EBITDA increased significantly in the second quarter

• Q2 revenues: €874 million (Q2/2023: €826 million; Vara consensus estimate
  as of July 16, 2024: €832 million); H1: €1,862 million (H1/2023: €2,018 million)
• Q2 EBITDA: €128 million (Q2/2023: €24 million; Vara consensus estimate
  as of July 16, 2024: €129 million); H1: €328 million (H1/2023: €478 million)
• Agriculture customer segment with continued strong European and specialty business
• Industry+ customer segment: Recovery in demand for chemical and industrial products
• Transformation process on track
• H1 adjusted free cash flow: €+87 million (H1/2023: €+274 million;
  Vara consensus estimate as of July 16, 2024: €+78 million)
• 2024 outlook: EBITDA range specified and cash flow expectation confirmed:
  o  EBITDA expected to range between €530 million and €620 million with
  unchanged midpoint (previous outlook: €500 million to €650 million;
  2023: €712 million; Vara consensus estimate as of July 16, 2024: €585 million)
  o  Adjusted free cash flow continues to be expected to at least break even
  (2023: €+311 million; Vara consensus estimate as of July 16, 2024: €+25 million)

“Both our European business and the share of fertilizer specialties continued to be strong in the second quarter, so that we can look back on a robust first half of the year overall,” says Dr. Burkhard Lohr, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft. “For the full year 2024, we confirm our expectations for free cash flow and are now specifying the EBITDA forecast at between €530 million and €620 million.”

In the Agriculture customer segment, revenues increased to €616 million in the second quarter (Q2/2023: €557 million). Lower average prices were offset by significantly higher sales volumes, particularly for fertilizer specialties. Revenues in Europe rose to €271 million (Q2/2023: €232 million). At 1.84 million tonnes (excluding trade goods), the sales volume in the second quarter was significantly higher than the prior-year figure (Q2/2023: 1.63 million tonnes).

Revenues in the Industry+ customer segment amounted to €258 million in the second quarter, despite significantly lower average prices for products containing potash. Therefore, they were only slightly below the record figure of the prior-year quarter (Q2/2023: €269 million). At 1.47 million tonnes, sales volumes in this customer segment were moderately higher, compared with the prior-year quarter (Q2/2023: 1.39 million tonnes). This moderate increase was mainly attributable to a tangible recovery in demand for chemical and industrial products.

For 2024 as a whole, K+S now expects operating earnings EBITDA to range between €530 million and €620 million (2023: €712 million). This confirms the midpoint of the previously forecast EBITDA range of between €500 million and €650 million and narrows it accordingly.

As previously forecast, adjusted free cash flow should at least break despite the elevated capital expenditure due to the ramp-up in Bethune and preparatory expenses for the Werra 2060 transformation project (2023: €+311 million).

Furthermore, an oversupply on the potash market is still not expected for the year as a whole. In the Agriculture customer segment, a stable price development compared to current levels is assumed for the rest of the year and annual sales volumes (excluding trade goods) in a range of 7.4 million and 7.7 million tonnes.

Other assumptions on which the estimate for the full year 2024 is based are described from page 17 of the H1/2024 Half-Year Financial Report onwards.

Further information and data on the development in the second quarter of 2024 can be found in the H1/2024 Half-Year Financial Report as well as in the Q2/2024 Facts & Figures, and in the interview on business development with Dr. Burkhard Lohr, Chairman of the Board of Executive Directors of K+S. A Teams conference for analysts with CEO Dr. Burkhard Lohr and CFO Dr. Christian H. Meyer will take place in English today at 10:00 am. Members of the press and interested members of the public are invited to follow the conference via a live webcast. The conference will be recorded and will also be available as a replay afterwards.

We make an important contribution to society: We enable farmers securing the world's food supply. Our products keep numerous industries running. We enrich consumers' daily lives and ensure safety in winter. With around 11,000 employees, production sites on two continents, and a global distribution network, we are a reliable partner for our customers. At the same time, we are realigning ourselves: We are focusing even more strongly than before on fertilizers and specialties. We are becoming leaner, more cost-efficient, more digital, and more performance-oriented. On a solid financial basis, we are tapping into new markets and business models. We are committed to our responsibility towards society and the environment in all regions in which we operate.

This press release contains facts and forecasts that relate to the future development of the K+S Group and its companies. The forecasts represent estimates that we have made on the basis of all the information available to us at the present time. Should the assumptions underlying these forecasts prove not to be correct or risks – such as those described in the risk report contained in the current annual report – materialize, actual developments and results may deviate from current expectations. The Company assumes no obligation to update the statements contained in this press release other than as required by law.