At the forefront of the future

Annual and sustainability report 2020

Posten1 Norway Contents

In this report you can read about how we have created results and opportunities for people, the environment and society – through an unprecedented 2020.

Key figures 2020 2019 2018 2017 2016 2015 About us

Operating revenues NOK million 23 996 24 212 23 894 24 678 24 772 25 074 Message from the CEO...... 6 About Posten Norge...... 8 Adjusted earnings (EBIT) NOK million 1 423 808 531 703 645 686 Group structure...... 10 Group Management...... 11 percentage 5.9% 3.3% 2.2% 2.8% 2.6% 2.7% 01 Key events in 2020...... 12 Adjusted operating margin The Board of Posten Norge...... 14 Operating profit/loss (EBIT)NOK million 1 485 162 415 692 178 239 Board of Directors' Report...... 15 Our development...... 22 Profit before tax NOK million 1 344 21 366 621 230 151 Our strategy for 2020-2023...... 24

Return on invested capital (ROIC) 1) in % 14.1% 7.4% 7.3% 9.8% 9.0% 9.9%

Cash flow from operating activities 2 607 2 143 598 592 945 1 213 Sustainability

Equity 2 7 367 6 363 6 481 6 375 5 912 5 926 Results 2020...... 28 The greenest logistics provider...... 30 Total assets 2 19 643 19 867 16 071 16 962 15 299 16 097 A responsible social player and employer...... 40 02 An efficient cost structure...... 48 Return on equity after tax (ROE), in % 16.4% 0.2% 3.9% 6.3% 0.7% -1.0% Equity to assets ratio in % 37.5% 32.0% 40.3% 37.6% 38.6% 36.8% Financials Debt ratio 0.1 0.6 0.0 0.0 0.1 0.0 Corporate Governance...... 56 Sickness absencein % 6.0% 5.9% 6.0% 5.9% 6.0% 6.1% Financial statements and notes for Posten Norge Group...... 62 Financial statements and notes for Posten Norge AS ���������� 131 H2 injuries 3 rate 7.0 7.8 8.7 6.5 7.7 9.6 03 Alternative performance measures (APM)...... 177 Statement of the Board of Directors...... 183 Registered near-accidents 26 122 33 273 33 126 38 552 42 879 41 756 Independent auditor's report...... 184

COࣗ-emissions (grammes) per NOK earned 12.2 13.9 14.4 14.6 15.6 18.8

Renewable energy sources in vehicles 4 1 577 1 451 1 242 1 593 1 904 1 413

Parcels quantity in thousands 5 77 838 59 945 53 649 50 586 51 198 48 194

Letters quantity addressed in thousands 438 148 542 793 602 764 685 454 763 103 857 743

In line with IFRS 16 Leases, the accounts figures for 2018 and previous years have not been restated

2 1 Calculated based on adjusted operating profit. 3 The rate of work-related injuries per million working hours. Return to table of contents 3 2 The figures have been taken from published financial statements. The figures 4 See page 32 have not been restated in relation to changes to policies or other changes 5 Parcels to the private and business market in the Nordic region. that have been made. 01 About us

Message from the CEO...... 6 About Posten Norge...... 8 Group structure...... 10 Group Management...... 11 Key events in 2020...... 12 The Board of Posten Norge...... 14 Board of Directors' Report...... 15 Our development...... 22 Our strategy for 2020-2023...... 24

We shall be our customers’ first choice by providing the best experience, delivered by the most committed and competent employees.

4 01 About us | Message from the CEO Message from the CEO | About us 01

Extraordinary efforts in an First and foremost, I am proud of how we have extraordinary year managed to ensure infection control while maintaining operations and high 2020 has been a year characterised by the pandemic and the closure of society. Thanks to the fantastic efforts of the entire delivery quality. organisation, we have handled an extraordinary year in a good and proactive way for our customers, society and ourselves.

Our contingency plans were in A record adjusted operating profit of distribution every other day. The We have launched a new strategy friendly vehicles. Our goal for 2020 points who went to “war” against place when Norway was shut down NOK 1 423 million has been achieved new Nordic parcel network that was leading up to 2023 and a new, ambi- was for 24% of vehicles in the car an invisible opponent, with face on 12 March 2020. This meant that by an organisation running in high established has given customers tious target vision. The strategy sets fleet to be powered by renewable masks, antibac and Plexiglas as their we could mobilise quickly, and gear. Mail and goods deliveries are improved service and flexibility and a clear direction for our focus in the energy. I am very pleased that we weapons. The terminal workers who that our customers, partners and important social functions, and now consists of approximately coming period. In short, we will con- exceeded that goal, achieving 26%. handled record volumes week after employees were informed about the demand for our services has 7 000 distribution points in the tinue to develop new, sustainable and week, those who dedicated them- what to expect from us and the increased sharply in the last year. Nordic region. We have sold the innovative services that make us the Alliances and partnerships in selves to launching new services, all guidelines in force at an early stage. E-commerce took off in earnest and transport company Bring Freight customer's first choice, and we will sustainability are crucial in achieving those who have been working from in the Nordic region it has led to a Forwarding in Sweden. We have also adapt our operations and network to the big picture goals. Among other home for a whole year, with all the I would say that so far we have 48% increase in parcel deliveries. chosen to cease operations in the the market. This means that we will things, it is important to make the issues this involves. We are part of handled the crisis in a good and pro- Slovak company Bring Trucking and deliver the best customer experience necessary framework conditions the backbone of the infrastructure in active way. First and foremost, I am We have introduced new innovations, instead purchase transport capacity and the industry's most attractive visible. We have done this in dialogue the Nordic region, which is a region proud of how we have managed to including the launch of unattended in the international market. service portfolio, we will focus even with stakeholders in individual cases with many nooks and crannies, from ensure infection control while main- parcel boxes, the AMOI platform more on technology and innovation, such as biofuel taxes, and in a larger north to south and east to west. taining operations and high delivery service and Urban Home Delivery While we have moved at a breakneck and through responsible value context where several players in the I think this creates internal pride quality. The internal mobilisation with green, fast deliveries in major pace in terms of both development creation we will be the green choice. business community work together. and makes us want to perform meant that we achieved a great deal cities. We have also invested in new and delivery speed, customers are We are a member of Nordic CEOs even better. in a short time, including contact- ventures. At the beginning of 2021, more satisfied than ever. It makes For us, sustainability is about and Skift. The latter consists of the less signing for collection and home the Group was several years ahead me genuinely happy. We have turning today's challenges into most ambitious companies in Norway I would like to extend a big thank delivery, and delivering groceries of previous volume forecasts strengthened our market positions tomorrow’s opportunities - for the with regard to the climate, and I you to all our customers, partners to the door all over the country for the logistics segment. in the Nordic region, and Posten's world and for us. Every day, close have the pleasure of sitting on the and subcontractors who have in collaboration with Coop. By reputation is among the top 10 in to 13 000 employees contribute to board. We have also been present trusted in us during this unprece- adapting to new needs quickly and Growth in e-commerce is expected Norway. The annual organisational creating long-term value for the with active participation during the dented year. And an equally big smoothly, we have demonstrated to continue and the Group is survey indicated that employees are environment, people and our own Zero Conference. thank you to all our employees who our ever-growing ability to innovate increasing its capacity to handle also satisfied even though the business. This creates competitive- have made an extraordinary effort in practice. We have always been larger volumes. corona pandemic has affected their ness, dedication and internal pride. The amazing work put in by the while also dealing with the pandemic aware of our important role in society, work situation. As a thank you for For a number of years, we have been whole organisation is why we succeed in an impressive way. Together we and this has gained renewed rele- The largest restructuring in the extra efforts in a demanding time, at the forefront of electrifying the in an extraordinary year: Our front have proven that we take responsi- vance and become even more visible Group's history was completed in employees received an acknowledge- Norwegian transport industry by test- line, with the drivers, postal delivery bility, are a team player and want during the corona pandemic. 2020, with the transition to letter ment of NOK 5 000 before Christmas. ing and using more environmentally staff and employees at the collection to achieve more! 6 7 01 About us |This is Posten Norge This is Posten Norge | About us 01

