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 €22 million (previous year: €19 million) loss from the associated company PO JV, LP, Houston, Texas (United States), and the €2 million (previous year: €2 million) gain from Paltough Industries (1998) Ltd., Kibbutz Ramat Yochanan (Israel). This figure also included €1 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:
|
|
|
|
|
|
|
2022 |
|
2023 |
|---|---|---|---|---|
|
|
€ million |
|
€ million |
Expenses |
|
|
|
|
Interest and similar expenses |
|
(63) |
|
(102) |
Interest expenses for FX-derivatives |
|
(67) |
|
(58) |
Income |
|
|
|
|
Interest and similar income |
|
8 |
|
44 |
Interest income from FX-derivatives |
|
61 |
|
26 |
Total |
|
(61) |
|
(90) |
Interest and similar expenses primarily resulted from interest expenses on leases totaling €28 million (previous year: €25 million), on bonds issued by Covestro AG totaling €46 million (previous year: €25 million), and on Schuldschein loans issued by Covestro AG in the amount of €27 million (previous year: €5 million).
Interest and similar income resulted mainly from short-term investments and bank balances.
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:
|
|
|
|
|
|
|
2022 |
|
2023 |
|---|---|---|---|---|
|
|
€ million |
|
€ million |
Interest portion of interest-bearing provisions |
|
(36) |
|
(9) |
Exchange gain/(loss) |
|
(9) |
|
7 |
Miscellaneous financial expenses |
|
(16) |
|
(2) |
Total |
|
(61) |
|
(4) |
Expenses from the interest portion of interest-bearing provisions mainly included net interest expense from pension provisions and similar obligations amounting to €16 million (previous year: €18 million). In addition, net income of €7 million (previous year: net expenses of €18 million) arose in fiscal 2023 from the effects of discount unwinding and changes in interest rates as well as measurement effects from other provisions and corresponding asset surpluses.
Other financial expenses (net presentation) primarily included expenses relating to fees amounting to €3 million (previous year: €4 million), less income of €1 million (previous year: expenses of €1 million) from the fair value measurement of the initial funding loans granted to Bayer-Pensionskasse VVaG, Leverkusen (Germany), and Rheinische Pensionskasse VVaG, Leverkusen (Germany).