k+s aktiengesellschaft analyst conference on 14 · pdf filedemand on the world potash market...
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K+S Aktiengesellschaft
Analyst Conference
on 14 November 2005
in Frankfurt am Main
Speech by Dr. Ralf Bethke,
Chairman of the Board of Executive Directors
– The spoken word is binding –
Experience growth.
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Welcome!
Experience growth.Experience growth.
K+S GroupK+S Group
Welcome!
Analyst ConferenceK+S Aktiengesellschaft
14 November 2005Frankfurt am Main
Welcome!
Analyst ConferenceK+S Aktiengesellschaft
14 November 2005Frankfurt am Main
Ladies and Gentlemen,
We are pleased to be able to welcome so many of you once again to our analyst
conference.
First, I would like to set out the business development of our areas of business in
the first three quarters of the year as well as our expectations and objectives for
the whole of 2005. Afterwards, Mr Steiner will present the key financial data of
our interim report for the third quarter of 2005. Finally, we shall be pleased to
answer any questions you may have.
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Slide 1 - Clear Increase in Earnings as of 30 September 2005
K+S Group 114 November 2005
Clear Increase in Earnings as of 30 Sept. 2005K+S Group
Revenues
Operating earnings (EBIT I)
Earnings after market value changes (EBIT II)
Earnings after taxes, adjusted *
Earnings per share, adjusted (€/share) *
* Adjusted for the effect of market value changes; 37.8% tax rate assumed.
€ million, IFRSs
2,099.7
202.1
221.9
125.8
2.96
2005
1,907.9
132.5
145.3
79.9
1.88
2004
+ 10%
+ 53%
+ 53%
+ 57%
+ 57%
Change
The K+S Group continued its path of growth during the first nine months of 2005.
The overall positive demand on our markets, the strong increase in world market
prices compared with the previous year, especially regarding potash and nitrogen
fertilizers, and our consistent implementation of further, sustainable efficiency
measures have led to a disproportionate increase in earnings.
For the first nine months of the year the K+S Group’s revenues rose by € 192
million or 10 per cent against the same period of previous year, and reached €
2.1 billion. The Potash and Magnesium Products and fertiva business segments
made the strongest contribution to this growth.
At 42 per cent, the Potash and Magnesium Products business segment
accounted for the largest share of revenues. Revenues of € 1.6 billion or almost
80 per cent of Group revenues were generated in Europe, where we increasingly
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leverage the logistical advantages that we enjoy over our overseas competitors,
in the fertilizer business in particular.
Operating earnings (EBIT I), amounting to € 202.1 million, exceeded the
previous year’s level by € 69.6 million or 53 per cent. With the exception of the
Waste Management and Recycling as well as the Services and Trading business
segments, all business segments were able to improve on their operating
earnings. The Potash and Magnesium Products business segment achieved by
far the greatest increase.
Ladies and Gentlemen,
In its reporting, K+S concentrates on operating earnings (EBIT I) because they
provide a better indication of the operating earnings capacity of the K+S Group
than the earnings after market value changes (EBIT II). The changeover in
accounting to IFRSs in 2005 led to distortions in the computation of earnings.
This particularly applies to the treatment of measures to hedge the U.S. dollar
exchange rate.
The same applies to earnings after taxes. Because of the limited economic
meaningfulness of the accounting measurement of our currency hedging, K+S
also reports adjusted earnings before and after taxes that take this effect into
consideration. Mr Steiner will explain this to you later.
At € 125.8 million, adjusted earnings after taxes for the first nine months of the
year 2005 exceeded the previous year’s level by € 45.9 million or 57 per cent.
At € 2.96 per share, adjusted earnings per share as of 30 September 2005,
were up € 1.08 or 57 per cent on the level of a year ago. Just as for the same
period last year, this is based on 42.5 million no-par value shares.
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Ladies and Gentlemen,
Let us now proceed to the individual business segments:
Slide 2 - High Demand on Global Potash Market
K+S Group 214 November 2005
incl. potassium sulphate and potash grades with lower K2O contentSources: IFA, K+S
Potash and Magnesium Products Business SegmentHigh Demand on Global Potash Market
55.053.848.6
45.443.5
2001 '02 '03 '04 2005
Disproportionate rise indemand in recent years
Clear increase of 4%in H1/2005 too
High price increases
Forecast 2005: 55 million t (+3%)
Medium-term trend:2% growth in demand p.a.and further price increases too
million tonnes
(e)
Demand on the world potash market has increased by an above-average amount
in the past few years. During the first half of 2005, too, demand rose by almost 4
per cent. In the third quarter, Asian markets, especially India and China,
experienced strong growth again, whilst developments in remaining markets
were somewhat weaker. Following the strong growth of recent years,
consolidation has been apparent since July 2005, especially in Brazil.