Posten Norge is a Nordic Adjusted operating profit Finland: 41 Sweden: 1 632 The Nordic region is our home Denmark: 260 Norway: 10 597 market and we have terminals mail and logistics group. 1 423 million in 38 locations

1 500 Our vision is “We make We operate in: 1 200 Total number Norway, Sweden, of employees: Denmark, Finland. everyday life simpler and 900 We are also present in a number of countries 600 the world smaller”. 12 919 outside the Nordic region 300 to offer a comprehensive ...of which 389 are value proposition outside of the Nordic 0 to our customers. region Posten is our service to 2015 2016 2017 2018 2019 2020 the Norwegian people Posten delivers parcels and letters to private individuals Bring is our service for all over Norway. the Nordic market Return on equity Bring provides solutions for 31% 69% No one knows after tax (ROE) corporate customers in the women men Norway better Nordic market and for private customers outside Norway. 16.4% Finding New Ways Head office: 20 % The proportion of turnover Oslo, Norway outside of Norway is 15 % In 2020, Posten was named 38% 10 % The proportion of the most vehicles powered by 5 % Sales revenues sustainable renewable energy sources is 0 MNOK brand in our 2015 2016 2017 2018 2019 2020 26% industry -5 23 996 in the Sustainable Brand Index Return on invested capital (ROIC) We have seen an increase ...and customers in e-commerce in the put us in the Revenue Mail: 24% Nordic region of 14.1% by segment top 10 Logistics: 76% 15 % Our parcel network 48% in the Ipsos reputation 12 % now consists of over survey in 2020 9 % 7 000 6 %

3 % distribution points in the Nordic region 0 2015 2016 2017 2018 2019 2020 2004 2006 2008 2010 2012 2014 2016 2017 2018 2019 2020 8 9 01 About Us | Group structure Group Management | About us 01

Posten Norge is organised as four divisions, a portfolio management unit and four corporate staff units.

Tone Irene Egset Morten Stødle Alexandra Nina Christin Wille Born: 1966 Born: 1962 Saab Bjertnæs Yttervik Posten Norge AS is a limited ment of the Group. They have Born: 1963 Born: 1971 Born: 1968 liability company wholly-owned developed business strategies by the Norwegian government that support the Group's strategy. GROUP CEO ECONOMICS AND DIGITALISATION COMMUNICATIONS HR AND HSE and is the parent company of The divisions are responsible for since October 2016 FINANCE (CFO) AND IT AND STRATEGY since March 2020 the Group. The responsibility developing and delivering services Previous positions: since January 2019 since October 2016 since June 2017 Previous positions: for managing the Government with the associated service and Director Economy and Previous positions: Previous positions: Previous positions: Director People & Finance (CFO)/IT Posten CFO Statkraft, Executive CIO Dyno Nobel AS, Vice Director of Sales, Organisation Snøhetta, ownership lies with the Norwe- quality. Corporate staff members Norge AS, Director Vice President Corporate President ABB Offshore Marketing and Customer Vice President HR Circle gian Ministry of Industry and are professional driving forces who Finance and Corporate Staff Statkraft Systems, CIO Umoe Service Network Norway K Europe, Organisational Governance Mail Division Director Aftenposten, Fisheries, where its ownership challenge and support business Education: Master of Oil and Gas, various IT at Posten Norge AS, of Posten Norge AS, Senior Vice President HR Economics and Business Manager and Project various managerial is based on business purposes. strategies. The corporate staff various managerial BW Offshore, Head of Administration Manager positions at positions in sales and The Group is measured on the units have in particular been tasked positions at Norfund, Aker Engineering and strategy at Posten Norge Human Resources Enitel, Offices held: Board highest possible return over time. with contributing to interaction Elkem, GE Energy Norwegian Petroleum AS, and at Preco AS and HR Consultant Tine, Head (Norway) and the Kværner Member TGS NOPEC Consultants Accenture of Office Norwegian Furthermore, it is essential for and cooperation across the Group Group Geophysical Company Defence Materiel Agency ASA and Vårgrønn AS Education: Marketer Education: Master of the state that there is a provider and with developing policies and Education: Master of Education: Lawyer Offices held: Board Business Administration Economics and Business that can meet society's need best practice. Certain professional Member Vestre Viken Offices held: Member Offices held: Board Administration for nationwide postal services. functions are centralised at a Hospital Trust of the Directorate The Member Digital Norway Delivery of postal services is corporate level and provide Offices held: Board Polytechnic Society, Board Member Employers’ Member The Polytechnic regulated by the Norwegian services to the divisions and Association Spekter and Society, Deputy Member Postal Services Act, which lies business areas. Skift AbsoluteSkills AS under the Ministry of Transport and Communications. For financial reporting purposes, the Group has split operations The divisions are central units in into two segments, Logistics the management and develop- and Mail.

Organisation chart Per Christian Hans-Øyvind Erik Roth Thomas Öhagen Brandt Ryen Born: 1975 Tscherning Born: 1971 Born: 1964 Born: 1975 Born: 1961 GROUP CEO E-COMMERCE AND MAIL NETWORK NORWAY INTERNATIONAL HOLDINGS & LOGISTICS since October 2019 since August 2020 LOGISTICS VENTURES since January 2018 Previous positions: Previous positions: since October 2018 since October 2019 Previous positions: DSVP Sales & Business Director Operations Previous positions: Previous positions: ECONOMICS IT AND COMMUNICATIONS HR AND HSE Global Director Hille- Development, Vice Oslo, Akershus, Østfold, Director International Chief Executive Nordic AND FINANCE DIGITALISATION AND STRATEGY brand Group, CEO President Buis. Improve- Regional Director Freight Forwarding, Logistics Posten Norge Lagena Distribution, CEO ment, VP Supply Chain Productions in South and Executive Vice President AS, Manager for Parcel Sona Consulting AB, Development, various West, Terminal Manager HR, Director Organisation and Express Operations Supply Chain Manager managerial positions with- Drammen Development and Group Nordic Logistics Division, E-COMMERCE MAIL NETWORK INTERNATIONAL HOLDINGS & Apoteket AB in logistics and corporate Education: Degree in Trainee at Posten Norge Managing Director Box development over 12 AND LOGISTICS Flexible services for NORWAY LOGISTICS VENTURES Education: Master of Economics AS Delivery years at Prior Norway Standardised parcel, private customers. Cost-effective Customer-specific solutions Maximise value of Industrial Engineering Education: MSc in Education: Education: cargo and warehousing Addressed and operations for for the offshore segment, portfolio companies and Business Logistics Education: Master of Engineering and MSc in Degree in Economics unaddressed mail Economics and Business services for e-commerce letters, parcels major industrial customers and venture Offices held: Chairman Business Administration Offices held: Chair of distribution to the Administration and business customers and goods in and international forwarding investments in the of the Board Öhagen the Board Inzile AB corporate market. in the Nordic region. Norway. in the Nordic region. Nordic region. Affärsutveckling AB Offices held: Member Advisory Board Mobility 10 Lab Startup Lab 11 01 About us | Key events in 2020 Key events in 2020 | About us 01

