PostNL's revenue from contracts with customers consist of the provision of postal and logistics services. Revenue from contracts with customers is recognised when the goods are transferred or the services are rendered 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 or rendering the services 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 goods transferred or services rendered 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 render 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 renders 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 Contract liabilities'
to the Consolidated financial statements for more information.
Revenue from contracts with customers represent revenue from the transfer of goods and rendering of 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 the goods are transferred or services are rendered 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. See note '2.7 Segment information'to the Consolidated financial statements for the segment information of the other revenue and eliminations.
Year ended at 31 December | 2021 | 2022 |
|---|---|---|
Parcels | 2,353 | 2,160 |
Mail in the Netherlands | 1,671 | 1,488 |
PostNL Other | 199 | 214 |
Eliminations | (777) | (731) |
Total | 3,447 | 3,132 |
The decrease in revenue is mainly driven by the strong volume decline in our domestic and international parcel delivery at Parcels in 2022, clearly impacted by the global macroeconomic and geopolitical environment impacting consumer confidence and consumer spending, together with the continued volume decline in addressed mail and the absence of the positive impact from non-recurring Covid-19-related items.
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. Revenue from the rest of the world was impacted by the change in VAT regulation, global supply chain disruptions and zero Covid-19 policy in China.
Download spreadsheetYear ended at 31 December | 2021 | 2022 |
|---|---|---|
The Netherlands | 2,982 | 2,736 |
Rest of Europe | 252 | 264 |
Europe | 3,235 | 3,000 |
Rest of the World | 212 | 132 |
Total | 3,447 | 3,132 |
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 2022, other income of €7 million mainly relates to the sale of real estate in the Netherlands. In 2021, other income of €25 million mainly relates to the profit on the sale Cendris, a subsidiary of Mail in the Netherlands (€16 million), an amount received back from the purchase price of the acquisition of Sandd in 2019 and the profit on the sale of real estate in the Netherlands.
On 23 February 2021, PostNL completed the sale of Cendris, a specialist in customer contact services in the Netherlands and part of the segment Mail in the Netherlands, to Yource, market leader in customer contact within the Benelux region. The transaction resulted in a book profit of €16 million recorded within other income and net cash proceeds of €44 million.
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.
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 | 2021 | 2022 |
|---|---|---|
Parcels | 1,017 | 983 |
Mail in the Netherlands | 426 | 333 |
PostNL Other | 78 | 71 |
Work contracted out | 1,522 | 1,388 |
Rent & lease expenses | 13 | 12 |
External temporary staff | 174 | 170 |
Total | 1,708 | 1,570 |
Costs of work contracted out and other external expenses decreased by €138 million in 2022 mainly due to decreased volumes within Parcels and Mail in the Netherlands.
Year ended at 31 December | 2021 | 2022 |
|---|---|---|
Salaries | 849 | 867 |
Social security charges | 123 | 129 |
Salaries and social security charges | 972 | 997 |
Defined benefit plans | 149 | 160 |
Defined contribution plans | 12 | 12 |
Regular pension charges | 161 | 172 |
Impact change in accounting classification of main pension plan | 1,354 | |
Total pension charges | 161 | 1,526 |
Net releases from restructuring provisions | (2) | (1) |
Share-based payments | 3 | 2 |
Gross salaries, pensions and social security contributions | 1,134 | 2,523 |
Capitalised salaries, pensions and social security contributions | (5) | (19) |
Total | 1,129 | 2,504 |
In 2022, pension charges increased by €1,365 million, mainly resulting from the expenses related to the change in accounting classification of our main pension plan. See note '3.5 Provisions for pension liabilities'for more information on pensions; note '3.6 Other provisions' for the net releases from restructuring provisions; and note'3.5 Intangible fixed assets'for the capitalised salary costs, pensions and social security contributions related to IT investments.
1 | 2021 | 2022 |
|---|---|---|
Headcount | ||
Parcels | 8,246 | 8,300 |
Mail in the Netherlands | 27,611 | 25,725 |
PostNL Other | 1,508 | 1,622 |
Total at year end | 37,365 | 35,647 |
Full-time equivalents (FTEs) | ||
Parcels | 6,862 | 7,146 |
Mail in the Netherlands | 13,934 | 13,055 |
PostNL Other | 1,385 | 1,514 |
Total year average | 22,181 | 21,715 |
External temporary staff year average | 2,978 | 2,647 |
The total headcount of PostNL decreased by 1,718 employees, which mainly relates to the reduction within Mail in the Netherlands due to the impact of volume decline and cost savings initiatives. Additionally, labour market tightness impacted PostNL's ability to maintain adequate staffing levels during 2022. The increase of employees within Parcels was due to more use of own staff instead of delivery partners. The labour force is also measured in FTEs based on the hours worked divided by the local standard. In 2022, the average number of FTEs decreased by 466 FTEs compared to 2021. The average number of employees working in the Netherlands was 20,772 FTEs (2021: 21,332) and outside the Netherlands was 943 FTEs (2021: 848).
