Depreciation, financial result and taxes

Depreciation

Impairment losses amounted to €977 million. The reduced sales and earnings expectations due to the war in Ukraine and the sanctions imposed on Russia led to impairments of assets. Impairment losses on goodwill amount to €55 million, of which €38 million relate to Russia and €17 million to Ukraine. Impairment losses on property, plant and equipment amounting to €76 million are mainly attributable to Ukraine in the amount of €45 million and Russia in the amount of €21 million.

• Further disclosures about impairment losses are provided in the notes to the consolidated financial statements in no. 15 – depreciation/amortisation/impairment losses.

Net financial result

The net financial result primarily comprises the interest result of €−157 million (2020/21: €−194 million) and the other financial result of €−421 million (2020/21: €25 million). The main reason for the negative development of the other financial result is the exchange rate development of the Russian rouble, which is attributable to the war-related sanctions against Russia and its counter-sanctions. As a result, negative valuation effects arose from intra-group items. The net interest result improved significantly as a result of declining interest expenses from leases and lower interest expenses for other financial liabilities compared to the previous year.

• For more information about the net financial result, see the notes to the consolidated financial statements in no. 7 – earnings share of operating companies recognised at equity, no. 8 – other investment result, no. 9 – net interest income/interest expenses and no. 10 – other financial result.

Taxes

The increase in income tax expenses is attributable to improved results in various countries as well as withholding tax from intra-group dividends.

• For more information about income taxes, see the notes to the consolidated financial statements in no. 12 – income taxes.