The building of the Kassel site of K+S extends through the picture with a large window front. In front of the building are five flags, alternating in blue and white with the K+S logo.
Equity Story

K+S – an attractive investment

K+S Equity Story

Man with a small child in his arms stands in a cornfield and looks into the distance. The child is pointing at the setting sun.

We have emerged stronger from the challenges of recent years and are well positioned for the future

  • 2018: Severe drought led to production restrictions at German potash sites due to disposal bottlenecks for saline water
  • 2019/20: Due to low agricultural prices, farmers had little incentive to fertilize efficiently to increase their harvest, which led to a further decline in fertilizer prices
  • 2020: Partially negative cash flows further increased the already high level of indebtedness due to the construction of the Canadian potash plant. Net financial liabilities/EBITDA increased to over 7x and the rating was downgraded to B (outlook: negative)
    Suspension of the dividend payment for 2020.
  • 2021: Sale of the US salt business achieved a multiple of 12.5x EBITDA despite implementation of the transaction under Covid restrictions and leads to a cash inflow of USD3.2 billion, book gain of €0.7 billion
  • 2021: Rising agricultural prices led to a recovery in demand and an increase in fertilizer prices
  • Since 2022: Net financial debt fully eliminated through operating business development and strategic realignment; rating back in the BBB- investment grade range. Significantly improved waste disposal safety and permit situation. Excellent growth prospects in Canada.

We extract raw materials responsibly – 
today and for future generations

 

  • Through the extensive use of highly efficient CHP technology, the fuel switch from coal to natural gas, and the implementation of energy efficiency measures, we have already significantly reduced our GHG emissions (Scope 1 and Scope 2) of our active German sites since 1990.
  • At the same time, we continue to set ourselves ambitious goals to reduce the CO2 footprint of potash and salt production and have developed a transformation path to be greenhouse gas neutral (Scope 1 and 2) by 2045.
  • In addition, we comply with strict environmental regulations, especially in the area of production water.
  • Our products can support Sustainable Development Goals (SDGs).
In the distance you can see a tractor with a sprayer driving across a field.

Global megatrends are shaping the framework for agriculture and irrigation
 

  • With our fertilizers, we can support farmers in achieving stable yields.
  • Every plant needs the three macronutrients nitrogen, phosphorus, and potassium (N, P, K), for which there is no substitute.
  • A needs-based potassium supply can support important plant functions and thus make plants more resilient to extreme weather conditions.
  • Alongside traditional potassium chloride (MOP), we provide farmers with a broad portfolio of specialty products for various nutrient requirements, with many products also approved for organic farming.

We have over 135 years of experience and have been helping agriculture to evolve ever since
 

  • With our potash sites on two continents, we can take advantage of logistical benefits and react flexibly to environmental influences.
  • We are continuously expanding our range of advisory services in order to provide local farmers with added value and support them in efficient fertilization. In Africa and Asia in particular, we see the greatest potential.
  • High barriers to entry, in particular the availability of resources in the earth, the time required to set up a plant and the necessary capex volume prevent a significant increase in capacities. Demand for potash is growing at a CAGR of around 2% and makes new projects or expanded capacities averaging around 2 million tonnes per year urgently necessary to meet rising demand.

With the Industry+ customer segment, we offer important products for everyday life and are a reliable partner for many industries 

 

  • With our highly diversified customer structure and products, our results are only slightly affected by industry specific crises.
  • Our salts are also used in pharmaceutical products and the food industry, making them an important part of everyday life.

Our strategy focuses on optimizing the existing
business
 

  • Our new potash plant in Bethune, Canada, offers steady growth prospects: We increase our production by >100kt p.a. As a result of the solution mining process, the plant will position itself within the most cost-effective 25% of potash producers with a final production rate of 4 million tonnes per year.
  • At the same time, we are optimizing our German sites to ensure our position also at the lower end of the cycle and to reduce stockpiling, process water production and emissions (keyword: Werra 2060 project).
  • We recognize global trends and are expanding our range of specialty products. 
  • Our unique infrastructure offers many opportunities such as the storage of gas in caverns, underground farming, tailings pile covering, waste management and circular economy.
Our strategy
A modern building with the

Our financial ambitions are aligned with the cyclical
nature of our business
 

  • We want to earn our cost of capital on average over a 5 year cycle ROCE > WACC).
  • We are also aiming for an average EBITDA margin of more than 20% over this cycle.
  • Furthermore, K+S wants to maintain a strong balance sheet and generally strives for a maximum leverage ratio (net debt/EBITDA) of 1.5x
  • The capital distribution takes the form of a dividend, which can be combined with a share buyback, also to counteract strong fluctuations in the
    annual dividend.
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