Financial Result

The financial result for 2016 was minus €1,155 million (2015: minus €1,005 million), comprising an equity-method loss of €26 million (2015: €9 million), financial expenses of €1,280 million (2015: €1,367 million) and financial income of €151 million (2015: €371 million). Details of the components of the financial result are provided below.

Income (loss) from investments in affiliated companies

The net income (loss) from investments in affiliated companies was comprised as follows:

Income (Loss) from Investments in Affiliated Companies

 

 

2015

 

2016

 

 

€ million

 

€ million

Net loss from investments accounted for using the equity method (equity-method loss)

 

(9)

 

(26)

Expenses

 

 

 

 

Impairment losses on investments in affiliated companies

 

(1)

 

(2)

Income

 

 

 

 

Impairment loss reversals on investments in affiliated companies

 

 

Income / losses from investments in affiliated companies and from profit and loss transfer agreements (net)

 

3

 

Gains from the sale of investments in affiliated companies

 

31

 

6

Total

 

24

 

(22)

The main components of the loss (2015: income) from investments in affiliated companies were the €24 million (2015: €23 million) equity-method loss from the associate PO JV, LP, United States, and the minus €2 million (2015: €14 million) aggregate of the equity-method income and losses of the remaining joint ventures and associates accounted for using the equity method.

Further details of the companies accounted for using the equity method are given in the Note “Investments Accounted for Using the Equity Method”.

Net interest expense

The net interest expense was comprised as follows:

Net Interest Expense

 

 

2015

 

2016

 

 

€ million

 

€ million

Expenses

 

 

 

 

Interest and similar expenses

 

(752)

 

(684)

Interest expenses for derivatives (held for trading)

 

(25)

 

(3)

Income

 

 

 

 

Interest and similar income

 

297

 

137

Interest income from derivatives (held for trading)

 

25

 

2

Total

 

(455)

 

(548)

Interest and similar expenses included interest expense of €42 million (2015: €49 million) relating to nonfinancial liabilities. Interest and similar income included interest income of €10 million (2015: €133 million) from nonfinancial assets.

Other financial income and expenses

Other financial income and expenses were comprised as follows:

Other Financial Income and Expenses

 

 

2015

 

2016

 

 

€ million

 

€ million

Expenses

 

 

 

 

Interest portion of interest-bearing provisions

 

(287)

 

(294)

Exchange loss

 

(254)

 

(193)

Miscellaneous financial expenses

 

(48)

 

(104)

Income

 

 

 

 

Miscellaneous financial income

 

15

 

6

Total

 

(574)

 

(585)

The interest portion of noncurrent provisions comprised €276 million (2015: €276 million) in interest expense for pension and other post-employment benefit provisions plus €18 million (2015: €11 million) in effects of interest expense and interest-rate fluctuations for other provisions and corresponding overfunding. The interest expense for pension and other post-employment benefit provisions included €736 million (2015: €712 million) for the unwinding of discount on the present value of the defined benefit obligation and €460 million (2015: €436 million) in interest income from plan assets.

The miscellaneous financial expenses included €51 million in commitment fees and other fees related to the syndicated bank financing for the planned acquisition of Monsanto.