process is controlled vertically by an oil barrier (a thin layer on the
surface of the brine).
• During the primary mining process, the cavern expands to create an
ideal form for commencing secondary mining.
Secondary Mining (NaCl brine mining / Crystallisation in the crystallisation pond)
• Secondary mining exclusively uses a NaCl-saturated brine in order to
dissolve selectively KCl from the walls and roof of the existing caverns.
• Along with a lower energy intensity, secondary mining – in comparison to
primary mining – is substantially more efficient with the use of water.
June 2013
K+S Group
62

K+S Group
Content
A. Corporate Structure & Strategy 2
B. Potash and Magnesium Products 11
C. Salt 63
- Demand Drivers
- Supply Situation
- Business Unit Performance
D. Complementary Activities 83
E. Financial Data 85
F. Outlook 97
G. K+S Share 102
June 2013 K+S Group 63

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
June 2013 K+S Group 64

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
Ø 4.1% Ø 7.2%
4 6 4 8
Production
Africa
Consumption
Consumption
7.2% 8.8%
3 6 3 7
Production
Middle East
Consumption
Ø 4.7% Ø 4.1%
Production
Ø 2.9% Ø 7.2%
9
12
Production
Consumption
Oceania
1
2
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
June 2013 K+S Group 65

Salt
Salt is a fundamental component of our life
These are the following main production methods of salt:
Rock Salt
Sea-/Solar Salt
Evaporated Salt
Brine
Conventional
mining
Crystallisation
from sea water
Recrystallisation
of purified brine
Controlled
borehole-brining
June 2013 K+S Group 66

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
June 2013 K+S Group 67

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
June 2013 K+S Group 68

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*:
10 year average sales volume (2003 – 2012) * before consolidation of intersegment sales volumes
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
June 2013 K+S Group 69

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
June 2013 K+S Group 70

Salt
Business Unit Performance
Revenues (€ billion) EBIT (€ million)
Highlights Q1/13
1.48 1.64
0.46
0.61
73
89
45
62
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
• Europe: On the Western European de-icing salt
market, continued wintry weather at the start of the
year resulted in above-average demand, which was
significantly above the low level of the same period
a year ago.
• North-America: Demand in the de-icing salt
regions of the United States and Canada
normalised following an extraordinarily mild winter
in the same quarter a year ago.
De-icing salt
58%
Revenue split 2012 Outlook 2013*
By product group By region • As a result of the normalisation of the de-icing salt
Other Food grade South America Asia
3%
business, a significant increase of sales volumes is
salt 13%
5% 2%
expected.
Industrial salt
21%
Salt for
chemical use 5%
North America
67%
Europe
26%
• Sales volume forecast of a good 22 million tonnes of
crystallised salt (2012: 17.6 million tonnes).
• Increase in revenues and operating earnings
compared to below-average 2012 expected.
June 2013 * Outlook statement as of 07 May 2013
K+S Group 71

Salt
Revenues, Earnings and Sales Volumes
683
615
De-icing salt business seasonality
459
45
288
-12
319
5
420
23
73
Revenues
(€ million)
EBIT I
(€ million)
• De-icing salt seasonality clearly
observable in the development of total
salt revenues, sales volumes and
operating earnings.
• Revenues and EBIT I rose in first quarter
2013 due to the normalisation of de-icing
salt business.
6.2
5.1
8.9
• Sales volumes increased by 44% in
Q1/13 compared to the below-average
level for the same period a year ago.
3.0 3.3
Sales
volumes
(million
tonnes)
June 2013
K+S Group
72

Salt
Historic and Recent Volume and Price Development
Million tonnes Morton Salt (as of
€
1 October 2009)
SPL (as of
1 July 2006)
22.53 22.73
49.1
45.0 45.5
48.7
55.5
14.81
54.8
9.04
55.6
9.42
54.7
17.56
9.23
5.85
8.02
8.77
9.47
6.07
2.82
3.25
3.90
4.12
4.73
4.04
5.00
4.47
8.96
13.49
13.31
8.33
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
2005 2006 2007 2008 2009 2010
2011
2012
• Total sales volumes increased over the past years mainly due to external growth, while the de-icing salt share
remained rather stable
• Sales volumes declined in 2012 caused by weaker de-icing salt demand due to unusually mild winter weather
June 2013 K+S Group 73

