Explanatory notes; changes in the legal Group and organisational structure
The interim report of 31 December 2008 is prepared in accordance with the International Financial Reporting Standards (IFRSs) as well as the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), insofar as those have been recognised by the European Union. The report is prepared as abridged financial statements with selected explanatory notes as stipulated by IAS 34. The accounting and valuation principles of this interim report correspond to those of the consolidated financial statements as at 31 December 2007. The legal Group and organisational structure presented in the Financial Report 2007 changed only slightly as of 31 December 2008: As was already explained in the Financial Report, the Waste Management and Recycling business segment was grouped together with the service activities bundled in the Services and Trading business segment and the new entity was given the name “Complementary Business Segments”. In this context, K+S Consulting GmbH was deconsolidated. In addition, our IT subsidiary data process GmbH was renamed IT Services GmbH and since 1 January 2008 has been presented in the reconciliation due to the low level of third-party revenues. The company K+S Argentina SRL was included in the scope of consolidation from the first quarter due to increased business activities. The companies K+S Mining Argentina SPL and esco Holding France S.A.S have been included in the scope of consolidation since the fourth quarter. The restructuring of the business with nitrogenous fertilizers at COMPO and fertiva was already implemented at the end of the year in the Group and corporate structure and will also result in changes to the reporting structure in the second half of 2009.
There were no significant changes to the composition and responsibilities of the Board of Executive Directors and Supervisory Board as described in the 2007 Financial Report.
There are seasonal differences over the course of the year that affect sales of fertilizers and salt products. In the case of fertilizers, we generally attain our highest sales in the first half of the year because of the use of fertilizers in Europe during the spring. This effect can either be enhanced or diminished by overseas sales. Sales of salt products – especially of de-icing salt – largely depend on winter weather conditions during the first and fourth quarters. In the aggregate, both these effects mean that revenues and earnings are generally greatest during the first half of the year.
Development of revenues, volumes and average prices by region
* Revenues include prices both inclusive and exclusive of freight cost and are based on the respective USD/EUR spot exchange rates in the case of overseas revenues. Hedging transactions have been concluded for most of these revenues (see page 26). The information on prices is to be understood solely as providing a rough indication.
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