Year ended at 31 December | 2021 | 2022 |
|---|---|---|
Amortisation of intangible assets | 40 | 44 |
Impairment of intangible assets | 1 | |
Depreciation property, plant and equipment | 46 | 46 |
Depreciation right-of-use assets | 62 | 66 |
Total | 149 | 156 |
In 2022, amortisation of intangible assets related to software for €41 million (2021: €37 million) and other intangibles for €3 million (2021: €3 million). The increase in amortisation of software relates to increased investments in IT projects.
The other operating expenses of €128 million (2021: €113 million) consist of IT, communication, office, travel, consulting and training expenses and other shared services costs.
In 2022, total incurred KPMG audit fees amounted to €2.1 million (2021 EY audit fees: €2.3 million).
Download spreadsheetYear ended at 31 December | 2021 | 2022 |
|---|---|---|
Audit fees | 1.8 | 1.6 |
Audit-related fees | 0.6 | 0.5 |
Tax advisory fees | 0.0 | 0.0 |
Other non-audit services | 0.0 | 0.0 |
Total | 2.3 | 2.1 |
Audit fees include fees from the audit of the financial statements. Audit-related services include fees from assurance engagements related to the non-financial information, regulatory reporting obligations, employee benefit plan data and Green Bond report.
In accordance with Dutch legislation, article 2:382a of the Dutch Civil Code, the total audit and audit-related fees charged by the auditorKPMG based in the Netherlands amounted to €2.0 million (2021 charged by EY: €2.0 million), subdivided into audit services of €1.5 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 | 2021 | 2022 |
|---|---|---|
Interest expenses on long-term borrowings | 7 | 7 |
Interest on net defined benefit pension liabilities | 1 | 2 |
Interest on leases | 7 | 9 |
Other | 8 | 5 |
Interest and similar expense | 22 | 22 |
Other interest and similar income | (1) | (3) |
Net financial expense/(income) | 21 | 19 |
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 | 2021 | 2022 excl. change in pension accounting classification | Change in pension accounting classification | Total 2022 |
|---|---|---|---|---|
Current tax expense | 83 | 36 | 36 | |
Changes in deferred taxes | (10) | (16) | (350) | (366) |
Total income tax expense | 74 | 21 | (350) | (330) |
Income taxes paid | 76 | (1) | (1) |
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, except for the tax effect on the change in pension accounting classification. See note '3.8 Deferred income tax assets and liabilities'to the Consolidated financial statements for more information.
In 2022, the income taxes paid relates mainly to income taxes paid in the Netherlands and German withholding tax refunds related to prior years. The 2022 difference between the total income tax expense (€(330) million) and the income taxes paid (€(1) million) can mainly be explained by the changes in deferred taxes (€366 million) and the 2022 movements of the net income tax payable position (€36 million).
Download spreadsheetYear ended at 31 December | 2021 | 2022 excl. change in pension accounting classification | Change in pension accounting classification | Total 2022 |
|---|---|---|---|---|
Dutch statutory income tax rate | 25.0 | 25.8 | 25.8 | |
Adjustment regarding statutory income tax rates other countries | 0.0 | 0.3 | (0.3) | 0.0 |
Weighted average statutory tax rate | 25.0 | 26.1 | (0.3) | 25.8 |
Tax effects of: | ||||
Non and partly deductible costs | 0.9 | 5.0 | (5.2) | (0.2) |
Exempt income | (1.5) | 0.6 | (0.6) | 0.0 |
Other | (0.0) | 12.8 | (13.3) | (0.5) |
Effective income tax rate | 24.4 | 44.5 | (19.4) | 25.1 |
The effective income tax rate including the change in pension accounting classification is 25.1%. However, due to the material impact of the change in pension accounting classification on our figures, the effective income tax rate excluding the change in pension accounting classification has also been stated in the table above. The latter effective income tax rate is 44.5%. This effective income tax rate, being higher compared to the Dutch statutory tax rate (25.8%), can mainly be explained as follows.
