In accordance with our dividend policy, adopted at 21 February 2020, PostNL aims to pay a dividend that develops substantially in line with operational performance. The dividend pay-out ratio will be around 70% - 90% of normalised comprehensive income. Further to the normalisation applied to operation income, we also normalise the result from our discontinued operations. In 2020, PostNL's normalised comprehensive income amounted to €197 million (2019: €83 million).
Year ended at 31 December
Profit for the year
Other comprehensive income
Normalisations on EBIT (less statutory tax)
Normalise result from discontinued operations
Normalised comprehensive income
Our dividend policy states that dividend distribution is conditional on being properly financed in accordance with our financial framework. PostNL is steering for a solid balance sheet with a positive consolidated equity, aiming at a leverage ratio (adjusted net debt/EBITDA) not exceeding 2.0 and applying strict cash flow management. This condition was clearly met at the end of 2020. As a result, PostNL will recommend to the Annual General Meeting of Shareholders a payout of 70% of normalised comprehensive income, being a dividend of €0.28 per ordinary share (2019: €0.08). This will be paid as 2020 final dividend in May 2021 after approval by the Annual General Meeting of Shareholders.
We refer the reader to the 'PostNL on the capital markets' chapter for a description of our dividend policy, and the 'Financial statements' chapter for more information on the appropriation of profit.