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
2023, 2024
| 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 | 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 | ||
| Other loans receivable | level 2 | 13 | 13 | |||
| Other financial fixed assets | level 3 | 20 | 20 | |||
| Accounts receivable | 3.1.1 | level 2 | 341 | 341 | ||
| Derivatives1 | level 2 | 2 | 2 | |||
| Cash and cash equivalents | 4.1 | 453 | 453 | |||
| Total assets balance sheet 2024 | 806 | 2 | 20 | 829 |
- 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 2023 and 31 December 2024.
PostNL Financial instruments - liabilities in € million
2023, 2024
| 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 | 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 | ||
| Long-term debt | 4.1 | level 1&21 | 664 | 664 | |
| Trade accounts payable | level 22 | 177 | 177 | ||
| Short-term debt | 4.1 | level 22 | 10 | 10 | |
| Other current liabilities3 | 3.1.2 | level 22 | 47 | 0 | 47 |
| Total liabilities balance sheet 2024 | 897 | 0 | 897 |
- 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 €43 million (2023: €48 million) and 'Other' for €4 million (2023: €12 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
2023, 2024
| At 31 December | Nominal value | Costs/discount to be amortised | Carrying value | Fair value |
|---|---|---|---|---|
| 1.000% eurobond 2024 | 353 | 0 | 353 | 344 |
| 0.625% eurobond 2026 | 300 | 1 | 299 | 278 |
| Total outstanding eurobonds 2023 | 653 | 2 | 651 | 622 |
| 0.625% eurobond 2026 | 300 | 1 | 299 | 289 |
| 4.750% eurobond 2031 | 300 | 3 | 297 | 311 |
| Total outstanding eurobonds 2024 | 600 | 4 | 596 | 600 |
The 4.750% eurobond of €300 million is a Sustainability-Linked Financing. Within the terms and conditions of the €300 million sustainability-linked notes, a Step-Up Event is included, which depends on achieving the underlying three Sustainability Performance Targets (SPT) conditions. The initial rate of interest payable on the notes will increase 1.000 per cent per annum, a "Rate Adjustment", in case of a Step-Up Event. The Rate Adjustment (if any) shall be effective and accrue from and including 12 June 2030 and the amount of interest payable on the final interest payment date shall be adjusted accordingly.
The SPT Conditions are:
- SPT Condition 1: means the scope 1 and scope 2 GHG emissions reduction percentage, measured as a percentage change at the end of the financial year from the financial year ended 31 December 2021, as reported by PostNL pursuant to the reporting requirements as of the SPT observation date being greater than 90%;
- SPT Condition 2: means the scope 3 GHG emissions reduction percentage, measured as a percentage change at the end of the financial year from the financial year ended 31 December 2021, as reported by PostNL pursuant to the reporting requirements as of the SPT observation date being equal to or greater than 45%;
- SPT Condition 3: means the senior management positions percentage as reported by PostNL pursuant to the reporting requirements as of the SPT observation date being equal to or greater than 36%.
For progress on achieving these conditions, reference is made to Chapter 20 Sustainability statement.
Leases
For the details on the outstanding leases, see the table below.
PostNL Outstanding leases in € million
2023, 2024
| At 31 December | Nominal value | Fixed/floating interest | Carrying value | Fair value |
|---|---|---|---|---|
| Total outstanding leases 2023 | 320 | fixed | 320 | 320 |
| Total outstanding leases 2024 | 299 | fixed | 299 | 299 |
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
2023, 2024
| At 31 December | Carrying value | Fair value | Nominal value | Hedge | Amount in equity |
|---|---|---|---|---|---|
| Asset | 1 | 1 | 92 | balance sheet/cashflow | 1 |
| Liability | 2 | 2 | 110 | balance sheet/cashflow | (2) |
| Foreign exchange contracts 2023 | |||||
| Asset | 2 | 2 | 86 | balance sheet/cashflow | 1 |
| Liability | 0 | 0 | 34 | balance sheet/cashflow | 0 |
| Foreign exchange contracts 2024 |
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 2024, 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 (2023: €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
2023, 2024
| At 31 December | Carrying value | Fair value | Nominal value | Hedge | Amount in equity |
|---|---|---|---|---|---|
| Interest rate swaps 2023 | (6) | (6) | 229 | balance sheet/cashflow | (5) |
| Interest rate swaps 2024 | 0 | 0 | 0 | balance sheet/cashflow | 0 |
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.
In 2024, there are no interest rate swaps outstanding (2023: 229 million). An amount of €1 million relating to terminated interest rate swaps is outstanding in OCI. This amount will be amortised to financial income and expense for the term of the 4.75% eurobond 2031 and lease contracts relating to 5 underlying Parcels sorting centres.