Annual Review 2018

Our Identity

We provide society and our customers with reliable and accessible postal and logistic services. We are proud of our history and what we stand for: delivering special moments for everyone. In 2018, we redefined our purpose and the principles that guide our behaviour: what we do, the customer experience we aim for and how we work together.

"We are steadily driving our transition"

Herna Verhagen - CEO

Our operating context

PostNL plays an important role in society as a postal and logistics service provider. We operate in a multi-stakeholder environment and our stakeholders significantly influence those areas we focus on to create long-term value. Each stakeholder decides which topics are most important and relevant to them. Together, we carefully identify those topics that are most material and should be prioritised. At the same time, we look at the impact competition and the regulatory landscape have on our businesses and our customers.

Stakeholder dialogue

Value creation and strategy

We create sustainable value for our stakeholders by providing logistic and postal services. Our value creation model illustrates our value creation process, which includes the financial and non-financial aspects of how we do business.

Customer value

Our ambition is to be everyone's favourite deliverer and connect millions of senders and receivers every day. In today's competitive market, loyal customers are essential to our success, so optimising the customer experience is a core part of our strategy. This relates both to our ability to manage the growth in e-commerce and in securing accessible and reliable postal services.

Customer experienceHighly satisfied customers: 30%2017: 41%
Manage growth in e-commerceShare of e-commerce revenue: 48%2017: 44%
Accessible and reliable postal servicesDelivery quality Mail in the Netherlands: 95%2017: 95%


With clever logistics, healthcare will come to you

Operational value

We operate in a dynamic environment. Our Parcels business is taking advantage of the rapid growth in e-commerce, while our Mail business is managing declining mail volumes of around 10% year-on-year. At the same time, consumers are increasingly focused on gaining access to the most convenient delivery options, with shorter delivery times and greater delivery flexibility. This requires us to continue to focus on operational excellence while providing deliveries anytime, anywhere.

Manage growth in e-commerceNumber of parcels delivered: 251 million2017: 207 million
Manage declining mail volumesNumber of letters delivered: 1,781 million2017: 1,994 million
Manage declining mail volumesCost savings: € 48 million2017: € 56 million

New mail route

Find out about our new equal-flow model

Social value

The markets PostNL operates in are changing rapidly, impacting everyone who works for or with us. We aim to be a responsible employer that empowers our people to realise their full potential and feel they can make a difference to our customers. And we value our social impact, from the role we play providing accessible and reliable postal services, through to employing approximately 38,000 people.

Empowered employeesEmployee engagement: 65%2017: 67%
Empowered employeesEmployee loyalty: 88%2017: 86%

Environmental value

As a logistics service provider, we are aware of the impact we have on the environment. Because we deliver to every street in the Netherlands and Belgium, our objective is to develop innovative solutions to help us reduce our environmental impact. We want to be the most sustainable player in our sector in the markets and countries in which we operate, with emission-free last-mile delivery across the Benelux by 2030. To help achieve this, we are working with our employees, our customers, our partners and our suppliers to make the supply chain more sustainable. Benefitting us, benefitting them and benefitting the environment.

Emission free deliveryCO2 efficiency index: 38.62017: 40.2

Our view on city logistics

How do we help shape the future of city logistics?

Financial value

PostNL provides short and long-term financial value for shareholders, enabling them to obtain shareholder return. This is why PostNL focuses on realising a solid financial performance and a healthy financial position. This chapter outlines key developments that impacted our financial performance over 2018 and concludes with an outlook for 2019.

Financial performance and positionRevenue: € 2,772 million2017: € 2,725 million
Financial performance and positionUnderlying operating income: € 209 million2017: € 297 million
Financial performance and positionUnderlying cash operating income: € 188 million2017: € 241 million