K+S (SDF) Company Presentation summary

Strategic direction and sustainability

• Focus on optimizing existing business, expanding specialties, and leveraging infrastructure for new business areas, with a target EBITDA margin of over 20% and a maximum leverage ratio of 1.5x net debt/EBITDA.

• Ambitious sustainability goals include reducing CO2 emissions by 25% by 2030, 60% by 2040, and achieving greenhouse gas neutrality by 2045, with significant investments in energy transformation and process innovation.

• Projects like Werra 2060 and Bethune ramp-up drive energy efficiency, reduced environmental impact, and increased production, supporting the transition to low-carbon potash and salt.

• Circular economy initiatives and new business models such as underground farming and waste management are being developed using existing infrastructure.

• Sustainability performance is tracked with clear KPIs, including reductions in saline process water, tailings pile coverage, and supplier code of conduct compliance.

Market position and growth drivers

• Holds leading positions in potash and salt markets, with production sites in Europe and North America, and a 20% market share in European salt.

• Global potash demand is expected to grow 2-3% annually, requiring new capacity; Bethune plant ramp-up in Canada is set to double output to 4 million tonnes.

• High barriers to entry in the potash market and a diversified specialty portfolio provide resilience and growth opportunities.

• Megatrends such as population growth, shrinking arable land, and water scarcity drive demand for efficient fertilization and high-purity salts.

• Customer segments include agriculture (potassium chloride and specialties) and industry (food, pharma, chemicals, de-icing), with strong regional and product diversification.

Financial performance and shareholder returns

• 9M/2025 revenues reached €2,715 million with EBITDA of €421 million and an EBITDA margin of 15.5%; adjusted free cash flow was €61.6 million.

• Maintains a solid balance sheet, investment grade rating (BBB-), and is financially debt-free as of end 2022.

• Shareholder returns are based on adjusted free cash flow, with a payout target of 30-50% via dividends and potential share buybacks.

• Capital expenditure is increasing for sustainable transformation, but strong cash conversion ensures at least break-even free cash flow even in low cycles.

• Key financial KPIs include EBITDA, ROCE, net debt/EBITDA, and non-financial KPIs such as LTI rate and CO2 emissions reduction.