Presentation documents of Dr. Ralf Bethke

Press conference

K+S Aktiengesellschaft

March 17, 2000

Frankfurt am Main

Press conference

K+S Aktiengesellschaft

March 17, 2000

Frankfurt am Main

1

K+S GroupWhat we want to inform you about today

Result account year 1999

Presentation of our new business segments

Objectives and prospects of the K+S Group

17.03.2000

2

K+S Group in the year 2000

Sales: abt. DM 4 billion

Investments: DM 340 million(tangible fixed assets)

Employees: 9,200

K+S makes significant contributions to people:NutritionHealthEcologySafetyLeisure activities

K+S Group in the year 2000

Sales: abt. DM 4 billion

Investments: DM 340 million(tangible fixed assets)

Employees: 9,200

K+S makes significant contributions to people:NutritionHealthEcologySafetyLeisure activities

17.03.2000

3

K+S GroupSegments in the year 2000

Potash

and

Magnesium

Products

Potash

and

Magnesium

Products

K+S GroupK+S Group

SaltSalt Waste

Management

and

Recycling

Waste

Management

and

Recycling

Services

and

Trade

Services

and

Trade

COMPOCOMPO fertivafertiva

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4

K+S GroupHighlights of the development of the company 1999

New name: K+S Aktiengesellschaft

Share split in the ratio of 1 to 10

Bought back around 10 percent of own shares

Acquisition of specialty supplier COMPO

Take-over of marketing and sales of BASF agricultural fertilizers

Founding of data process GmbH

Laid the foundation stone for a new production plantfor the special fertilizer Kieserite

New name: K+S Aktiengesellschaft

Share split in the ratio of 1 to 10

Bought back around 10 percent of own shares

Acquisition of specialty supplier COMPO

Take-over of marketing and sales of BASF agricultural fertilizers

Founding of data process GmbH

Laid the foundation stone for a new production plantfor the special fertilizer Kieserite

17.03.2000

5

K+S AktiengesellschaftDividend 1998 and 1999

* for domestic shareholders

€ per share

Dividendexcluding tax credit

Dividendexcluding tax credit

Dividendincluding tax credit *

Dividendincluding tax credit *

ChangeChange

+ 58.3 %+ 58.3 %

+ 58.8 %+ 58.8 %

19991999

0.570.57

0.810.81

19981998

0.360.36

0.510.51

17.03.2000

6

10%abt.

K+S

26% Free float41%

Institutionalinvestors/foreign banks

21%

Domestic and foreign companies

2% Others

K+S AktiengesellschaftShareholder structure as of February 2000

Total:abt. 24,000

shareholders

17.03.2000

7

K+S AktiengesellschaftShareholder structure by regions as of February 2000

K+S

32%abt.Foreign

CountriesGermany(excl. own shares)

10%

abt.

58%abt.

17.03.2000

8

80

100

120

140

160

180

200

220

K+S AktiengesellschaftK+S share outperforms the MDAXIndex: January 2, 1998 = 100

1998 1999

K+S DAX MDAX

K+S DAX MDAX

source: Deutsche Börse AG, Frankfurt/Main

July

2000

Jan. Jan.Apr. Oct. JulyApr. Oct. Jan. JulyApr. Oct.

17.03.2000

9

K+S GroupYield figures 1998 and 1999 *

7.3% 8.3%Return on sales

8.0%7.3%Return on totalinvestment

14.9% 18.4%Return on equity

19991998

**

incl. interest pension provisionsacc. to German Commercial Code*)

**)

10

17.03.2000

K+S GroupSales and result 1998 and 1999 *DM million

ChangeChange

+ 5 %

+ 22 %

+ 18 %

+ 5 %

+ 22 %

+ 18 %

19991999

2,331

+ 173

+ 193

2,331

+ 173

+ 193

19981998

2,228

+ 141

+ 164

2,228

+ 141

+ 164

Sales

Earnings before interestand taxes (EBIT)

Net income

Sales

Earnings before interestand taxes (EBIT)

