CapitalCapital MarketsMarkets DayDay FertilizerFertilizer PerspectivesPerspectives

JoachimJoachim FelkerFelker MemberMember ofof thethe BoardBoard ofof ExecutiveExecutive DirectorsDirectors Berlin,Berlin, 88 DecemberDecember 20102010

Experience growth. K+S Group Content

A. Fertilizer Market Environment

B. Nitrogen Market Environment - K+S Nitrogen -Compo

C. Potash Market Environment - Growth Perspectives - Potash One - Future Potentials in

December 2010 K+S Group 1 K+S Group Key Drivers of the Fertilizer Business z Despite decreasing availability of arable farmland, global production of soft commodities has to increase: y steadily increasing world population y changing diets toward higher meat consumption (e.g. 1 kg beef = 8 kg animal feed) y increasing importance of renewable raw materials for the production of bio energy z As a consequence, fertilizing with key nutrients nitrogen (N), phosphate (P) and potash (K), but also increasingly magnesium (Mg) and sulphur (S) is the solution to coping with this challenge

z Nutrients cannot be substituted and a balanced fertilization of all nutrients is necessary to achieve optimal yields. Emerging countries, in particular, should still significantly increase the potash proportion of their total fertilizer application z Medium- and long-term increase in global fertilizer consumption (N, P and K) of 2 to 3% p.a. expected (Source: IFA)

Î K+S offers its worldwide customers all nutrients in a market-oriented specialised product range

December 2010 K+S Group 2 Potash and Magnesium Products Development of Demand – Long-term Trend

Global Application Rate for Major Nutrients

lb/acre 120 112 „ Current Application Rate „ Scientifically recommended 100 Application Rate

80 66 60 59 60

40

24 20 17

0 Nitrogen Phosphate Potash

Sources: IFA, IPNI Studies, Ohio State University Studies Current Application Rate Potash inScientifical particular offersRecommended the highest Application growth potential Rate medium to long-term

December 2010 K+S Group 3 K+S Group Low Stocks-to-use Ratios of Agricultural Products

Production and consumption development vs. stocks-to-use ratio (Wheat and coarse grains)

1,8001.800 40,040.0 Production Consumption Stocks-to-use 35,035.0

1,6001.600 30,030.0 Stocks-to-use ratio 25,025.0

1,4001.400 20,020.0 Critical Level 15,015.0 in million tonnes million in 1,2001.200 10,010.0

5,05.0

1,0001.000 0,00.0 1981/82 1986/87 1991/92 1996/97 2001/02 2006/07 2010/11e Source: USDA; as of 9 November 2010

z Over the past thirty years, annual global production of cereals has often fallen short of demand

z Despite reasonable harvest levels during the last ten years, these structural supply and demand gaps have resulted in low stocks-to-use ratios on a historical basis

z Although ideal weather conditions in 2008 and 2009 resulted in record harvests worldwide, stocks-to-use ratios remained on a relatively low level

December 2010 K+S Group 4 K+S Group Crop Prices: Key Fertilizer Demand Driver

Potential global cereals* shortfall in 2011/12

1850 z Consecutive years with above-average 1827 yield unlikely (weather conditions driven) High 1800 production deficit - Even more unlikely given past general under-application of fertilizer 96 Stocks-to-use ratio to decline 1750 z Surplus/deficit in crop production key from 19% 1731 to 13%**** price trigger for soft commodities

z High crop prices enable and incentivise 1700 farmers to apply fertilizers - Yield and quality game 1650 Forecast Forecast Forecast production consumption shortfall for 2011/12 ** 2011/12*** 2011/12

* Wheat and coarse grains ** Based on last 5 years average of harvested area multiplied by last 5 years’ average yield (531m hectares x 3.3 tonnes per hectare) *** Based on 2010/11 consumption (1,790mt) multiplied by last 5 years’ annual average demand growth rate of 2.1% **** Implied stocks-to-use ratio: ending stock 2010/11 (333mt) less potential shortfall (96mt) divided by potential consumption 2011/12 (1,827t)

Note: 2009/10 and 2010/11 USDA estimates

December 2010 K+S Group 5 K+S Group Prices for Agricultural Products – Spot vs. Future

Prices for Agricultural Products – spot Prices for Agricultural Products – future

400% 130%

350% 120%

300% 110% 250% 100% 200% 90% 150%

100% 80%

50% 70% Dec. Dec. Dec. Dec. Dec. Dec. Nov. Dec. Dec. Dec. May ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘10 ‘11 ‘12 ‘13

Wheat Soybeans Corn Palmoil

z Strong increase in prices for agricultural z Future prices of agricultural products products since the middle of the year mirror the capital markets’ expectation of an elevated price level for the next two Sourcee: Bloomberg; as of 26 November 2010 years