Salt
Seasonality of the De-icing Salt Business
Million tonnes
€
8.88
55.1
51.5
2.38
52.2
55.0
56.6
6.18
5.82
2.16
7,94
6.50
3.21
3.52
2.54
4.02
2.47
0.74
0,60
2.17
1.35
1,11
3.28
2,60
De-icing salt sales volume
Sales volume of industrial salt,
salt for chemical use and food grade salt
De-icing salt average price 2013
De-icing salt average price 2012
Q1/12 Q1/13
Q2/12 Q2/13 Q3/12 Q3/13 Q4/12 Q4/13
• Quarterly volumes and prices are affected by seasonal de-icing salt business which are in
general strongest in the Q1 and Q4
June 2013 K+S Group 74

Salt
Main Application Areas
Food Grade Salt
Industrial Salts
Salt for Chemical Use
De-icing Agents
• Main Applications:
• Table Salt
(Consumer)
• Food Processing
• Main Applications:
• Pharmaceutical
• Water Treatment
• Oil and Gas
Drilling
• Animal Feed
• Main Applications:
• Chlor-Alkali
(→ PVC)
• Synthetic Soda Ash
Production
(→ Glass)
• Main Application:
• Salt used as Deicing
Agent for
Highway Safety
• Key Demand Drivers:
• Population Growth
• Eating Habit
• Key Demand Drivers:
• GDP Growth
• Key Demand Drivers:
• GDP Growth
• Urbanization
• Key Demand Drivers:
• Winter Weather
Conditions
• Infrastructure
Development
June 2013
K+S Group
75

Salt
Mining Chamber in Germany
June 2013 K+S Group 76

Salt
SPL: Salt Extraction in the Atacama Desert
June 2013 K+S Group 77

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 2003-2012 in t million
*
Processing
Frisia, NL (1.0 million t)
Borth, D (1.55 million t)
Dombasle, F*
Braunschweig-
Lüneburg, D (0.67 million t)
Bernburg, D (2.10 million t)
Torrelavega, E*
Povoa, P*
Olhao, P*
June 2013
K+S Group
78

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
(0.57 million t)
Newark, CA*
Manistee, MI (0.28 million t)
Ojibway, ON (2.63 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 (1.12 million t)
Rittman, OH (0.50 million t)
Mines Seleine, QC
(1.53 million t)
Pugwash, NS (1.12 million t)
Long Beach, CA*
US East Coast
Glendale, AZ (0.12 million t)
Production method
Hutchinson, KS (0.32 million t)
Natal, Brasilien
(0.50 million t)
Rock salt
Grand Saline, TX (0.36 million t)
Port Canaveral, FL*
Solar evaporation salt
Weeks Island, LA (1.41 million t)
Vacuum salt
Inagua, BH
Production of de-icing salt
(0.88 million t)
Salar Grande
de Tarapacá,
K+S winter regions
Chile (6.80 million t)
(…) Ø extraction 2003-2012 in t million
* Processing
June 2013 K+S Group 79

purchaser
vendor
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
• 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
June 2013 K+S Group 80

Salt
Governmental De-icing Market – North America
The public safety and economic benefits of road salt use are clear.
• Winter weather congestion affects 70% of U.S. roadways.
• Roadway de-icing reduces crash frequency by 88.3 percent.
• De-icing decreases the average cost of each crash by 10 percent.
• During the first four hours after salt is applied, the direct road users’ benefits
(i.e. increased mobility, productivity & hourly worker compensation) are $6.50
for every $1.00 spent.
• A one-day major snowstorm can cost a state $300-$700 million in both direct
and indirect costs (i.e. reduction in commerce & associated tax revenue).
Morton/ISCO – Even distribution of
volume between three key markets.
Midwest
Canada
USEC
35%
37%
28%
Sources: Marquette University and Global Insight Studies / Salt Institute
June 2013 K+S Group 81

