Return on invested capital
Our aim is to generate a positive spread of the return on invested capital (ROIC) over the post-tax WACC (8.1% for the Group). PostNL defines ROIC as net operating profit less adjusted tax (NOPLAT) divided by invested capital. For 2023, the ROIC for the Group was 5.3% (2022: 4.1%). The negative spread over the WACC in 2023 was (280) basis points. The increase of the ROIC compared to 2022 is for a large part explained by an increase in the NOPLAT. The bond buyback programme of 2023 also had a positive impact of around 20 bps by lowering the level of invested capital.
PostNL Return on invested capital in € million, unless indicated otherwise
2022 - 2023
| Year ended at 31 December | 2022 | 2023 |
|---|---|---|
| Operating income1 | 66 | 84 |
| Less adjusted tax | (17) | (22) |
| Net operating profit less adjusted tax (NOPLAT) | 49 | 63 |
| Total equity | 179 | 200 |
| Adjusted net debt | 467 | 462 |
| Add back cash and cash equivalents | 556 | 518 |
| Invested capital | 1,202 | 1,179 |
| Return on invested capital (ROIC) | 4.1% | 5.3% |
- 2022 excluding change in pension accounting classification