The line ‘Non and partly deductible costs’ mainly relates to 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 (negative) results from (former) participations. The line ‘Other’ consists in 2022 mainly of the impact of the derecognition of previously recognised tax losses in various countries (13.1%), updates of our prior year tax positions in the Netherlands (0.7%) and several smaller effects (-1.0%).
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:
• represents a separate major line of business or geographical area of operations,
• is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations, or
• is a subsidiary acquired exclusively with a view to resale.
Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the income statement.
The following table presents the financial performance for the discontinued operations in the years 2021 and 2022.
Download spreadsheetYear ended at 31 December | 2021 | 2022 |
|---|---|---|
Revenues | ||
Expenses | (3) | (15) |
Operating income | (3) | (15) |
Income taxes | 8 | 3 |
Profit/(loss) after taxes | 4 | (11) |
Net result related to the sales transaction with Poste Italiane | 24 | |
Profit/(loss) from discontinued operations | 29 | (11) |
In 2022, the net result of €(11) million mainly reflected the financial impact related to a settlement reached between PostNL and the Italian tax authorities. The settlement resolved an ongoing VAT dispute, previously reported as a specific contingent tax liability. The financial impact includes a payment due to the Italian tax authorities of €30 million partially offset by management’s best estimate of the collectability of the related imputed VAT receivables from former customers of €16 million and a positive income tax effect of €3 million. No cash impact was yet visible in 2022. The VAT payable is included in 'Other current liabilities' and the VAT receivables from former customers are included in 'Prepayments and accrued income' in the consolidated statement of financial position.
Income taxes of €8 million in 2021 related for €6 million to tax losses connected to the liquidation of our former German entities recorded as current tax receivables and for €2 million to the update of the deferred tax position connected to the anticipated liquidation losses of our Italian Nexive entities.
In 2021, the net result of €24 million related to the sales transaction with Poste Italiane on 29 January 2021 and included a negative income tax effect of €6 million. The related cash proceeds amounted to €27 million.
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.
Download spreadsheetYear averages and numbers at 31 December | 2021 | 2022 |
|---|---|---|
Number of issued and outstanding ordinary shares | 513,252,013 | 487,530,628 |
Shares held by the company to cover share plans | 0 | 0 |
Average number of ordinary shares per year | 505,163,452 | 492,519,772 |
Diluted number of ordinary shares per year | 817,671 | 1,122,612 |
Average number of ordinary shares per year on a fully diluted basis | 505,981,123 | 493,642,384 |
At 31 December 2022, PostNL had potential obligations under share plans to deliver 1,122,612 shares (2021: 817,671 shares), calculated based on the share price of €1.7005 as at 31 December 2022 (31 December 2021: €3.827).
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 2022, net cash from operating activities of €240 million (2021: €450 million) resulted from €259 million of cash generated from operations (2021: €547 million) and €1 million income tax received (2021: €76 million income tax paid) reduced by €20 million interest paid (2021: €21 million).
The decrease in cash generated from operations of €288 million is explained by €238 million lower profit before income tax adjusted for non-cash items and investment income and a lower change in working capital of €44 million.
Download spreadsheetYear ended at 31 December | 2021 | 2022 |
|---|---|---|
Total profit before tax adjusted for non cash items and investment income | 456 | 218 |
Pension expense defined benefit plans | 149 | 160 |
Cash contributions defined benefit plans | (80) | (85) |
Payment unconditional funding obligation | (16) | (28) |
Change in pension liabilities | 53 | 47 |
Additions to/releases from provisions | 7 | 10 |
Withdrawals | (9) | (12) |
Change in other provisions | (2) | (3) |
Changes in working capital | 41 | (3) |
Total cash generated from operations | 547 | 259 |
For the changes in provisions, reference is made to note 3.5 Provisions for pension liabilities and to note 3.6 Other provisions. The higher investments in working capital mainly related to a decrease in accruals for terminal dues and expenses to be paid, partly offset by lower trade receivables within Mail in the Netherlands.
The interest paid is explained as follows:
Download spreadsheetYear ended at 31 December | 2021 | 2022 |
|---|---|---|
Interest on long-term borrowings | 6 | 6 |
Interest on leases | 7 | 9 |
Bank charges and other | 9 | 5 |
Total | 21 | 20 |
The income taxes received of €1 million (2021: €76 million income taxes paid) mainly relates to income taxes paid in the Netherlands and German withholding tax refunds related to prior years.
