10.Financial Result
Result from Investments in Affiliated Companies
The result from investments in affiliated companies mainly comprised the result of equity-method valuation of €21 million (previous year: €20 million) loss from the associated company PO JV, LP, Houston, Texas (United States), and the €6 million (previous year: €7 million) gain from Paltough Industries (1998) Ltd., Kibbuz Ramat Yochanan (Israel). This figure also included €2 million (previous year: €1 million) in dividend income from other affiliated companies.
Net Interest Expense
Net interest expense was comprised as shown in the following table:
|
|
|
|
|
|
|
2020 |
|
2021 |
|---|---|---|---|---|
|
|
€ million |
|
€ million |
Expenses |
|
|
|
|
Interest and similar expenses |
|
(50) |
|
(58) |
Interest expenses for FX derivatives |
|
(23) |
|
(21) |
Income |
|
|
|
|
Interest and similar income |
|
6 |
|
5 |
Interest income from FX derivatives |
|
20 |
|
33 |
Total |
|
(47) |
|
(41) |
Interest and similar expenses primarily resulted from interest expenses from leases totaling €26 million (previous year: €28 million) and bonds issued by Covestro AG totaling €24 million (previous year: €20 million). Interest income and expenses from forward exchange contracts included interest rate-driven changes in the fair value and the forward element.
Other Financial Result
The other financial result was comprised as shown in the following table:
|
|
|
|
|
|
|
2020 |
|
2021 |
|---|---|---|---|---|
|
|
€ million |
|
€ million |
Interest portion of interest-bearing provisions |
|
(19) |
|
(13) |
Exchange gain/(loss) |
|
3 |
|
1 |
Miscellaneous financial expenses |
|
(16) |
|
(11) |
Total |
|
(32) |
|
(23) |
The interest portion of interest-bearing provisions mainly comprised €18 million (previous year: €24 million) in interest expense for pension and other post-employment benefit provisions plus €5 million in effects of interest income (previous year: €5 million) from interest rate fluctuations for other provisions and corresponding overfunding in fiscal 2021.
Miscellaneous financial expenses included €5 million (previous year: €2 million) in negative interest on bank deposits and money market funds.