10 – Financial result

  (XLS:) Download (xls, 24 kB)

Million €

2013

2012

Dividends and similar income

44

41

Income from the disposal of shareholdings

20

17

Income from profit transfer agreements

8

14

Income from tax allocation to participating interests

2

3

Income from other shareholdings

74

75

Losses from loss transfer agreements

(18)

(23)

Write-downs on/losses from the sale of shareholdings

(52)

(20)

Expenses from other shareholdings

(70)

(43)

Interest income from cash and cash equivalents

140

169

Interest and dividend income from securities and loans

20

8

Interest income

160

177

Interest expenses

(688)

(724)

Net interest income from overfunded pensions and similar obligations

2

6

Income from the capitalization of borrowing cost

108

67

Miscellaneous financial income

128

Other financial income

238

73

Write-downs on/losses from the disposal of securities and loans

(4)

(18)

Net interest expenses from underfunded pensions and similar obligations

(192)

(121)

Net interest expense from other long-term personnel obligations

(8)

(16)

Interest compounding on other noncurrent liabilities

(70)

(59)

Miscellaneous financial expenses

(109)

Other financial expenses

(274)

(323)

Financial result

(560)

(765)

Income from shareholdings declined from €32 million to €4 million, primarily as a result of impairments on other shareholdings.

The interest result improved slightly compared with the previous year. This was due to lower interest expenses arising from redeemed bonds that could be refinanced with more favorable conditions as well as a reduction in liabilities to credit institutions. The decrease in interest income is mainly attributable to lower income from interest rate swaps.

The considerable year-on-year increase in net interest expense from underfunded plans is due to the rise in underfunding over the course of 2012, since the calculation of the net interest expense is based on the net balance approach at the beginning of each corresponding year. The main reason for the rise in underfunding is the significant increase in the defined benefit obligation for pension obligations resulting from the capital market-related reduction in the discount rate as of the balance sheet date of December 31, 2012.

Miscellaneous financial income in 2013 included effects from the market valuation of options for the disposal of BASF’s share in the Styrolution joint venture amounting to €119 million. In 2012, the market valuation of these options let to €88 million in other financial expenses.