K+S Aktiengesellschaft

Commerzbank German Investment Seminar 201710 January 2017

Norbert Steiner, CEO

K+S Group 2

ContentK+S Group

K+S’ Unique Strategic PositionA

Current TradingB

OutlookC

Salt2

Potash and Magnesium Products1

K+S Group 3

Investment CaseK+S Group

Complementary Activities

Salt Business Unit

Potash and Magnesium Products Business Unit

K+S Group

Geographicreach

Broad productportfolio

Positionedfor growth

K+S Group 4

Our ProductsK+S Group

in % of sales volumes, FY 2015

Potash and Magnesium Products Salt

Industrial products

Specialties

KCl (MOP)

De-icing

Industrial

Salt for chemical use

Food processing

46%56%

44%16%

10%

14%

8%

6%

Consumer

K+S Group

From Capex to CashK+S Group

5

Capex Phase Cash Phase 2020

Net debt2

< € 2.0 billion

Leverage2

1.0-1.5x

CapexMaintenance

FCFPositive

EBITDA5

~ € 1.6 billion

Net debt1,2

€ 3.2 billion

Leverage2 (LTM)4.9x

Capex3

€ 1.3 billion

FCFNegative

EBITDA4

€ 500-560 million

Keeping cost discipline above

and beyond “Fit for the

Future”

Successful implementation of “Salt 2020“

Strategy

Enhancing portfolio of

higher yielding products

Managing environmental

challenges particularly in

Germany

Successful commissioning

of Legacy

Management Agenda

Fundamentals of the potash business expected to improve5

1 Q3/16 2 incl. provisions 3 2015 4 Guidance 20165 Main assumptions: Unaffected potash production in Germany and Canada; Potash price level of summer 2015; USD/EUR 1.10; normal winters in North

America and Europe. Development of strategic measures to support the goal.

K+S Group 6

ContentK+S Group

K+S’ Unique Strategic PositionA

Current TradingB

OutlookC

Salt2

Potash and Magnesium Products1

K+S Group 7

Long-Term Dynamics Positive for FertilizerPotash and Magnesium Products

Sources: UN, World Population Prospects, 2012 Revision, UNDP, 2013; FAOStat 2014FAO 2014 - forecasts based on the expected increase in animal protein

Less arable land –but more protein consumption per captia

Potash is indispensable for plant growth

“The growth and yield of plants are limited by the nutrient which is in shortest supply”

Justus von Liebig, 'The Natural Laws of Husbandry', 1863

4.300 m2 2.100 m2 1.800 m2

Global population development

Arable Landper capita

Proteinper capita

60 g/ day 80 g/ day 130 g/ day1

Jahr

3.0 billion 6.9 billion 9.7 billion

1960 2010 2050

K+S Group 8

Utilizing Entire Range of Minerals in Complex DepositsPotash and Magnesium Products

KCl 16.1%

Kieserite 20.4%

Residue 63.5%

e.g. Neuhof 2014

Mineral extraction

Reducing specific costs of our MOP products

Kieserite

Korn-Kali

Magnesia-Kainit

MOP

K+S product offering

SOP

Extending our product offering

$$$

Raw

Sal

t

KCL (MOP)

3.1

Industrial products

0.7

Specialties

3.0

Basis: 2015 Sales volumes in million tons

6.8

SOP

Korn-Kali

Kieserite

Industrial potash

Health Care & Nutrition

FertilizerIndustrial

ApplicationsHealth Care &

Nutrition

K+S Group 9

Leading Position in EuropePotash and Magnesium Products

Europe

South America

Asia

Other regions

K+S Group 10

Q12012

Q12013

Q12014

Q12015

Q12016

Bas

is: Q

12

01

2

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Bas

is: Q

12

01

4

K+S average selling price versus selected peers

MOP gran. Europe vs. Brazil (Source: FMB)

200

300

400

500

600

200

300

400

500

600

Europe (€, Granular, cfr)

Brazil(US$/t, Granular, cfr)

