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:

Net interest expense

 

 

 

 

 

 

 

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:

Other financial result

 

 

 

 

 

 

 

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.