3.3 Intangible fixed assets

Accounting policies

Goodwill

Goodwill represents the excess of the cost of acquisition over the fair value of PostNL’s share of the identifiable net assets acquired. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of joint ventures and associates is included in investments in joint ventures/associates and is not separately recognised or tested for impairment. Gains and losses on disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Separately-recognised goodwill arising on acquisitions is capitalised and subject to an annual impairment review. Goodwill is carried at cost less accumulated impairment losses.

Other intangible fixed assets

Costs related to the development and installation of software for internal use are capitalised at historical cost and amortised over the estimated useful life. Other intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

An asset under construction is transferred to its respective intangible asset category at the moment it is ready for use and is amortised using the straight-line method over its estimated useful life. Other intangible assets are valued at the lower of historical cost less amortisation and impairment. 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 of goodwill and other intangible fixed assets, reference is made to note 5.4.

PostNL Intangible fixed assets in € million

PostNL Intangible fixed assets in € million

Goodwill

Goodwill is allocated to the Group’s cash-generating units (CGUs) and annually tested for impairment. The CGUs correspond to an operation in a particular country or region and the nature of the services provided. The CGU Mail in the Netherlands relates to our mail activities in the Netherlands. The CGU Parcels relates to our e-commerce and logistic services activities in the Benelux. The CGU Spring relates to our cross-border mail and parcels activities.

Compared to 2024, the CGU structure had one change. As of 1 January 2025, the financial results and positions of PostNL’s fulfilment services are included in the CGU Spring. Previously, the entity was part of the CGU Parcels. A proportionate share of goodwill was transferred accordingly.

PostNL Goodwill per CGU in € million

General

Management performed a detailed review of the recoverable value of each CGU. The recoverable value is the higher of the value in use and fair value less costs of disposal. Fair value less costs of disposal represents the best estimate of the amount PostNL would receive if it sold the CGU. The recoverable value of each CGU is determined based on the value in use. The value in use has been calculated on the basis of the present value of estimated future net cash flows.

The estimated future net cash flows are based on a five-year (2024: five-year) management forecast and business plan, which forecast period has been assessed as adequate to reach a sustainable basis for the calculation of the continuing value. The cash flows include working capital. Management has determined the forecasted cashflows based on past performance and its expectations for market and regulatory development. The cash flow projections have been approved by management.

Key assumptions used to determine the recoverable values for each individual CGU are the following:

• The discount rate to be applied following the nature of the underlying cash flows and foreign currency and inflation-related risks.
• The (long-term) growth rate to be applied following the maturity of the underlying market, regulatory developments, market share and volume development.
• The implementation of our strategic roadmap for Mail, including anticipated changes to postal regulations as announced by the Dutch government on 19 December 2025 of among others, the adjustment of the service level for standard USO mail from next-day delivery to delivery within 2 days as of 1 July 2026, moving towards within 3 days as of 1 July 2027.

The pre-tax discount rate used was around 11.5% (2024: around 11.0%) for the CGU Parcels (post-tax: around 9.0% for 2025; around 8.5% for 2024) and around 11.0% (2024: around 10.5%) for the CGU Mail in the Netherlands (post-tax: around 7.0% for 2025; around 6.5% for 2024).

The (long-term) growth rate used was based on a long-term assumed inflation rate of 2.0% (2024: 2.0%) for all CGUs, with a downward adjustment of 5.0% (2024: 5.0%) for the CGU Mail in the Netherlands to reflect the assumed long-term mail volume decline.

CGU Parcels and CGU Spring

Management has carried out an impairment test for each individual CGU and concluded that the recoverable amount of the individual CGUs of Parcels and Spring are significantly higher than their carrying amounts. Management has also assessed that a reasonably possible change in key assumptions, being discount rate and growth rate, would not cause the carrying amount of any of these CGUs to exceed the recoverable amount.

CGU Mail in the Netherlands

Triggered by insufficient progress towards economically viable adjusted postal regulation, based on the proposed changes to the Universal Service Obligation as announced by the Dutch Minister of Economic Affairs on 30 June 2025, management performed a mid-year goodwill impairment test of the CGU Mail in the Netherlands as part of the interim reporting.

The impairment test performed per mid-year 2025 resulted in a goodwill impairment of €40 million as recorded in June 2025. This impairment was based on our strategic roadmap for Mail, including anticipated changes to postal regulations as announced by the Dutch government on 30 June 2025, and excluded any compensation by means of a financial contribution from the Dutch government.

Per year-end 2025, goodwill of the CGU Mail in the Netherlands was tested again for impairment. With a positive headroom of €11 million, management concluded no additional impairment was needed. The recoverable value is €77 million negative as at 31 December 2025. This recoverable value excludes any compensation by means of a financial contribution from the Dutch government, which has been formally requested for 2025 and 2026.

The following sensitivities apply:

• If the post-tax discount rate would increase or decrease by 1.0%, this would have no material impact on the current recoverable amount of the CGU Mail in the Netherlands, irrespective of the movement.
• If the long-term expected volume decline would increase or decrease by 1.0%, this would impact the current recoverable amount of the CGU Mail in the Netherlands by around €15 million to €20 million decrease or increase.
• If the Dutch government would (have to) grant a compensation by means of a financial contribution towards the USO costs, this would positively impact the (current) recoverable amount of the CGU Mail in the Netherlands.

Software and other intangibles

The closing balance of software and other intangibles is built up as follows:

PostNL Software and other intangibles in € million

The additions to software mainly concerned IT investments related to replacement and improvement of sorting and delivery processes within Mail in the Netherlands and Parcels, software licences and costs of internally-generated software for various IT projects including investments in our online landscape, logistic service platform and back-office functionality. The decrease in customer lists included €4 million resulting from the sale of PS Nachtdistributie.

The estimated amortisation expenses for software and other intangible assets are:

• 2026: €63 million,
• 2027: €50 million,
• 2028: €35 million, and
• thereafter: €57 million.

Software and other intangible assets include an amount of €2 million (2024: €3 million) of capitalised development costs.