Innovation and Our vision is to make a difference in sustainability awards This year, as last year, we ended up people's everyday lives. Here are the on the podium in the selection of Norway's most innovative companies most important events of 2020. in 2020, this time in second place. A professional jury headed by the magazine “InnoMag” is behind the award. Posten was also named the The corona pandemic: most sustainable brand in our industry in the Sustainable Brand Index in Rapid mobilisation Norway. In Sweden, Bring is the brand Posten and Bring are part of the that climbed the most, and is now in national emergency preparedness fourth place in our industry. We are system in Norway and Sweden. We also in the top ten in PwC's Climate have an important role in ensuring Index 2020 and Deloitte's analysis the transport and distribution of of sustainability reports. Posten's CEO Tone Wille (centre) together with political adviser Inga Borud of Hamar medicines, food and other critical Municipality and district manager Per Jakobsen during the opening of the new logistics goods to the population. centre in Hamar. Rocket of the year in During the pandemic, the Group's the reputation survey priority has been to safeguard life Both Posten and Bring make a big and health. We mobilised quickly New, modern terminals with leap in the Ipsos reputation survey, when Norway and Denmark shut and each was named “rocket of the down and introduced strict infection environmental solutions year” by the analysis company. Posten th control measures in line with the We are constantly working to improve our terminal came in at 10 place - 11 places authorities' recommendations at an above last year's result. Bring sailed early stage. Emergency prepared- structure so that we can meet the strong growth into 20th place, 15 places higher ness and crisis management were Simpler everyday life in e-commerce. than last year. The results show that quickly established and the organi- we have succeeded in developing sation mobilised to make an extra In 2020, we launched a number of new services We opened several new ...and started the construction and renewing Posten and Bring to effort. This has contributed to us in the Nordic region. terminals in 2020: of Northern Norway's largest meet new customer needs. We are maintaining stable and good opera- In May, we moved into a new Modern and sustainable solutions very proud! tions during the pandemic, despite and greener logistics centre in will also play a central role in the Easily accessible distribution together to your home on the the fact that e-commerce has Greve (Denmark). We have also new facility in Tromsø. The facility points are important to our same day. So far the service has Mail every other day accelerated and led to a sharp opened new centres in Taulov will be part of our network for customers. We have established been launched in Oslo, Asker On 1 July 2020, we switched to increase in parcel volumes. (Denmark), Vestberga (Sweden) letter, parcel and goods handling. our own distribution network in and Stockholm. delivery of mail every other day. and Hamar (Norway). Common to The construction of Northern Sweden with 1 700 locations, in The transition has been successful, Our 12 919 employees have given all our new terminals is that the Norway's largest logistics centre addition to 1 300 new points in With Urban Home Delivery, we and is the biggest restructuring in their all throughout the unpreceden- environment and climate are in started in 2020, and will be Denmark. want to make home delivery Posten’s history. ted year 2020 and contributed to focus in the design. operational by the end of 2021. easier. The recipient controls the the supply chains for mail and goods We were the first to test parcel delivery and can make changes functioning well in a time of crisis. More “Beloved cities” boxes in Denmark and have now along the way. The service has “Beloved city” is a collaborative also launched the service in been launched in Norway, project where electric vehicles carry Norway. In 2020, we installed Sweden and Denmark. Parcel record in the parcels and goods to customers 191 parcel boxes at 58 locations. Nordic region in the city centre, and carry waste The goal is to place 3 000 parcel During the corona pandemic, We handled over half a million parcels back with them. The goal is reduced boxes at 1 000 locations in we have developed and adapted each day in the Nordic region in emissions, noise and traffic - and Norway by 2021. several services to ensure the connection with Black Friday. a better environment. In 2020, the best possible infection control concept was rolled out in Trond- We launched AMOI, which is for our customers. Two examples Parcels from online shopping heim, which became the fourth an online marketplace. You are signature-free delivery increased by some 48% in 2020. “Beloved city” in the Nordic region. can order items from multiple and home delivery of food in stores and have them delivered collaboration with Coop. 12 13 01 About us | The Board of Posten Norge Board of Directors' Report | About us 01

The best result of all time in a Andreas Anne Carine Tina Henrik Finn Enger Tanum Stiegler Höjsgaard Kinserdal Born: 1962 Born: 1954 Born: 1976 Born: 1965 Born: 1960 year impacted CHAIR OF THE VICE-CHAIR BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD since 2019 since 2019 since 2018 since 2018 since 2019 Board Member since EVP Umoe Education: Higher Associate professor and CEO Höegh Autoliners 2018 Commercial Examination head of department for Education: Master of Accounting, Auditing Education: Cand. Jur. Education: Civil Economics and Business Offices held: Chair of and Law (IRRR). by corona Offices held: Chair of Administration. Engineer in Technical the Board LGT Logistics Education: Master of the Board Avinor AS, Cybernetics and MBA. Offices held: Board AB. Board Member Green Economics and Business The Norwegian National Offices held: Board Member of companies in Cargo AB. Administration, State Opera & Ballet, Board Member of companies in the UMOE Group, Khrono Previous experience: Authorised Public Member Cappelen Damm the Höegh Group. and Santander Consumer CEO PostNord Logistics. Accountant, PhD. 2020 was characterised by a pandemic and the and Try AS. Bank AS Previous experience: Offices held: Board Previous experience: shutdown of society, which greatly affected the Nordic Head of Strategy Previous experience: Member North Murray AS. Long-time CEO and and Innovation Deloitte, EVP Next Media at Member NHH Executive owner of Tanum AS. Group's operations, customers and employees. CEO and Executive Chair Schibsted Media, advisor Strategic Board, the Broad board experience, Peterson AS. Chair/Board to start-up companies Corporate Assembly including long-standing It became clear that mail and goods transport are Member Experience in Startup Lab. Board Equinor. Board Member and Chair experience from, among Jordan, Storebrand Life Previous experience: socially critical functions. of the Board DNB ASA. others, Finn.no, Stavanger Insurance. Extensive consulting Aftenblad, Bergens and auditing experience Tidende, Mediehuset from McKinsey and EY, Fædrelandsvennen and Management experience E24.no. e.g. Head of EY auditing activities in Norway. A society that was intermittently The Board wishes to commend the been affected by infection to a limi- shut down led to a sharp increase in organisation for having succeeded in ted degree. At most, approximately online shopping and home delivery achieving the best result in our his- 170 employees were off sick at the of goods. The Group has been tory in a year ravaged by the corona same time, and 850 were quaran- working in a high gear and achieved pandemic. The Group has handled tined. There have been no major the best ever operating profit of significant uncertainty, crisis prepa- outbreaks at the Group's locations NOK 1 423 million, an improvement redness, large volume changes and in 2020. of NOK 614 million compared to 2019. accelerated digitalisation. Revenue for 2020 was NOK 23 996 Liv Gerd Lars Ann Elisabeth Tove Gravdal Increased demand for the Group's Management was quick to appoint a million. Organic growth was positive, Fiksdahl Øiahals Nilsen Wirgeness Rundtom services from the e-commerce crisis response team and mobilise at 1.0% for the Group. Organic market and the effects of the corona efforts to deal with the corona growth was 7.6% for the logistics Born: 1965 Born: 1961 Born: 1961 Born: 1961 Born: 1965 pandemic resulted in 48% growth pandemic. Emphasis was placed on segment. BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER in parcels from online shopping. establishing good infection control Employee-elected Employee-elected since 2018 Employee-elected Employee-elected The Group has also had a positive measures to take care of the Group's Operating profit (EBIT) in 2020 since 2016 since 2012 since 2020 Vice President since 2020 development in the corporate market employees in the best possible way, was NOK 1 485 million, compared Capgemini Norge AS Divisional Employee Leader Norwegian Postal Deputy Norwegian Postal Leader Norwegian Postal despite corona restrictions and as well as providing good informa- with NOK 162 million in 2019. The Education: Trondheim and Finance Workers’ Representative Network and Finance Workers’ Union, and Finance Workers’ Business School. Union. Norway. Eastern Norway District. Union, Oslo Division. businesses that were intermittently tion to employees, customers, the increase in profit is due to growth in Offices held: Board Member of works council Member of works council First Deputy Divisional First Deputy works council shut down. Over time, the Group media and the authorities. Advice the logistics segment and our long- Member Scandinavian for Norwegian Postal and for Norwegian Postal and Employee Representative for Norwegian Postal and has invested in capacity and on infection control was followed in term commitment to exploit the Airline Systems (SAS), Finance Workers’ Union. Finance Workers’ Union. Network Norway. Finance Workers’ Union. networks which, together with line with the health authorities' re- opportunities provided by increased Intrum AB and Arion Banki. Employee of Posten since Employee of Posten since Member of works council Employee of Posten since Previous experience: 1984. 1978. for Norwegian Postal and 1987. good operations, have provided commendations. New procedures e-commerce. The logistics segment Executive Vice President Finance Workers’ Union. significant economies of scale in were introduced, including for con- showed significant volume growth for IT and Operations DNB. Employee of Posten since 2020. tactless delivery. The Group has only and higher profits as a result of the Board Member Nille AS. 1985. 14 15 01 About us | Board of Directors' report Board of Directors' Report | About us 01

