3.2 Property, plant and equipment
Accounting policies
Property, plant and equipment is valued at historical cost, less depreciation and impairment losses. The initial costs of an asset comprises its purchase price, costs of bringing the asset into working condition, handling and installation costs and non-refundable purchase taxes.
Land is not depreciated. System software is capitalised and amortised as a part of the tangible fixed asset for which it was acquired to operate.
Other property, plant and equipment is depreciated on a straight-line basis over its expected useful life, taking into account any residual value. The asset’s residual value and useful life is reviewed on an annual basis and, if necessary, changes are accounted for prospectively.
For the accounting policy concerning impairments, reference is made to note 5.4.
PostNL Property, plant and equipment in € million
2023
| Land and buildings | Plant and equipment | Other equipment | Construction in progress | Total | |
|---|---|---|---|---|---|
| Depreciation percentage | 0%-10% | 6%-33% | 10%-33% | 0% | |
| Historical cost | 401 | 426 | 38 | 44 | 909 |
| Accumulated depreciation and impairments | (147) | (280) | (25) | (452) | |
| Balance at 1 January 2023 | 255 | 146 | 13 | 44 | 457 |
| Capital expenditure | 13 | 39 | 2 | 28 | 82 |
| Disposals | (1) | ||||
| Internal transfers and reclassifications | 22 | 8 | (31) | ||
| Depreciation | (16) | (28) | (5) | (49) | |
| Transfers from assets held for sale | 1 | 1 | |||
| Total changes | 21 | 19 | (2) | (3) | 35 |
| Historical cost | 457 | 462 | 36 | 40 | 995 |
| Accumulated depreciation and impairments | (182) | (297) | (25) | (504) | |
| Balance at 31 December 2023 | 275 | 165 | 11 | 40 | 491 |
PostNL Property, plant and equipment in € million
2024
| Land and buildings | Plant and equipment | Other equipment | Construction in progress | Total | |
|---|---|---|---|---|---|
| Depreciation percentage | 0%-10% | 6%-33% | 10%-33% | 0% | |
| Historical cost | 457 | 462 | 36 | 40 | 995 |
| Accumulated depreciation and impairments | (182) | (297) | (25) | (504) | |
| Balance at 1 January 2024 | 275 | 165 | 11 | 40 | 491 |
| Capital expenditure | 8 | 13 | 4 | 7 | 31 |
| Disposals | (4) | (4) | |||
| Internal transfers and reclassifications | 30 | 7 | (37) | ||
| Depreciation | (19) | (29) | (4) | (52) | |
| Total changes | 15 | (9) | (31) | (25) | |
| Historical cost | 483 | 472 | 34 | 10 | 999 |
| Accumulated depreciation and impairments | (193) | (317) | (23) | (532) | |
| Balance at 31 December 2024 | 290 | 156 | 11 | 10 | 467 |
Capital expenditures 2024 were below the level of 2023. Investments were made in the sorting and delivery centres within Parcels, and in various other equipment. Both developments also impacted the internal transfers and reclassifications from construction in progress to land and buildings and plant and equipment.
In 2024, the disposals of €4 million mainly related to the sale of buildings in the Netherlands. In 2023, the transfers from assets held for sale of €1 million related to buildings in the Netherlands.
The property, plant and equipment assets include a number of Parcels' sorting centres and sorting machines financed and legally owned by an entity especially set up for this purpose by a third party. The term of the related lease contracts and liabilities is 10 years. Since 2018 to 31 December 2024, 7 sorting centres and sorting machines have been finalised and leased from this special entity, for which the related property, plant and equipment assets for 4 locations with a total book value of €86 million at 31 December 2024 and corresponding (legal) lease loan have been recorded. For the other 3 locations right-of-use assets and corresponding lease liabilities have been recorded, reference is made to note 3.4.