Regarding 2005 as a whole, we expect worldwide demand for potash to increase
by about 3 per cent to about 55 million tons (previous year: 53.8 million tons).
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Because of increased demand, the prices of potash fertilizers have risen clearly.
We find it rather difficult to achieve additional larger price increases, because
agriculture worldwide has to cope with high increases in costs. However, for
individual regions – especially Europe – we see further price potential.
Over the medium term, we continue to expect an average increase in demand of
about 2 per cent per year as well as further price increases as long as the costs
for energy and logistics continue to rise, above all in North America.
We believe that the announced expansion of capacity on the global potash
market will, at least in the medium term, not change the shortage prevailing
substantially.
Slide 3 - Potash and Magnesium Products Business Segment Trend in Business as of 30 September / Outlook 2005
K+S Group 314 November 2005
Trend in Business as of 30 September 2005€ million, IFRSs
Potash and Magnesium Products Business Segment
772880
0
200
400
600
800
1.000
2004 2005
114.8
54.8
0
25
50
75
100
125
2004 2005
Revenues EBIT I
+14% +110%
Price-related increase in revenues
Higher sales of fertilizerspecialities and industrialpotash grades
Sustained savings fromefficiency enhancements
Outlook 2005:Tangibly higher revenues
Strong increase in earnings
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Now to our business segment Potash and Magnesium Products . We achieved
revenues of € 880 million up to 30 September 2005, which represents an
increase of some 14 per cent on the same period last year. The clear increases
in the prices of speciality and standard fertilizers were the main reason for this.
Volume decreases of the standard product potassium chloride were largely offset
by greater sales of our specialities and industrial potash grades. Revenue
increases were achieved both in Europe and overseas.
Operating earnings (EBIT I) reached € 114.8 million, more than twice the level of
€ 54.8 million a year ago. Apart from the positive trends in prices, also the
sustainable savings resulting from efficiency enhancement measures had a
noticeable effect of boosting earnings.
For financial year 2005, we expect revenues to be considerably higher than for
2004 while sales should remain on the level of a year ago. The operating
earnings of the Potash and Magnesium Products business segment will increase
significantly.
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Slide 4 - Long-term Strengthening of Earnings Capacity
K+S Group 414 November 2005
Long-term Strengthening of Earnings Capacity
Sylvinite extraction started
Working hours extended from September 2004
Continued implementation of efficiency enhancements
Efficient logistics with cost advantages
(incl. long-term, relatively attractive contracts; shipment by container)
Attractive hedging of U.S. dollar until 2008
Potash and Magnesium Products Business Segment
Ladies and Gentlemen,
As many of you will know, since years we have worked continually in the Potash
and Magnesium Products business segment on improving our structures and
processes and have consequently implemented measures to boost our earnings
potential on a permanent basis.
Following the launch of the sylvinite extraction in the rich parts of the Werra
deposits in October 2004, this year we will only partially realize the contribution to
earnings we are seeking, because we have not yet achieved in full the additional
output we are striving for. The reason for this is the still too low number of drilling
sites in the underground crude salt mines, because of geologically difficult mining
areas. However, we plan to achieve our original higher volume target as of 2006.
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In the potash segment, we have introduced greater working hours flexibility since
September 2004, which also provides employees with realistic opportunities of
obtaining a greater share in profits. The cost savings originating from this
amounted to some € 13 million in 2005, a figure that should rise to € 16 million by
2007.
Furthermore, following the successful implementation of our 10-point
programme, we are working continuously on further projects in order to become
even more efficient. An example is the planned optimisation, together with E.ON,
of our power supply on the Werra site by 2008. By building a new heating plant
and using alternative fuels for heating purposes, the use of relatively expensive
natural gas at this site can almost be replaced completely and cost-effective.
Further measures apply to improvements in raw material yield and savings in the
use of explosives.