strong growth in parcels from online year. People under the age of 25 are Developments in 2020 have been shopping and home delivery, combi- significantly more positive to Posten characterised by the corona pan- ned with increased cost efficiency in than other age groups. Bring came in demic, and further information on operations. The mail segment again at 20th place in the same reputation the effects is detailed in Note 26 suffered a significant drop in volume poll with an increase of 10 percentage to the financial statements. and a sharp decline in earnings in points to 66%. 2020. The mail segment must adapt The Logistics segment is growing to new user needs, and in 2020 Customer satisfaction and loyalty The Logistics segment had revenues successfully completed the trans- are high and improving. Customer of NOK 18 571 million in 2020, an ition to letter delivery every other satisfaction increased to 70 (on a increase of 2% from the previous day. This is the biggest change ever scale from 1-100 according to Ipsos) year. Organic growth was 7.6%. made in the company's history. in 2020, from 69 the year before. E-commerce volume increased by Ongoing surveys are conducted 48% in 2020. The strong growth in For 374 years, Posten has delivered among customers who have been online shopping and home delivery mail and parcels to the Norwegian in contact with various parts of the came as a result of the impact of people - increasingly in new ways, business. This is to systematise corona, increased competitiveness adapted to the needs of the market customer insight and implement in Sweden through the establish- and to new technological possibi- improvements. Customer loyalty ment of our own distribution network lities. Innovative and sustainable NPS (Net Promoter Score) was 45.3 and an improved service portfolio. development is therefore central to in 2020, compared to 38.6 in 2019. the Group's strategy. Digitalisation In the corporate market, the corona and e-commerce are driving growth The Group offers customers full pandemic led to a decline in volume in the logistics market and changing Nordic coverage. The parcel network for some time, but demand gradually customers' behaviour. Market re- was significantlyexpanded in 2020 picked up in the second half of 2020. search shows that customers want and consists of approximately 7 000 faster, simpler, more flexible and distribution points in the Nordic region. To meet growth and increased negative consequences for volume abolishing Posten's obligation to an improvement of NOK 1 324 precise delivery solutions. Posten In 2021, parcel boxes are planned demand, the Group has invested and revenues. Termination of the tax provide basic banking services in the million from 2019. therefore launched several new and for 1 000 new locations in Norway. in increased capacity in 2020 with exemption for imported goods under rural postal network. innovative services in 2020, in- expansion of the network in Norway, NOK 350 has also had a negative The return on equity (ROE) was 16.4% cluding delivery to parcel boxes, As a labour-intensive business, a the opening of new terminals in effect on volume. Posten's digital mailbox, Digipost, in 2020, which is 16.2 percentage home delivery of groceries, Urban health-promoting work environment Denmark and Sweden, and establish- gained over 300 000 new users in points higher than in 2019. The Home Delivery with green and fast is one of the Group's priority areas. ment of a Nordic parcel network. The transition to digital solutions 2020 and now has 2.4 million return on invested capital (ROIC) for deliveries in big cities, and the Through long-term and systematic at small and medium-sized compa- registered users. Digital mail 2020 was 14.1%, an improvement of platform service AMOI. work on health, safety and the In 2020, the Group sold its owner- nies indicates that the fall in letter volume increased by 16% to 39.3 6.7 percentage points compared environment, the aim is for no one to ship interest in Danske Fragtmænd. volume is of a permanent nature. million digital mail messages. to 2019. In the last two years, Posten has be injured or sick as a result of their In addition, the thermal business in The volume decline in unaddressed topped the list of Norway's most work. The number of injuries per Bring Frigo Norway and the transport advertising was significant during the PROFITABILITY Improved earnings in Logistics innovative companies. A profes- million hours worked was reduced company Bring Freight Forwarding corona pandemic, but is expected to The Group's operating profit Adjusted operating profit for the sional jury under the auspices of to 7.0, from 7.8 the year before. in Sweden have both been sold. The be smaller when society returns to (EBIT) was 1 485 million, which is an Logistics segment was NOK 1 268 the innovation magazine InnoMag Employee satisfaction is high even Group has also chosen to cease normal. Posten won the Ministry of improvement of NOK 1 323 million million for 2020, an improvement of awarded Posten 1st place in 2019 though the corona pandemic has operations in the Slovak company Transport and Communication's compared with 2019. Strong growth NOK 805 million compared to 2019. and 2nd place in 2020. The award is a had a negative effect on the work Bring Trucking and will instead tender for newspaper distribution, in parcels from online shopping Growth in e-commerce for private recognition of the Group's focus on situation. Sickness absence in 2020 purchase transport capacity in the and has distributed newspapers in and home delivery, combined and home delivery, as well as gradual innovation and provides inspiration ended at 6.0%, compared with 5.9% international market. rural Norway since July 2020. with increased cost efficiency in improvement in the corporate market for further efforts to develop new in 2019. The increase is attributed to operations has a positive effect on has contributed to a significant services and new delivery methods. the corona pandemic and the effect Restructuring and development DNB's agreement with Posten the Group's performance, while a increase in profits. Development of of corona-related absence. in the mail segment for banking services in Posten's sharp fall in letter volumes has the service portfolio, as well as The Norwegian people have a high The mail segment had revenues of distribution network was wound up had a negative effect on profits. economies of scale and cost-effective level of confidence in Posten. Accor- MARKET DEVELOPMENT NOK 6 041 million in 2020, a reduc- on 31 August 2020. The part of the In 2019, a provision was made operations, have also contributed to ding to the Ipsos reputation survey The business consists of two seg- tion of 20.9% from the previous year. agreement that included banking related to restructuring in the mail a significant improvement in profita- Posten is among the top of 10 large ments: Logistics and Mail. The Logi- The volume of addressed mail fell services in the rural postal service business, part of which were bility. Positive financial performance Norwegian companies in 2020, with stics segment is largest and accoun- by 19% in 2020, while the volume of was temporarily extended until reversed in 2020. was also recorded in offshore and 74% having a good impression of the ted for about 75% of the Group's unaddressed mail fell by 24%. The 1 July 2021. In light of develop- international forwarding. company. This is an increase of 12 revenues in 2020, while the Mail corona pandemic has led to increased ments, the Ministry of Transport The Group's profit before tax percentage points from the previous segment accounted for about 25%. digitalisation and this has major and Communications has proposed was NOK 1 344 million in 2020, Operating profit (EBIT) in 2020 was 16 17 01 About us | Board of Directors' report Board of Directors' Report | About us 01

