PostNL's revenue from contracts with customers consist of the provision of postal and logistics services. Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which PostNL expects to be entitled in exchange for those goods or services. Revenue is the gross inflow of economic benefits during the current year that arise from ordinary activities and result in an increase in equity, other than increases relating to contributions from equity participants.
If the consideration in a contract includes a variable amount, PostNL estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. PostNL provides volume discounts to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contract. Discounts are offset against amounts invoiced to the customer. To estimate the variable consideration for the expected future discounts, PostNL applies the expected value method. The variable consideration can be reasonably accurately determined from achieved volumes and contract agreements.
A contract liability is the obligation to transfer goods or services to a customer for which PostNL has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before PostNL transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when PostNL performs under the contract and relate to amongst others deferred revenue from unused stamps, deferred revenue from franking machines and the rental of mailboxes. See note 3.1.3 to the consolidated financial statements.
Revenue from contracts with customers represent revenue from the delivery of goods and services to third parties less discounts, credit notes and taxes levied on sales. Accumulated experience is used to estimate and provide for the discounts.
Other operating revenue relates to the sale of goods and rendering of services not related to PostNL’s ordinary postal and logistics services and mainly include rental income of temporarily leased-out property and custom clearance income.
The company’s business involves the logistical service of delivering mail, parcels and other consignments. Nearly all of the company’s revenues are represented by a single performance obligation being ‘logistic services’. Revenue is being recognised at a point in time when control is transferred to the customer, generally on delivery of the mail, parcels or other consignments. Other performance obligations within the company’s business comprise the rental of post-boxes (revenue recognition over time), print services (revenue recognition at a point in time) and stamp collection services (revenue recognition at a point in time).
The following table presents PostNL's revenue from contracts with customers relating to the reported operating segments. Refer to note 2.5 for the segment information of the other revenue and eliminations.
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Parcels | 1,547 | 1,663 |
Mail in the Netherlands | 1,672 | 1,600 |
PostNL Other | 74 | 81 |
Eliminations | (535) | (515) |
Total | 2,758 | 2,829 |
Volume and revenue growth within Parcels was partly offset by decreased revenue within Mail in the Netherlands, mainly resulting from the continued volume decline in addressed and unaddressed mail.
The following table presents the geographical segmentation of revenue from contracts with customers. The basis of allocation of revenue by geographical area is the country or region in which the entity recording the sales is located.
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
The Netherlands | 2,483 | 2,541 |
Rest of Europe | 148 | 158 |
Europe | 2,631 | 2,699 |
Rest of the World | 127 | 130 |
Total | 2,758 | 2,829 |
Operating expenses related to ordinary activities are recognised on an accrual basis. In case it is not possible to directly relate the operating expenses to a particular income earned or expected future income, these expenses are recognised in the period incurred.
As from 2019, lease expenses relate to short-term leases and leases of which the underlying assets are of low value. Payments made (net of any incentives received from the lessor) are charged to the income statement as incurred during the period of the lease.
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Parcels | 655 | 691 |
Mail in the Netherlands | 383 | 395 |
PostNL Other | 33 | 63 |
Work contracted out | 1,071 | 1,149 |
Rent & lease expenses | 67 | 16 |
External temporary staff | 170 | 165 |
Total | 1,308 | 1,330 |
Costs of work contracted out and other external expenses increased by €22 million in 2019 mainly due to increased volumes and service expansion within Parcels, partly offset by the decrease of rent & lease expenses resulting from the adoption of IFRS 16.
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Salaries | 756 | 786 |
Social security charges | 115 | 127 |
Salaries and social security charges | 871 | 913 |
Defined benefit plans | 114 | 107 |
Defined contribution plans | 12 | 12 |
Pension charges | 126 | 119 |
Net addition to restructuring provisions | 3 | 26 |
Share-based payments | 3 | 1 |
Total | 1,003 | 1,059 |
In 2019, pension charges decreased by €7 million, resulting from lower regular defined benefit charges. More detailed information on pensions is included in note 3.5. For the net additions to restructuring provisions reference is made to note 3.6 Other provisions.
