Our outlook for 2020
Development of forecasts for the whole year 2020
Expected earnings development, financial position and planned capital expenditure of K+S
| ACTUAL 2019 | Forecast in 2019 Annual Report | Forecast Q1/2020 | ||
|---|---|---|---|---|
| K+S Group | ||||
| EBITDA1 | € million | 640.4 | 500 to 620 | about 520 |
| – Operating unit Europe+ | € million | 437.0 | tangible decline to almost stable | tangible decline |
| – Operating unit Americas | € million | 230.0 | slight to tangible decline | moderate decline |
| Capital expenditure2 | € million | 493.3 | significant increase | significant increase |
| Consolidate earnings after tax, adjusted3 | € million | 77.8 | significant decrease | significant decrease |
| Adjusted free cash flow | € million | 139.7 | break even | break even |
| ROCE | % | 2.3 | significant decrease | significant decrease |
| Average EUR/USD exchange rate after hedging | EUR/USD | 1.14 | 1.12 | 1.12 |
| Sales volumes Agriculture customer segment | million tonnes | 6.3 | above 7 | above 7 |
| Average price Agriculture customer segment | €/t | 272.4 | slight decrease towards Q4 2019 | slight increase towards Q1 2020 |
| Sales volumes Communities customer segment | million tonnes | 12.7 | 8 to 9 | about 8 |
1 EBITDA is defined as earnings before interest, taxes, depreciation and amortization, adjusted for depreciation and amortization of own work capitalized
recognized directly in equity, gains/losses from fair value changes arising from operating anticipatory hedges still outstanding and changes in the fair value of
operating anticipatory hedges recognized in prior periods.
2 Relates to cash payments for investments in property, plant and equipment and intangible assets, excluding leases in accordance with IFRS 16.
3 The adjusted key indicators include the result from operating forecast hedges in the respective reporting period, which eliminates effects from fluctuations in the
market value of the hedges. In addition, related effects on deferred and cash taxes are eliminated; tax rate for 2019: 30.0%.
Dividend policy
Our earnings-oriented dividend policy is generally reflected in a payout ratio of 40% to 50% of adjusted Group earnings after taxes. Against the backdrop of the global economic crisis triggered by the corona pandemic, the Board of Executive Directors and the Supervisory Board of K+S Aktiengesellschaft resolved on 8 May 2020 for reasons of prudence to adjust the dividend proposal for 2019 to the statutory minimum dividend of € 0.04 per share (previous dividend proposal € 0.15 per share).
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