NOK 1 285 million, which is NOK 921 2019. The operating profit in 2019 million in 2020 (NOK 619 million from the sale of Danske Fragtmænd EBITDA to a maximum of 3.5 and and internal control processes million higher than in 2019. This also includes a provision for restructu- in 2019), of which NOK 102 million A/S and the sale of subsidiaries. require a minimum equity ratio of are described in more detail in includes gains from divestments and ring, which was partially reversed in was repayment for 2019. In addition, 20%. Compliance with clauses is the statement concerning the investments, as well as an impair- 2020 after more voluntary solutions NOK 64 million was recognised in Net cash flow from financing activities calculated based on the Group’s company's principles for corporate ment for IT development. were accepted by employees than revenue for government payments in 2020 was negative at NOK 1 630 accounting figures without the governance. estimated. in accordance with the tender million, mainly as a result of lease effects of IFRS 16 Leases. Profits decline in Mail contract for newspaper distribution payments, as well as ordinary instal- ALLOCATION OF THE The Mail segment had an adjusted In 2020, 92.5% of addressed mail in sparsely populated regions. ments and repayment of debt. Throughout 2020 and at the end of PROFIT FOR THE YEAR operating profit of NOK 326 million was delivered within three days, the year, the Group complied with In 2020, the Group's profit after tax in 2020, a reduction of NOK 310 which is well above the license INVESTMENTS AND FINANCIAL FREEDOM clauses in the loan agreements. amounted to NOK 1 123 million, million compared with 2019. requirement of 85%. The scheme for CASH FLOW In 2020, the Group had net financial compared to NOK 13 million the Significant cost adjustments and the Norwegian State's purchase of Cash flow from operating activities expenses of NOK 141 million, which RISK previous year. Profit after tax in the restructuring were carried out in unprofitable statutory postal and in 2020 was positive, at NOK 2 607 is at the same level as 2019. As of Risk management and internal con- parent company Posten Norway AS operations, including conversion to banking services shall cover net million, an increase of NOK 464 mil- 31 December 2020, the Group had trol are integrated into the Group's was NOK 492 million, compared distribution every other day from additional costs related to statutory lion from 2019. This was mainly due good long-term liquidity reserves of business processes and are central with a negative result in 2019 of July 2020. However, this was not postal services which Posten would to positive operating profit before NOK 6.1 billion, compared with elements of Posten's corporate go- NOK -449 million. sufficient to compensate for the not offer based on business assess- depreciation. Net cash flow from NOK 6.4 million the previous year. vernance. When developing goals, large decline in volumes. Operating ments. The Norwegian State's pur- investing activities in 2020 was These reserves consisted of in- strategies and business plans, the The annual dividend is determined profit (EBIT) in 2020 amounted to chases of unprofitable statutory negative at NOK 299 million. This vested funds and available credit aim is to create value by balancing after an independent assessment of NOK 371 million, an improvement postal and banking services were was mainly due to net investments facilities. The Group places impor- growth against profitability targets the Group's and the parent company’s of NOK 250 million compared with recognised in revenue at NOK 523 and acquisitions, offset by payments tance on financial flexibility and the and risks to the Group's activities. financial situation and future ability to undertake strategically prospects is carried out. important investments. As part of its corporate governance, the Board emphasizes good risk The Board proposes that a dividend As of 31 December 2020, the Group's management and internal control. of NOK 560 million be distributed equity amounted to NOK 7 367 million The Board evaluates the Group's for 2020. The year's remaining profit and the equity ratio was 37.5%, up total risk every six months and will be transferred to other equity. from 32.0% the previous year. reviews the measures to be imple- mented. The risk assessment is The actual dividend will be deter- A high equity ratio underpins the included as an integral part in the mined at the 2021 general meeting. Group's solvency. In order to sustain Group's business processes. The The financial statements have been financial capacity over time it is vital emphasis is on a quantitative risk prepared on the basis of a going that the Group has the necessary approach. Risk-mitigating measures concern assumption. The Board regulatory freedom to adjust our are implemented to ensure that the confirms the validity of this Mail services in line with market Group achieves our goals, and these assumption. developments so that costs can be are regularly evaluated to ensure adjusted in line with falling letter that they are having the desired THE WORK OF THE BOARD volumes. Alternatively, the Norwegian effect. The Board and management Good corporate governance is a State will have to pay significantly actively follow up the Group's risk prerequisite for the Group to be a more for the unprofitable statutory exposure within the areas of strategic, profitable and vigorous company. postal services that are ordered. operating, financial and reputational risk, as well as information security. The Group complies with Norwegian To reduce financial risk and increase Climate risk will be added from standards and best practice for financial freedom, the Group has a this year. corporate governance, based on good liquidity reserve and a focus on Norwegian law and the government's cash flow. Credit and counterparty The Group uses derivatives to ownership policy at any given time. risk relating to placements of surplus manage market risks that arise as a liquidity are deemed to be limited result of ordinary operations. The A corporate governance report is as Posten Norge's counterparties derivatives uses are futures, interest included as part of the financial generally have high ratings. rate swaps, currency swaps and annual report. The rules of procedure combined interest rate and currency for the Board are updated annually. Debt covenants swaps. Detailed information about The Board evaluates its work, Some of Posten's loan agreements derivatives and hedging is provided in qualifications, and methods. It also contain debt covenants that limit notes 13 and 20 to the annual finan- discusses relevant topics that net interest-bearing liabilities/ cial statements. Risk management require special follow-up, as well as 18 19 01 About us | Board of Directors' report Board of Directors' Report | About us 01

the Board's own development and perspective and it makes the Group At the beginning of 2021, the Group Board meeting 25 March 2021 skills improvement. competitive. is ahead of previous volume fore- casts for the logistics segment. The In addition to being a decision- The Group has chosen to focus its Group is increasing its capacity to making and control body, the Board efforts on five of the United Nations handle larger volumes. New terminals contributes to the development of Sustainable Development Goals. are being built in Tromsø, Kristian- the Group. This takes place in These are: no. 8 “Decent Work and sand and Førde - and there are plans collaboration with the company's Economic Growth”, no. 9 “Industry, for a new terminal in Bergen. management and owner, through Innovation and Infrastructure”, no. good insight into the Group's 11 “Sustainable Cities and Commu- The current framework conditions strategies, business models and nities”, no. 13 “Climate Action”, no. provide limited opportunities for value chain. 17 “Partnerships for the Goals”. further structural and operational Andreas Enger (chair) The Board also refers to Chapter 2: adjustments for postal services, In 2020, the Board implemented a Sustainability. following the transition to letter strategy process to strengthen the delivery every other day from Group's positions in the Nordic The market outlook indicates low 2020. Posten continues to deliver market. Long-term trends and growth in the Norwegian and inter- small parcels in the mailbox every changes in the behaviour of national economy in 2021, but a weekday in large parts of Norway. customers and users affect the gradual normalisation is expected Unaddressed postal advertising is Anne Carine Tanum (deputy chair) Group's operations and how we during the year. distributed on the days customers prioritize and invest in the years want - including Sundays. ahead to ensure competitiveness The record growth in online shopping and development. and home delivery to private indi- For the Mail segment, the combi- viduals will probably decrease some- nation of an increasing decline in At the general meeting in 2020, what, as the situation in society volume and lack of opportunities for all shareholder-appointed board gradually returns to normal. How- adjustments, will result in profita- Tina Stiegler Henrik Höjsgaard Finn Kinserdal Liv Fiksdahl members were re-elected. ever, the Group expects continued bility challenges in the years ahead. Following the election of employee high growth in online shopping and A sustainable postal service requires representatives to the Board of home delivery to private individuals. necessary adjustments be made Directors for the period 2020-2022, New groups are shopping online and to the service portfolio in line with Gerd Øiahals was elected as a new buying more than before. changes in the market. board member to replace Odd Christian Øverland, while the The logistics market is changing The people in the organisation Gerd Øiahals Lars Nilsen Ann Elisabeth Wirgeness Tove Gravdal Rundtom others were re-elected. rapidly and competition is intensifying are the Group's most important further. The competition is Nordic resource. A prerequisite for success The proportion of women on the and consists of international and is competent and committed Board has increased to 60%. Among local logistics players, new players employees. Invest will be made the shareholder-appointed board from other industries, as well as in human resources and critical members, the proportion of women platform companies with completely competence - both for existing is 50%. The Board supports work on new business models. and new with workers. Flexible work Tone Wille (CEO) diversity and equality, please refer processes are being introduced and to Chapter 2: Sustainability. The Group's vision is to make every- new forms of work are developing day life simpler and the world smaller. after the corona pandemic. The Group's head office is in Oslo The level of ambition is being raised and our primary market is Norway. and the main goals are to be the The Board would like to thank Our largest market outside Norway customer's first choice, a leader in the employees and employee is Sweden. technology and innovation and best representatives who have made an in sustainable value creation - made extra effort and ensured good FUTURE PROSPECTS possible by our competent and operations with high delivery quality, The Group has taken an active role committed employees. Our work on as well as an excellent operating and will contribute to sustainable innovation and service development profit in 2020 - a year impacted by development and be a driving force to meet new needs and increased corona. The Board also expresses for Norway to reach its climate goals expectations among customers is its thanks for good cooperation by 2030. Contributing to sustainable progressing well. and joint responsibility in the development is important in a global development of the Group. 20 21 01 About us | Our development Our development | About us 01

