EANS-News: K+S Aktiengesellschaft / Successful financial year 2012 K+S Group expects slight increase in revenues and earnings in the current year

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annual result/Company Information

Kassel (euro adhoc) - Kassel, 14 March 2013

Successful financial year 2012 K+S Group expects slight increase in
revenues and earnings in the current year

·
At EUR 3.9 billion, 2012 revenues almost on last year's level

· Operating earnings EBIT I of EUR 809 million very close to forecast
· Second best year-end results with Potash and Magnesium Products
· Mild winter adversely affects Salt business
· Divestment of Nitrogen business successfully completed
·
Higher dividend proposal of EUR 1.40 per share intended for 2012
· Forecast for 2013 confirmed: Revenues and operating earnings should
increase slightly

"Overall, 2012 was a successful year for the K+S Group. Our Potash
and Magnesium Products business unit achieved its second best result
ever", states Norbert Steiner, Chairman of the Board of Executive
Directors of K+S Aktiengesellschaft, at the Company's annual results
press conference. "For 2012, we will propose to

the Annual General Meeting a 10 cent higher dividend of EUR 1.40 per share",
continues Steiner.

2012 revenues almost at the level of the previous year At EUR 3.9
billion, revenues for financial year 2012 were almost on the same
level as the previous year (EUR 4.0 billion). Negative volume effects
could almost be offset by positive currency and price effects. The
Potash and Magnesium Products business unit achieved revenue growth
mainly due to higher average prices as well as the positive
development of exchange rates. At 6.95 million tonnes of goods, the
sales volume remained stable in comparison to 2011. Salt business
unit revenues fell tangibly, especially as a result of mild and dry
weather conditions, after having benefited from an above-average
winter in the previous year.

As expected, operating earnings down on previous year The key
performance indicator of the K+S Group, operating earnings EBIT I,
fell in 2012 by around 11 % to EUR 808.5 million (2011: EUR 906.2
million) and was thus very close to the most recently submitted
forecast of about EUR 820 million. The forecast figure would have
been achieved without the expense of EUR 10.7 million arising from
the disposal of three vessels as part of the fleet-renewal- programme
of the Chilean shipping company Empremar. At 20.5 %, the EBIT margin
was again at a very high level (2011: 22.7 %).

The Potash and Magnesium Products business unit was able to increase
its operating earnings mainly as a result of higher average prices
across the overall product range. These were able to more than
compensate cost increases. With an EBIT I of EUR 773.9 million (+4.7
% against the previous year), the business unit achieved the second
best annual result since 2008. Due to the weaker de-icing business
and the higher proportion of fixed costs customary in the mining
industry, the earnings of the Salt business unit decreased strongly
to EUR 62.4 million (2011: EUR 211.4 million). Cost savings were able
to mitigate this decrease to some extent.

Lower adjusted Group earnings Adjusted Group earnings from continued
operations fell by EUR 84.8 million or 14 % to EUR 540.8 million
(2011: EUR 625.6 million) and thus mainly followed the development of
operating earnings. This resulted in adjusted earnings per share from
continued operations for the year under review of EUR 2.83,
corresponding to a decrease of 13 % (2011: EUR 3.27).

Positive effect from divestment of the Nitrogen business Due to the
effect of the divestment of the nitrogen fertilizer segment, adjusted
Group earnings including discontinued operations rose to EUR 639.7
million (2011: EUR 581.8 million). These discontinued operations
accounted for EUR 98.9 million.

(Detailed information about the divestment of the Nitrogen business
can be found in the Financial Report 2012 in the Notes to the
consolidated financial statements on page 168).

Higher dividend proposal intended for 2012 The adjusted earnings per
share of the K+S Group including discontinued operations, which serve
as the basis for the dividend payment, increased to EUR 3.34 due to
the effect of this divestment of the Nitrogen business, after having
been EUR 3.04 in the previous year. This places the Board of
Executive Directors and the Supervisory Board in the position to
propose to the Annual General Meeting an increase of the dividend for
2012 by 10 cents to EUR 1.40 per share. This corresponds to a payout
ratio of 42 %.

Fourth quarter 2012: Lower revenues and decreased earnings The
absence of contracts of North American and Russian potash producers
to be concluded with Chinese and Indian customers led to price
pressure for international quotations for potassium chloride from the
end of the third quarter of 2012 also in the markets relevant for
K+S. On 31 December 2012, the North American export organization
Canpotex then announced that it had concluded a new potash supply
contract with China for the first half of 2013.

