10 – Financial result
Million € |
|
2016 |
2015 |
|---|---|---|---|
Dividends and similar income |
|
39 |
47 |
Income from the disposal of shareholdings |
|
9 |
31 |
Income from profit transfer agreements |
|
6 |
2 |
Income from tax allocation to participating interests |
|
– |
– |
Income from other shareholdings |
|
54 |
80 |
Losses from loss transfer agreements |
|
(18) |
(16) |
Write-downs on/losses from the sale of shareholdings |
|
(53) |
(55) |
Expenses from other shareholdings |
|
(71) |
(71) |
Net income from shareholdings |
|
(17) |
9 |
|
|
|
|
Interest income from cash and cash equivalents |
|
159 |
184 |
Interest and dividend income from securities and loans |
|
20 |
29 |
Interest income |
|
179 |
213 |
Interest expenses |
|
(661) |
(638) |
Interest result |
|
(482) |
(425) |
|
|
|
|
Net interest income from overfunded pension plans and similar obligations |
|
5 |
3 |
Income from the capitalization of borrowing costs |
|
92 |
149 |
Miscellaneous financial income |
|
– |
– |
Other financial income |
|
97 |
152 |
Write-downs on/losses from the disposal of securities and loans |
|
(10) |
(18) |
Net interest expense from underfunded pension plans and similar obligations |
|
(183) |
(196) |
Net interest expense from other long-term personnel obligations |
|
(7) |
(3) |
Unwinding the discount on other noncurrent liabilities |
|
(47) |
(68) |
Miscellaneous financial expenses |
|
(231) |
(151) |
Other financial expenses |
|
(478) |
(436) |
Other financial result |
|
(381) |
(284) |
|
|
|
|
Financial result |
|
(880) |
(700) |
Net income from shareholdings was €26 million lower in 2016 than in the previous year. In 2015, higher income from the disposal of shareholdings was reported, particularly from the disposal of the share in Indaver N.V., Antwerp, Belgium.
The interest result declined by €57 million compared with the previous year from minus €425 million to minus €482 million. This was due to lower interest income particularly from liquid funds and higher interest expenses arising from bank loans outside of the eurozone.
Net interest expenses of the respective financial year is based on the discount rate and the defined benefit obligation at the beginning of the year. The net interest expense from underfunded pension plans and similar obligations decreased compared with the previous year, as a result of the reduced net defined benefit liability as of December 31, 2015.
In comparison with 2015, income from the capitalization of borrowing costs declined due to the start up of larger investment projects.
The rise in other financial expenses was largely attributable to hedging of loans in U.S. dollars.