K+S (SDF) Company Presentation summary

Company overview and strategy

• Operates 50 locations on 6 continents, with production sites in Europe and North America, focusing on potash and salt products for agriculture and industry.

• Maintains a strong balance sheet, is financially debt-free, and holds a BBB- investment grade rating.

• Strategic focus on optimizing existing business, expanding specialties, leveraging infrastructure, and sustainable transformation.

• Aims for an EBITDA margin above 20% and a maximum leverage ratio (net debt/EBITDA) of 1.5x.

• Executive Board led by Dr. Christian H. Meyer (Chairman) since June 2025.

Market trends and demand drivers

• Global population projected to reach 8.6 billion by 2030, driving demand for food and agricultural inputs.

• Shrinking arable land and rising protein consumption per capita require higher agricultural yields and efficient fertilization.

• Potash demand expected to grow at a CAGR of 2-3%, with new capacity needed to meet rising needs.

• Potash costs represent only ~4% of total input costs for farmers, supporting profitability and adoption.

• High access barriers in the potash market limit risk of oversupply.

Financial performance and key indicators

• H1 2025 revenues: €1,835.9 million; EBITDA: €310.3 million; EBITDA margin: 16.9%; adjusted free cash flow: €24.3 million.

• 2024 revenues: €3.7 billion; EBITDA: €557.7 million; EBITDA margin: 15%.

• Net financial liabilities eliminated as of 2022; equity ratio at 60% by H1 2025.

• Shareholder returns target 30-50% of adjusted free cash flow via dividends and buybacks.

• Investment in Werra 2060 and Bethune ramp-up to support long-term growth and sustainability.