Our assessment for full-year 2018 is mainly based on the following assumptions:

Potash and Magnesium Products business unit

+   Robust demand for potassium chloride, especially in the second half of 2017, has resulted in further price increases in the overseas markets. For the full-year 2018, we expect demand to remain at least stable and, along with that, prices to rise at least in the short term.

+   Furthermore, cuts in production due to a lack of disposal options are not expected in 2018 in longer periods of low water level in the Werra river, as it was the case in the first months of 2017.

Salt business unit

+   The winter weather that prevailed prior to the preparation date, primarily in North America, and slightly increasing sales of non de-icing salts should lead to tangibly higher sales volumes overall (2017: 20.3 million tonnes).

K+S Group 

+   Average exchange rate for the year of EUR/USD 1.20 (2017: EUR/USD 1.13).

Revenues and earnings forecast

In the 2018 financial year, we expect revenues of the K+S GROUP to be tangibly higher (2017: € 3,627 million) than the previous year and earnings before interest, taxes, depreciation and amortisation (EBITDA) to be significantly higher (2017: € 576.7 million). Particularly in the Potash and Magnesium Products business unit, the increase in production volumes at the Bethune site in Canada and the expected absence of wastewater-related production stoppages at the Werra plant should result in a significant recovery in earnings (2017: € 268.8 million). In the Salt business unit, we assume that a tangible increase in sales volumes and improvements in the product mix should result in a tangible increase in EBITDA (2017: € 325.2 million). The adjusted Group earnings after taxes should also increase significantly compared to the same period in the previous year (2017: € 145 million).

(as of 15 March 2018)


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