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) 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 | 2019 | 2020 |
|---|---|---|
Parcels | 1,663 | 2,044 |
Mail in the Netherlands | 1,600 | 1,702 |
PostNL Other | 81 | 107 |
Eliminations | (515) | (614) |
Total | 2,829 | 3,239 |
The increase in revenue mainly related to volume growth within Parcels supported by the impact of Covid-19 and to the acquisition of Sandd in 2019 within Mail in the Netherlands, partly offset by the continued volume decline in addressed 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 | 2019 | 2020 |
|---|---|---|
The Netherlands | 2,541 | 2,833 |
Rest of Europe | 158 | 203 |
Europe | 2,699 | 3,035 |
Rest of the World | 130 | 203 |
Total | 2,829 | 3,239 |
Other income mainly relates to the profit or loss from the sale of group companies, the sale of assets held for sale and the sale or sale-and-leaseback of property, plant and equipment.
In 2020, other income of €66 million mainly relates to the book profit of €60 million on the sale-and-leaseback transaction, described in further detail hereafter. The remaining part of other income mainly relates to the profit on the sale of other buildings and the sale of Adeptiv, a subsidiary of Mail in the Netherlands (€3 million).
On 5 November 2020, PostNL entered into a sale-and-leaseback transaction relating to four mail sorting centres and the international sorting centre. PostNL received gross proceeds of €150 million from this transaction. The related book gain of €60 million is reported within other income. The transaction resulted in the disposal of property, plant and equipment for €36 million, the disposal of right-of-use assets for €7 million (leasehold land and buildings), new lease liabilities of €66 million and additions in right-of-use assets of €21 million. The new leases were discounted with rates between 3.0-3.3%, the lease terms varying between 5 and 10 years. The sale-and-leaseback transaction has strengthened the balance sheet and the net proceeds have improved the free cash flow for 2020. Taking into account the long-term lease arrangements related to this transaction, the positive impact on the adjusted net debt position at transaction date amounted to €97 million, improving the leverage ratio.
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 | 2019 | 2020 |
|---|---|---|
Parcels | 691 | 816 |
Mail in the Netherlands | 395 | 451 |
PostNL Other | 63 | 72 |
Work contracted out | 1,149 | 1,338 |
Rent & lease expenses | 16 | 14 |
External temporary staff | 165 | 172 |
Total | 1,330 | 1,524 |
Costs of work contracted out and other external expenses increased by €194 million in 2020 mainly due to increased volumes and service expansion within Parcels.
Year ended at 31 December | 2019 | 2020 |
|---|---|---|
Salaries | 786 | 866 |
Social security charges | 127 | 138 |
Salaries and social security charges | 913 | 1,005 |
Defined benefit plans | 107 | 133 |
Defined contribution plans | 12 | 12 |
Pension charges | 119 | 145 |
Net addition to restructuring provisions | 26 | 6 |
Share-based payments | 1 | 3 |
Total | 1,059 | 1,159 |
In 2020, pension charges increased by €26 million, resulting from higher 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 | 2019 | 2020 |
|---|---|---|
Headcount | ||
Parcels | 7,027 | 7,716 |
Mail in the Netherlands | 37,966 | 31,498 |
PostNL Other | 1,310 | 1,327 |
Total at year end | 46,303 | 40,541 |
External agency staff at year end | 6,702 | 5,995 |
Full-time equivalents (FTEs) | ||
Parcels | 5,653 | 6,295 |
Mail in the Netherlands | 17,075 | 14,803 |
PostNL Other | 1,245 | 1,206 |
Total year average | 23,973 | 22,304 |
External agency staff year average | 3,434 | 1,957 |
The total headcount of PostNL decreased by 5,762 employees. Although all Sandd's postal deliverers (11,000 in total) have been offered jobs with PostNL, about 4,000 mail deliverers employed by Sandd have accepted the job offer and started working for PostNL. The remainder chose for the opportunities they have in the labour market and the severance payments offered by Sandd. In addition, over 300 employees working in sorting, as drivers and in other roles have also joined PostNL from Sandd. Within Parcels, growth in parcel volumes led to an increase in headcount. The labour force is also measured in FTEs based on the hours worked divided by the local standard. In 2020, the average number of FTEs decreased by 1,669 FTEs compared to 2019. The average number of employees working in the Netherlands was 21,485 FTEs (2019: 23,315) and outside the Netherlands was 819 FTEs (2019: 658).
Year ended at 31 December | 2019 | 2020 |
|---|---|---|
Amortisation of intangible assets | 34 | 37 |
Impairment of intangible assets | 4 | 6 |
Depreciation property, plant and equipment | 59 | 49 |
Impairment of property, plant and equipment | 2 | |
Depreciation right-of-use assets | 77 | 70 |
Impairment of right-of-use assets | 1 | |
Impairment of assets held for sale | 4 | |
Total | 180 | 164 |
In 2020, depreciation and amortisation include €14 million (2019: €25 million) of accelerated write-down of assets from Sandd, mainly related to right-of-use assets. A large part of Sandd's assets has only been used until February 2020 and were therefore depreciated in 3 months as of the acquisition date.
