In € million

 

 

 

FY 2018

 

FY 2017

Cost of borrowings

 

 

 

(131)

 

(162)

Interest on lendings & deposits

 

 

 

13

 

15

Other gains & lossess on net indebteness

 

 

 

(1)

 

(23)

Net cost of borrowings

 

a

 

(118)

 

(170)

Coupons on perpetual hybrid bonds

 

b

 

(112)

 

(111)

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

 

c

 

(21)

 

(24)

Cost of discounting provisions

 

d

 

(74)

 

(89)

Net financial charges

 

f = a+b+c+d

 

(326)

 

(394)

Underlying net financial charges[1] were 17% lower, reflecting the impacts of ongoing deleveraging and optimization of the debt structure. Discounting costs were down from last year both for employee benefits and environmental related provisions.

[1] Underlying net financial charges include the coupons on perpetual hybrid bonds (accounted as dividends under IFRS, and thereby excluded from the P&L), as well as the financial charges and realized foreign exchange losses from the RusVinyl joint venture (part of earnings from associates under IFRS, and thereby included in the IFRS EBITDA).