US$/t €/t

2011 2012 2013 2014 2015 2016

K+SK+S

Potash and Magnesium ProductsOur Unique Portfolio Makes Us More Robust

Peers

Peers

K+S Group

Expansion of tailings pile capacity Wintershall (Werra) and Zielitz

Prolongation of Werra river injection permit

Implementation of sustainable solutions

Oberweserpipeline

Coverage of tailings piles

Underground backfilling(currently being analyzed)

Environmental RoadmapPotash and Magnesium Products

2019 and beyond

1) Kainite Crystallization and Flotation Facility

Deep-well injection permit (Werra) granted until 2021

Volume 1.5 million m³ p.a.

Includes numerous ancillary provisions

Full production almost possible assuming a hydrological normal year

Situations of low water levels remain challenging

Implementation of measures to limit production standstill will continue

Commissioning of KCF 1) to reduce saline wastewater from Werra plant by 1.5 million m³ to 5.5 million m³ will have positive impact on disposal situation

Expansion of tailings pile capacity Hattorf (Werra)

2017/2018

11

K+S Group 12

Strengthening our Global Presence Legacy Project

ChinaIndiaSouth East Asia

North America

South America

Expanding our current production portfolio in Germany with a North American production site Second source supplier

Securing a good asset base with competitive production costs

Sales and distribution through existing distribution structures of the K+S group

Exclusive outline agreement with Koch Fertilizer about supply and sales of Potash fertilizers in the US

Regional growth projects in China and SEA

Flexible multi-product strategyLocated in the Heart of Saskatchewan’s Potash-Rich Basin

Regina

Two additional potash permit areas in the Esterhazy potash region

K+S Group 13

Cleanup After Incident in Progress

Production of 1st ton expected in Q2/17

Capacity of 2 million tons p.a. will be reached by the end of 2017

equals

€ ~3.1

2013 Final

Budget development (in billion)

CAD ~4.1 Budget of CAD 4.1 billion will be

moderately exceeded due to incident

Positive currency development led to unchanged budget in EUR terms since review in 2013

Legacy Project

K+S Group 14

ValuationLegacy Project

~90

2017 2018 2019 2020 2021 2022 2023

Co

sts

pe

r to

n (

CA

D)

Volume ramp-up (m metric tons) /costs per ton (CAD)

Production costs Logistics costs Mining taxes/ royalties

<1m up to 2m ~2m ~2.3 ~2.4 ~2.6 ~2.9Sales volumes (metric tons)

Implied Value Per Share (€)

Terminal growth rate

0% 2%

WA

CC

7% ~ 21

8% ~ 11

Volume ramp-up/ costs per ton (CAD)

Main assumptions:

Unaffected potash production Potash price level of summer 2015

(time of release of guidance)

K+S Group 15

Strengthening of Specialties Portfolio (1) Potash and Magnesium Products

Acquisition of China based Huludao Magpower Fertilizers Co., one of the largest producers of synthetic magnesium sulphate (SMS)

SMS is used as fertilizer for oil palms, soybeans and sugar cane as well as for industrial applications

Strengthen our competitive position in specialties

Improved access to growth markets of South-East Asia and China

Scalable low cost production assets

Huludao

K+S Group

2012 2020

NOP SOP MOP

1.100

1.625kt eff

Demand for potash containing fertigation products(1) globally

16

Market for potash containing fertigation products(1) expected to grow strongly

Globally min. 5% p.a.

Fast growing regions (e.g. India) + 25% p.a.