The Norwegian Postal The first Service becomes Norway’s The Norwegian Our guiding mantra Norwegian first steamship owner by Postal Service stamp is issued. acquiring two ships. is established. throughout history has been 1854 to be ahead of the curve. The Postal Service imports 1855 1827 1647 two cars to improve mail 1908 The first railway line in Norway distribution to rural areas. opens and immediately becomes an important part of our postal transportation. Norway's first official air route 1920 opens and we are on board. First electric car We open Europe's most put into service at The first Post in Shop Parliament turns Posten Postcodes are introduced modern letter-sorting the Winter Olympics is established to meet into a limited company on to more easily manage the 1968 plant in Oslo. in Lillehammer. new customer habits. 1 July: Posten Norge AS. increasing volume of mail. 1973 2000

1976 1994 2001 2002 The Norwegian Postal Service The start of a new We undertake a number of tests the Norwegian-produced period of decline in acquisitions in the Nordic electric car from El-bil AS. letter volumes - after 2003-2008 region in logistics. 350 years of growth. The Bring brand is The Norwegian postal launched and the Posten 2008 market is opened up to full logo is modernised. competition and Posten ceases Digipost, the digital We introduce the Saturday letter deliveries. mailbox, is launched. tracking app. 2010 2008

New ambitious goal: use only 2016 2011 2008 renewable energy sources in 2017 Posten develops an electric scooter We started our buildings and vehicles by 2025. for post distribution, Paxster, targeted efforts and today it is used by number of to reduce our CO􀣗 Collaboration on emission- other postal companies. footprint. 2018 free delivery in city centres - “Beloved city” starts in We are named Norway's most We moved from A number of new services are Stockholm. innovative company by a profes- delivering mail five launched, including Chatbot for sional jury under the auspices of days a week to every customer service, digital stamps 2018 the magazine “Innomag”. other day. and the opportunity to send from 2018 2020 2021 the customer’s own mailbox.

2019 2020 Posten’s own innovation hub Launch of the Parcel Decision made to no The Nordic logistics operator that opens and becomes central to Box, which allows you to longer purchase fossil • has created the best customer experience service development. pick up parcels closer to fuel vans for use in cities through insight and technology where you live or travel, from 2022. • has a 100% green vehicle fleet at all hours of the day. • is the most attractive employer

22 23 01 About us | Our Strategy Our strategy 2020-2023 | About us 01

New Group strategy In the

The customer’s first choice driving seat • The best customer experience • The industry’s most attractive Our new strategy is ambitious and services • The best at deliveries in provides direction for the Group’s urban areas We make everyday life future development. simpler and the world smaller Our three new main objectives will Our customer promises ensure that we continue to strive We want our customers to see us to achieve the Group’s vision. We as an attractive partner and the shall be: preferred choice. Posten and Bring We will simplify and increase the val e of trade and • The customer’s first choice are two sides of the same coin. The comm nication for people and enterprises in the Nordic re
ion • At the forefront of technology strategic foundation is the same in and innovation terms of vision, main goals, values ​​ At the forefront of • Best at sustainable value and how to meet our customers. technology and innovation creation • The most innovative provider Our customer promises are: of logistics The targets are ambitious, specific • Simple and reliable: We are a • A data-driven business that and provide direction for the team player, deliver safely as innovates through insight and Group’s development towards agreed and make it easy to be technology 2023. They are our “must win batt- a customer. • A competence-driven and les” and define what we need to • Freedom of choice: We adapt attractive employer prioritise and what it takes to win to the customer's everyday life in the markets in which we operate. with new and smart solutions that give the customer freedom The cstomer´s At the forefront of Best at sstainable Employees are the key of choice. first choice technolo
y and innovation vale creation To be able to deliver on all the • Environment: As a responsible main objectives, people are social player and to continue to essential. Employees are the be relevant in the future, we will key to our success. This is why continue to be a driving force for Enabled by competent and dedicated employees employees, commitment and the Nordic region to achieve its competence are an integral part climate goals of the whole target vision. Increased competitiveness Take Play for Strive Best at sustainable value Our values Our new target vision will ensure creation responsibility the team for more The values “Take responsibility”, a high degree of proximity to • The greenest logistics provider “Play for the team” and “Strive the customer and a high degree • A responsible social player for more” ​state what should of technological development. and employer characterise us in our daily work; It is this combination that will Simple and reliable | Freedom of choice | Environment • An efficient cost structure who we are and how we behave give us the greatest possible that contributes to long term towards each other, our customers competitiveness, regardless of value creation and partners. how the market develops.

24 25 02 Sustainability

Results 2020...... 28 The greenest logistics provider...... 30 Greenhouse gas emissions...... 31 Driving force for sustainable framework conditions ����34 Facilitator of the circular economy...... 36 Material consumption and recycling ...... 37 Purchasing and investments ...... 38 A responsible social player and employer...... 40 Working conditions in the supply chain...... 41 Safety, development and well-being of employees ������42 Viable local communities...... 45 Diversity and equal opportunities...... 46 An efficient cost structure...... 48 Information security...... 49 Anti-corruption and competition considerations...... 51 Socio-economic value creation...... 52

For us, sustainability is about turning today's challenges into tomorrow’s opportunities - for the world and for us.

26 02 Sustainability | Results 2020 Results 2020 | Sustainability 02

We have worked systematically on describes how we will the impact of sustainability since 2010 and it is the environment and the risks and Increased Best at an integral part of our business. opportunities that lie here. collaboration It makes us competitive, creates commitment and internal pride and Our impact on the environment is the key to is required by our customers. The United Nations Sustainable Development Goals have given the success with the sustainable The impact of the world a common direction for long- environment on us term development. Based on our goals we have The Group’s three main objectives stakeholders and the scope of our build upon one another. In this business, there are five goals that set ourselves. value creation chapter we look at our strategic stand out. This is where we can work based on the main objective make a positive difference that “Best at sustainable value creation”. creates long-term values ​​for the In order to provide a comprehensive environment, people and our own To realise this goal, it is essential that we and cohesive picture of the Group's business. We must be as relevant see our overall impact as a whole: How does overall impact, we have taken the today and in the future as when areas where we can make a difference we started 374 years ago, without our environment impact us – and how do we as our starting point. These are destroying opportunities for future impact our environment. linked to the Group's strategy, which generations.

UN´s Sustain- Where we make an impact Our overall sustainability Measured in Results Goal Goal able Develop- and can make a difference ambitions (KPI) 2017 2018 2019 2020 2020 Status 2021 ment Goals

We are a large employer, we No one should be injured or sick as Sickness absence rate 5.9% 6.0% 5.9% 6.0% 5.8% 5.9% have many subcontractors and a result of working in the Group. H􀣗 injury rate 6.5 8.7 7. 8 7. 0 6.6 6.3 we are responsible for employees having decent employment and The gender balance among managers Percentage of female 29% 28% 27% 28% 31% 31% working conditions as well as shall reflect the gender balance in managers in the Group equal opportunities. the Group.

