Note 5: Financing income and expenses

Financing income and expenses

 

 

 

 

 

In € millions

 

2013

 

2014

Financing income

 

32

 

42

Financing expenses

 

(221)

 

(157)

Net interest on net debt

 

(189)

 

(115)

 

 

 

 

 

Other interest movements

 

 

 

 

Financing expenses related to pensions

 

(21)

 

(18)

Interest on provisions

 

(8)

 

(32)

Other items

 

18

 

9

Net other financing charges

 

(11)

 

(41)

Net financing expenses

 

(200)

 

(156)

Net financing expenses for the year decreased by €44 million, from €200 million to €156 million. Significant variances are:

  • Net interest on net debt decreased by €74 million to €115 million (2013: €189 million), mainly due to lower financing expenses as a result of bond repayments and a higher return on investments held in an escrow account
  • Financing expenses related to pensions decreased by €3 million to €18 million (2013: €21 million) despite higher discount rates, as the opening deficits to which they were applied were lower
  • Interest on other provisions increased by €24 million to €32 million (2013: €8 million) due to lower discount rates in 2014
  • Other items decreased by €9 million to €9 million (2013: €18 million), mainly due to lower capitalized interest (2014: €10 million; 2013: €12 million) and lower interest on other financial assets

The average interest rate used for capitalized interest was 5.1 percent (2013: 5.6 percent).