Year ended at 31 December | 2021 | 2022 |
|---|---|---|
Disposal of subsidiaries | 44 | |
Capital expenditure on intangible assets and property, plant and equipment | (140) | (138) |
Proceeds from sale of property, plant and equipment | 10 | 12 |
Changes in other loans receivable | (3) | 3 |
Other | (2) | 1 |
Net cash (used in)/from investing activities | (92) | (122) |
In 2021, disposal of subsidiaries of €44 million relates to the net cash received for the sale of Cendris, a subsidiary from Mail in the Netherlands. The book profit on the sale of Cendris of €16 million is included in other income in the consolidated statement of profit or loss.
In 2022, capital expenditures on intangible assets of €80 million (2021: €56 million) mostly related to software including prepayments for software. The capital expenditures on property, plant and equipment amounting to €58 million (2021: €85 million) mainly related to new sorting and delivery centres 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 2022, proceeds from the sale of property, plant and equipment amounted to €12 million (2021: €10 million) and mainly related to the sale of real estate in the Netherlands .
In 2022, changes in other loans receivable included proceeds from a lessor loan relating to the lease of a sorting machine by Bol.com (2021: new lessor loan of €4 million).
In 2022, an amount of €(2) million is included for the acquisition of 50% of the shares of De Innovatie Studio, a joint venture and 5.3% of the shares in a shopping services app, an associated company (2021: €(2) million for the acquisition of 25% of the shares of VersTrade Nederland, an associated company).
Year ended at 31 December | 2021 | 2022 |
|---|---|---|
Dividends paid | (113) | (165) |
Share buyback | (164) | |
Changes related to non-controlling interests | (1) | |
Net cash from debt financing activities | (5) | (4) |
Repayments of leases/incentives | (69) | (74) |
Net cash (used in)/from financing activities | (186) | (408) |
In 2022, net cash from financing activities of €(408) million (2021: €(186) million) mainly related to the final 2021 and interim 2022 cash dividend paid of €165 million (2021: €113 million related to the final 2020 and interim 2021 cash dividend), the repurchase of shares of €164 million and the repayments of leases of €74 million (2021: €69 million). The net cash from debt financing activities includes an amount of €4 million (2021: €4 million) for the repayment of a (legal) lease loan relating to two Parcel sorting centres and sorting machines. 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 €429 million on 31 December 2021 to €179 million on 31 December 2022 is mainly explained by net loss for the year of €993 million, the payments of cash dividends of €165 million in total and the repurchase of shares of €164 million, partly offset by other comprehensive income of €1,071 million. Other comprehensive income mainly consisted of a positive impact from pensions of €1,077 million including the impact of the change in the accounting classification of our main pension plan of €1,020 million.
As at 31 December 2022, issued share capital amounted to €39 million (2021: €41 million) and additional paid-in-capital amounted to €163 million (2021: €163 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.
Download spreadsheetCurrency translation reserve | Hedge reserve | Financial assets at fair value OCI | Other reserves | Total other reserves | |
|---|---|---|---|---|---|
Balance at 1 January 2021 | 0 | (2) | 7 | (526) | (520) |
Total comprehensive income | 1 | 0 | 12 | 54 | 68 |
Appropriation of net income | 305 | 305 | |||
Share-based compensation | (0) | (0) | |||
Balance at 31 December 2021 | 1 | (2) | 20 | (167) | (148) |
Total comprehensive income | 0 | 2 | (8) | 1,077 | 1,071 |
Appropriation of net income | 518 | 518 | |||
Share buyback | (162) | (162) | |||
Share-based compensation | 2 | 2 | |||
Balance at 31 December 2022 | 2 | 0 | 11 | 1,267 | 1,281 |
As at 31 December 2022, the translation reserve amounted to €2 million (2021: €1 million), mainly reflecting the movement in exchange rate differences on converting subsidiaries of Spring within Parcels into euros.
As at 31 December 2022, the hedge reserve amounted to €0 million (2021: €(2) million). The tax impact on the cash flow hedges included in the hedge reserve as at 31 December 2022 is €0 million (2021: €0 million). For more information, see note 4.5 to the consolidated financial statements.
As at 31 December 2022, the reserve related to the financial assets at fair value through OCI amounted to €11 million (2021: €20 million). The decrease in 2022 of €8 million mainly related to the decrease in value of the investment in Whistl (2021: increase of €12 million mainly related to Whistl). For more information, see note 4.2 to the consolidated financial statements.
