Notes

Explanatory notes; changes in the legal Group and organisational structure

The interim report of 30 June 2009 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.

In financial year 2009, the following amendments to accounting standards were applied for the first time:

•  IFRS 8 – Operating Segments: Revised IFRS 8 requires the presentation of the segments corresponding to the internal financial reporting structure. The new rule has not resulted in any significant change in the presentation of the segments, as segment earnings were already disclosed in the internal controlling variable EBIT I before the standard was amended.

•  IAS 1 – Disclosure of derivatives: Amended IAS 1 requires the disclosure of derivatives as non-current or current financial instruments depending on their anticipated time of settlement. Thus, the balance sheet disclosure of derivatives in the current period has changed; the previous year’s figures have been adjusted accordingly.

•  IAS 1 – Statement of Comprehensive Income: In addition to the actual income statement, amended IAS 1 requires reconciliation to comprehensive income. As well as net income per the income statement, comprehensive income includes income and expenses that are not recognised in profit or loss. In the statement of changes in equity, comprehensive income is only stated as a total.

•  IAS 23 – Capitalisation of borrowing costs: Amended IAS 23 makes the previously optional capitalisation of borrowing costs obligatory. Consequently, borrowing costs that can be directly allocated to constructing or producing a so-called qualifying asset have to be capitalised. This new rule had no significant impact on the consolidated financial statements for the first half of 2009.

 

The legal Group and organisational structure presented in the Financial Report 2008 changed slightly as of 30 June 2009: As a result of a merger, the assets and liabilities of K+S Sal do Brasil Participacoes e Investimentos Ltda. and SPL Brasil Empreendimentos e Participacoes e Investimentos Ltda. were transferred to Salina Diamante Branco Ltda. at 27 February 2009. In addition, K+S Finance Belgium BVBA was included in the consolidated financial statements for the first time.

The following changes in the composition and responsibilities of the Board of Executive Directors and the Supervisory Board as described in the Financial Report 2008 occurred in the second quarter: The term of office of Norbert Steiner as chairman of the Board of Executive Directors, which expires on 11 May 2010, was extended by a further five years at the Supervisory Board meeting held on 12 May 2009. Moreover, the Supervisory Board appointed Jan Peter Nonnenkamp as a new member of the Board of Executive Directors of K+S Aktiengesellschaft. Since 1 June 2009, he has taken over responsibility for financial matters, which was previously held in personal union by the chairman of the Board of Executive Directors. Furthermore, he will be responsible for the tax, audit, insurance and procurement departments. There have been no other noteworthy changes.

€ million	LTM* 2009	2008
Revenues	4,211.3	4,794.4
EBIT I	982.1	1,342.7
Group earnings, adj.	663.8	979.3
*   LTM = last twelve months     (Q3/08 + Q4/08 + Q1/09 + Q2/09)

Seasonal factors

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.