December 2010 K+S Group 6 Potash and Magnesium Products Profitability of Wheat in Europe

2008 2009 2010e 1600 Revenues Profit Revenues 1400 potential: € 231 Costs Profit potential: 1200 Revenues € 325 Year Fertilizer share of total costs Costs Costs 366 Profit 2008 30% fertilizer costs (4% K) 1000 potential: 181 €71 174 2009 18% fertilizer costs (4% K)

70 77 77 2010e 17% fertilizer costs (2.5% K) 800 110 119 113

600 183 157 165 Fertilization Other costs 400 (e.g. insurance, water) Seeds/plants 459 459 459 200 Plant protection agents Variable costs Fixed costs (incl. lease) 0 Wheat price: 180 €/t Wheat price: 135 €/t Wheat price (e): 190 €/t Yield: 8 t/ha Yield: 8 t/ha Yield (e): 7.0 t/ha

The latest increase of the wheat price should enable farmers to realize a profit potential of around € 325 per hectare (excl. subsidies) in 2010 compared to € 231 per hectare in 2008 and € 71 per hectare in 2009.

Assumptions: without agricultural subsidies, incl. interest expenses for pre-financing costs, 100% use of mineral fertilizers (no organ ic fertilizing), straw stays in the field (straw fertilizing); fertilizer use for 8 t/ha yield: 80 kg/ha MOP, 536 kg/ha KAS and 139 kg/ha TSP; for lower yields, lower fertilizer requirement adjusted accordingly; Sources: costs (20 ha) according to Kuratorium für Technik und Bauwesen in der Landwirtschaft e. V. (KTBL), LAND & Forst, yield according to Agrarstatistik Destatis, nutrient extractions according to Guidelines for Fertilizer Use in German Federal States; fertilizer prices: Retail prices 2010 taken from LAND & Forst: KAS 208 €/t, MOP 335 €/t, TS P 357 €/t. Wheat price estimate follows the development of Euronext price less transportation cost assumption.

December 2010 K+S Group 7

K+S Group Content

A. Fertilizer Market Environment

B. Nitrogen Market Environment - K+S Nitrogen -Compo

C. Potash Market Environment - Growth Perspectives - Potash One - Future Potentials in Germany

December 2010 K+S Group 8 Nitrogen Fertilizers K+S Nitrogen – Strong Production Partners

BASF Antwerp BASF Ludwigshafen NPK (MOP, SOP) ENTEC-NPK ass / ENTEC 26 KAS AN AS

Lanxess Antwerp BASF PEC Rhin Ottmarsheim AS Standard Granammon KAS AN

Business Model: z Trading Business z Contractual agreements with BASF for the exclusive marketing of their fertilizers with limited chances and risks for K+S z One of the leading suppliers of ammonium sulphate

December 2010 K+S Group 9 Nitrogen Fertilizers K+S Nitrogen – Sales Volumes by Region

Major Product Groups Sales Volumes by Region 2010e

1.800

1.600 Sales volume: 4.7 million tonnes

1.400

Germany 1.200 15% Overseas 1.000 32% Overseas kt 800 Europe (ex Germany) Germany Europe (ex Germany) 600 53%

400

200

0 AS KAS/AN ASS ENTEC NPK NPK S ENTEC 26 C/NP SCl NPK/NP

Ammonium Straight Nitrogen Fertilizers Complex Fertilizers Sulphate

December 2010 K+S Group 10 Nitrogen Fertilizers Premium for N in KAS vs. Urea

€/kg 300% 1,4 1.4 250% 1,2 1.2 200% 1 1.0

0,8 150% 0.8

0,6 100% 0.6

50% 0,40.4 30% 0,20.2 0%

0 -50% Jul-05 Jan-06 Jul-06 Jan-07 May-07 Nov-07 May-08 Nov-08 May-09 Nov-09 May-10 Nov-10

N Urea €/kg N Premium for KAS €/kg Premium in %

December 2010 K+S Group 11 Nitrogen Fertilizers Compo Consumer – Market Environment

Demand z Heterogeneous European market Competition z Moderate growth to be expected Customers in segment z Poor earnings position of z Concentration process all competitors z Internationalisation

z Many suppliers present z Powerplay in purchase themselves as full-range z Assortment reduction providers - Fewer brands - Expansion of private labels z Shelf place being bought aggressively in individual z Trend towards introducing countries bio-/eco-products

z Competitive pressure on price z Conditions, rebates in kind Climate / laws are widely used z z Influence of weather on demand Oversupply of shelf space situation z Mid-price ranges under pressure z More strict guidelines in Europe (fertilizers and plant protection)

December 2010 K+S Group 12 Nitrogen Fertilizers K+S is Considering the Sale of COMPO

z COMPO is a leading provider in a market that requires consolidation

z In compliance with our growth strategy, we will focus our financial and management resources in particular on the Potash and Magnesium Products and Salt business segments

z On the other hand, appropriate capacity to act is important for COMPO, especially at present