As at 31 December 2022, the other reserves amounted to €1,267 million (2021: €(167) million). In 2022, the other reserves increased by €1,434 million mainly resulting from the appropriation of net income from 2021 of €518 million and a positive pension effect within other comprehensive income (net of tax) of €1,077 million, partly offset by the repurchase of shares of €(162) million. For details on pensions, reference is made to note 3.5.
As at 31 December 2022, retained earnings amounted to €(1,306) million (2021: €370 million). In 2022, retained earnings decreased by €1,676 million due to the total loss for the year attributable to the shareholders of the parent of €993 million in 2022, the appropriation of net income from 2021 of €(518) million and the payment of cash dividends of €165 million.
The Board of Management has proposed to make an amount of €60 million out of the distributable part of the shareholders' equity 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 2022 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 2022 | Parcels | Mail in NL | PostNL Other | Eliminations | Total |
|---|---|---|---|---|---|
Revenue from contracts with customers | 1,918 | 1,211 | 2 | 3,132 | |
Intercompany sales | 242 | 277 | 212 | (731) | 0 |
Other operating revenue | 5 | 7 | 1 | 13 | |
Total operating revenue | 2,165 | 1,495 | 215 | (731) | 3,144 |
Other income | 0 | 7 | 0 | 7 | |
Depreciation/impairment PP&E | (28) | (14) | (4) | (46) | |
Amortisation/impairment intangibles | (2) | (2) | (40) | (44) | |
Depreciation/impairment right-of-use assets | (43) | (12) | (11) | (66) | |
Total operating income | 54 | 98 | (1,443) | (1,291) | |
Net financial income/(expense) | (19) | ||||
Results from investments in JVs/associates | (1) | ||||
Income taxes | 330 | ||||
Profit/(loss) from discontinued operations | (11) | ||||
Profit/(loss) for the year | (993) | ||||
Normalised EBIT | 56 | 107 | (80) | 84 |
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.
Download spreadsheetYear ended at 31 December | Reported operating income | Change in pension accounting classification | Project costs and other | Normalised EBIT |
|---|---|---|---|---|
Parcels | 54 | 2 | 56 | |
Mail in NL | 98 | 2 | 7 | 107 |
PostNL Other | (1,443) | 1,355 | 9 | (80) |
Total 2022 | (1,291) | 1,357 | 17 | 84 |
In 2022, normalised EBIT totalled €84 million (2021: €308 million). Normalised EBIT excludes exceptional items, which amounted to €1,375 million in 2022 (2021: €(15) million). We refer to note 3.5 for further information on the normalised impact of the change in accounting classification of our main pension plan. In 2022, the normalisation for project costs and other included results related to legal advisory costs (€6 million), settlement costs (€9 million) and discontinuation costs of an in-house Food delivery network (€2 million). The decrease of €225 million in normalised EBIT comprised lower results in Parcels (€174 million) and Mail in the Netherlands (€53 million), partly offset by a higher result at PostNL Other (€2 million).
The following tables present the reconciliation of the 2021 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 2021 | Parcels | Mail in NL | PostNL Other | Eliminations | Total |
|---|---|---|---|---|---|
Revenue from contracts with customers | 2,104 | 1,338 | 5 | 3,447 | |
Intercompany sales | 250 | 333 | 194 | (777) | 0 |
Other operating revenue | 7 | 11 | 1 | 19 | |
Total operating revenue | 2,361 | 1,683 | 200 | (777) | 3,466 |
Other income | 0 | 25 | 0 | 25 | |
Depreciation/impairment PP&E | (28) | (14) | (4) | (46) | |
Amortisation/impairment intangibles | (9) | (13) | (19) | (41) | |
Depreciation/impairment right-of-use assets | (39) | (12) | (12) | (62) | |
Total operating income | 230 | 176 | (81) | 324 | |
Net financial income/(expense) | (21) | ||||
Results from investments in JVs/associates | (0) | ||||
Income taxes | (74) | ||||
Profit/(loss) from discontinued operations | 29 | ||||
Profit/(loss) for the year | 258 | ||||
Normalised EBIT | 230 | 160 | (81) | 308 |
Year ended at 31 December | Reported operating income | Book profit from the sale of Cendris | Project costs and other | Normalised EBIT |
|---|---|---|---|---|
Parcels | 230 | 230 | ||
Mail in NL | 176 | (16) | 0 | 160 |
PostNL Other | (81) | (81) | ||
Total 2021 | 324 | (16) | 0 | 308 |
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