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RSS & PodcastsSignificant changes in individual balance sheet items
Compared with the annual financial statements for 2007, the balance sheet total as of 31 December 2008 was up € 509.0 million. On the asset side, non-current assets rose by € 72.1 million and current assets by € 436.9 million. The increase in non-current assets is mainly attributable to an increase in property, plant and equipment prompted by capital expenditure and foreign currency factors; the increase in current assets largely derives from an increase in inventories as well as a revenue-related rise in trade receivables. On the liabilities side, equity rose by € 786.5 million; this is primarily due to the positive result for the financial year 2008. Debt declined by € 277.5 million, which is mainly due to loan repayments.
Equity is influence both by business transactions which are either recognised in profit or loss or not as well as capital transactions with shareholders. Compared with the 2007 annual financial statements, the balance sheet profit and other reserves increased by € 733.0 million. The increase was mainly due to the positive result for the financial year 2008 (after taxes and minority interests) of € 870.9 million. The dividend payment of € 82.5 million effected in May 2008 had the effect of reducing equity. In addition, it should be noted that a capital increase from corporate funds was implemented in connection with the share split in the ratio 1:4. Consequently, the share capital increased by € 56.2 million to € 165.0 while other reserves declined to the same extent. Changes in equity without recognition in profit or loss resulted from, for example, the foreign currency translation of subsidiaries in functional foreign currencies.
Differences arising from foreign currency translation are recorded in a separate foreign currency translation reserve, which increased by € 18.7 million as of 31 December 2008 as a result of foreign currency fluctuations. Furthermore, as a result of the revaluation of “available for sale" securities and their subsequent contribution to a contractual trust arrangement, a revaluation reserve in the amount of € 20.3 million was derecognised.
* Without cash invested with respectively received from affiliated companies.
There have been no significant changes in contingent liabilities in comparison with the annual financial statements 2007 and they can be classified as immaterial overall.
Within the K+S Group, deliveries are made and services rendered 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. In addition, business relations are maintained with non-consolidated subsidiaries as well as companies over which the K+S Group can exercise a significant influence (associated companies). Such relationships do not have a material influence on the consolidated financial statements of the K+S Group. In the case of the K+S Group, related persons are mainly the Board of Executive Directors and the Supervisory Board. The remuneration received by this group of persons is disclosed annually in the remuneration report. There were no other material transactions with related parties.
The interim financial statements and the interim management report were not reviewed by the auditor. (Section 37w, Para. 5, Sent.1 of the German Securities Trading Act)
