Annual Report Press Conference

of K+S Aktiengesellschaft

on March 14, 2002

in Frankfurt am Main

Annual Report Press Conference

of K+S Aktiengesellschaft

on March 14, 2002

in Frankfurt am Main

People.

Nature.

Our World.

K+S GroupReport on business for the year 2001

1

March 14, 2002

K+S GroupWhat we want to inform you about today

K+S achieved its aims in 2001

Favourable overall prospects for 2002

Market penetration and strategic intermeshingfurther improved

March 14, 2002

2

K+S GroupEconomic environment

� Worldwide slowdown in overalleconomic growth

� K+S nevertheless well positioned

Robust and broadly defined portfolioof businesses

Innovations speeded up

Proven market competence and strength

� Worldwide slowdown in overalleconomic growth

� K+S nevertheless well positioned

Robust and broadly defined portfolioof businesses

Innovations speeded up

Proven market competence and strength

March 14, 2002

3

K+S GroupSales and earnings 2001

- € million -ChangesChanges

+ 4 %

- 5 %

- 1 %

+ 4 %

- 5 %

- 1 %

Sales

Earnings before interest and taxes

Net income

Sales

Earnings before interest and taxes

Net income

Return on equity (%)Return on equity (%)

Net income per share (€)Net income per share (€)

20012001

2,179.4

120.6

118.3

2,179.4

120.6

118.3

22.922.9

2.732.73

20002000

2,087.9

126.8

119.8

2,087.9

126.8

119.8

22.622.6

2.722.72 + 0 %+ 0 %

+ 1 %+ 1 %

March 14, 2002

4

K+S GroupThe year 2001

New production plant for fertilizer speciality

Acquisitions to strengthen COMPO business

esco salt joint venture successfully prepared

Streamlining of corporate structures

New share buy-back programme started

March 14, 2002

5

€ million

168149

9783

0

1997 1998 1999 2000 2001

K+S GroupGrowth through acquisitions

Frisia Zout B.V.

foreign COMPOsubsidiaries AAE GmbH

* 49 % interestin Kali und Salz GmbH

*

Total expenditures: € 497 millionTotal expenditures: € 497 millionMarch 14, 2002

6

� Approval granted by EU competition authorities

� Start with economic effect from January 1, 2002

� Particular strengths: Customer-oriented products and logistical advantages

� Approval granted by EU competition authorities

� Start with economic effect from January 1, 2002

� Particular strengths: Customer-oriented products and logistical advantages

K+S GroupThe esco salt joint venture

62%62% 38%38%

March 14, 2002

7

K+S GroupOur strategic competence arch

KTG

healthy,controlled

growth

healthy,controlled

growth

March 14, 2002

8

€ million

K+S GroupPotash and Magnesium Products 2001

2000 2001

963

Sales2000 2001

EBIT

77

967

67

� Fertilizer business affected bythe weather

� Sharp increase in energy costs

� Further growth in industrialbusiness

� Market positions well maintained

� Potentials for further savingsaffecting earnings identified

March 14, 2002

9

€ million

K+S GroupCOMPO 2001

2000 2001

332

Sales2000 2001

� Sharp increase in sales

� Hobby business grew perceptivelywith acquisitions

� Brand portfolio and regional presenceselectively strengthened

� ENTEC fertilizers drove professional business

� EBIT burdened by one-off effects

� Sharp increases in raw material prices

EBIT

22

436

20

March 14, 2002

10

€ million

K+S Groupfertiva 2001

2000 2001

552

Sales2000 2001

EBIT

500

� Decline in consumption in WesternEurope due to the weather

� Further consolidation in Western European fertilizer industry

� Positions in key overseas marketsmaintained

� BASF solely entitled to pleasingcontribution to earnings for last time

March 14, 2002

11

€ million

K+S GroupSalt 2001

2000 2001

115

Sales2000 2001

EBIT

5

165

28

� De-icing salt business profited fromsevere winter and early purchases

� Business with salt for chemical transformation considerably

expanded by Frima acquisition

� Further growth of table andindustrial salts

� Product quality, proximity tocustomers and especially highability to deliver prove to beparticular strengths

March 14, 2002

12

€ million

K+S GroupWaste Management and Recycling 2001

2000 2001

77

Sales2000 2001

EBIT

25

63

11

� Sales and earnings as expectedreduced to normal level

� Exploitation of European marketsexpanded

� Waste reutilization and recyclingwith overall growth

� Development to system providercontinued with commencement ofthermal soil cleaning

March 14, 2002

13

€ million

K+S GroupServices and Trading 2001

2000 2001

49

Sales2000 2001

EBIT

10

47

15

� EBIT growth benefits from greatdemand for IT expertise withinK+S Group

� Experience within group success-fully applied

� Trading business and granulationof Catsan® higher

� Analytical services strengthened

March 14, 2002

14

K+S GroupK+S is strong in the market

For nitrogen Very well positioned with fertiva

Market leader in EuropeNumber three in the world

For undergrounddisposal

In the green market Market leader in Europe with COMPO

For water-solublemagnesium sulphate World market leader

For potash

For salt With esco in leading European group

Market leader in Germany

March 14, 2002

15

17.925.6

37.643.4

Net dividend- € per share -

Dividend payment- € million -

**

1998

0.36

1999

0.57

2000

0.85

2001

1.00 *

* proposal** according to the number of shares entitled to dividends

on the day of the Annual Meeting (prel. as of March 8, 2002)

K+S AktiengesellschaftNet dividend and total dividend payment

March 14, 2002

16

5060708090

100110120130140

2001 2002

Jan. July Jan. July

MDAXMDAX

K+SK+S

DAXDAX

K+S AktiengesellschaftK+S share price compared with DAX and MDAXIndex: January 2, 2001 = 100

source: Deutsche Börse AG; basis March 7, 2002March 14, 2002

17

591703

797

986 1,042

1998 1999 2000 2001 2002Year-end

* * *

March 7

€ million

* 45 million shares

K+S AktiengesellschaftK+S market capitalization

March 14, 2002

18

K+S GroupStart to 2002

Potash andMagnesium ProductsPotash andMagnesium Products

Fertilizers above last year’s levelIndustrial business cyclically weaker

SaltSalt Good de-icing salt businessIntegration of esco

Waste Managementand RecyclingWaste Managementand Recycling Normalized level

COMPOCOMPO Professional business with marked growthHobby business at higher level

fertivafertiva Good overseas businessDifficult European business

March 14, 2002

19

K+S GroupAims for 2002

Further development of our business segments

Extension of our market positions withinnovations and regional expansion

Acquisitions and cooperation agreements

Internally, continued focus on increases inefficiency and cost savings

Further development of our business segments

Extension of our market positions withinnovations and regional expansion

Acquisitions and cooperation agreements

Internally, continued focus on increases inefficiency and cost savings

March 14, 2002

20

People. Nature. Our World.

21

March 14, 2002