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
June 2013 K+S Group 82

K+S Group
Content
A. Corporate Structure & Strategy 2
B. Potash and Magnesium Products 11
C. Salt 63
D. Complementary Activities 83
E. Financial Data 85
F. Outlook 97
G. K+S Share 102
June 2013 K+S Group 83

K+S Group
Complementary Activities
Revenues (€ million)
EBIT (€ million)
Summary
39
40
154
154
7
7
21
21
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.
Q1/12 Q1/13 FY/12 LTM Q1/12 Q1/13 FY/12 LTM
150 154
134
21
18
21
Logistics activities being essential for K+S are also
bundled in this unit. Another important activity is the
granulation of CATSAN ® (cat litter).
2010 2011 2012 2010 2011 2012
Revenue split 2012 Outlook 2013 *
By product group
Trade
11%
Rest of
Europe 17%
By region
In the “Complementary Activities“ we expect from
today’s perspective stable revenues and earnings.
Animal hygiene
products
25%
Logistics 8%
Waste Mgmt.
and Recycling
56%
Germany 83%
June 2013 * Outlook statement as of 07 May 2013
K+S Group 84

K+S Group
Content
A. Corporate Structure & Strategy 2
B. Potash and Magnesium Products 11
C. Salt 63
D. Complementary Activities 83
E. Financial Data 85
F. Outlook 97
G. K+S Share 102
June 2013 K+S Group 85

K+S Group
Development of Revenues and Earnings
€ million
Revenues Operating earnings Group earnings, adjusted 1),2)
5,000
CAGR 61.7% CAGR 141.1% CAGR 498.3%
1,500
4,000
1,200
3,000
900
2,000
600
1,000
300
‘09 ‘10 ‘11 ‘12 LTM ‘09 ‘10 ‘11 ‘12 LTM ‘09 ‘10 ‘11 ‘12 LTM
1)
2008 and 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.
June 2013 K+S Group 86

K+S Group
Development of Earnings per Share, Adjusted
€
2.00
1.50
1.00
0.50
0.00
FY * 2.34 € 3.27 €
-
* 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.
June 2013 K+S Group 87

K+S Group
Operating EBIT Margins
2012 2011 2010
2009
2008
Potash and Magnesium Products
33.8%
34.7%
25.5%
16.3%
50.2%
Salt
4.2%
12.4%
13.8%
13.8%
7.3%
Complementary Activities
13.7%
11.9%
15.8%
12.6%
20.0%
K+S Group 1)
20.5%
22.7%
15.4%
6.7%
28.0%
1)
2008 and 2009 include the discontinued operations of COMPO.
June 2013
K+S Group
88

K+S Group
Cash Flow Development 2012
Cash flow from
operating activities 1,2)
Cash flow for
investing activities 1,3) Free cash flow 1,2,3)
+744
+651
+249
+243
(495)
(408)
2012 (€ million)
2011 (€ million)
• Cash flow from
operating activities in line
with EBIT development
• 2011 includes the acquisition of
Potash One (€ 242.8 million)
• Higher capex in 2012
2012 free cash flow
almost on last years level
June 2013
1)
Information refers to the continued operations. 2) Without out-financing of pension obligations in the amount of € (43.4)
million in 2012 (2011: € (110.0) million)
3)
Without investments in/sales of securities and other financial investments in the amount of € (558.5) million in 2012
(2011: € (372.4) million)
K+S Group
89

