Impairment: K+S Cleans Up Balance Sheet

The K+S Board of Executive Directors has adjusted its long-term assumptions against the background of the realignment of the Company and the sale of the Americas operating unit. This mainly concerns the long-term potash price assumption as well as a higher cost of capital rate. Based on the current potash price level, K+S expects prices to continue to rise in the short and medium term. However, the assumption regarding the long-term price trend is now lower than previously assumed. Overall, this results in a one-off, non-cash impairment loss on assets in the Europe+ operating unit of about € 2 billion. This special impairment will be made for the third quarter of 2020 and will have a corresponding negative impact on adjusted net income after taxes and ROCE, but will not lead to a liquidity outflow.

Based on the operating performance in the third quarter, the outlook for EBITDA in 2020 of about €480 million after one-time restructuring expenses is confirmed.

The detailed figures for the third quarter of 2020 will be published on November 12, 2020.

More information on the impairment and the outlook of K+S is available at www.kpluss.com.