|
In € millions |
2011 |
2012 | ||
|
Financing income |
57 |
59 | ||
|
Financing expenses |
(302) |
(239) | ||
|
Net interest on net debt |
(245) |
(180) | ||
|
|
|
| ||
|
Other interest movements |
|
| ||
|
Financing expenses related to pensions |
(57) |
(65) | ||
|
Interest on provisions |
(46) |
(29) | ||
|
Other items |
12 |
7 | ||
|
Net other financing charges |
(91) |
(87) | ||
|
Net financing expenses |
(336) |
(267) |
Net financing charges for the year decreased by €69 million from €336 million to €267 million. Significant variances are:
- Financing expenses on net debt decreased by €63 million to €239 million (2011: €302 million) mainly due to a reported loss of €67 million on buy-back of bonds in December 2011
- Interest on provisions decreased by €17 million to €29 million (2011: €46 million) due to higher discount rates applied in 2012
- Financing expenses related to pensions increased by €8 million to €65 million (2011: €57 million) due to lower expected return on assets
- Other items decreased by €5 million to €7 million (2011: €12 million), mainly explained by lower interest on discounted long term receivables (€3 million)
A reduction of €8 million (2011: €4 million) was included in the interest expenses of capital investment projects under construction. The average interest rate used for capitalization of these borrowing costs was 6.1 percent.