Net income

* acc. to German Commercial Code

11

17.03.2000

K+S GroupSales by segments 1999DM million

Salt

Waste Management

Services andOther Activities

95

102

289

1,845

+39%

+14%

+8%

+2%

Sales K+S Groupyear 1999: DM 2,331 million (= + 5%)

Potash andRelated Products

12

17.03.2000

K+S GroupSales by regions 1999

1,766 (76%)

Europe

565 (24%)

Overseas

ChangeChangein DM million

BreakdownBreakdownin DM million

+ 17

+ 86

13

17.03.2000

K+S GroupEBIT by segments 1999DM million

Potash andRelated Products

Salt

Waste Management

Services andOther Activities

10.0

40.7

36.9

85.5

+72%

+84%

+58%

-6%

EBIT K+S Groupyear 1999: 173.1 Mio. DM (= + 22%)

14

17.03.2000

1998 1999

1,845.01,812.2

SalesSales

(DM million)

K+S GroupPotash and Related Products Segment 1999

Build-up of a significantindustrial potash positionin France

Result at a good level

Build-up of a significantindustrial potash positionin France

Result at a good level

+2%

15

17.03.2000

1998 1999

289.1254.6

SalesSales

(DM million)

K+S GroupSalt Segment 1999

+14%

Extraordinarily goodde-icing salt sales volumesdue to weather conditions

Very good result

Extraordinarily goodde-icing salt sales volumesdue to weather conditions

Very good result

16

17.03.2000

1998 1999

102.4

73.6

SalesSales

(DM million)

K+S GroupWaste Management Segment 1999

+39%

Volume increase due tosizable new businessactivities

Very good result

Volume increase due tosizable new businessactivities

Very good result

17

17.03.2000

1998 1999

94.687.9

SalesSales

(DM million)

K+S GroupServices and Other Activities Segment 1999

+8%

Good business course

Founding of companydata process GmbH

Good business course

Founding of companydata process GmbH

18

17.03.2000

K+S GroupCOMPO Segment

19

17.03.2000

K+S GroupCOMPO: Sales structure 2000 (plan)

other home & garden(industrial business, soil conditioners etc.)

Home & garden

Professional & industrialbusiness

Home & garden

Professional & industrialbusiness

specialcompound fertilizers

slow release fertilizers

soluble salts, liquid fertilizers,micronutrients

ammonium-stabilized fertilizersother professional(plant protection,

soil conditioners etc.)

potting soils

plant protectionproducts

outdoor fertilizers

indoor productslawn fertilizers

20

17.03.2000

0

20

40

60

80

100

120

140

2000 2002

ENTEC-range

(partly) coatedfertilizers

new home & garden products

ENTEC-range

(partly) coatedfertilizers

new home & garden products

K+S GroupNew innovative COMPO productspromote the growthsalesDM million

+110%

21

17.03.2000

489535

593631

1996 1997 1998 1999

K+S GroupSales development COMPODM million

Medium-term growth:

COMPO: 5% - 7% p.a.

Market: 2% - 3% p.a.

Medium-term growth:

COMPO: 5% - 7% p.a.

Market: 2% - 3% p.a.

22

17.03.2000

COMPO-Krefeld. Special compound fertilizers. Liquid fertilizers. Coated fertilizers. Other specialties

BASF-Ludwigshafen. Special compound fertilizers. ASN. Isodur. Slow release fertilizers. Ammonium stabilizer DMPP

BASF-Antwerp. Special compound fertilizers

K+S GroupPreliminary products of COMPO fertilizers

Kali und Salz GmbH. Sulfate of Potash. Muriate of Potash. ESTA - Kieserite. Patentkali. Epsom Salt

R

23

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K+S Groupfertiva Segment

24

17.03.2000

K+S Groupfertiva Segment

Responsible for marketing and sales of agricultural nitrogen fertilizer business

fertiva GmbH:

exclusive distribution of all BASF producedstraight nitrogen fertilizers and compound fertilizers(international brand Nitrophoska®) for agriculture

world leading supplier of ammonium sulfate

sales volume of approx. 5.3 million tonnes product worldwidewith sales of almost DM 1 billion

