In € million




FY 2017


FY 2016


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 totaled €(394) million, 15% lower year on year. Net cost of borrowings fell as gross debt was reduced throughout 2016 and 2017, and as discounting costs on pensions dropped on lower discount rates.