[12] Financial income
Financial income breaks down as follows:
in € million |
2022 |
2021 |
|---|---|---|
Interest income from lease business |
80.6 |
71.8 |
Foreign currency exchange rate gains (financing) |
98.1 |
28.8 |
Net interest income from defined benefit plans and similar obligations |
1.4 |
0.7 |
Changes in fair value of derivatives without hedge relationship and ineffectiveness |
31.7 |
9.3 |
Income from fair value hedges |
69.3 |
5.3 |
Other interest and similar income |
22.3 |
5.4 |
Total financial income |
303.3 |
121.1 |
One of the reasons for the €182.1 million rise in financial income to €303.3 million was higher interest income from the lease business (details of the countervailing interest expense from the lease business can be found in note [13]). The interest income from the lease business relates to the interest portion of lease payments in which KION Group subsidiaries operate as lessors and the arrangements are classified as a finance lease relationship.
Foreign currency exchange rate gains predominantly arise in connection with foreign currency positions in internal financing and the related hedging transactions that are not part of a formally documented hedge.
Financial income was also boosted by positive changes in the fair value of interest-rate derivatives that are used to manage interest-rate risk in the lease portfolio and are designated as part of a fair value hedge or are accounted for separately. This can be explained by the sharp rise in interest rates over the course of the year.