In 2020, amortisation of intangible assets related to software for €33 million (2019: €31 million) and other intangibles for €4 million (2019: €3 million). The increase in amortisation of software relate to increased investments in IT projects. The impairment of intangible assets included €4 million related to the customer list of PS Nachtdistributie within Parcels, triggered by a material deviation in the actual and expected revenues and EBITDA development compared to the expectations applied in the purchase price allocation valuation at acquisition in 2017. In 2019, the impairment of intangible assets of €4 million, recorded within PostNL Other, partly related to software from Stockon.
The decrease in depreciation of property, plant and equipment mainly relates to lower accelerated depreciation of assets from Sandd, the sale of PostNL Communicatie Services and Spotta, the sale-and-leaseback transaction of four mail sorting centres and the international sorting centre and fully depreciated sorting machines within Mail in the Netherlands.
In 2019, the impairment of assets held for sale of €4 million related to a fair value impairment of Spotta, within Mail in the Netherlands, that was classified as held for sale per 31 December 2019. The impairment of property, plant and equipment of €2 million was recorded within Mail in the Netherlands and mainly concerned the impairment of real-estate related assets used by Spotta.
The other operating expenses of €119 million (2019: €101 million) consist of IT, communication, office, travel, consulting and training expenses and other shared services costs.
In 2020, total incurred EY audit fees amounted to €2.5 million (2019: €2.6 million).
Year ended at 31 December | 2019 | 2020 |
|---|---|---|
Audit fees | 2.0 | 2.0 |
Audit-related fees | 0.4 | 0.5 |
Tax advisory fees | 0.0 | 0.0 |
Other non-audit services | 0.2 | 0.0 |
Total | 2.6 | 2.5 |
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 €2.1 million (2019: €2.3 million), subdivided into audit services of €1.6 million and audit-related services of €0.5 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 | 2019 | 2020 |
|---|---|---|
Interest expenses on long-term borrowings | 5 | 7 |
Interest on net defined benefit pension liabilities | 6 | 2 |
Interest on leases | 3 | 4 |
Other | 5 | 6 |
Interest and similar expense | 19 | 18 |
Other interest and similar income | (3) | (2) |
Net financial expense/(income) | 16 | 16 |
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 | 2019 | 2020 |
|---|---|---|
Current tax expense | 39 | (18) |
Changes in deferred taxes | (8) | 86 |
Total income tax expense | 31 | 68 |
Income taxes paid | 34 | 12 |
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 2020, the income taxes paid relate mainly to income taxes paid in the Netherlands, Germany and Belgium and include payments and refunds related to prior years. The 2020 difference between the total income taxes (€68 million) and the income taxes paid (€12 million) can mainly be explained by the changes in deferred taxes (€(86) million) and the 2020 movements of the net income tax payable position (€34 million).
Year ended at 31 December | 2019 | 2020 |
|---|---|---|
Dutch statutory income tax rate | 25.0 | 25.0 |
Adjustment regarding statutory income tax rates other countries | 0.0 | 0.0 |
Weighted average statutory tax rate | 25.0 | 25.0 |
Tax effects of: | ||
Non and partly deductible costs | 4.0 | 0.9 |
Exempt income | (0.2) | (0.4) |
Other | 1.3 | (0.9) |
Effective income tax rate | 30.1 | 24.6 |
The line ‘Non and partly deductible costs’ mainly relates to the so-called mixed expenses (e.g. meals, entertainment), the non deductible costs relating to the Sandd acquisition 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’ consisted in 2020 mainly of the impact of utilisation and recognition of previously unrecognised tax losses in various countries (-1.4%), the impact of tax rate changes in the Netherlands on our deferred tax positions going forward (1.0%), updates of our prior year tax positions in the Netherlands (-0.6%) 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 | 2019 | 2020 |
|---|---|---|
Number of issued and outstanding ordinary shares | 493,952,586 | 494,991,389 |
Shares held by the company to cover share plans | 0 | 0 |
Average number of ordinary shares per year | 482,577,917 | 494,633,768 |
Diluted number of ordinary shares per year | 906,369 | 993,985 |
Average number of ordinary shares per year on a fully diluted basis | 483,484,286 | 495,627,753 |
At 31 December 2020, PostNL had potential obligations under share plans to deliver 993,985 shares (2019: 906,369 shares), calculated based on the share price of €2.79 as at 31 December 2020 (31 December 2019: €2.012).
