Financial result and net income

• Considerable year-on-year increase in financial result and net income
• Earnings per share rise from €4.42 to €6.62

The financial result improved to minus €722 million in 2017, compared with minus €880 million in the previous year.

Net income from shareholdings decreased from minus €17 million in 2016 to minus €29 million as a result of lower income from shareholdings.

The interest result improved from minus €482 million in 2016 to minus €334 million. Interest expenses declined due to the overall decrease in liabilities to credit institutions, the scaling back of the U.S. dollar commercial paper program and the associated hedging transactions. We also generated higher interest income from interest/cross-currency swaps and granting loans.

The other financial result amounted to minus €359 million, compared with minus €381 million in the previous year.

Income before taxes and minority interests rose from €5,395 million in the previous year to €7,800 million in 2017.

Income taxes increased from €1,140 million in 2016 to €1,448 million in 2017. At 18.6%, the tax rate was below the prior-year level (21.1%), mainly as a result of one-off deferred tax income in the total amount of €416 million from tax reforms, of which €379 million in the United States.

Income before minority interests rose from €4,255 million to €6,352 million. Minority interests amounted to €274 million, compared with €199 million in 2016.

At €6,078 million, net income was considerably higher than the prior-year figure of €4,056 million. Earnings per share increased from €4.42 to €6.62.