1 | 2018 | 2019 |
|---|---|---|
Headcount | ||
Parcels | 5,722 | 7,027 |
Mail in the Netherlands | 30,753 | 37,966 |
PostNL Other | 1,310 | 1,310 |
Total at year end | 37,785 | 46,303 |
External agency staff at year end | 7,309 | 6,702 |
Full-time equivalents (FTEs) | ||
Parcels | 4,664 | 5,653 |
Mail in the Netherlands | 14,547 | 17,075 |
PostNL Other | 1,210 | 1,245 |
Total year average | 20,421 | 23,973 |
The total headcount of PostNL increased by 8,518 employees, which mainly relates to the acquisition of Sandd and an increase within Parcels due to growth in parcel volumes, partly offset by the reduction within Mail in the Netherlands due to the impact of volume decline and cost savings initiatives. The labour force is also measured in FTEs based on the hours worked divided by the local standard. In 2019, the average number of FTEs increased by 3,552 FTEs compared to 2018. The average number of employees working in the Netherlands was 23,315 FTEs (2018: 19,827) and outside the Netherlands was 658 FTEs (2018: 594).
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Amortisation of intangible assets | 25 | 34 |
Impairment of intangible assets | 4 | |
Depreciation property, plant and equipment | 53 | 59 |
Impairment of property, plant and equipment | 5 | 2 |
Depreciation right-of-use assets | 77 | |
Impairment of assets held for sale | 4 | |
Total | 83 | 180 |
In 2019, depreciation and amortisation include €25 million of accelerated write-down of assets from Sandd, mainly related to right-of-use assets. A large part of Sandd's assets will only be used until February 2020 and are therefore depreciated in 3 months as of the acquisition date.
In 2019, amortisation of intangible assets related to software for €31 million (2018: €22 million) and other intangibles for €3 million (2018: €3 million). The increase in amortisation of software relate to increased investments in IT projects and the acquisition of Sandd. The impairment of intangible assets of €4 million, recorded within PostNL Other, partly related to software from Stockon.
In 2019, the impairment of assets held for sale of €4 million relates to a fair value impairment of Spotta, within Mail in the Netherlands, that is classified as held for sale per 31 December 2019. The impairment of property, plant and equipment of €2 million is recorded within Mail in the Netherlands and mainly concerns the impairment of real-estate related assets used by Spotta.
In 2018, the impairment of property, plant and equipment of €5 million, recorded within Mail in the Netherlands, mainly related to the demolition of a building of which the land is used to build a new parcel sorting centre.
The other operating expenses of €101 million (2018: €151 million) consist of IT, communication, office, travel, consulting and training expenses and other shared services costs. The decrease in 2019 includes the benefit of the review of the methodology for calculating non-deductible VAT charges, with application as from the year 2018.
In 2019, total incurred EY audit fees amounted to €2.6 million (2018: €2.2 million).
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Audit fees | 1.3 | 1.7 |
Audit-related fees | 0.9 | 0.7 |
Tax advisory fees | 0.0 | 0.0 |
Other non-audit services | 0.0 | 0.2 |
Total | 2.2 | 2.6 |
Audit fees include fees from the audit of the financial statements. Audit-related services include fees from assurance engagements related to the corporate responsibility information, regulatory reporting obligations, employee benefit plan data and other assurance engagements for the benefit of third parties. Other non-audit services include fees from, amongst others, consent and comfort letters to security offering and agreed upon procedures.
In accordance with Dutch legislation, article 2:382a of the Dutch Civil Code, the total audit and audit-related fees charged by the auditor EY based in the Netherlands amounted to €2.3 million (2018: €1.7 million), subdivided into audit services of €1.4 million, audit-related services of €0.7 million and other non-audit services of €0.2 million.
Interest income and expense are recognised on a time-proportionate basis using the effective interest method. All borrowing costs are recognised in profit or loss using the effective interest method, except to the extent that they can be capitalised as cost of a qualifying asset.
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Interest expenses on long-term borrowings | 14 | 5 |
Interest on net defined benefit pension liabilities | 8 | 6 |
Interest on leases | 0 | 3 |
Other | 5 | 5 |
Interest and similar expense | 27 | 19 |
Other interest and similar income | (3) | (3) |
Net financial expense/(income) | 24 | 16 |
In 2019, interest expenses on long-term borrowings decreased mainly as a result of the repayment of a bond in August 2018, which was replaced by a new bond with a lower interest rate.
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised directly in other comprehensive income. The amount of income tax included in the income statement is determined in accordance with the rules established by the tax authorities, based on which income taxes are payable or recoverable.
