Interest income and expenses are allocated to the period to which they relate based on time proportionality, using the effective interest method. Construction period interest is applied to investment projects with estimated durations of more than 12 months (see note 12: Property, plant and equipment).
|
€ Million |
2023 |
2022 |
|
Financial income |
19 |
5 |
|
Total financial income |
19 |
5 |
|
Other financial expenses |
40 |
33 |
|
Total financial expenses |
40 |
33 |
|
0 |
||
|
Total, net financial expenses |
-21 |
-28 |
Financial expenses mainly consist of interest payments related to borrowings. For further details on these loans, please refer to note 22: Interest-bearing liabilities (non-current) and note 28. Interest-bearing liabilities (current).
The decrease in the negative balance of financial income and expenses is mainly attributable to higher interest income on cash in money market funds, deposits, and bank accounts, and the repayment of a € 500 million bond with an interest rate of € 1.5% in October 2023. The decrease was partially offset due to a higher interest rate expense as a result of the issue of a € 500 million green bond with an interest rate of 3.625% in June 2023.