02 Income from Investments in Joint Ventures and Associates / Net Interest Income / Other Financial Results

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€ million










Income from investments in joint ventures and associates





Of which pro rata result attributable to joint ventures










Net interest income





Interest income





Of which from available-for-sale financial instruments





Interest expenses















Other financial results





Other financial income





Interest effect of interest-bearing provisions/liabilities/financial leases





Other financial expenses















Financial result





The income from investments in joint ventures and associates relates mainly to companies in China and Singapore. This income includes not only the pro rata shares of net results for the year, but also effects from pro rata eliminations of intercompany profits.

Borrowing costs of €11.3 million (2010: €13.5 million) were capitalized during the reporting period, bringing about a corresponding improvement in interest expenses. To the extent that a loan is attributable to a particular investment, the actual borrowing costs are capitalized. If no direct allocation is possible, the Group’s average borrowing interest rate during the current period is applied. This rate was 4.1 percent in 2011 (2010: 4.5 percent).

The interest effect of interest-bearing provisions includes expenses from accrued interest on pension provisions of €26.6 million (2010: €22.7 million) and expenses from accrued interest on other provisions of €10.1 million (2010: €3.3 million).

Other financial income and expenses primarily result from currency translation.