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Current tax expense | 45 | 39 |
Changes in deferred taxes | (11) | (8) |
Total income tax expense | 34 | 31 |
Income taxes paid | 39 | 34 |
The difference between the total income taxes in the income statement and the current tax expense is due to temporary differences. These differences are recognised as deferred tax assets or deferred tax liabilities, see note 3.8 to the consolidated financial statements.
In 2019, the income taxes paid relate almost completely to income taxes paid in the Netherlands and include payments and refunds related to prior years. The 2019 difference between the total income taxes (€31 million) and the income taxes paid (€34 million) can mainly be explained by the changes in deferred taxes (€8 million) and the 2019 movements of the net income tax payable position (€(6) million).
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Dutch statutory income tax rate | 25.0 | 25.0 |
Adjustment regarding statutory income tax rates other countries | (0.4) | 0.0 |
Weighted average statutory tax rate | 24.6 | 25.0 |
Tax effects of: | ||
Non and partly deductible costs | 1.5 | 4.0 |
Exempt income | (0.3) | (0.2) |
Other | (4.7) | 1.3 |
Effective income tax rate | 21.1 | 30.1 |
The line ‘Non and partly deductible costs’ mainly relates to non deductible costs relating to the Sandd acquisition, the so-called mixed expenses (e.g., meals, entertainment) and the non deductible treatment of our share based payments. The line ‘Exempt income’ relates to the non taxable treatment of our results from (former) participations. The line ‘Other’ consists mainly of the impact of tax rate changes in the Netherlands on our deferred tax positions going forward (1.7%; 2018: -3.9%), updates of our prior year tax positions in the Netherlands (-1.7%), expiration of tax carry forwards in the Netherlands (1.2%) and several smaller effects (0.1%).
PostNL presents (diluted) earnings per share (EPS) for its ordinary shares. EPS is calculated by dividing the profit or loss attributable to the equity holders of the parent by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is calculated by dividing the profit or loss attributable to the equity holders of the parent by the weighted average number of ordinary shares outstanding, including the effects for dilution of ordinary shares following the obligations to employees under existing share plans.
The following table summarises the outstanding shares for PostNL’s calculation related to earnings per share.
Year averages and numbers at 31 December | 2018 | 2019 |
|---|---|---|
Number of issued and outstanding ordinary shares | 469,199,776 | 493,952,586 |
Shares held by the company to cover share plans | 0 | 0 |
Average number of ordinary shares per year | 462,015,866 | 482,577,917 |
Diluted number of ordinary shares per year | 1,163,235 | 906,369 |
Average number of ordinary shares per year on a fully diluted basis | 463,179,101 | 483,484,286 |
At 31 December 2019, PostNL had potential obligations under share plans to deliver 906,369 shares (2018: 1,163,235 shares), calculated based on the share price of €2.012 as at 31 December 2019 (31 December 2018: €1.997).
The consolidated statement of cash flows is prepared in accordance with IAS 7 using the indirect method. Cash flows in foreign currencies are translated at average exchange rates. Receipts and payments with respect to taxation on profits and interest payments are included in the cash flow from operating activities. Interest receipts and the cost of acquisition of subsidiaries, associates and investments, insofar as it was paid for in cash, are included in cash flows from investing activities. Acquisitions of subsidiaries are presented net of cash balances acquired. Cash flows from derivatives are recognised in the statement of cash flows in the same category as those of the hedged item.
In 2019, net cash from operating activities of €210 million (2018: €29 million) resulted from €258 million of cash generated from operations (2018: €94 million) reduced by €14 million interest paid (2018: €26 million) and €34 million income tax paid (2018: €39 million).
The increase in cash generated from operations of €164 million is explained by €36 million higher profit before income tax adjusted for non-cash items and investment income, a change in working capital of €87 million and a higher change in other provisions of €44 million, partly offset by a lower change in pension liabilities of €3 million. The increase in profit before income tax adjusted for non-cash items and investment income was mainly due to the adoption of IFRS 16 which causes a shift from net cash from operating activities to net cash used in financing activities (repayments of lease liabilities).
