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€ million |
2011 |
2010 |
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Income from investments in joint ventures and associates |
-7.7 |
-38.0 |
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Of which pro rata result attributable to joint ventures |
-20.7 |
-17.2 |
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Net interest income |
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Interest income |
16.9 |
7.1 |
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Of which from available-for-sale financial instruments |
0.2 |
1.0 |
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Interest expenses |
-13.5 |
-9.1 |
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3.4 |
-2.0 |
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Other financial results |
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Other financial income |
23.4 |
49.2 |
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Interest effect of interest-bearing provisions/liabilities/financial leases |
-38.8 |
-28.3 |
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Other financial expenses |
-23.8 |
-51.2 |
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-39.2 |
-30.3 |
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Financial result |
-35.8 |
-32.3 |
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.