In the fourth quarter, the wintry weather conditions that set in at
the end of November in Western Europe led to an overall average start
to the winter season 2012/13. In the United States and in Canada, the
winter that began late in December was, however, not sufficient for
the multi-year average sales volumes to be achieved overall in the
fourth quarter.

At EUR 941.6 million, the revenues of the K+S Group in the fourth
quarter of 2012 were about 8 % below the figure for the previous year
of EUR 1,021.5 million. At EUR 183.2 million, operating earnings EBIT
I remained about 12 % below the level of the previous year. In the
fourth quarter, adjusted Group earnings from continued operations
fell by around 12 % to EUR 131.6 million (Q4/2011: EUR 149.9
million).

K+S Group with attractive prospects K+S Chairman of the Board of
Executive Directors Norbert Steiner anticipates a positive business
development for 2013: "In the Salt business unit, we expect a
tangible recovery for sales volumes, if only because of the wintry
weather conditions at the start of this year. In the Potash and
Magnesium Products business unit, given the important agreements
concluded with China and India, we expect the sales volumes to be at
the high level of the previous year once again, albeit at a lower
average price level. All in all, we expect the K+S Group to achieve a
slight increase in revenues and operating earnings. For 2014, we also
see opportunities for a slight increase in revenues and earnings in
comparison to 2013", Steiner continues.

(For further details about the outlook in the Financial Report 2012,
see page 139.)

Experience growth K+S is one of the world's leading suppliers of
standard and specialty fertilizers. In the salt sector, K+S is the
world's leading producer with sites in Europe as well as North and
South America. K+S offers a comprehensive range of goods and services
for agriculture, industry, and private consumers, which provides
growth opportunities in virtually every sphere of daily life. The K+S
Group employs more than 14,000 people worldwide. The K+S share - the
commodities stock on the German DAX index - is listed on all German
stock exchanges (ISIN: DE000KSAG888, symbol: SDF). More information
about K+S can be found at www.k- plus-s.com. _

Note to editors The Financial Report 2012, the Corporate and
Sustainability Report 2012 and the K+S Q4/12 Facts & Figures are
available under www.k-plus-s.com/2012q4en on our website.
Furthermore, a video message by Norbert Steiner, Chairman of the
Board of Executive Directors, about the course of business and from
10 a.m., the talk by Norbert Steiner, Chairman of the Board of
Executive Directors, and Dr. Burkhard Lohr, member of the Board of
Executive Directors, for today's K+S annual results press conference
in Frankfurt am Main will be available there.

An analysts' conference in English will be held today at 1 p.m. also
in Frankfurt am Main. Norbert Steiner and the members of the Board of
Executive Directors, Dr. Burkhard Lohr and Mark Roberts, will take
part in it. Shareholders, investors, representatives of the press and
all other interested parties are invited to follow the conference via
a live webcast at (www.k-plus-s.com/en/ audio-und-video/cc.html)or by
phone on +49-69-6677-75757; PIN 3564773#. The conference is being
recorded and will also be available as a podcast.

Your contact persons:

Press:
Michael Wudonig, CFA
Phone: +49 561 9301-1262
Fax: +49 561 9301-1666
michael.wudonig@k-plus-s.com

Investor Relations:
Thorsten Boeckers
Phone: +49 561 9301-1460
Fax: +49 561 9301-2425
thorsten.boeckers@k-plus-s.com

Forward-looking statements This press release contains information
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 forecasts prove not to
be correct or risks arise - examples of which are mentioned in the
Risk Report - actual developments and events may deviate from current
expectations. Outside statutory disclosure provisions, the Company
does not assume any obligation to update the statements contained in
this press release.

Further inquiry note:
Press:
Michael Wudonig, CFA
Phone: +49 561 9301-1262
Fax: +49 561 9301-1666
michael.wudonig@k-plus-s.com

Investor Relations:
Thorsten Boeckers
Phone: +49 561 9301-1460
Fax: +49 561 9301-2425
thorsten.boeckers@k-plus-s.com

end of announcement euro adhoc
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company: K+S Aktiengesellschaft
Bertha-von-Suttner-Straße 7
D-34131 Kassel
phone: +49 (0)561 9301-1460
FAX: +49 (0)561 9301-2425
mail: investor-relations@k-plus-s.com
WWW: http://www.k-plus-s.com
sector: Chemicals
ISIN: DE000KSAG888
indexes: DAX, Midcap Market Index, CDAX, Classic All Share, HDAX, Prime All
Share
stockmarkets: regulated dealing: Hannover, Berlin, München, Hamburg, Düsseldorf,
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English