Î Therefore, we announced in June 2010 that we are considering the sale of COMPO. A result of the process is expected within one year

December 2010 K+S Group 13 Nitrogen Fertilizers Project Status z Concept worked out for a possible corporate and business carve-out of COMPO from the K+S Group

„ All COMPO interfaces within the K+S Group identified

„ Concept worked out to separate the sales platforms in Asia, Europe and North/Central/South America

„ Preparing global IT separation

„ Creation of a Financial Factbook z Potential interested parties to be spoken to at end of 2010 / beginning of 2011 z A result of the process is expected by mid-2011

December 2010 K+S Group 14 K+S Group Content

A. Fertilizer Market Environment

B. Nitrogen Market Environment - K+S Nitrogen -Compo

C. Potash Market Environment - Growth Perspectives - Potash One - Future Potentials in Germany

December 2010 K+S Group 15 K+S Group World Potash Production and Sales by Region

Million tonnes ~18

~16 ~23.3

~9.7 ~6 ~5.9 ~4.2 ~9

~8.6

~1.5 ~0.7

World potash production: World potash sales: 2010e: ~51 million t 2010e: 52-53 million t Incl. sulphate of potash 2009: 33.7 million t 2009: 31.0 million t and low-grade potash 2008: 56.0 million t 2008: 54.5 million t

Sources: IFA, K+S 2007: 57.8 million t 2007: 58.7 million t

December 2010 K+S Group 16

K+S Group World Potash Capacity, Production and Sales

Available capacity Production Sales Million tonnes Soviet Union Financial crisis 70 58.7 60 54.4 52.6 54.2 54.5 52-53 50.7 49.1 50 43.9 45.5

40 36.2 31.0

30

20

10

55.0 35.2 45.1 46.0 48.5 53.9 56.5 50.9 57.8 56.0 33.7 51 0 1988 1993 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e z Transitional year 2010: significant revival in demand expected, but no satisfactory utilisation of capacity yet

December 2010 Sources: IFA, K+S; incl. sulphate of potash and low-grade potash; based on IFA supply capability data K+S Group 17

Potash and Magnesium Products MOP Price Development

1000US$/t Northwest-Europe (standard, fob) ● 23 December 2009: 800 Contract with Chinese importers and BPC fixed at US$ 350/t for standard MOP

600 ● Beginning of 2010: Contracts with and Canpotex/BPC fixed 400 at US$ 370/t 374 ● Mid January 2010: 200 In Europe K+S announced € 285/t for granulated MOP and a price increase by € 12/t as of March 0 2003 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 2010 ● Mid June 2010: K+S announced an increase of a further US$/t Overseas (cfr) € 8/t to € 305/t in Europe

1000 (granular) * ● End of August 2010: South-East Asia BPC announced US$ 420/t for granulated MOP in 800 (SEA, standard) Asia and Brazil

● Mid September 2010: 600 K+S announced a further increase of € 12/t to € 317/t in Europe 400 413 Brazil 409 SEA ● Beginning of November 2010: 200 BPC announced US$ 450/t for granulated MOP in Asia and Brazil

0 * Until end of September 2010 MOP standard 2003 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 2010 Source: FMB; as of 18 November 2010 December 2010 K+S Group 18

K+S Group Supplier Structure on the World Potash Market

Figures in % 2008 2009 2010 32.9 31.8

23.9 23.0 22.7 21.7

13.9 11.2 11.1 10.7 10.1 9.6 9.0 9.5 8.5 8.6 8.1 6.3 4.7 3.5 3.4 3.1 2.7 3.1 3.4 1.6 1.9

Canpotex BPC K+S IPC ICL APC SQM China Others • Potash • Belarus- • Silvinit • DSW participation participation • more • Intrepid Corp kali participation • CPL of Potash of Potash than 20 • Vale Corp. Corp. • Mosaic • Uralkali of Uralkali • Iberpotash producers • Compass in Silvinit • Agrium participation of Potash Sales volumes in metric tonnes Corp. in ICL Sources: IFA, K+S

December 2010 K+S Group 19 Potash and Magnesium Products World Potash Capacity, Production and Sales

Million tonnes Greenfield projects Brownfield projects z Transitional year 2010: significant 80 Available capacity Financial revival in demand expected, but China crisis no satisfactory utilisation of 70 Production 67 capacity yet 60 5% Sales 58.7 Ø + 63 60 54.2 54.4 54.5 +3% 52.6 52-53 Ø z As of 2011, long-term growth rates 50.7 55 Soviet Union 49.1 again expected at 3% to 5% p.a. 50 45.5 43.9

z Utilisation levels are estimated to 40 36.2 31.0 be about 85% annually until 2014 and will thus reach a good level 30

z Risk: announced new capacity 20 could be delayed, postponed or cancelled due to an inadequate 10 price level and technological/ 55.035.2 48.546.045.1 53.9 56.5 50.9 57.8 56.0 33.7 51 geological challenges 0 1988 ’93 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ‘13 ‘14 (e) Incl. sulphate of potash and low-grade potash Capacity development 2010-2014 based on IFA supply capability data Sources: IFA, K+S December 2010 K+S Group 20 Potash and Magnesium Products Agricultural Potash Consumption by Region