Expansion of water-soluble products to participate in fast growing fertigation markets(1)

30% stake in Al-Biariq for Fertilizer Plant Co., Ltd. (Saudi Arabia)

Option to acquire further 30% within 2 years

Capacity of 20 kt water soluble SOP p.a. - intention to double in 2017

Participation in growth in Middle East, Africa and South Asia

Potash and Magnesium Products

Source: K+S-estimation/CRU 2012

Strengthening of Specialties Portfolio (2)

1) Use of fertilizers in irrigating systems

K+S Group 17

ContentK+S Group

K+S’ Unique Strategic PositionA

Current TradingB

OutlookC

Salt2

Potash and Magnesium Products1

K+S Group

Salt

18

Low single-digit demand growth p.a. to 2018 1)

1) Source: Roskill

Demand driven by … Product category

Long-Term Dynamics in Salt Demand

De-Icing

Food processingPopulation growth

Economic growth andindustrialisation

Winter weather conditions

Infrastructure development

Increasing standard of living

Industrial

ChemicalUrbanization

Consumer

K+S Group

Inevitable for lifeSalt

19

Main Applications:

Food processing industry

Baking industry

Condiment and preservative agent

Main Applications:

Chemical industry

Chlor-Alkali processes (→ PVC)

Polycarbonates ,MDI (Isocyanat)(→ plastics, synthetic resin)

Synthetic Soda Ash (→ glass)

Main Applications:

Winter road maintenance services

Commercial users

Private households

Main Applications:

Water treatment

Drilling fluids

Animal feed

Infusion, dialysissolutions

Pharmaceuticals

Preserving of fish

Dyeing works

Leather treatment

De-Icing Food processing Industrial ChemicalConsumer

Main Applications:

Table salt

Dishwasher care

Water softening

Pool chlorination

Body care

K+S Group 20

Unrivalled Global Production NetworkSalt

Competitive edge: Unrivalled global

production network

More than 30 assets on 3 continents allow close proximity to customers in a business that is highly freight-cost sensitive

Ensuring close proximity to customers Broad range of products due to variety of production methods Best in class supply chain assets and competence Industry best cost production in Chile

Expansion into Asia-Pacific:

Project Launch in Australia

K+S Group 21

Diverse Regional and Product PortfolioSalt

NormalizedRevenue

Distribution

Consumer

Industrial

Food processing

Salt for chemical use

1 De-icing adjusted to normal winter

K+S Group 22

Presence in Attractive De-Icing Markets Salt

Indicative regional strength of winter

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Europe North America

Great Lakes

US East Coast

Eastern Canada

Central Europe

Scandinavia

K+S Group 23

‘Salt 2020’ Strategy – On TrackSalt

211

62

118

173

266

250+Normalized

2011 2012 2013 2014 2015 2020e

Equalsmore than€ 400 millionEBITDA

Expected EBIT development

Safety first!

Remove silo thinking

Transparency/trust

High performance and engaged workforce

Fit for the Future

Business and technical processes

Supply chain and distribution network improvements

Market share growth

New segments

New regions

Actual results

Salt 2020 Launched

Priority areas

GROWTH CULTUREEFFICIENCY

K+S Group 24

Expansion into Asia-Pacific: Project Launch in AustraliaSalt

“We want this project to give a boost to our planned expansion into the Asian markets. We see big potential there, and want to sustainably participate in the

expected growth there in the future. The purchase of the licenses is the foundation to

achieve this.” Mark Roberts, CEO Salt

Component of “Salt 2020” strategy

Initial focus on obtaining necessary permits

CapEx estimate of around € 225 million

Estimated production capacity of 3.5 million tons p.a.

Main customers in the chemical industry in Asia

Possible production start in 2022

K+S Group 25

ContentK+S Group

K+S’ Unique Strategic PositionA

Current TradingB

OutlookC

Salt2

Potash and Magnesium Products1

K+S Group 26

P&LK+S Group

The adjusted key figures only include operating forecast hedges of the respective reporting period in EBIT I. In addition, related effects on deferred and

cash taxes are also excluded.

