Notes

Financial result
€ million	Q2/07	Q2/06	H1/07	H1/06
Interest income	3.3	4.2	4.9	5.5
Interest expense	(9.2)	(7.7)	(19.9)	(14.7)
- of which interest expense for pension provisions	(0.3)	(2.3)	(2.1)	(4.6)
- of which interest expense for provisions for mining  obligations	(3.8)	(3.4)	(7.5)	(6.9)
Interest income, net	(5.9)	(3.5)	(15.0)	(9.2)
Other financing costs	(0.2)	(7.5)	(0.7)	(8.4)
Income from the disposal of financial assets	0.1	15.2	0.1	16.8
Income from the measuring of financial assets at market value	(0.3)	(4.4)	(0.5)	(5.3)
Other financial result	(0.4)	3.3	(1.1)	3.1
Financial result	(6.3)	(0.2)	(16.1)	(6.1)

The actuarial valuation of pension provisions is performed using the projected unit credit method in accordance with IAS 19. The following parameters were applied in computing pension provisions:

•  Trend in salary increases:	1.5 %
•  Trend in pension increases:	1.5 %
•  Discount factor:	4.6 %

The following parameters were taken into account in computing a large portion of the provisions for mining obligations:

•  Trend in price increases:	1.5 %
•  Discount factor:	5.0 %

 

Taxes on income
€ million	Q2/07	Q2/06	H1/07	H1/06
Corporation tax	8.9	5.1	18.9	13.1
Trade tax on income	7.3	7.2	15.1	20.1
Foreign income taxes	1.5	0.5	11.0	4.5
Deferred taxes	6.5	10.5	11.1	40.7
Taxes on income	24.2	23.3	56.1	78.4

Non-cash deferred taxes result from tax loss carryforwards as well as other temporary tax-related measurement differences, especially changes in the market value of our options.

Contingent liabilities

There have been no significant changes in contingent liabilities in relation to the annual financial statements 2006 and they can be classified as immaterial overall.

Related parties

Within the K+S Group, deliveries and services are supplied on customary market terms. Transactions and open items between K+S Group companies are eliminated from the consolidated financial statements insofar as the companies are consolidated. There are no other related parties with which material transactions were conducted.

Auditors’ Review

The interim financial statements and the interim management report have not been reviewed by the auditors. (Section 37w par. 5 sentence 1 of the German Securities Trading Act - WpHG)