10.Financial Result

10.1 Result from investments in affiliated companies

The result from investments in affiliated companies comprised mainly the loss of €23 million (previous year: loss of €25 million) from PO JV, LP, Wilmington, NC (USA), an associate accounted for using the equity method, and the gain of €1 million from Paltough Industries (1998) Ltd., Kibbuz Ramat Yochanan (Israel), accounted for using the equity method (previous year: €3 million from Paltough Industries (1998) Ltd. and DIC Covestro Polymer Ltd., Tokyo (Japan)). In addition, this item includes €2 million (previous year: €1 million) in dividend income from other investments. Further details of the companies accounted for using the equity method are given in note 15 “Investments Accounted for Using the Equity Method.”

10.2 Net interest expense

Net interest expense was comprised as shown in the following table:

Interest and similar expenses primarily resulted from interest expenses from leases totaling €33 million (previous year: €14 million) and Covestro AG loans totaling €14 million (previous year: €14 million). Interest expense and interest income from forward exchange contracts included interest rate-induced fair value changes and the forward element.

10.3 Other financial result

The other financial result was comprised as shown in the following table:

The interest portion of interest-bearing provisions comprised €31 million (previous year: €25 million) in interest expense for pension and other post employment benefit provisions plus €4 million in effects of interest income (previous year: interest expense of €7 million) from interest rate fluctuations for other provisions and corresponding overfunding.