Annual Report 2022

Pink patterns (graphic)

10. Financial Result

10.1  Result from Investments in Affiliated Companies

The result from investments in affiliated companies mainly comprised the result of equity-method valuation of the €19 million (previous year: €21 million) loss from the associated company PO JV, LP, Houston, Texas (United States), and the €2 million (previous year: €6 million) gain from Paltough Industries (1998) Ltd., Kibbuz Ramat Yochanan (Israel). This figure also included €2 million (previous year: €2 million) in dividend income from other affiliated companies.

10.2  Net Interest Expense

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

Net interest expense













€ million


€ million






Interest and similar expenses





Interest expenses from forward exchange contracts










Interest and similar income





Interest income from forward exchange contracts










Interest and similar expenses primarily resulted from interest expenses from leases totaling €25 million (previous year: €26 million) and bonds issued by Covestro AG totaling €25 million (previous year: €24 million). Interest income and expenses from forward exchange contracts included interest rate-driven changes in the fair value and the forward element.

10.3  Other Financial Result

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

Other financial result













€ million


€ million

Interest portion of interest-bearing provisions





Exchange gain/(loss)





Miscellaneous financial expenses










The interest portion of interest-bearing provisions mainly includes net interest expense from pension provisions and similar obligations amounting to €18 million (previous year: €18 million). In addition, expenses of €18 million (previous year: income of €5 million) arose in fiscal 2022 from the effects of compounding and changes in interest rates as well as measurement effects from other provisions and corresponding asset surpluses.

Miscellaneous financial expenses primarily included impairment losses of €8 million for a contingent purchase price receivable from divestments, which was recognized as the present value of future cash inflows on the basis of the expected EBITDA of the divested business unit for 2021. However, the EBITDA actually achieved in 2021 was well below expectations, so no purchase price payment was made. This item also includes expenses relating to fees in the amount of €4 million (previous year: €3 million) and negative interest on bank deposits and money market funds totaling €1 million (previous year: €5 million).

EBITDA / Earnings Before Interest, Taxes, Depreciation, and Amortization
EBIT plus depreciation and amortization of property, plant, equipment, and intangible assets.

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