In the logistics sphere, we made increasing use of container shipments in 2005
too in order to counteract the increases in sea freight rates for bulk fertilizers; this
applies mainly to shipments to Asian markets. Furthermore, we are securing
cheaper freight costs by concluding long-term and relatively advantageous
contracts.
Last but not least, we have hedged the U.S. dollar exchange rate at an attractive
level until 2008. Mr Steiner will have more to say about this later.
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Slide 5 - Anti-dumping Rules
K+S Group 514 November 2005
Protection of European potash industry in the EU 15 assured since 10 yearsthrough anti-dumping rules
Transitional arrangements approved for the EU 10 states until April 2006
Since the EU accorded Russia "market economy" status in 2004,Russian producers (Silvinit, Uralkali) have applied for a review of the rules
Belarussian producer Belaruskali later also applied for a review
Russian producers have offered the EU Commission "undertakings";Release of the decision by the EU Commission is expected shortly
K+S assumes that the new rules are adequate for ensuring fair competition in Europe
Potash and Magnesium Products Business SegmentAnti-dumping Rules
Ladies and Gentlemen,
At present, the European potash industry in the old EU 15 is being protected
against unfair competition, especially from Russia and Belarus, by means of
regulations against unfair competition that have been in force for over ten years.
For the ten new member states, the European Commission in Brussels has
adopted a transitional arrangement that will remain in force until April 2006. This
largely secures the hitherto supply from Russia and Belarus to these new
member states.
Following the EU’s granting of “market economy“ status to Russia in 2004, the
two Russian producers Silvinit and Uralkali have applied for a review of the
current anti-dumping rules with reference to this change of status.
Subsequently, the Belarussian producer Belaruskali also applied for a review.
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The purpose of the applications was to remove all measures against unfair
competition.
We are of the opinion that this application will not be successful.
In order to complete the initiated procedures as quickly as possible, the two
Russian producers have offered the EU so-called “undertakings”. These consist
in contractual commitments on the part of Russian producers to deliver potash to
the EU only under compliance with specific conditions (e.g. price and/or volume
restrictions).
In our opinion, the EU will accept the undertakings for the EU 15 first of all and,
once the current transitional arrangement for the EU 10 has expired, will extend
them to the new member states as well. We expect a decision to be released
soon.
We assume that also in the future the new rules are appropriate for ensuring fair
competition in the expanded Europe of the 25 states. Nevertheless, we shall
monitor the behaviour of the Russian producers and the European importers very
carefully.
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Slide 6 - COMPO Business Segment Trend in Business as of 30 September / Outlook 2005
K+S Group 614 November 2005
Trend in Business as of 30 September 2005€ million, IFRSs
COMPO Business Segment
EBIT I
423 434
0
100
200
300
400
500
2004 2005
24.221.7
0
6
12
18
24
30
2004 2005
+3%+12%
Revenues
Professional and industrialbusiness developed well
Volume and price increases
Consumer business weakerdue to weather and economic factors
Launch of concrete measuresto cut costs
Outlook 2005:Slight increase in revenues
Operating earnings should againattain last year's level
And now to the COMPO business segment:
In the first nine months of 2005, COMPO achieved a 3 per cent rise in revenues,
which reached € 434 million.
COMPO’s operating earnings up to 30 September 2005, improved by 12 per cent
on the same period last year and reached € 24.2 million.
The growth can be attributed mainly to good business in the professional and
industrial segments. Following poor business in spring as a result of
unfavourable weather conditions, especially in Southern Europe, both Q2 and Q3
saw pleasing increases in revenues on the previous year again. Thanks to good
demand for slow-release fertilizers and successful early stocking-up, especially in
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the case of ENTEC®, our nitrogen-stabilised speciality fertilizer, we were able to
attain increases in terms of both volume and prices.
On the other hand, the consumer area of COMPO was affected by changeable
weather during the gardening season and by a cross-sector consumer restraint in
parts of Europe. This particularly applied to sales of potting soil and plant care
products in France.
To achieve a sustainable improvement in earnings, we have within COMPO
launched a series of measures aimed at optimisation and cost reduction. The
focus is on measures that promote consumer interest in Germany and France;
for instance the standardisation of packaging, a concentration of the product
portfolio and the streamlining of distribution. Furthermore, in COMPO too we
have introduced greater working hours flexibility; as of this year, employees at all
German COMPO sites are once again working a 40-hour week.
