Financial position
Multi-period overview of financial position
| Figures in € million | 2011 | 2010 | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|
| Gross cash flow 1) | 910.6 | 812.7 | 323.9 | 1,117.9 | 372.1 |
| Working Capital | 840.9 | 959.4 | 970.5 | 962.3 | 570.6 |
| Cash flow from operating activities 1), 2), 3) | 815.2 | 834.7 | 502.2 | 852.0 | 268.1 |
| Free cash flow before acquisitions 1),2), 3), 4) | 562.4 | 657.0 | 333.2 | 681.8 | 115.3 |
| Cash flow from financing activities 1) | (261.7) | (439.7) | 1,168.1 | (318.0) | 81,7 |
| Equity ratio (%) | 50.9 | 47.6 | 40.1 | 49.5 | 31.4 |
| Non-current provisions as share of balance sheet total (%) | 13.6 | 15.5 | 16.0 | 16.4 | 20.5 |
| Level of indebtedness I (%) | 25.0 | 29.7 | 60.5 | 15.5 | 73.9 |
| Level of indebtedness II (%) | 19.8 | 27.6 | 64.5 | 33.2 | 116.4 |
1) Information for the years 2011 und 2010 refers to the continued operations of the K+S Group.
2) Adjusted for the change in the tie-up of funds for premium payments for hedging transactions.
3) Without out-financing of pension obligations in the amount of: 2011: € (110.0) million, 2010: € (2.7) million, 2009: € (2.3) million, 2008: € (7.4) million, 2007: € (9.4) million.
4) Without investments in securities and other financial investments in the amount of: 2011: € (372.4) million, 2008: € +0.0 million, 2007: € +9.4 million.
Net indebtedness development
With net indebtedness of € 610.8 million (including non-current provisions of € 675.9 million) and a level of indebtedness of only 19.8%, the K+S Group has a strong financial base. This and a high operating cash flow mean that we are able to respond flexibly to investment and acquisition opportunities. Our currently very low level of net indebtedness should rise significantly in comparison to the previous year. This assumption takes into consideration the expected capital expenditure budget, including the Legacy Project, and the total dividend payment resulting from the dividend proposal by the Board of Executive Directors. For 2013, we expect, against the backdrop of rising capital expenditure in the Legacy Project, a significant increase in net indebtedness. Nonetheless, in 2012 and 2013, we should report an equity ratio of at least 50% and a level of indebtedness of under 30%.
Liquidity analysis of non-derivative financial liabilities
| in € million | 2011 Carrying amount |
2011 total |
Residual term <1 year |
Residual term >1 year and <5 years |
Residual term >5 years |
|---|---|---|---|---|---|
| Bank loans and overdrafts | 770.6 | 890.0 | 40.2 | 828.0 | 21.8 |
| - of which bonds | 765.8 | 884.5 | 39.2 | 823.5 | 21.8 |
| - of which liabilities towards banks | 4.8 | 5.5 | 1.0 | 4.5 | - |
| Accounts payable - trade | 613.8 | 613.8 | 613.3 | 0.5 | - |
| Liabilities to affiliated companies | 14.0 | 14.0 | 14.0 | - | - |
| Other liabilities | 34.7 | 34.7 | 23.7 | 10.0 | 1.0 |
| Non-derivative financial liabilities | 1,433.1 | 1,552.5 | 691.2 | 838.5 | 22.8 |
| in € million | 2010 Carrying amount |
2010 total |
Residual term <1 year |
Residual term >1 year u. <5 years |
Residual term >5 years |
|---|---|---|---|---|---|
| Bank loans and overdrafts | 786.6 | 946.8 | 57.8 | 865.4 | 23.6 |
| - of which bonds | 764.1 | 922.8 | 39.2 | 860.8 | 22.8 |
| - of which liabilities towards banks | 22.5 | 24.0 | 18.6 | 4.6 | 0.8 |
| Accounts payable - trade | 511.2 | 511.2 | 510.8 | 0.4 | - |
| Liabilities to affiliated companies | 12.6 | 12.6 | 12.6 | - | - |
| Other liabilities | 51.7 | 51.7 | 33.9 | 16.6 | 1.2 |
| Non-derivative financial liabilities | 1,362.1 | 1,522.3 | 615.1 | 882.4 | 24.8 |
The financial liabilities as at the reporting date mainly concern K+S Aktiengesellschaft and result from the bond issued in September 2009 with a volume of € 750 million, which carries a fixed interest rate of 5.0% and has a maturity of five years.
In addition, the USD bond taken over in 2009 as part of the acquisition of Morton Salt with an outstanding sum of USD 145.2 million was partially repurchased by Rohm & Haas in 2010. This leaves a remainder of USD 22.6 million maturing in 2020. Interest and repayment contributions resulting from this will be paid by Rohm & Haas and are contractually covered by a bank guarantee. The reimbursement claims for interest and repayment amounts resulting from this contractual construction are shown under the item “Receivables and other assets” in the non-current and current areas.
Rating
K+S received an "investment grade" rating on 23 April 2009. Further information can be found in our Rating section.
