33 Segment information
(No corresponding financial statement number)
The presentation of segment information in the consolidated financial statements is presented from a product perspective. The Board of Management receives operational and financial information on a monthly basis which is primarily based on the different products and customer solutions TNT offers. In addition, segment information from a geographical perspective has been presented to give an overview of the main markets. TNT has the following three reportable segments:
- Express business. The Express business provides demand door-to-door express delivery services for customers sending documents, parcels and freight.
- Mail business. The Mail business provides services for collecting, sorting, transporting and distributing domestic and international mail.
- Other network business. The Other network business provides time-critical deliveries to individually agreed delivery point for business customers during the night.
Although the Other network business does not meet the quantitative thresholds as required by IFRS 8, management concluded that this segment should be reported, as this segment has its own network apart from the Express and Mail business and falls under the responsibility of the chief financial officer.
The measure of profit and loss and assets and liabilities is based on the TNT Group Accounting Policies which are compliant with IFRS. The pricing of intercompany sales is done at arms' length.
Segmentation - results
In the table below a reconciliation is presented of the segment information relating to the income statement of the reportable segments:
Segment information relating to the income statement
| Year ended at 31 December 2009 | Express | Other networks | Inter- company | Non- allocated | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | 5,850 | 4,180 | 248 | 10,278 | ||||||||
| Inter-company sales | 10 | 11 | 2 | (23) | ||||||||
| Other operating revenues | 96 | 25 | 3 | 124 | ||||||||
| Total operating revenues | 5,956 | 4,216 | 253 | (23) | 0 | 10,402 | ||||||
| Other income | (2) | 37 | 2 | 37 | ||||||||
| Depreciation/impairment property, plant and equipment | (163) | (94) | (2) | (3) | (262) | |||||||
| Amortisation/impairment intangibles | (67) | (159) | (1) | (227) | ||||||||
| Total operating income | 193 | 472 | 7 | (24) | 648 | |||||||
| Net financial income/(expense) | (161) | |||||||||||
| Results from investments in associates | (19) | |||||||||||
| Income tax | (179) | |||||||||||
| Profit/(loss) from discontinued operations | ||||||||||||
| Profit for the period | 289 | |||||||||||
| Attributable to: | ||||||||||||
| Minority interests | 8 | |||||||||||
| Equity holders of the parent | 281 | |||||||||||
| Number of employees | 78,030 | 79,912 | 1,355 | 366 | 159,663 | |||||||
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Taxes and net financial income are dealt at Group level and not within the reportable segments. As a result this information is not presented as part of the reportable segments. The key financial performance indicator for management of the reportable segments is operating income which is reported on a monthly basis to the chief operating decision makers.
The material exceptional non cash items in the 2009 income statement are impairment charges of €168 million of which €146 million within Mail and €22 million within Express. The impairment charge consists of goodwill of €118 million, software and other intangible assets of €23 million, property plant and equipment of €11 million and other value adjustments of €9 million.
Furthermore the following exceptional non cash items can be identified:
- restructuring charges of €65 million of which €37 million for Express and €28 million for Mail;
- book profits on the sale of property, plant and equipment of €19 million;
- book gain on sale Spring Aspac of €20 million;
- fair value adjustment on Logispring of €10 million;
- impairment of associates of EMN Germany of €3 million.
Segment information relating to the income statement
| Year ended at 31 December 2008 | Express | Other networks | Inter- company | Non- allocated | Total | ||
|---|---|---|---|---|---|---|---|
| Net sales | 6,515 | 4,199 | 269 | 0 | 10,983 | ||
| Inter-company sales | 6 | 12 | 1 | (19) | |||
| Other operating revenues | 132 | 34 | 3 | 169 | |||
| Total operating revenues | 6,653 | 4,245 | 273 | (19) | 11,152 | ||
| Other income | 7 | 26 | 2 | 35 | |||
| Depreciation/impairment property, plant and equipment | (208) | (95) | (3) | (2) | (308) | ||
| Amortisation/impairment intangibles | (53) | (36) | (1) | (1) | (91) | ||
| Total operating income | 376 | 633 | 11 | (38) | 982 | ||
| Net financial income/(expense) | (147) | ||||||
| Results from investments in associates | (33) | ||||||
| Income tax | (242) | ||||||
| Profit/(loss) from discontinued operations | 0 | ||||||
| Profit for the period | 560 | ||||||
| Attributable to: | |||||||
| Minority interests | 4 | ||||||
| Equity holders of the parent | 556 | ||||||
| Number of employees1 | 75,537 | 76,892 | 1,385 | 271 | 154,085 | ||
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Non-allocated operating income
| Year ended at 31 December | 2009 | 2008 |
|---|---|---|
| Business initiatives | (17) | (14) |
| World Food Programme/Planet Me | (6) | (9) |
| Other costs | (1) | (15) |
| Total | (24) | (38) |
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In 2009, non-allocated operating costs amounted to €24 million (2008: 38). Included in these costs is €17 million (2008: 14) for business initiatives, which mainly relate to investigations to redefine TNT's strategy and costs relating to an initiative to further drive value "below the line". Costs made to support the World Food Programme (WFP) and Planet Me amounted to €6 million (2008: 9). Included in the cost for WFP are costs for knowledge transfer, hands on support, raising awareness and funds for the World Food Programme including cash donations. Planet Me is a TNT initiative to have an active contribution to reduce CO2 emission to avoid further global warming. The other costs were €1 million (2008: 15).
