5.9 Net financial expense

  For the first half of
  2014 2013 restated
(€’000) Income Expense Net Income Expense Net
Interest and fees 240 841 -601 219 1,424 -1,205
Exchange rate gains and losses 14,274 13,699 575 10,519 11,598 -1,079
Fair value gains and losses 411 1,099 -688 557 1,100 -543
Interest on Italian post-employment benefits - 256 -256 - 245 -245
Interest on other defined benefit plans - 189 -189 - 180 -180
Other financial income and expense - 265 -265 677 710 -33
Total net financial expense 14,925 16,349 -1,424 11,972 15,257 -3,285
Net related party financial income 131 19 112 210 40 170
Total 15,056 16,368 -1,312 12,182 15,297 -3,115

Net financial expense for the first half of 2014 amounts to €1,312 thousand, a €1,803 thousand improvement over the €3,115 thousand for the corresponding period of the previous year. The improvement is mainly due to net interest and fees which improved by €604 thousand and exchange rate gains of €1,654 thousand.
Related party transactions mainly relate to the ultimate parent, Finmeccanica, for interest on giro current accounts and deposits and with Società consortile SP M4.

Registered Office: 16151 Genoa Via Paolo Mantovani, 3 - 5
Paid-in Share Capital EUR 100,000,000 R.E.A. n. 421689 Register of Enterprises of Genoa Tax Code 01371160662
A Finmeccanica Company