In € million






FY 2016


FY 2015 pro forma


Underlying net financial charges include the coupons on perpetual hybrid bonds, which are accounted as dividends under IFRS, and thereby excluded from the income statement, as well as the financial charges and realized foreign exchange losses in the RusVinyl joint venture, which under IFRS are part of the earnings from associates & joint ventures and thereby included in the IFRS EBITDA.

Net cost of borrowings







Coupons on perpetual hybrid bonds







Interests and realized foreign exchange gains (losses) on the RusVinyl joint venture







Cost of discounting provisions







Result from available-for-sale financial assets





Net financial charges(1)


f = a+b+c+d+e





Underlying net financial charges rose to € (469) m from € (441) m in 2015.

  • The underlying net cost of borrowings increased to € (226) m compared to € (210) m a year ago, with currency swapping costs and higher average interest rates offsetting the effects of lower indebtedness and reduced cost of carry.
  • The coupons on perpetual hybrid bonds were € (111) m, in line with 2015.
  • Financial charges on the RusVinyl joint venture were largely stable at € (26) m versus € (27) m last year.
  • Non-cash discounting costs on pension and environmental liabilities were € (106) m, compared to € (92) m in 2015. The increase is due to positive one-off effects in 2015 on post-retirement benefits.