4.5 Financial instruments
In line with IFRS 9 and IFRS 13, the following categories of financial assets and financial liabilities can be distinguished.
PostNL Financial instruments - assets in € million
2022, 2023
| At 31 December | Notes | Input information level (IFRS13) | Loans and receivables | Derivatives used for hedging | Financial assets at fair value through OCI | Total |
|---|---|---|---|---|---|---|
| Other loans receivable | level 2 | 17 | 17 | |||
| Other financial fixed assets | level 3 | 20 | 20 | |||
| Accounts receivable | 3.1.1 | level 2 | 382 | 382 | ||
| Derivatives1 | level 2 | 5 | 5 | |||
| Cash and cash equivalents | 4.1 | 556 | 556 | |||
| Total assets balance sheet 2022 | 955 | 5 | 20 | 980 | ||
| Other loans receivable | level 2 | 15 | 15 | |||
| Other financial fixed assets | level 3 | 16 | 16 | |||
| Accounts receivable | 3.1.1 | level 2 | 333 | 333 | ||
| Derivatives1 | level 2 | 1 | 1 | |||
| Cash and cash equivalents | 4.1 | 518 | 518 | |||
| Total assets balance sheet 2023 | 865 | 1 | 16 | 883 |
- Derivatives are included in prepayments and accrued income in the statement of financial position.
Fair value represents the price that would be received when selling an asset in an orderly transaction between willing market participants. For the level 3 financial assets at fair value through OCI, our valuations have been measured by using the market approach as per 31 December 2022 and 31 December 2023.
PostNL Financial instruments - liabilities in € million
2022, 2023
| At 31 December | Notes | Input information level (IFRS13) | Financial liabilities measured at amortised costs | Derivatives used for hedging | Total |
|---|---|---|---|---|---|
| Long-term debt | 4.1 | level 1&21 | 725 | 725 | |
| Trade accounts payable | level 22 | 182 | 182 | ||
| Short-term debt | 4.1 | level 22 | 21 | 21 | |
| Other current liabilities3 | 3.1.2 | level 22 | 52 | 3 | 55 |
| Total liabilities balance sheet 2022 | 979 | 3 | 982 | ||
| Long-term debt | 4.1 | level 1&21 | 372 | 372 | |
| Trade accounts payable | level 22 | 210 | 210 | ||
| Short-term debt | 4.1 | level 1&21 | 368 | 368 | |
| Other current liabilities3 | 3.1.2 | level 22 | 51 | 9 | 60 |
| Total liabilities balance sheet 2023 | 1,001 | 9 | 1,010 |
- Eurobonds level 1 and other loans level 2.
- We consider the fair value equal to the book value as these items will be settled within short-term and therefore level 2.
- Other current liabilities include 'Payments from customers received in advance' for €48 million (2022: €48 million) and 'Other' for €12 million (2022: €7 million), refer to note 3.1.2.
All financial instruments are reported on a gross basis per instrument. Netting of financial instruments per contractual counterparty will not have a material impact on the outstanding balances.
Eurobonds
For the details on the outstanding eurobonds, see the table below.
PostNL Outstanding eurobonds in € million
2022, 2023
| At 31 December | Nominal value | Costs/discount to be amortised | Carrying value | Fair value |
|---|---|---|---|---|
| 1.000% eurobond 2024 | 400 | 1 | 399 | 380 |
| 0.625% eurobond 2026 | 300 | 2 | 298 | 267 |
| Total outstanding eurobonds 2022 | 700 | 3 | 697 | 647 |
| 1.000% eurobond 2024 | 353 | 0 | 353 | 344 |
| 0.625% eurobond 2026 | 300 | 1 | 299 | 278 |
| Total outstanding eurobonds 2023 | 653 | 2 | 651 | 622 |
Leases
For the details on the outstanding leases, see the table below.
PostNL Outstanding leases in € million
2022, 2023
| At 31 December | Nominal value | Fixed/floating interest | Carrying value | Fair value |
|---|---|---|---|---|
| Total outstanding leases 2022 | 331 | fixed | 331 | 331 |
| Total outstanding leases 2023 | 320 | fixed | 320 | 320 |
Derivatives - Foreign currency exchange contracts
For the details on the outstanding foreign exchange contracts, see the table below.
PostNL Outstanding foreign exchange contracts in € million
2022, 2023
| At 31 December | Carrying value | Fair value | Nominal value | Hedge | Amount in equity |
|---|---|---|---|---|---|
| Asset | 1 | 1 | 76 | balance sheet/cashflow | 1 |
| Liability | 3 | 3 | 141 | balance sheet/cashflow | (2) |
| Foreign exchange contracts 2022 | |||||
| Asset | 1 | 1 | 92 | balance sheet/cashflow | 1 |
| Liability | 2 | 2 | 110 | balance sheet/cashflow | (2) |
| Foreign exchange contracts 2023 |
The fair value of these outstanding foreign exchange hedges is recorded as a current asset in ‘prepayments and accrued income’ or as a current liability in ‘other current liabilities’ and includes credit valuation adjustments.
In 2023, the total ineffective portion on all derivatives recognised in the income statement that arises from the use of fair value and cash flow hedges amounted to €0 million (2022: €0 million).
Derivatives - Interest rate swaps
For the details on the outstanding interest rate swaps, see the table below.
PostNL Interest rate swaps in € million
2022, 2023
| At 31 December | Carrying value | Fair value | Nominal value | Hedge | Amount in equity |
|---|---|---|---|---|---|
| Interest rate swaps 2022 | 4 | 4 | 51 | balance sheet/cashflow | 3 |
| Interest rate swaps 2023 | (6) | (6) | 229 | balance sheet/cashflow | (5) |
The fair value of these outstanding interest rate swaps is recorded as a current asset in ‘prepayments and accrued income’ or as a current liability in ‘other current liabilities’ and includes credit valuation adjustments.