Balance sheet information
Below a reconciliation is presented of the segment information relating to the balance sheet of the
reportable segments:
Segment information relating to the statement of financial position
| At 31 December | Express | Other networks | Non- allocated | Total | |
|---|---|---|---|---|---|
| Goodwill paid in the year | 54 | 27 | 81 | ||
| Intangible assets | 1,801 | 209 | 50 | 1 | 2,061 |
| Capital expenditure on property, plant and equipment | 122 | 73 | 1 | 196 | |
| Property, plant and equipment | 1,059 | 541 | 6 | 4 | 1,610 |
| Investments in associates | 1 | 4 | 57 | 62 | |
| (Trade) accounts receivable | 1,075 | 454 | 31 | 31 | 1,591 |
| Total assets1 | 4,382 | 1,437 | 92 | 1,784 | 7,695 |
| Total liabilities | 1,669 | 1,047 | 24 | 2,875 | 5,615 |
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The balance sheet information at 31 December 2008 is as follows:
Segment information relating to the statement of financial position
| At 31 December | Express | Other networks | Non-allocated | Total | |
|---|---|---|---|---|---|
| Goodwill paid in the year | 3 | 4 | 7 | ||
| Intangible assets | 1,700 | 312 | 50 | 1 | 2,063 |
| Capital expenditure on property, plant and equipment | 214 | 70 | 1 | 4 | 289 |
| Property, plant and equipment | 1,045 | 576 | 7 | 6 | 1,634 |
| Investments in associates | 1 | 7 | 56 | 64 | |
| (Trade) accounts receivable | 991 | 521 | 33 | 29 | 1,574 |
| Total assets1 | 4,189 | 1,691 | 96 | 1,209 | 7,185 |
| Total liabilities | 1,492 | 1,066 | 23 | 2,847 | 5,428 |
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Geographical segment information
The segment information from a geographical perspective is derived as follows:
the basis of allocation of net sales by geographical areas is the country or region in which the entity recording the sales is located; and segment assets and investments are allocated to the location of the assets, except for TNT goodwill arising from the acquisition of TNT Ltd/GD Express Worldwide which is not allocated to other countries or regions but to the Netherlands.
Geographical information relating to total net sales
| Year ended at 31 December | 2009 | 2008 | |
|---|---|---|---|
| Europe | |||
| The Netherlands | 3,496 | 3,579 | |
| United Kingdom | 1,284 | 1,445 | |
| Italy | 770 | 857 | |
| Germany | 992 | 1,098 | |
| France | 674 | 725 | |
| Belgium | 294 | 332 | |
| Rest of Europe | 994 | 1,188 | |
| Americas | |||
| USA and Canada | 47 | 50 | |
| Brazil | 297 | 259 | |
| South & Middle America | 62 | 35 | |
| Africa & the Middle East | 120 | 123 | |
| Australia & Pacific | 438 | 486 | |
| Asia | |||
| China and Taiwan | 533 | 510 | |
| India | 72 | 74 | |
| Rest of Asia | 205 | 222 | |
| Total net sales | 10,278 | 10,983 | |
|
Geographical information relating to the total assets and capital expenditures
| Year ended at 31 December | Intangible assets | Property, plant and equipment | Financial fixed assets | Pension assets | Trade receivable | Other currents assets | Total assets1 | Capital expenditures assets |
|---|---|---|---|---|---|---|---|---|
| Europe | ||||||||
| The Netherlands2 | 1,021 | 578 | 75 | 884 | 265 | 975 | 3,798 | 89 |
| United Kingdom | 174 | 261 | 1 | 172 | 75 | 683 | 41 | |