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Total profit before tax adjusted for non cash items and investment income | 252 | 288 |
Pension expense defined benefit plans | 114 | 107 |
Cash contributions defined benefit plans | (103) | (99) |
Payment unconditional funding obligation | (33) | (33) |
Change in pension liabilities | (22) | (25) |
Additions to/releases from provisions | 9 | 44 |
Withdrawals | (23) | (14) |
Change in other provisions | (14) | 30 |
Changes in working capital | (122) | (35) |
Total cash generated from operations | 94 | 258 |
For the changes in provisions, reference is made to note 3.5 Provisions for pension liabilities and to note 3.6 Other provisions. The lower investments in working capital mainly related to lower trade accounts receivable within Parcels and within Mail in the Netherlands.
The interest paid is explained as follows:
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Interest on long-term borrowings | 20 | 4 |
Interest on leases | 0 | 5 |
Bank charges and other | 6 | 5 |
Total | 26 | 14 |
The interest paid on long-term borrowings decreased mainly as a result of the repayment of a bond in 2018, which was replaced by a new bond with a lower interest rate.
The income taxes paid of €34 million (2018: €39 million) mainly related to income taxes paid in the Netherlands and include payments and refunds related to prior years.
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Acquisition of subsidiaries (net of cash) | (65) | |
Capital expenditure on intangible assets and property, plant and equipment | (95) | (66) |
Proceeds from sale of property, plant and equipment | 46 | 14 |
Changes in other loans receivable | 1 | 0 |
Other | 0 | 11 |
Net cash (used in)/from investing activities | (48) | (106) |
In 2019, cash outflow net of cash for acquisitions related to the acquisition of Sandd (€64 million) and the acquisition of Mostert Verkerk (€1 million). Reference is made to note 5.3 Business combinations.
In 2019, capital expenditures on intangible assets of €32 million (2018: €40 million) mostly related to software including prepayments for software. The capital expenditures on property, plant and equipment amounting to €34 million (2018: €55 million) mainly related to the sorting equipment for the small parcel sorting centre within Parcels and to various other equipment. Capital expenditures are funded primarily by cash generated from operations and are part of strict cash control and review.
In 2019, proceeds from the sale of property, plant and equipment amounted to €14 million (2018: €46 million) and mainly related to the sale of several buildings.
In 2019, other includes an amount of €6 million received for the reduction of our stake in Whistl, a financial asset at fair value through OCI. In the consolidated statement of cash flows, the amount is included in 'Other changes in (financial) fixed assets'. Further, 'Other' includes €3 million net cash received for the sale of PostNL Communicatie Services, a subsidiary from Mail in the Netherlands. The book profit on the sale of PostNL Communicatie Services of €5 million is included in other income in the consolidated income statement. An additional amount of €7 million from the sale will be received in 2020.
Year ended at 31 December | 2018 | 2019 |
|---|---|---|
Dividends paid | (63) | (71) |
Net cash from debt financing activities | (220) | 232 |
Repayments of leases | (2) | (62) |
Net cash (used in)/from financing activities | (285) | 99 |
In 2019, net cash from financing activities of €99 million (2018: €(285) million) related to the final 2018 and interim 2019 cash dividend paid of €71 million (2018: €63 million), the proceeds of a new eurobond of €296 million partly offset by the repayment of short-term borrowings of Sandd of €64 million (2018: €223 million repayment of a eurobond) and the repayments of leases of €62 million (2018: €2 million). Refer to note 3.4 for further information on leases. Reference is also made to note 4.1 Net debt and note 4.5 Financial instruments.
The decrease of total equity from €49 million on 31 December 2018 to €(18) million on 31 December 2019 is mainly explained by net profit for the year of €4 million, partly offset by the payment of cash dividends of €71 million in total and other comprehensive income of €(1) million. Other comprehensive income mainly consisted of a negative impact from pensions of €5 million and the increase in value of the investment in Whistl by €3 million.
Equity attributable to the equity holders of PostNL consisted of the following items:
As at 31 December 2019, issued share capital amounted to €40 million (2018: €38 million) and additional paid-in-capital amounted to €160 million (2018: €160 million). For details on Issued share capital and Additional paid-in capital, reference is made to note 4.6.
The following table presents the reserves included in the other reserves.
