12.Financial Result

Result from investments in affiliated companies

The result from investments in affiliated companies comprised mainly the loss of €20 million (previous year: loss of €23 million) from PO JV, LP, Wilmington, Delaware (USA), an associate accounted for using the equity method, and the gain of €7 million from Paltough Industries (1998) Ltd., Kibbuz Ramat Yochanan (Israel), accounted for using the equity method (previous year: gain of €1 million). In addition, this item includes €1 million (previous year: €2 million) in dividend income from other investments.

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 for FX derivatives










Interest and similar income





Interest income from FX derivatives










Interest and similar expenses primarily resulted from interest expenses from leases totaling €28 million (previous year: €33 million) and bonds issued by Covestro AG totaling €20 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.

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





Miscellaneous financial expenses










The interest portion of interest-bearing provisions mainly comprised €24 million (previous year: €31 million) in interest expense for pension and other post-employment benefit provisions plus €5 million in effects of interest income (previous year: €4 million) from interest rate fluctuations for other provisions and corresponding overfunding in fiscal 2020.

Miscellaneous financial expenses included losses from the decline in the fair values of money market funds and a contingent purchase price receivable (€4 million), expenses from the early termination of the syndicated credit facility (€2 million), expenses for financing the purchase price associated with the announced acquisition of the Resins & Functional Materials (RFM) business of Koninklijke DSM N.V., Heerlen (Netherlands), (€2 million), and negative interest income from money market funds (€2 million).