All in all, in COMPO we expect a slight rise in revenues against 2004. Operating
earnings should once again approximate the level of a year ago. The efficiency
enhancements that have been initiated, entailing one-off expenses, will have a
positive impact on earnings as of next year.
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Slide 7 - Strategic Alliance with Syngenta
K+S Group 714 November 2005
Strategic Alliance with SyngentaCOMPO Business Segment
Launched in September 2005
Joint development of full range of plant protection agents for the lawn and garden area (consumer)
Extension of cooperation to non-Europeanmarkets being reviewed
Growth in revenues of about € 20 - 30 million expected as of 2008
Attractive offer of new solutions for the consumer business
Ladies and Gentlemen,
At the end of September of this year, COMPO agreed on the launch of a
strategic alliance with Syngenta, one of the world’s leading manufacturers of
plant protection products. The objective is the joint development of a full range of
plant protection products and pesticides for the consumer lawn and garden
market in Europe. Syngenta will supply COMPO with the appropriate active
substances.
The arrangement also envisages a possible expansion of this cooperation to
markets outside Europe.
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For COMPO, this cooperation with an innovative manufacturer of plant protection
agents operating on a worldwide basis opens up even better opportunities for
serving the changing requirements of customers in an optimal manner. In this
way, we can make even more effective use of our European markets and trading
relationships and address a broader clientele with an extended and very effective
range of lawn and garden care products.
The combination of Syngenta’s innovative portfolio of plant protection products
and COMPO’s well-known brands is leading to a very attractive full range of
products for the lawn and garden segment. Thanks to this alliance, we expect an
increase in revenues of about € 20 to 30 million as of 2008, with interesting
contributions to earnings.
Slide 8 - fertiva Business Segment
Trend in Business as of 30 September / Outlook 2005
K+S Group 814 November 2005
Trend in Business as of 30 September 2005€ million, IFRSs
fertiva Business Segment
Revenues EBIT I
370
429
0
125
250
375
500
2004 2005
13.2
7.2
0
4
8
12
16
2004 2005
+16% +83%
Good demand fornitrogen fertilizers
Very good early stocking-upbusiness
Attractive price levels
Higher sales of complex fertilizers and ammonium sulphate
Outlook 2005:Clear increase expected in revenues and earnings
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So far this year, the business of fertiva has been characterized by a generally
good level of demand for nitrogen fertilizers. We were able to make up for the
restraint of European customers that prevailed in the spring season by increasing
our deliveries to important overseas markets. In the third quarter, as a result of
rising energy prices, the European trading sector apparently also expected a rise
in the prices of nitrogen fertilizers; this resulted in very good business regarding
early stocking-up.
fertiva’s revenues for the first nine months of 2005 rose by 16 per cent to reach €
429 million. Because of relatively meagre worldwide supply and the high costs of
raw materials, especially for ammonia, international prices of nitrogen fertilizers
reached a very high level. We were able to implement price increases,
sometimes significant ones, for all product groups. Tangible increases in volume
in the case of complex fertilizers and ammonium sulphate more than made up for
the slight reductions in our deliveries of straight nitrogen fertilizers during the first
nine months of the year.
At € 13.2 million, operating earnings were up on the same period last year by € 6
million or 83 per cent. Higher revenue-related margins as well as increased sales
were the contributing factors to this improvement.
All in all, for 2005 we expect a clear increase in revenues and earnings
compared with the 2004.
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Slide 9 - Salt Business Segment Trend in Business as of 30 September / Outlook 2005
K+S Group 914 November 2005
Trend in Business as of 30 September 2005€ million, IFRSs
Salt Business Segment
Revenues EBIT I
260276
0
80
160
240
320
2004 2005
45.341.7
0
14
28
42
56
2004 2005
+7%+9%
Western European salt marketfaces competition at high level
Very good de-icing salt business
Price increases largely offsetvolume-related decreasesin other product segments
Outlook 2005:
Revenues and operating earningsshould reach last year's levelsassuming favourable winter business
The Western European salt market again saw competition on a high level of
volume. With the exception of de-icing salt, only limited volume increases are
possible. Lately, East European salt producers in particular have been exerting
pressure on the West European salt market.
The Salt business segment’s revenues reached about € 276 million at the end of
September 2005, an increase of some 7 per cent on the previous year’s level.
The weather-related good salt business for winter road clearance services during
the first six months and the good seasonal purchase business for the forthcoming
winter were the contributing factors to this improvement.