Currency translation reserve | Hedge reserve | Financial assets at fair value OCI | Other reserves | Total other reserves | |
|---|---|---|---|---|---|
Balance at 1 January 2018 | 0 | (1) | 0 | 74 | 73 |
Total comprehensive income | 0 | 1 | 11 | 27 | 39 |
Appropriation of net income | (48) | (48) | |||
Share-based compensation | 1 | 1 | |||
Balance at 31 December 2018 | 0 | 0 | 11 | 54 | 65 |
Total comprehensive income | 0 | (2) | 3 | (2) | (1) |
Appropriation of net income | (166) | (166) | |||
Share-based compensation | (1) | (1) | |||
Balance at 31 December 2019 | 0 | (2) | 14 | (115) | (103) |
As at 31 December 2019, the translation reserve amounted to €0 million (2018: €0 million), mainly reflecting the movement in exchange rate differences on converting subsidiaries of Spring within Parcels into euros.
As at 31 December 2019, the hedge reserve amounted to €(2) million (2018: €0 million). The tax impact on the cash flow hedges included in the hedge reserve as at 31 December 2019 is €0 million (2018: €0 million). For more information, see note 4.5 to the consolidated financial statements.
As at 31 December 2019, the reserve related to the financial assets at fair value through OCI amounted to €14 million (2018: €11 million). The increase in 2019 related to the increase in value of the investment in Whistl by €3 million (2018: €11 million). For more information, see note 4.2 to the consolidated financial statements.
As at 31 December 2019, the other reserves amounted to €(115) million (2018: €54 million). In 2019, the other reserves decreased by €169 million mainly resulting from the appropriation of net income from 2018 of €(166) million and a negative pension effect within other comprehensive income (net of tax) of €5 million. For details on pensions, reference is made to note 3.5.
As at 31 December 2019, retained earnings amounted to €(118) million (2018: €(217) million). In 2019, retained earnings increased by €99 million due to the appropriation of net income from 2018 of €166 million and total profit for the year of €4 million in 2019, partly offset by the payment of cash dividends of €71 million in total.
The Board of Management has proposed not to make an amount available for distribution of dividend. Refer to note 6.5 for more details of this proposal.
PostNL reports two operating segments: Parcels and Mail in the Netherlands and one other segment: PostNL Other. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-makers. These chief operating decision-makers, who are responsible for allocating resources and assessing the performance of the operating segments, have been identified as the Board of Management of PostNL that makes strategic decisions. Transfer prices between operating segments are on an arm's length basis. PostNL Other represents head office entities, including the difference between the recorded IFRS pension expense for the defined benefit pension plans and the actual cash contributions.
The following table presents the reconciliation of the 2019 segment information relating to the income statement of the reportable segments. Segment information relating to the balance sheet is reported in note 3.11.
Year ended at 31 December 2019 | Parcels | Mail in NL | PostNL Other | Eliminations | Total |
|---|---|---|---|---|---|
Revenue from contracts with customers | 1,473 | 1,356 | 0 | 2,829 | |
Intercompany sales | 190 | 244 | 81 | (515) | |
Other operating revenue | 9 | 6 | 15 | ||
Total operating revenue | 1,672 | 1,606 | 81 | (515) | 2,844 |
Other income | 0 | 12 | 0 | 12 | |
Depreciation/impairment PP&E | (24) | (32) | (5) | (61) | |
Amortisation/impairment intangibles | (9) | (17) | (12) | (38) | |
Depreciation/impairment right-of-use assets | (31) | (32) | (14) | (77) | |
Impairment assets held for sale | (4) | (4) | |||
Total operating income | 120 | 25 | (26) | 119 | |
Net financial income/(expense) | (16) | ||||
Results from investments in JVs/associates | 0 | ||||
Income taxes | (31) | ||||
Profit/(loss) from discontinued operations | (68) | ||||
Profit for the year | 4 | ||||
Underlying cash operating income | 121 | 76 | (21) | 176 |
The key financial performance indicator for management is underlying cash operating income. The underlying cash operating performance focuses on the underlying cash earnings performance, which is the basis for the dividend policy. In the analysis of the underlying cash operating performance, adjustments are made for exceptional items as well as adjustments for non-cash costs for pensions and provisions. For pensions, the IFRS-based defined benefit plan pension expenses are replaced by the non-IFRS measure of the actual cash contributions for such plans. For the other provisions, the IFRS-based net charges are replaced by the related cash outflows. Underlying cash operating income is reported on a monthly basis to the chief operating decision-makers.
The following table presents the reconciliation from reported operating income to underlying operating income and underlying cash operating income.