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 2020, net cash from operating activities of €181 million (2019: €210 million) resulted from €208 million of cash generated from operations (2019: €258 million) reduced by €15 million interest paid (2019: €14 million) and €12 million income tax paid (2019: €34 million).
The decrease in cash generated from operations of €50 million is explained by a lower change in pension liabilities of €141 million and a lower change in other provisions of €59 million, partly offset by €106 million higher profit before income tax adjusted for non-cash items and investment income and a change in working capital of €44 million.
Year ended at 31 December | 2019 | 2020 |
|---|---|---|
Total profit before tax adjusted for non cash items and investment income | 288 | 394 |
Pension expense defined benefit plans | 107 | 133 |
Cash contributions defined benefit plans | (99) | (99) |
Payment unconditional funding obligation | (33) | |
Final payment transitional plans | (200) | |
Change in pension liabilities | (25) | (166) |
Additions to/releases from provisions | 44 | 15 |
Withdrawals | (14) | (43) |
Change in other provisions | 30 | (29) |
Changes in working capital | (35) | 9 |
Total cash generated from operations | 258 | 208 |
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 higher accruals for terminal dues and expenses to be paid and higher VAT payable, partly offset by higher trade accounts receivable and a reduction of trade payables both within Parcels and Mail in the Netherlands.
The interest paid is explained as follows:
Year ended at 31 December | 2019 | 2020 |
|---|---|---|
Interest on long-term borrowings | 4 | 6 |
Interest on leases | 5 | 4 |
Bank charges and other | 5 | 6 |
Total | 14 | 15 |
The income taxes paid of €12 million (2019: €34 million) mainly related to income taxes paid in the Netherlands and include payments and refunds related to prior years.
Year ended at 31 December | 2019 | 2020 |
|---|---|---|
Acquisition of subsidiaries (net of cash) | (65) | |
Disposal of subsidiaries | 3 | 13 |
Capital expenditure on intangible assets and property, plant and equipment | (66) | (78) |
Proceeds from sale of property, plant and equipment | 14 | 158 |
Changes in other loans receivable | 0 | (9) |
Other | 8 | 1 |
Net cash (used in)/from investing activities | (106) | 85 |
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 2020, disposal of subsidiaries includes €7 million net cash received for the sale of Adeptiv, a subsidiary from Mail in the Netherlands. The book profit on the sale of Adeptiv of €3 million is included in other income in the consolidated income statement. Further, disposal of subsidiaries includes an amount of €7 million relating to the sale of PostNL Communicatie Services in 2019, a subsidiary from Mail in the Netherlands. In 2019, an amount of €3 million net cash was received for the sale of PostNL Communicatie Services. The book profit on the sale of PostNL Communicatie Services of €5 million was included in other income in the consolidated income statement.
In 2020, capital expenditures on intangible assets of €37 million (2019: €32 million) mostly related to software including prepayments for software. The capital expenditures on property, plant and equipment amounting to €40 million (2019: €34 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 2020, proceeds from the sale of property, plant and equipment amounted to €158 million (2019: €14 million) and related for €148 million to the sale-and-leaseback transaction of four mail sorting centres and the international sorting centre, net of transaction costs, and for €10 million (2019: €14 million) to the sale of other real estate in the Netherlands. For further information on the sale-and-leaseback transaction, reference is made to note 2.1.2 Other income.
In 2020, changes in other loans receivable included a new lessor loan of €10 million relating to the lease of a sorting machine by Bol.com.
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'.
Year ended at 31 December | 2019 | 2020 |
|---|---|---|
Dividends paid | (71) | |
Changes related to non-controlling interests | 0 | (1) |
Net cash from debt financing activities | 232 | |
Repayments of leases | (62) | (79) |
Net cash (used in)/from financing activities | 99 | (80) |
In 2020, net cash from financing activities of €(80) million (2019: €99 million) related for €79 million to the repayments of leases (2019: €62 million). In 2019, net cash from financing activities further included the final 2018 and interim 2019 cash dividend paid of €71 million and the proceeds of a new eurobond of €296 million partly offset by the repayment of short-term borrowings of Sandd of €64 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 increase of total equity from €(18) million on 31 December 2019 to €222 million on 31 December 2020 is mainly explained by net profit for the year of €213 million and other comprehensive income of €24 million. Other comprehensive income mainly consisted of a positive impact from pensions of €25 million.
Equity attributable to the equity holders of PostNL consisted of the following items:
As at 31 December 2020, issued share capital amounted to €40 million (2019: €40 million) and additional paid-in-capital amounted to €161 million (2019: €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 2019 | 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) |
Total comprehensive income | (1) | (0) | (0) | 25 | 24 |
Appropriation of net income | (432) | (432) | |||
Share-based compensation | 2 | 2 | |||
Other | (6) | 6 | 0 | ||
Balance at 31 December 2020 | 0 | (2) | 7 | (514) | (508) |
As at 31 December 2020, the translation reserve amounted to €0 million (2019: €0 million), mainly reflecting the movement in exchange rate differences on converting subsidiaries of Spring within Parcels into euros.