In the remaining product segments, we were able to largely offset volume-related
falls in revenues by means of price increases.
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Our operating earnings reached € 45.3 million -- € 3.6 million or 9 per cent more
than a year ago.
The revenues and operating earnings for the whole of 2005 will depend on the
winter business until the end of the year. If the weather is appropriate, last year’s
very good levels might again be reached.
Slide 10 - Waste Management and Recycling Business Segment
Trend in Business as of 30 September / Outlook 2005
K+S Group 1014 November 2005
Trend in Business as of 30 September 2005€ million, IFRSs
Waste Management and Recycling Business Segment
4541
0
10
20
30
40
50
2004 2005
6.56.8
0
2
4
6
8
10
2004 2005
-8%
-4%
EBIT IRevenues
Decrease in undergrounddisposal (no follow-upto last year's special projects)
Underground re-utilisationsees volume-related increases
Recycling business alsoup on last year
Outlook 2005:Slight decrease in revenues
Limited decrease in operatingearnings as expected
The waste management market in Germany continues to see fierce competition.
However, there has been a major change: Since June 2005, untreated residential
waste can no longer be deposited above ground. Despite this new legal position,
waste management prices are still on a relatively low level. In the medium term, it
can be expected that the increase, already evident, in filter dust and flue gas
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cleaning residues from domestic waste incineration plants will stimulate the
market for underground re-utilisation.
In the case of Waste Management and Recycling, we achieved revenues of € 41
million for the first nine months of the year. The decline of 8 per cent is
essentially attributable to lower volume for underground disposal. So far, we
have not been able to acquire follow-up projects to the major projects involving
the clean-up of pre-existing environmental contamination that expired last year.
On the other hand, in underground re-utilisation, we attained a volume-related
increase in revenues of 13 per cent to reach € 17.8 million. This reflects the first
positive results of the abovementioned new legal regulation regarding residential
waste. Recycling business was also up by 12 per cent on the same period last
year as a result of volume factors.
As expected, the operating earnings in the amount of € 6.5 million, that we
achieved up to 30 September 2005, were not quite on the level of a year ago (€
6.8 million). This reflected the reduced volume of underground waste disposal.
For 2005, we expect a slight decrease in revenues on 2004, which benefited
from special projects involving the clean-up of pre-existing environmental
contamination. Analogous to the development in revenues, we assume that
operating earnings will decrease to a very limited extent.
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Slide 11 - Services and Trading Business Segment Trend in Business as of 30 September / Outlook 2005
K+S Group 1114 November 2005
Trend in Business as of 30 September 2005€ million, IFRSs
Services and Trading Business Segment
EBIT I
38 40
0
10
20
30
40
50
2004 2005
17.318.8
0
5
10
15
20
25
2004 2005
+4%-8%
Revenues
Increased revenues due to highergrain handling for third parties
Operating earnings down on last year due to lower fertilizer handlingas well as lower income fromCatsan® granulation
Outlook 2005:
Revenues and operating earningswill not quite reach last year's very good figures
To judge this business segment, it is important to know that the revenues only
cover third-party business.
Earnings, however, include income from both internal and external services, thus
resulting in the reporting of a relatively high EBIT margin.
For the first nine months, the business segment posted revenues deriving from
third-party business of about € 40 million; the 4 per cent increase was attributable
mainly to increased grain handling for third parties.
However, operating earnings as of 30 September 2005 fell by € 1.5 million to €
17.3 million, attributable to reduced fertilizer handling by KTG in Hamburg and
reduced income from CATSAN granulation.
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For 2005 as a whole, revenues will be slightly down on the previous year;
operating earnings should also be slightly below the relatively high levels
achieved in 2004.
Slide 12 - Training Ratio on a Very High Level Once Again
K+S Group 1214 November 2005
Training Ratio on a Very High Level Once AgainK+S Group
K+S Group total
of which traineesTraining ratio
*
200530 Sept.
11,051
5885.3%
200430 Sept.
11,080
5855.3%
* including temporary employees measured on full-time equivalent basis (FTE)
Ladies and Gentlemen,
And now to the people of the K+S Group. The Group employed a total of 11,051
persons as of 30 September 2005. This figure barely changed compared with 30
September 2004 (11,080 employees).
