K+S (SDF) Company presentation summary

Strategic positioning and market trends

• Focus on specialty-driven product portfolio for agriculture and industry, leveraging strategic potash deposits in Germany and Canada and a strong European logistics network.

• Robust long-term growth trajectory in Canada, with Bethune plant ramping up production to 4 million tonnes per year.

• Global megatrends such as population growth, shrinking arable land, and water scarcity drive demand for efficient fertilizers and specialty salts.

• Potash market faces high entry barriers, with demand expected to grow 2-3% annually, requiring significant new capacity.

• Salt business has evolved into a key value driver, with lower volatility and capital intensity compared to potash.

Financial performance and capital allocation

• 2025 revenues reached €3.65 billion, EBITDA €612.8 million, and adjusted free cash flow €29.1 million, with an EBITDA margin of 16.8%.

• Net financial leverage remains low, with a pro-forma net financial liabilities/EBITDA ratio of 0.4x after the Qemetica acquisition.

• Shareholder returns are guided by a policy to distribute 30-50% of adjusted free cash flow via dividends and potential share buybacks.

• Investment grade credit rating (BBB-, stable outlook) maintained, with diversified funding sources including bonds and credit facilities.

Sustainability and transformation

• Ambitious climate strategy targets a 25% reduction in CO2 emissions by 2030, 60% by 2040, and greenhouse gas neutrality by 2045 (Scope 1 and 2).

• Major investments in energy efficiency, renewable energy, and process innovation (e.g., Werra 2060 project) to reduce environmental impact.

• Sustainability goals include reducing saline process water, covering tailings piles, and increasing residue recycling.

• Recognized by ESG rating agencies (MSCI AA, ISS ESG C+, Sustainalytics 27.1), with strong alignment to UN Sustainable Development Goals.