[12] Financial income

Financial income breaks down as follows:

Financial income

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.

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