The workforce has increased as a result of consolidation factors connected with
the acquisition of French SCPA activities; without this structural effect the
number of employees would have fallen by just under 2 per cent. At the end of
the year, too, the headcount will be at the present level.
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As of 30 September 2005, there were 588 trainees. Our training ratio of 5.3 per
cent was on a comparably high level once again.
Slide 13 - Lower Capital Expenditure According to Plan
K+S Group 1314 November 2005
85.1
65.7
Lower Capital Expenditure According to PlanK+S Group
Frisia brine field expansion inSalt business segment as well as sylvinite project in Potash and Magnesium Products businesssegment already completed in 2004.
Outlook 2005:
Capital expenditure of between € 125 and 130 million
€ million, IFRSs
200430 Sept.
200530 Sept.
-23%
And now to capital expenditure:
Capital expenditure for the first nine months amounted to € 65.7 million and was
thus € 19.4 million or 23 per cent down on the corresponding figure for the same
period last year, as planned. This is attributable to already last year’s successful
completion of the brine field expansion in the Salt business segment as well as
the completion of the sylvinite project in the Potash and Magnesium Products
business segment.
For 2005 as a whole, we expect the volume of capital expenditure to amount to
between € 125 and 130 million. It is planned that about three quarters of this
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amount will be used for capital expenditure related to replacement and ensuring
production.
We also expect depreciation charges to amount to about € 130 million.
Slide 14 - Outlook for 2005 Raised
K+S Group 1414 November 2005
Outlook for 2005 RaisedK+S Group
Revenues should reach just under € 2.8 billion
Operating earnings (EBIT I) of between € 225 and 235 million expected
Adjusted earnings after taxes should reach between € 135 and 145 million
Confident outlook for 2006:Continued good demand for potash fertilizers worldwideImplementation of further efficiency enhancements (Potash, COMPO)
Expansion of market positions through acquisitions and cooperations
Ladies and Gentlemen,
What is our assessment of the development of the K+S Group for 2005 as a
whole?
Business should continue to develop positively over the remaining weeks of 2005
too, so that we have once again raised our earnings outlook for 2005.
Revenues for 2005 as a whole should reach almost € 2.8 billion.
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We now expect operating earnings (EBIT I) to amount to between € 225 and
235 million following approximately € 162 million in 2004; assuming average
sales of de-icing salt until the end of the year as well as a U.S. dollar exchange
rate that will remain within a range of USD/EUR 1.15 to 1.30.
Subject to the conditions described above, adjusted earnings after taxes for
2005 should amount to between € 135 and 145 million, corresponding to
adjusted earnings per share of approximately € 3.20 to 3.40 per share. The
corresponding figures for 2004 were € 98.4 million or € 2.32 per share.
We are also confident about 2006 provided that there will be no deterioration in
the general economic environment in the coming year.
Our outlook is based on such factors as continued good demand for potash
fertilizers worldwide as well as further efficiency enhancements in the Potash and
Magnesium Products and COMPO business segments.
We are steadfastly pursuing our goal of bolstering the international competitive
position of the K+S Group also through external growth. We are engaged very
specifically with acquisition projects, participations and cooperation in our current
business areas. Our financial strength provides us here with many options which
we shall exploit carefully.
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Slide 15 - K+S Share Price Gains Significantly
K+S Group 1514 November 2005
2005
K+S Aktiengesellschaft
Source: Bloomberg; as of 9 November 2005
Index: 30 December 2004 = 100
90
100
110
120
130
140
150
Jan. Apr.
DAX
K+S
MDAX
July Oct.
+29%
+32%
+18%
K+S Share Price Gains Significantly
Ladies and Gentlemen,
The price of the K+S share has risen comparably brisk since the beginning of the
year and reached a new all-time high of € 59.10 on 5 October 2005. This price
level was used for profit-taking – a development that has affected the entire
market, especially the MDAX, in recent weeks. At its current price level of a little
over € 50, our share appears to have found a new base; it is still about 30 per
cent above the corresponding level at the end of 2004. When one adds the paid
dividends, the total return per share is even higher.
In October, we commenced a share repurchase programme and, at the same
time, we separated off pension provisions from the balance sheet. In this way, we
are optimizing the capital structure of the K+S Group without reducing the room
for manoeuvre required for our planned acquisition and cooperation objectives.
We see concrete opportunities for continued healthy growth. Thank you for your
attention. Mr Steiner will now comment on the financial key data.