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.
June 2013 K+S Group 90

K+S Group
Net Indebtedness
€ million
Provisions for pensions
Provisions for mining obligations
Non-current liabilities - non-current securities
Current liabilities - cash - current securities
Total net debt
2008 2009 2010 2011
Gearing ratio (%) 33.2 64.5 27.6 19.8
2012
21.7
June 2013 * Including reimbursement claim for the Morton Salt bond (2012: €18,9 million; 2011: €19.4 million; 2010: €18.9 million) K+S Group 91

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 % € 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
Capex and Dividends
% % € million %
Gearing
Equity ratio (rhs)
Capex
Dividends
Capex/Depreciation (rhs)
June 2013 K+S Group 92

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
31.12.12
4,190.9
1,000.8
2,527.4
48.3
499.5
2,448.1
687.9
770.3
786.8
3,477.3
2,514.3
1,264.9
795.4
304.7
647.4
0.9
6,639.0
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
June 2013 K+S Group 93

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 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%
June 2013 K+S Group 94

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.
June 2013 K+S Group 95

K+S Group
Our Aim is to maintain our Investment
Grade Rating
Moody’s
Date Rating Outlook
April 2013 Baa2 negative
November 2010 Baa2 stable
March 2010 Baa2 stable
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
April 2013 BBB+ stable
September 2011 BBB+ stable
January 2011 BBB positive
June 2013 K+S Group 96

K+S Group
Content
A. Corporate Structure & Strategy 2
B. Potash and Magnesium Products 11
C. Salt 63
D. Complementary Activities 83
E. Financial Data 85
F. Outlook 97
G. K+S Share 102
June 2013 K+S Group 97

Attractive Prospects
Potash and Magnesium Products business unit
Outlook 2013:
●
Declining revenues
• Lower average price
• Stable sales volumes at about 7 million t
(2012: 6.95 million t)
● Operating earnings below 2012
• Price related decrease in revenues
• Stable overall cost level
Outlook 2014:
● Price and volume related rise in
revenues
● Higher operating earnings
June 2013
K+S Group
98

Attractive Prospects
Salt business unit
Outlook 2013:
●
●
Higher revenues
Normalisation of de-icing salt sales volumes
(increase to 12-13 million t; 2012: 8.33 million t)
Improving operating earnings
• Higher revenues due to normalisation of
de-icing salt business
• Significantly higher capacity utlisation and
fixed cost coverage
Outlook 2014:
● Increasing revenues due to price factors 1)
● Higher operating earnings 1)
1)
Assumption: Average de-icing salt business
June 2013
K+S Group
99

Attractive Prospects
Revenue and earnings outlook K+S Group
100
Outlook 2013:
●
Pricing related lower revenues and earnings in the Potash and Magnesium Products
business unit should be overcompensated by volume driven increase in the Salt
business unit
Slightly higher revenues
Operating earnings EBIT I slightly higher
● Capex of a good € 800 million (Legacy: € about 375 million ≙ CAD 500 million)
Outlook 2014:
Slight increase in revenues and earnings
June 2013
K+S Group

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 € 54 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
€ 66 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 € 36 million in 2013
(including the amount we paid for the
premiums).
June 2013 K+S Group 101

K+S Group
Content
A. Corporate Structure & Strategy 2
B. Potash and Magnesium Products 11
C. Salt 63
D. Complementary Activities 83
E. Financial Data 84
F. Outlook 97
G. K+S Share 102
June 2013 K+S Group 102

K+S Group
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%
in %
Bond 09/2014
Price: 105.538%
Yield: 0.638% p.a.
Maturity: June 2022
• Stock ID: A1P GZ8 / ISIN: DE000A1PGZ82
• Issuing volume: € 500 million
• Issue price: 99.422%
• Interest coupon: 3.000%
Bond 06/2022
Price: 103.769%
Yield: 2.527% p.a.
11.06.13
As of 11 June 2013
June 2013 K+S Group 103