Posten constitutes an impor- Drive innovation together with Number of new solutions/ -* -* -* 29 10 10 tant part of the infrastructure customers and be the leader in new services to the market in the Nordic region. Innovation value propositions for our markets. is essential to continue to be Innovation capacity in the 47.0 49.7 51.6 51.9 55.0 56.6 relevant in the future. NHH innovation index Collaboration is required at multiple levels to achieve Cities account for 75% of We will have renewable “last mile” Proportion of vehicles -* -* -* 26% 24% 39% global and local global carbon emissions and transport in selected Nordic cities running on renewable sustainability zero emission transport is an and towns by 􀣗 0􀣗 3. energy goals important part of the goal of sustainable cities and societies.

The transport sector is one of By 􀣗 0􀣗 5, we will only use renewable Reduction in CO􀣗 e** -* -* -* 13 720 10 600 -*** the largest emitters in clima- energy sources in our vehicles and te accounting for the Nordic buildings. countries. This means that we have a great deal to contribute.

* New KPI from 2020. 28 ** This calculated only the CO􀣗 effectofanincreasedshareofvehiclesrunningonrenewableenergysources. 29 *** Removed from the KPI chart from 2021. 02 Sustainability | The greenest logistics provider The greenest logistics provider | Sustainability 02

GREENHOUSE GAS Development Goal 13 “Stopping The greenest EMISSIONS Climate Change”, for example As a major transport and logistics sub-goal 13.3. player, we are part of the emissions problem - and part of the solution. Here's what we've done in 2020: logistics provider We are present throughout the Nordic region, and the scope of our Renewable energy in terminals business contributes to significant We have a terminal structure that Our ambitious goal is to be the greenest logistics emissions from vehicles and some requires a lot of energy, and have Today's goal is to use only provider in our market. This means that we must from buildings. In addition, we make therefore worked for several years a significant contribution to local air to establish a new and modern stru- renewable continue the good work we have done over a long pollution. There are also greenhouse cture. Several units are co-located, period of time, but we must think more radically and gas emissions related to business which reduces mileage between sources of travel, although this has been signi- terminals. We purchase Guarantees collaborate with others to a greater extent. ficantly reduced in 2020 as a result of Origin to ensure the supply of energy of the pandemic. renewable energy in Norway, Sweden and Denmark. We produce renewable in our vehicles and If the goals of the Paris Agreement energy at several of our buildings, buildings by 2025 are to be met, the transport sector including five terminals that have must also reduce its emissions installed solar panels on the roofs. considerably. We will continue to For all our new buildings, we follow drive the development of environ- the BREEAM-NOR certification mentally efficient vehicles in the standard. We have a total of future, by demanding, testing and Our stakeholders implementing new solutions. The Increased use of trains 5 terminals current goal of using only renewable The Group is the leader player in believe we can exert energy sources in our vehicles and the Nordic region in the provision with solar influence in these areas: buildings by 2025 will be updated in of intermodal services in the logis- 2021. We want to be “in the driver's tics market. This reduces emissions panels seat” - and a driving force for the from our own vehicles, but also Greenhouse gas emissions Nordic region to achieve its climate from other carriers. For example, we which produce Driving force for sustainable goals. transport large volumes of waste renewable energy framework conditions out of Norway by train, which would Our work on this can be linked to the otherwise have been transported by Facilitator of the circular economy United Nations Sustainable heavy goods vehicles. Material consumption and recycling Purchasing and investments in innovative companies, fixed assets and property.

Here you will find the results of our work in 2020. In the fact booklet “Sustainability at Posten” (attachment) you will find detailed information about guidelines, responsibilities and detailed tables.

30 31 02 Sustainability | The greenest logistics provider The greenest logistics provider | Sustainability 02

From 2019-2020 we increased In 2020, we transported 208 767 • 528 electric vans. We have carried the use of rail transport by containers (TEU) on Norwegian and out one of the largest procurements Emission intensity international railways, which is an in- in Norway, for 70 large electric crease of 14.7% compared to 2019. vans for parcel distribution. Furth- DevelopmentCO�emissions(grammes in CO2 )emissionsperNOKearne perd year* 14.7% Over the past year, the demand for ermore, about 50 smaller electric Our CO� emissions good and safe delivery options has vans with a longer range than pre- 24.0 600 000 have been reduced by increased internationally as a result vious models have been ordered. of the Covid 19 pandemic. • We invested in the two first mass- 20.0 produced electric trucks, both of 550 000 45% Together with CargoNet, we have which are in operation in Oslo city 16.0 developed a train line between centre. We received support from 500 000 since 2012 Halmstad/Malmö/Trelleborg and ENOVA to invest in Norway's first 12.0 Oslo. This carries international freight electric truck from MAN and Scania. ...equivalent to one volumes into Norway and on to the This is in addition to a truck tractor 450 0008.0 xxx xxx Norwegian railway network. In 2020, from Volvo running on liquefied tonnes of CO2 year's emissions from the Group covered 60% of the line's biogas. We have begun to use 400,0004.0 capacity and ensured that 8 427 vehicles from Inzile in Stockholm 116 282 trailers were moved from road to rail. and signed a letter of intent to 0 test vehicles from Volta. 350,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 passenger 1 577 vehicles running on • We have 529 vehicles running on 2012 2013 2014 2015 2016 2017 2018 2019 2020 renewable energy different types of biofuel that A declining emission intensity indicates a more emission-efficient organisation. cars Posten and Bring currently have include biogas, HVO and RME1. * Emissions are converted into tonnes of CO􀣗 equivalents Norway's largest vehicle fleet of 1 577 8 427 fossil free vehicles. Several hub In the reporting year, the Group solutions have been established to over-delivered on its ambition of a enable the use of electric vans, cargo 24% share of its vehicles running on trailers bicycles and mopeds. An increasing renewable energy, achieving a share Our assessment and the future nies that can demonstrate a conti- In 2020, the proportion of number of large electric vans are of 26%. We will continue the positive de- nuous reduction in greenhouse our vehicles running on were moved from road to being used in the cities, which means velopment of reducing our climate gases. In the Ipsos reputation survey, renewable energy was rail, which on average is that more services will be fossil free Highlighting climate measures footprint and demonstrating an Posten was ranked second in the equivalent to in the future. In 2020, we have: In order to highlight our climate even more climate-efficient pro- category “environmental aware- measures for our customers, we have vision of our services. The Group's ness” within our industry. • 29 electric bicycles. Electric further developed the recipient turnover has been stable in recent 23 fewer Goal cargo bicycles are now being used interface in the parcel tracking app years, but emissions have been Our customers are increasingly 2020 trailers on the road in large cities throughout Norway, Glow so that we can show when a reduced. This gives a positive concerned with reducing the climate 24% every day Sweden and Denmark. parcel is delivered with vehicles run- development in emission intensity, footprint, local pollution and mana- 26% • 489 electric mopeds. ning on renewable energy. emissions per NOK earned. In total, ging the world's resources in a more Goal we have eliminated 240 845 tonnes sustainable way. Going forward, 2021 of CO􀣗 since 2012. This corresponds it will be important to adapt our 39% to one year’s emissions from 116 282 vehicle fleet so we can offer green passenger cars. services. We will continue to work on establishing new goals for the The Group's climate and environ- Group's climate and environmental ... and in the Glow recipient mental work does not go unnoticed. work. This will include increasing interface, the customer In 2020, we were named the most the number of cities where both can see when a parcel is sustainable brand in our industry letters and parcels are delivered delivered with vehicles in the Sustainable Brand Index (SB using renewable energy sources. running on renewable energy Index) in Norway, and in Sweden we were the brand that was the highest In 2020, we changed the KPI for climber. The SB Index measures and climate and the environment to analyses how sustainability effects address the number of vehicles brand-building, communication and that are fossil free, so that we have business development. The Group is the proportion of vehicles running also mentioned in the PWC Climate on renewable energy in addition to Index, under category 2, for compa- CO􀣗 reductions.

