10.1 Result from Investments in Affiliated Companies

The result from investments in affiliated companies mainly comprised the result of equity-method measurement of the €18 million (previous year: €9 million) loss from the investment in PO JV, LP, Houston, Texas (United States), and the €1 million (previous year: €5 million) gain from Paltough Industries (1998) Ltd., Kibbutz Ramat Yohanan (Israel). This figure also included €2 million (previous year: €2 million) in dividend income from other equity investments.

10.2 Net Interest Expense

Net interest expense was comprised as shown in the following table:

Net interest expense
2024 2025
€ million € million
Expenses
Interest and similar expenses (103) (89)
Interest expenses from forward exchange contracts (42) (44)
Income
Interest and similar income 37 20
Interest income from forward exchange contracts 19 16
Total (89) (97)

Interest and similar expenses primarily resulted from interest expense on bonds issued by Covestro⁠ ⁠AG totaling €37⁠ ⁠million (previous year: €44⁠ ⁠million), on leases totaling €29⁠ ⁠million (previous year: €30⁠ ⁠million), and on Schuldschein loans issued by Covestro⁠ ⁠AG in the amount of €14⁠ ⁠million (previous year: €19⁠ ⁠million).

Interest and similar income resulted mainly from short-term investments and bank balances.

Interest income and expense from forward exchange contracts included interest rate-driven changes in the fair value and the forward element.

10.3 Other Financial Result

The other financial result was comprised as shown in the following table:

Other financial result
2024 2025
€ million € million
Interest portion of interest-bearing provisions (14) (24)
Exchange gain/(loss) (4) 1
Miscellaneous financial expenses (5) (10)
Total (23) (33)

Among other things, expenses from the interest portion of interest-bearing provisions included net interest expense from pension provisions and similar obligations amounting to €11⁠ ⁠million (previous year: €14⁠ ⁠million).

Among other things, other financial expenses (net presentation) included expenses relating to fees in connection with financing arrangements amounting to €4⁠ ⁠million (previous year: €3⁠ ⁠million).