Utilization of various synergies in the K+S Group

Contractual arrangements with BASF limit opportunities/risks for K+S

Responsible for marketing and sales of agricultural nitrogen fertilizer business

fertiva GmbH:

exclusive distribution of all BASF producedstraight nitrogen fertilizers and compound fertilizers(international brand Nitrophoska®) for agriculture

world leading supplier of ammonium sulfate

sales volume of approx. 5.3 million tonnes product worldwidewith sales of almost DM 1 billion

Utilization of various synergies in the K+S Group

Contractual arrangements with BASF limit opportunities/risks for K+S

25

17.03.2000

Consumption10.0 mill. t N p.a.

source: EFMA

10% fertiva GmbH

Nitrogen marketNitrogen fertilizers:Market shares in Western Europe 1998/99

Norsk Hydro, Kemira,Grande Paroisse, Fertiberia,

DSM, Terra

Others

56%

34%

26

17.03.2000

estimate

0 1 2 3 4 5 6 7

DSM

Fertiberia

Grande Paroisse

Kemira

K+S (after acquisition)

Norsk Hydro

Fertilizer marketSales of important European fertilizer supplierson the basis of 1999

?

DM billion

27

17.03.2000

2

4

6

8

10

1975 1990 2000 2025 1975 1990 2000 20250

0.1

0.2

0.3

0.4

Year

Asia

World

sources: FAO, IFDC, IPI

Fertilizer marketPopulation growth and arable farm land

Population in billion Arable farm land/ha per capita

28

17.03.2000

K+S GroupBusiness in the first quarter of 2000

Potash andMagnesium ProductsPotash andMagnesium Products

Waste Managementand RecyclingWaste Managementand Recycling

SaltSalt

Services and TradeServices and Trade

fertivafertiva

COMPOCOMPO

Currently still slack demand

Very good start

High demand, rising prices

At good level as expected

De-icing salt below very goodprevious year

Significantly exceeding theprevious year

29

17.03.2000

277

195157

197

340

1996 1997 1998 1999 2000

DM million

K+S GroupCapital expenditures to tangible fixed assets

plan

30

17.03.2000

193164

104

64

3.8

2.32.22.22.0

0

1

2

3

4

5

6

'96 '97 '98 '99 '00 '96 '97 '98 '99 '00

0

50

100

150

200

250

300

- in DM billion -

after minority interests- in DM billion -

K+S GroupDevelopment of sales and net income

(est.) (est.)

Sales Net income

31

17.03.2000

K+S GroupStructural measuresfor improving the earning power

1994

1995

1996

1997

1998

1999

2000

Acqusition of 49% sharein Kali und Salz GmbH

Acqusition of 49% sharein Kali und Salz GmbH

Acquisition of COMPO / take-over of market-ing and sales of BASF agricultural fertilizers

Acquisition of COMPO / take-over of market-ing and sales of BASF agricultural fertilizers

1993

AcquisitionsAcquisitions

Merger of potash and rock salt activitiesof K+S AG/MdK AG in Kali und Salz GmbH

Merger of potash and rock salt activitiesof K+S AG/MdK AG in Kali und Salz GmbH

Extensive modernizationprogram completed

Extensive modernizationprogram completed

32

17.03.2000

K+S GroupMarket positions

...with potash market leader in Europenumber three in the world

...in the green market market leader in Europe with COMPO

...with nitrogen very well positioned with fertiva

...with salt a leading supplier in Europe

...in the underground waste management

K+S is...

market leader in Germany

33

17.03.2000

K+S GroupOur central strategic aim

Consistent evolution into a company also offering

specialties, niche and brand products

Consistent evolution into a company also offering

specialties, niche and brand products

Aim: leading, highly profitable supplier in Europe,

moving into new, attractive and high-yield

growth fields

Aim: leading, highly profitable supplier in Europe,

moving into new, attractive and high-yield

growth fields

34

17.03.2000

Focusing

Specialization

Opening up new business segments

Focusing

Specialization

Opening up new business segments

The K+S growth strategyThe K+S growth strategy35

17.03.2000