| Italy | 4 | 34 | 37 | 236 | 48 | 359 | 13 | |
| Germany | 79 | 77 | 61 | 108 | 42 | 367 | 16 | |
| France | 287 | 68 | 7 | 100 | 22 | 484 | 6 | |
| Belgium | 32 | 296 | 10 | 61 | 69 | 468 | 9 | |
| Rest of Europe | 42 | 88 | 29 | 155 | 51 | 365 | 25 | |
| Americas | ||||||||
| USA and Canada | 3 | 38 | 6 | 3 | 50 | 1 | ||
| Brazil | 227 | 67 | 3 | 49 | 24 | 370 | 27 | |
| South & Middle America | 34 | 23 | 1 | 17 | 10 | 85 | 2 | |
| Africa & the Middle East | 3 | 8 | 1 | 25 | 16 | 53 | 7 | |
| Australia & Pacific | 22 | 70 | 53 | 51 | 9 | 205 | 5 | |
| Asia | ||||||||
| China and Taiwan | 111 | 23 | 1 | 74 | 42 | 251 | 12 | |
| India | 23 | 2 | 2 | 16 | 11 | 54 | 1 | |
| Rest of Asia | 2 | 12 | 5 | 35 | 22 | 76 | 4 | |
| Total | 2,061 | 1,610 | 324 | 884 | 1,370 | 1,419 | 7,668 | 258 |
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Geographical information relating to the total assets and capital expenditures
| Year ended at 31 December | Intangible assets | Property, plant and equipment | Financial fixed assets | Pension assets | Trade receivable | Other currents assets | Total assets1 | Capital expenditures assets |
|---|---|---|---|---|---|---|---|---|
| Europe | ||||||||
| The Netherlands2 | 1,010 | 617 | 80 | 726 | 274 | 591 | 3,298 | 97 |
| United Kingdom | 168 | 280 | 5 | 174 | 96 | 723 | 92 | |
| Italy | 48 | 41 | 35 | 253 | 59 | 436 | 23 | |
| Germany | 135 | 81 | 60 | 115 | 38 | 429 | 18 | |
| France | 287 | 75 | 8 | 100 | 24 | 494 | 17 | |
| Belgium | 31 | 314 | 15 | 73 | 33 | 466 | 14 | |
| Rest of Europe | 69 | 80 | 20 | 150 | 85 | 404 | 46 | |
| Americas | ||||||||
| USA and Canada | 3 | 35 | 6 | 4 | 48 | 1 | ||
| Brazil | 130 | 37 | 2 | 22 | 15 | 206 | 16 | |
| South & Middle America | 1 | 2 | 1 | 9 | 5 | 18 | 1 | |
| Africa & the Middle East | 3 | 3 | 1 | 27 | 14 | 48 | 2 | |
| Australia & Pacific | 21 | 64 | 38 | 40 | 7 | 170 | 18 | |
| Asia | ||||||||
| China and Taiwan | 131 | 22 | 72 | 48 | 273 | 8 | ||
| India | 28 | 3 | 2 | 16 | 9 | 58 | 3 | |
| Rest of Asia | 1 | 12 | 5 | 39 | 32 | 89 | 7 | |
| Total | 2,063 | 1,634 | 307 | 726 | 1,370 | 1,060 | 7,160 | 363 |
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Geographical information relating to the employees
| At 31 December | Express | Other networks | Non- allocated | 2009 | 2008 | |
|---|---|---|---|---|---|---|
| Europe | ||||||
| The Netherlands | 2,833 | 62,360 | 193 | 283 | 65,669 | 62,562 |
| United Kingdom | 11,339 | 911 | 12,250 | 13,018 | ||
| Italy | 3,078 | 1,454 | 4,532 | 4,627 | ||
| Germany1 | 4,212 | 4,969 | 1,005 | 10,186 | 10,432 | |
| France | 4,646 | 20 | 4,666 | 4,767 | ||
| Belgium | 2,357 | 606 | 45 | 3,008 | 3,127 | |
| Rest of Europe | 7,965 | 9,412 | 112 | 17,489 | 18,403 | |
| Americas | ||||||
| USA and Canada | 776 | 50 | 826 | 862 | ||
| Brazil | 9,116 | 9,116 | 6,312 | |||
| South & Middle America | 1,158 | 1,158 | 546 | |||
| Africa & the Middle East | 1,340 | 9 | 83 | 1,432 | 1,787 | |
| Australia & Pacific | 4,823 | 4,823 | 5,112 | |||
| Asia | ||||||
| China and Taiwan | 18,974 | 116 | 19,090 | 16,768 | ||
| India | 2,014 | 2,014 | 2,192 | |||
| Rest of Asia | 3,399 | 5 | 3,404 | 3,570 | ||
| Total | 78,030 | 79,912 | 1,355 | 366 | 159,663 | 154,085 |
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