World Developed markets

40.000 20.000 North America, Western Europe, Australia, Japan

32.000 16.000 O O 2 2 24.000 12.000 1.000 t K t 1.000 16.000 K t 1.000 8.000

8.000 4.000

0 0 80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f 80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f

Transitional markets Emerging markets

10000 Central and Eastern Europe, Central Asia 24.000 Latin America, Asia, Africa, Oceania 20.000 8000

16.000 O O 2 2 6000 12.000 4000 1.000 t K t 1.000 1.000 t K t 1.000 8.000

2000 4.000

0 0 80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f 80/81 84/ 88/ 92/ 96/ 00/ 04/ 08/ 12/f Source: IFA

December 2010 K+S Group 21 K+S Group Friendly Takeover Bid for Potash One

Located in the Heart of Saskatchewan’s Potash-Rich Basin z Potash One is a Vancouver-based resource company engaged in the exploration and development of advanced potash properties. z Potash One holds several potash exploration licences in the Canadian province of Saskatchewan, including

the Legacy Project – an advanced Regina Greenfield project to develop a potash solution mine. Two additional potash permit areas in the Esterhazy potash region z K+S estimates production capacity of up to 2.7 million tonnes of chloride per year. z The realisation of this production capacity would represent an approximately USD 2.5 billion capital investment into Saskatchewan and create up to 300 highly-skilled jobs. z Initial production no earlier than 2015.

December 2010 K+S Group 22 K+S Group Overview of the Legacy Project

Legacy Project

Geological Overview Key data *

Mining technique Solution Mining

Expected maximum 2.7 million t KCl product/a production capacity

Depth 1,500 metres

Patience Lake Total capex $2.5 billion

Belle Plaine Environmental approved Esterhazy impact statement

* Data based on K+S due diligence

December 2010 K+S Group 23 K+S Group Solution Mining Expertise Within the K+S Group z With more than 100 years experience in potash mining, K+S has the geological and mining expertise to successfully execute this greenfield project „ K+S will also engage consultants and certain personnel from Potash One to supplement its team z Our new Canadian potash development complements our existing presence in salt production stemming from our successful acquisition of Morton Salt in 2009 and our longstanding history of potash distribution in Canada and the US

Examples of Solution Mines within the K+S Group

esco Frizia Zout Site, Lindbergh esco Bernburg Site Harlingen, The Netherlands Alberta, Canada Germany

December 2010 K+S Group 24 Potash and Magnesium Products Future Potentials in Germany

● K+S evaluates the reactivation of former potash sites such as Rossleben or Siegfried-Giesen, the latter being a K+S reserve capacity since 1987 Sigmundshall Bergm.-Hugo ÎOverall target: To replace Siegfried- Giesen Zielitz

Sigmundshall, which will Rossleben Kassel be depleted by 2018 Wintershall Unterbreizbach Hattorf Neuhof-Ellers ● We are in contact with GVV, the owner of the Rossleben potash mine and consider a feasibility study on Siegfried-Giesen for 2011

December 2010 K+S Group 25 K+S Group Forward-Looking Statements

This presentation contains facts and forecasts that relate to the future development of the K+S Group and its companies. The forecasts are estimates that we have made on the basis of all the information available to us at this moment in time. Should the assumptions underlying these fore- casts prove not to be correct or should certain risks – such as those referred to in the recent Risk Report – materialise, actual developments and events may deviate from current expectations. The Company assumes no obligation to update the statements contained in this presentation, save for the making of such disclosures as are required by the provisions of statute.

December 2010 K+S GroupK+S Group 26 K+SK+S AktiengesellschaftAktiengesellschaft Bertha-von-Suttner-StraßeBertha-von-Suttner-Straße 77 3413134131 KasselKassel || GermanyGermany phone:phone: +49+49 (0)561(0)561 // 9301-09301-0 fax:fax: +49+49 (0)561(0)561 // 9301-17539301-1753

InvestorInvestor RelationsRelations phone:phone: +49+49 (0)561(0)561 // 9301-11009301-1100 fax:fax: +49+49 (0)561(0)561 // 9301-24259301-2425 email:email: [email protected]@k-plus-s.com

Internet:Internet: www.k-plus-s.comwww.k-plus-s.com

Experience growth. December 2010 K+S Group 27