K+S presents the management agenda for the coming years at its Capital Markets Day today. Norbert Steiner, Chairman of the Board of Executive Directors at K+S, stresses: "We have created the basis for a prosperous future of K+S. Our Legacy Project in Canada in conjunction with our sustained cost reduction efforts and the successful implementation of our ‘Salt 2020’ strategy ensures that we are well positioned to generate sustainable value for our shareholders." Addressing Canada-based PotashCorp’s abandoned takeover proposal, Steiner remarks: "K+S’s entire Board of Executive Directors is aware that we have to ‘deliver’ – and that is what we will do!"
2020 EBITDA target of € 1.6 billion reaffirmed
The medium to long-term growth outlook for the industry remains intact despite the current weakening in the potash market. "We are confirming our forecast for an incremental increase in the Group’s EBITDA to around € 1.6 billion by 2020", announces Steiner today at Merkers – the mining expierence.
Dr. Burkhard Lohr, Chief Financial Officer, explains that the current high level of capital expenditures in the Legacy Project, as well as the strict cost discipline within the Group, will have a positive effect on the financial situation of the K+S Group in the very near future: "We will see a substantial reduction in our debt levels and we expect to start generating positive free cash flows again from 2017 onwards. Our investors will benefit from this in the form of attractive dividends and an unchanged investment grade credit rating."
Salt business: EBIT increase to over € 250 million by 2020
During his presentation, Mark Roberts, member of the Board of Executive Directors of K+S with responsibility for the Salt Business unit, reports on the the steady progress in implementing the ‘Salt 2020’ strategy. "We are well on the way to achieving an increase in our EBIT to more than € 250 million by 2020 - assuming normalized winter business". By implementing this strategy, the salt business will continue to grow in existing and new markets thanks to its unique international presence. "With increasing earnings and cash contribution, the Salt unit is an indispensable part of the K+S Group", Roberts adds.
Potash business increases efficiency and expands in specialties
Dr. Andreas Radmacher, member of the Board of Executive Directors of K+S in charge of the Potash and Magnesium Products business unit, emphasizes the long-term attractiveness of the potash business and the importance of the Legacy Project. He also explains how to further increase efficiency within the business unit: "Within our MOP business we are focused on cost optimization and on creating additional added value along the entire supply chain. We intend to utilize the wide variety of nutrients at our disposal to expand our specialty products portfolio."
Legacy Project on schedule and within budget
Dr. Ulrich Lamp, President and CEO of K+S Potash Canada, announces the ongoing positive development of the Legacy Project: "Construction of the new potash plant in Canada is progressing very well. The project is within budget, on time and the plant is all set to be commissioned in summer 2016 as planned."
Source: K+S Group
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