Year ended at 31 December | Reported operating income | Restruc-turing related charges | Payment uncond. funding obligation pensions | Accelerated write-down of Sandd assets | Project costs and other | Underlying operating income | Changes in provisions | Changes in pension liabilities | Underlying cash operating income |
|---|---|---|---|---|---|---|---|---|---|
Parcels | 120 | 2 | 2 | (2) | 122 | 2 | (3) | 121 | |
Mail in NL | 25 | 25 | 27 | 25 | (25) | 77 | 6 | (7) | 76 |
PostNL Other | (26) | (29) | 18 | (37) | (2) | 18 | (21) | ||
Total 2019 | 119 | 27 | 0 | 25 | (9) | 162 | 6 | 8 | 176 |
In 2019, underlying operating income totalled €162 million (2018: €209 million). Underlying operating income excludes exceptional items, which amounted to €43 million in 2019 (2018: €24 million). In 2019, the normalisation for project costs and other of €(9) million related to non-deductible VAT 2018 (€(20) million), compensation for transitional payments (€(8) million), fair value impairments of Stockon and Spotta (€9 million), book profit on the sale of PostNL Communicatie Services (€(5) million), regulatory-related advisory costs and Sandd-related transaction and integration costs (€14 million) and the consolidation effect of discontinued operations (€1 million). In 2019, the fifth and last instalment of the unconditional funding obligation to the pension fund of €33 million was paid. The segments Parcels, Mail in the Netherlands and PostNL Other record the unconditional funding obligation paid as expenses. As these payments do not represent IFRS-based pension expenses, PostNL Other records the reverse effect.
In 2019, underlying cash operating income totalled €176 million (2018: €188 million). The changes in provisions of €6 million in 2019 (2018: €(32) million) represent the difference between the underlying net addition for restructuring and other provisions of €17 million (2018: €4 million) and the underlying cash payments of €11 million (2018: €36 million). The changes in pension liabilities of €8 million in 2019 (2018: €11 million) represent the difference between the recorded underlying pension expenses of €119 million (2018: €126 million), and the underlying cash payments of €111 million (2018: €115 million), which excludes the fifth and last instalment of the unconditional funding obligation of €33 million (2018: €33 million). The decrease of €12 million in underlying cash operating income comprised lower results at Mail in the Netherlands (€(17) million), partly offset by a higher result in Parcels (€4 million) and PostNL Other (€1 million).
The following tables present the reconciliation of the 2018 segment information relating to the income statement of the reportable segments. The figures have been represented for adjusted segment reporting and the impact of the discontinued operations. Segment information relating to the balance sheet is reported in note 3.11.
Year ended at 31 December 2018 | Parcels | Mail in NL | PostNL Other | Eliminations | Total |
|---|---|---|---|---|---|
Revenue from contracts with customers | 1,342 | 1,415 | 1 | 2,758 | |
Intercompany sales | 205 | 257 | 73 | (535) | |
Other operating revenue | 8 | 6 | 14 | ||
Total operating revenue | 1,555 | 1,678 | 74 | (535) | 2,772 |
Other income | 1 | 19 | 1 | 21 | |
Depreciation/impairment PP&E | (21) | (31) | (6) | (58) | |
Amortisation/impairment intangibles | (9) | (11) | (5) | (25) | |
Total operating income | 119 | 100 | (34) | 185 | |
Net financial income/(expense) | (24) | ||||
Results from investments in JVs/associates | 0 | ||||
Income taxes | (34) | ||||
Profit/(loss) from discontinued operations | (94) | ||||
Profit for the year | 33 | ||||
Underlying cash operating income | 117 | 93 | (22) | 188 |
Year ended at 31 December | Reported operating income | Project costs and other | Impair- ment building | Restruc- turing related charges | Payment uncond. funding obligation pensions | Underlying operating income | Changes in provisions | Changes in pension liabilities | Underlying cash operating income |
|---|---|---|---|---|---|---|---|---|---|
Parcels | 119 | 2 | 121 | (1) | (3) | 117 | |||
Mail in NL | 100 | 4 | 3 | 26 | 133 | (27) | (13) | 93 | |
PostNL Other | (34) | 17 | (28) | (45) | (4) | 27 | (22) | ||
Total 2018 | 185 | 17 | 4 | 3 | 0 | 209 | (32) | 11 | 188 |
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