€ million FY/14 Q1/15 Q2/15 Q3/15 Q4/15 FY/15 Q1/16 Q2/16 Q3/16

Revenues 3,822 1,377 914 891 993 4,175 1,096 732 688

EBIT I 641 317 179 132 154 782 218 15 -31

t/o insurance gain 36 0 0 0 0 0 0 0 0

EBIT I w/o insur.gain

605 317 179 132 154 782 218 15 -31

Margin 16% 23% 20% 15% 16% 19% 20% 2% -5%

Financial result -126 -40 -14 -7 +27 -34 -13 -15 -9

EBT, adjusted 515 276 166 125 181 748 205 0 -41

Tax rate, adjusted 29% 28% 28% 29% 25% 28% 28% 29% 34%

Net income, adjusted

367 198 119 89 136 542 148 0 -27

EPS, adjusted 1.92 1.04 0.62 0.46 0.71 2.83 0.77 0.00 -0.14

K+S Group

2013 2014 2015 2016

>150

30

>180

27

Cost Discipline Will Remain HighK+S Group

€ million

“Fit for the Future” on track More than 2/3 of total

aspirations achieved Measures implemented will

continue beyond 2016 with full effects until 2018

Further top-down measures beyond “Fit for the Future” initiated Effects coming through in

2017 and 2018

K+S Group 28

Cash Flow and Balance SheetK+S Group

€ million FY/14 Q1/15 H1/15 9M/15 FY/15 Q1/16 H1/16 9M/16

Operating cash flow 707 301 423 613 669 294 359 390

- Investing cash flow(pre sale/ purchase of securities)

-1,013 -203 -516 -877 -1,305 -243 -537 -847

Adjusted free cash flow -306 98 -93 -264 -636 50 -178 -456

CapEx 1,153 200 555 905 1,279 280 643 904

Net debt (-) -1,626 -1,602 -1,968 -2,173 -2,400 -2,367 -2,860 -3,180

t/o Net financial debt (-) -591 -440 -814 -1,007 -1,364 -1,315 -1,756 -2,052

Net debt/ EBITDA (LTM) 1.8 1.6 1.9 2.1 2.3 2.5 3.6 4.9

Equity ratio 51% 52% 52% 51% 52% 52% 49% 48%

K+S Group 29

Debt ProfileK+S Group

Bond I € 500 million(expn. June 2022; coupon: 3.000%)

Bond II € 500 million(expn. Dec 2021; coupon: 4.125%)

Bond III € 500 million(expn. Dec 2018; coupon: 3.125%)

RCF € 1 billion

Debt Instruments

2016 2017 2018 2019 2020 2021 2022

Schuldschein € 700 million(3-yrs: € 325 million; 5-yrs: € 335 million; 7-yrs: € 40 million)

K+S Group 30

Potash and Magnesium ProductsK+S Group

(1) (Revenues – EBIT) / Sales volumes (2) Excluding OpEx Legacy (3) Excl. anticipated insurance payment

€ million FY/14 Q1/15 Q2/15 Q3/15 Q4/15 FY/15 Q1/16 Q2/16 Q3/16

Revenues 1,884 608 501 471 511 2,091 461 371 302

EBIT I 489 183 144 92 127 546 102 15 -49

t/o insurance gain 34 0 0 0 0 0 0 0 0

EBIT I w/o insurance gain 455 183 144 92 127 546 102 15 -49

Margin 24% 30% 29% 20% 25% 26% 22% 4% -16%

t/o Legacy OpEx -37 -13 -20 -15 -20 -68 -19 -21 -26

Avg. selling price (€/t) 274 314 310 310 292 307 272 250 239

Sales volumes (million tons) 6.87 1.94 1.61 1.52 1.75 6.82 1.69 1.48 1.26

FY/14(3) Q1/15 Q2/15 Q3/15 Q4/15 FY/15 Q1/16 Q2/16 Q3/16

Costs per ton (1,2) 208 212 209 239 208 217 201 226 258

K+S Group 31

SaltK+S Group

€ million FY/14 Q1/15 Q2/15 Q3/15 Q4/15 FY/15 Q1/16 Q2/16 Q3/16

Revenues 1,779 727 374 382 442 1,925 595 319 346

EBIT I 173 142 43 43 39 266 123 5 18

Margin 10% 20% 11% 11% 9% 14% 21% 2% 5%

Sales volumes (million tons) 23.6 9.1 3.6 3.8 4.7 21.1 7.1 2.9 3.5

De-icing 14.4 6.9 1.2 1.5 2.3 11.9 4.9 0.6 1.0

Non de-icing 9.2 2.2 2.4 2.3 2.4 9.2 2.2 2.3 2.5

Average selling prices (€)

