Notes to the Consolidated Financial Statements of the Covestro Group – Notes to the Statement of Financial Position

25. Contingent Liabilities and Other Financial Commitments

Contingent Liabilities

The following table shows contingent liabilities from warranty agreements and other contingent liabilities as of the reporting date:

Other Financial Commitments

Other financial obligations consisted of the following:

Some of the pension obligations allocable to the Covestro Group are funded through pension institutions used jointly with other companies (especially Bayer AG, Leverkusen (Germany)). In such cases, it can generally be contractually ensured that Covestro participates accordingly in funding measures that serve to guarantee adequate funding status and/or adequate solvency capital of these pension institutions for the long term. To this end, Covestro AG agreed to grant interest-bearing loans of up to €208 million to Bayer-Pensionskasse VVaG, Leverkusen (Germany), and up to €11 million to Rheinische Pensionskasse VVaG, Leverkusen (Germany), for the effective initial fund to be drawn down as required. In April 2023, Bayer-Pensionskasse VVaG notified Covestro of the partial repayment in the amount of €39 million of the initial funding loan drawn down in December 2022. Following the repayment, the loan commitments to the pension funds increased by €39 million to €156 million as of December 31, 2023 (previous year: €117 million).

• See note 28.1 “Related Companies.”