As at 31 December 2020, the hedge reserve amounted to €(2) million (2019: €(2) million). The tax impact on the cash flow hedges included in the hedge reserve as at 31 December 2020 is €0 million (2019: €0 million). For more information, see note 4.5 to the consolidated financial statements.
As at 31 December 2020, the reserve related to the financial assets at fair value through OCI amounted to €7 million (2019: €14 million). The decrease related for €6 million to a reclassification to the other reserves resulting from the reduction of our stake in Whistl. The increase in 2019 related to the increase in value of the investment in Whistl by €3 million. For more information, see note 4.2 to the consolidated financial statements.
As at 31 December 2020, the other reserves amounted to €(514) million (2019: €(115) million). In 2020, the other reserves decreased by €399 million mainly resulting from the appropriation of net income from 2019 of €(432) million, partly offset by a positive pension effect within other comprehensive income (net of tax) of €25 million. For details on pensions, reference is made to note 3.5.
As at 31 December 2020, retained earnings amounted to €527 million (2019: €(118) million). In 2020, retained earnings increased by €645 million due to the appropriation of net income from 2019 of €432 million and total profit for the year of €213 million in 2020.
The Board of Management has proposed to make an amount of €139 million out of corporate profit for the year 2020 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 2020 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 2020 | Parcels | Mail in NL | PostNL Other | Eliminations | Total |
|---|---|---|---|---|---|
Revenue from contracts with customers | 1,865 | 1,371 | 3 | 3,239 | |
Intercompany sales | 179 | 331 | 104 | (614) | |
Other operating revenue | 9 | 6 | 1 | 16 | |
Total operating revenue | 2,052 | 1,708 | 108 | (614) | 3,255 |
Other income | 71 | (4) | 66 | ||
Depreciation/impairment PP&E | (23) | (22) | (4) | (50) | |
Amortisation/impairment intangibles | (14) | (19) | (11) | (43) | |
Depreciation/impairment right-of-use assets | (36) | (22) | (14) | (72) | |
Total operating income | 204 | 143 | (53) | 293 | |
Net financial income/(expense) | (16) | ||||
Results from investments in JVs/associates | |||||
Income taxes | (68) | ||||
Profit/(loss) from discontinued operations | 4 | ||||
Profit for the year | 213 | ||||
Normalised EBIT | 209 | 96 | (60) | 245 |
The key financial performance indicator for management of the reportable segments is normalised EBIT. Normalised EBIT is derived from the IFRS-based performance measure operating income adjusted for the impact of project costs and incidentals. Normalised EBIT is reported on a monthly basis to the chief operating decision-makers.
The following table presents the reconciliation from reported operating income to normalised EBIT.
Year ended at 31 December | Reported operating income | Final payment transitional plans | Accelerated write-down of Sandd assets | Book profit sale-and-leaseback transaction | Project costs and other | Normalised EBIT |
|---|---|---|---|---|---|---|
Parcels | 204 | 5 | 209 | |||
Mail in NL | 143 | 11 | 14 | (64) | (6) | 96 |
PostNL Other | (53) | (15) | 4 | 4 | (60) | |
Total 2020 | 293 | 0 | 14 | (60) | (2) | 245 |
In 2020, normalised EBIT totalled €245 million (2019: €135 million). Normalised EBIT excludes exceptional items, which amounted to €(49) million in 2020 (2019: €16 million). In 2020, the terms and conditions of the final payment for transitional plans was agreed upon. At year-end 2020, the segments Parcels, Mail in the Netherlands and PostNL Other recorded the cash settlement costs as expenses. As these payments do not represent IFRS-based pension expenses, PostNL Other records the reverse effect. The normalisation for project costs and other of €(2) million in 2020 related to the divestments of Spotta, Adeptiv and Cendris (€(6) million), regulatory-related advisory costs and Sandd-related transaction and integration costs (€3 million) and the consolidation effect of discontinued operations (€1 million). The increase of €110 million in normalised EBIT comprised higher results in Parcels (€89 million) and Mail in the Netherlands (€44 million), partly offset by a lower result at PostNL Other (€23 million).
The following tables present 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 | ||||
Normalised EBIT | 120 | 52 | (37) | 135 |
Year ended at 31 December | Reported operating income | Payment uncond. funding obligation pensions | Accelerated write-down of Sandd assets | Project costs and other | Normalised EBIT |
|---|---|---|---|---|---|
Parcels | 120 | 2 | (2) | 120 | |
Mail in NL | 25 | 27 | 25 | (25) | 52 |
PostNL Other | (26) | (29) | 18 | (37) | |
Total 2019 | 119 | 0 | 25 | (9) | 135 |
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