De-icing 53 65 65 62 67 65 64 53 52

Non de-icing 104 119 120 124 118 120 122 123 113

K+S Group 32

ContentK+S Group

K+S’ Unique Strategic PositionA

Current TradingB

OutlookC

Salt2

Potash and Magnesium Products1

K+S Group

K+S GroupGuidance FY 2016: EBIT I Bridge

33

Actual2015

Volume-/price

Missing deep-well injection

permit

Othereffects(net)

Fit for theFuture

2016e

782

€ million

200

260

2016e EBIT range

Main effects:- OpEx Legacy- Higher D&A

Main assumptions:Potash• Lower YoY potash ASP• Hydrological normal year• Execution of countermeasures• Sales volumes around 6.1 million tons

Salt• Moderate decline of de-icing volumes• Slight increase of non de-icing volumes

may not offset this

K+S Group

Dividend policy

34

Target payout ratio of 40-50%

0%

2%

4%

6%

8%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2011 2012 2013 2014 2015

Payout ratio (lhs) Dividend yield (rhs)

Earnings-based dividend policy

Payout ratio of 40 – 50% of adjusted net profit

Dividend 2015: € 1.15 per share(2014: € 0.90 per share)

1) Based on year-end share prices

1)

K+S Group

K+S Group 35

IR Contact DetailsK+S Group

E-Mail: investor-relations@k-plus-s.comHomepage: www.k-plus-s.comIR-website: www.k-plus-s.com/en/ir

K+S AktiengesellschaftBertha-von-Suttner-Str. 734131 Kassel (Germany)

Laura SchumberaJunior Investor Relations Manager

Phone.: +49 561 / 9301-1607Fax: +49 561 / 9301-2425laura.schumbera@k-plus-s.com

Thorsten BoeckersHead of Investor Relations

Phone: +49 561 / 9301-1460Fax: +49 561 / 9301-2425thorsten.boeckers@k-plus-s.com

Andrea RachInvestor Relations Assistant

Phone: +49 561 / 9301-1100Fax: +49 561 / 9301-2425andrea.rach@k-plus-s.com

Martin HeistermannSenior Investor Relations Manager

Phone.: +49 561 / 9301-1403Fax: +49 561 / 9301-2425martin.heistermann@k-plus-s.com

Patrick KoflerSenior Investor Relations Manager

Phone.: +49 561 / 9301-1885Fax: +49 561 / 9301-2425patrick.kofler@k-plus-s.com

K+S Group 36

Forward-Looking StatementsK+S Group

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 of the Annual Report – materialize, actual developments and events may

deviate from current expectations. The Company assumes no obligation to update the

statements, save for the making of such disclosures as are required by the provisions of

statute.

K+S Group

K+S Group 38

K+S Group

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

Financial Calendar 2017: 16 Mar: FY/16 – 9 May: Q1/17 – 10 May: AGM – 15 Aug: Q2/17 – 15 Nov: Q3/17

K+S Share

• WKN: KSAG88

• ISIN: DE000KSAG888

• Ticker-Symbols:

Bloomberg SDF /

Reuters SDFG

K+S ADR

• CUSIP: 48265W108

• ADR Ticker-Symbol:

Bloomberg: KPLUY /

Reuters: KPLUY.PK

K+S Bond 06/2022

• WKN: A1P GZ8

• ISIN: DE000A1PGZ82

K+S Bond 12/2018

• WKN: A1Y CR4

• ISIN: XS0997941199

K+S Bond 12/2021

• WKN: A1Y CR5

• ISIN: XS0997941355