K+S Group
Key Data of the K+S Share
2011
2010
2009
2008
Earnings per share, adjusted (€) 1),2),3)
2.83
2012
3.27
2.34
0.56
5.94
Dividend per share (€) 3)
1.40 4)
1.30
1.00
0.20
2.40
Book value per share, adjusted (€) 2),3)
18.17
16.12
13.85
10.94
10.41
Year-end closing price (XETRA, €) 3)
35.00
34.92
56.36
39.99
39.97
Total stock exchange turnover (€bn)
11.8
17.7
16.8
16.9
33.4
Average daily turnover (€m)
46.5
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, %)
4.0
3.7
1.8
0.5
6.0
Return on equity after taxes (%) 2),4)
19.4
20.2
18.7
8.4
68.6
1)
2008 and 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
4)
Dividend proposal
June 2013 K+S Group 104

K+S Group
Analysts‘ Estimates – Consensus
As of 5 June 2013
2012
2013e
2014e
Revenues
(€ million)
3,935.3
Median
Number of estimates
4,071.8
18
4,168.0
18
Operating earnings
EBIT I (€ million)
804.1
Median
Number of estimates
822.8
18
839.6
18
Group earnings from
continued operations
adjusted (€ million)
538.1
Median
Number of estimates
546.2
18
549.9
18
Earnings per share
from continued
operations,
adjusted (€)
2.81
Median
Number of estimates
2.85
18
2.87
18
Dividend (€)
1.40
Median
Number of estimates
1.26
18
1.28
18
Target price (€)
Median
Number of estimates
37.00
18
June 2013
K+S Group
105

K+S Group
K+S Share Price compared with DAX
Performance of K+S share
(Index: 31 December 2012 = 100)
Market capitalisation
(as of 31 December, € billion)
DAX
+9%
5.8
K+S
(9%)
2013
Jan.
2013
June
2003 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 2013
10 June
* Incl. dividend
Source: Bloomberg; as of 10 June 2013
June 2013
K+S Group
106

K+S Group
K+S Share Price compared with Peer Group
Index: 31 December 2012 = 100
Compass
+17%
Mosaic
PotashCorp
+6%
+2%
Uralkali
ICL
K+S
(8%)
(10%)
(13%)
2013
Jan.
2013
June
Source: Bloomberg; as of 10 June 2013
June 2013
K+S Group
107

K+S Group
K+S Share Price – Monthly Highs, Lows and Averages
during the last 12 months
Share price in € – development during the last 12 months
´12 ´13
High/Low
Monthly average
June 2013 K+S Group 108

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.
June 2013 K+S Group 109

K+S Group
Dividend Policy and Outlook
• 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
Dividends
%
Payout ratio
Target range payout ratio
Group earnings from continued operations,
adjusted (rhs)
Mio. €
,
,
,
€
.
.
.
.
.
Dividends in €
€
.
.
.
.
.
640
.
.
.
.
.
.
.
.
June 2013 K+S Group 110

K+S Group
How is the 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
• The free float of K+S AG amounts to approx. 90%
Free float 90.1%
• Investment companies, that have exceeded
the 3% threshold:
- BlackRock Inc.: 5.08%
Meritus Trust /
OJSC MCC „EuroChem“ 9.9%
June 2013 K+S Group 111

K+S Group
Financial Calendar
13 August 2013 ‣ Half-yearly Financial Report, 30 June 2013
14 November 2013 ‣ Quarterly Financial Report, 30 September 2013
13 March 2014 ‣ Report on business in 2013
14 May 2014 ‣ Quarterly Financial Report, 31 March 2013
14 May 2014 ‣ Annual General Meeting 2013, Kassel
15 May 2014 ‣ Dividend payment
June 2013 K+S Group 112

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/de/ir
Thorsten Boeckers
Head of Investor Relations
Phone: +49 561 / 9301-1460
Fax: +49 561 / 9301-2425
thorsten.boeckers@k-plus-s.com
Andrea Rach
Investor Relations Assistant
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
June 2013 K+S Group 113

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.
June 2013 K+S Group 114

June 2013 K+S Group 115

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
June 2013
Experience growth.
K+S Group