Note 4 Segment reporting

Note 4 Segment reporting

PostNord’s organization into business units is based on the manner in which PostNord is governed and activities are reported to management. Market pricing applies to internal dealings between PostNord business units. There is no latitude for making external purchases where the service in question is available internally. In PostNord’s operational structure, though not in its legal structure, cost distribution of corporate shared service functions is at cost price with full allocation of costs.

An organizational change of the group’s parcel business in Denmark was implemented as of January 1, 2013 in order to facilitate additional streamlining efforts and improve the competitiveness of parcel distribution in the Danish market. Due to the reorganization, results for the Danish parcel business are reported in Mail and Mail Denmark. Comparative values for Mail Denmark and Logistics have been recalculated.

Segments

Mail Denmark provides distribution solutions in the Danish communication market, with a nationwide distribution network. The business area offers physical and digital letter, direct mail, newspaper, facility management and parcel services.

Mail Sweden provides distribution solutions in the Swedish communication market, with a nationwide distribution network. The business area offers physical and digital letter, direct mail and newspaper services as well as drop-off and collection of parcels.

Logistics operates in the Nordic logistics market in the areas of parcels, mixed cargo, messaging and express, consignment cargo, sea and air cargo, and third-party logistics. Logistics has a comprehensive offer and distribution network for businesses and private consumers in the Nordic market. Parcel services in Denmark are managed by Mail Denmark.

Strålfors is active in the area of information logistics. The company develops and offers communication solutions that create stronger, more personal customer relationships for companies that have large customer bases. Strålfors is a Nordic leader in its field and has operations in the Nordic region and several other European countries.

Other and eliminations

Other comprises shared services and corporate functions including the parent company, the Swedish Cashier Service, provisions for changes in group functions in Sweden and Denmark and group adjustments. The adjustments are primarily IFRS adjustments regarding pensions in accordance with IAS 19, Employee Benefits, and finance leasing in accordance with IAS 17, Leases. From Other, service costs for shared services and corporate functions are allocated to the business areas. Cost allocations are recognized as revenue in Other under Other Income, Internal. Within the business areas, cost allocations are expensed under Other Expenses.

Eliminations comprises the elimination of internal translations.


Mail










Mail Denmark Mail Sweden Logistics Strålfors Other Eliminations PostNord Group
Jan–Dec, SEKm 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Net sales, external 8,959 9,769 2) 14,910 15,020 13,160 11,552 2) 2,504 2,576 0 3

39,533 38,920
Net sales, internal 405 396 2) 140 117 272 210 2) 108 89 4 6 –929 –818 2) 0 0
Net sales 9,364 10,165 2) 15,050 15,137 13,432 11,762 2) 2,612 2,665 4 9 –929 –818 39,533 38,920
Other income, external 28
72 75 42 50 15 17 76 111

233 253
Other income, internal 71 55 2) 769 712 1,241 1,280 2) 0 0 3,067 4,094 –5,148 –6,141 2) 0 0
Income 9,463 10,220 2) 15,891 15,924 14,715 13,092 2) 2,627 2,682 3,147 4,214 –6,077 –6,959 2) 39,766 39,173
Personnel expenses –5,702 –5,730 2) –7,724 –7,532 –3,779 –3,303 2) –817 –821 –624 –1,009 1) 23 57 2) –18,623 –18,338 1)
Transport expenses –794 –822 2) –2,577 –2,608 –6,911 –5,934 2) –113 –67 –8 –16 1,450 1,363 2) –8,953 –8,084
Other expenses –2,663 –3,443 2) –4,621 –4,628 –3,422 –3,223 2) –1,479 –1,593 –2,295 –3,000 4,604 5,539 2) –9,876 –10,348
Depreciation and impairments –403 –409 2) –386 –363 –406 –360 2) –202 –226 –251 –541

–1,648 –1,899
Expenses –9,562 –10,404 2) –15,308 –15,131 –14,518 –12,820 2) –2,611 –2,707 –3,178 –4,566 1) 6,077 6,959 2) –39,100 –38,669 1)
Participations in the earnings of associated companies and joint ventures 10 7









10 7
OPERATING PROFIT –89 –177 2) 583 793 197 272 2) 16 –25 –31 –352 1) 0 0 676 511 1)
Net financial items











–208 –144 1)
Profit before tax











468 367 1)
Tax











–146 –120 1)
Net profit











322 247 1)
Operating capital 2,923 2,815 1,815 1,208 5,146 5,635 1,507 1,563 726 191 46 114 12,163 11,526
Investments in tangible and intangible fixed assets 359 463 986 1,066 536 401 94 89 266 312

2,241 2,331

1) Restated due to IAS 19 Revised, Employee Benefits.

2) Restated due to reorganization of parcel business in Denmark.

Division by geographic area based on company domicile, SEKm 2013 2012
Income Assets Investments Income Assets Investments
Sweden 23,290 12,756 1,593 22,490 13,5761) 1,663
Denmark 9,741 8,840 351 10,592 8,771 465
Norway 4,536 3,001 253 4,091 3,193 165
Finland 612 495 11 607 553 15
Rest of the world 1,587 626 33 1,393 713 23
Total 39,766 25,718 2,241 39,173 26,806 2,331

1) Restated due to IAS 19 Revised, Employee Benefits.