32 1 HVO = Hydrogenated Vegetable Oil | RME = Rapeseed Methyl Ester 33 02 Sustainability | The greenest logistics provider The greenest logistics provider | Sustainability 02

Here’s what we’ve done in 2020: Letter of intent on charging In 2020, we signed a infrastructure letter of intent with the Highlighted and promoted As a large transport company, Posten City of Oslo to necessary framework conditions can influence the framework condit- We work to highlight the framework ions for the charging structure related conditions that are necessary visible to the electricity initiative and other establish through dialogue with different stake- environmental measures. We have holders. This includes public authori- previously entered into a letter of in- charging ties, suppliers, interest groups and the tent for the establishment of energy

business community. This is done in stations with biogas and hydrogen infrastructure connection with individual cases, for with the City of Oslo. In 2020, we example biofuel taxes and changes have also signed similar agreements for electric in the Postal Act, or in a larger con- to establish a charging infrastructure text where several players in the for electric vehicles. vehicles business community work together. Our assessment and the future We have worked to change framework We conduct an ongoing assessment conditions and highlight challenges of issues that are important for the and opportunities through activities Group's framework conditions, both under the auspices of the Zero Con- nationally and internationally. For ference, Nordic CEOs and Skift. The example, how the cases are to be hand- latter consists of the most ambitious led and which arenas and channels companies in Norway with regard to should be used in the advocacy work. the climate, and Group CEO Tone Wille sits on the board. In a declining letter market, we must continue the necessary restructuring Mail delivery every other day of the business and adapt to new user From July 2020, we changed mail needs. We are in the process of shaping Items people order delivery distribution from five days a the delivery network of the future in can now be delivered week to every other day (Monday- the Nordic region. Major changes in to their home Friday). This is a necessary measure the provision of statutory postal ser- to ensure financial sustainability and vices will require changes in the law. avoid a sharp increase in Norwegian outside or State’s purchase of unprofitable We co-produce and coordinate statutory postal services, but it is letters, parcels and goods in a joint inside the door insufficient in the long term.The network in Norway. New services are or picked up at a Ministry of Transport and Communi- being tested and launched to give increasing number of parcel cations therefore carried out a study the customer greater freedom of delivery locations in 2020 on the future service level. choice and a simpler everyday life. This shall provide the best possible Goods that people shop for online, knowledge base for any changes in can be delivered to their home the Postal Act, which may facilitate - outside or inside the door, or DRIVING FORCE FOR customer needs and the competitive mail segment is particularly important. further restructuring of the postal picked up at an increasing number SUSTAINABLE FRA- situation. The company is engaged service. Posten has contributed to of parcel delivery locations. MEWORK CONDITIONS in the development of regulations, The work of being a driving force for this work. Work towards sustainable frame- both nationally and internationally. sustainable framework conditions is After the transition to mail delivery work conditions is particularly We work to ensure good and equal important for fulfilling our role as a Equal competitive terms every other day, parcels are still important in the climate and environ- competitive conditions for the logis- responsible logistics company in the A special topic in recent years has delivered every weekday to mail- mental area. Here, the Group has tics business, and we will act as a Nordic region and provider of postal been the need for better enforce- boxes in most parts of the country, historically had a clear voice credible and constructive opinion services in Norway. ment of transport legislation, so that in addition to Post in Shops, post and we must continue to have one. leader in regulatory issues and other serious players, such as Posten and offices and parcel boxes. To meet matters that directly affect the busi- This work supports, among other Bring, also have equal competitive growth and offer attractive solutions There are financial and strategic risks ness. Creating an understanding of things, Sustainable Development conditions in practice as other to Nordic online stores, we continue associated with the framework con- the need for restructuring and adap- Goal 17 “Partnership for the Goals”, players. to expand capacity and networks in ditions that are not suited to new tation of the service portfolio in the sub-goal 17.17. both Sweden and Denmark. 34 35 02 Sustainability | The greenest logistics provider The greenest logistics provider | Sustainability 02

FACILITATE THE reproduction, and finally recycling. Here's what we've done in 2020: concepts that can be tested. During The deployment of MATERIAL CONSUMPTION CIRCULAR ECONOMY This helps maintain the value of the the reporting year, we completed self-service and 24-hour AND RECYCLING The goal of the circular economy is product and bring with it potential Pilot testing of circular services several pilot projects. For example, parcel boxes helps make it Different types and different quanti- to make the best possible use of all new business opportunities. We are looking at the possibility of we have looked at how we can make ties of waste are produced at all our resources. The least possible should reverse logistics. This involves ex- it easier for people to repair and easier for offices/terminals. This arises from be disposed of as waste, but instead As a major logistics player, we have tending the life of a product or raw maintain their property. In another the handling of letters, parcels and kept in a cycle where constant re- an important role in keeping raw material through reuse, reproduction pilot, we tested how we can facilitate consumers goods and some packing of out- cycling leads to a reduced need to materials in circulation. Another or recycling. This could increase the making it easier and more attractive going goods. Waste is also produced extract new raw materials. This is aspect is how we manage and use demand for solutions in areas such for people to rent hiking equipment to both send directly through our own activities at achieved through optimal utilisation our resources ourselves. The industry as the return of used and defective as needed. terminals, canteens, distribution of the resources that have already exerts influence by setting require- products and the distribution of re- and receive points and in our office buildings. been extracted, and by avoiding ments for circularity in the design cyclable materials. We have gained A new “Beloved city” We can influence the amount of pollution and emissions. of vehicles, services and packaging. insight into reverse logistics and “Beloved city” is a collaboration parcels waste that occurs in our buildings Our work on this can be linked to the tested new business models on a between Bring, Ragn-Sells and KLP and aim to reduce the waste in order Circular models facilitate the longest United Nations Sustainable Develop- small scale. The goal has been to to utilise existing vehicles in the to achieve the highest possible possible lifespan for a product ment Goal 9 “Industry, Innovation share the knowledge internally and cities. The collaboration is a degree of separation at source. through reuse, repair, renovation and and Infrastructure”, sub-goal 9.4. develop specific proposals for common solution where parcels are Furthermore, we can also influence delivered and waste is collected material consumption and recycling using the same electric vehicle. through the environmental require- The entire logistics chain is 100% ments we set for our procurements. electric. In 2020, “Beloved city” was established in Trondheim, so In this area, we can influence and the solution is in operation in four encourage players to use sustainable Scandinavian cities. materials, and ensure that used material is handled in a good way. Support services Our work on this can be linked to Some of the Group's initiatives the United Nations Sustainable support the circular economy, Development Goal 13 “Stopping without being directly related to Climate Change”, sub-goal 13.3. the topic. These are crucial for the success of circular business Our parcel network Here’s what we’ve done in 2020: models. Deployment of self-service now consists of over and 24-hour parcel boxes helps Waste plan and environmental make it easier for consumers to report both send and receive parcels. 7 000 A total of 36 of the Group's buil- Our parcel network now consists of dings are environmentally certified. distribution points in Opportunity scenario for how we can about 7 000 distribution points in This ensures focus on separation make it easier for people the Nordic region. the Nordic region at source. A specific plan for waste management must be drawn up, Our assessment and the future separation at source must be facili- to repair and Even though we are in the very tated and an annual environmental beginning phase of working with the report produced for each building. circular economy, we already have maintain their many exciting initiatives underway. Reusable container At the same time as we work on the Posten and Bring largely use reusable property development of circular solutions, load carriers, such as containers we are experiencing increased and transport cages, for parcels and demand and requests for this letters. They are made of steel and concept from our customers and plastic, which have a long service life. partners. Waste that occurs in production is separated at source according to the We have a unique opportunity principles that apply in each muni- to take part in the transition to a cipality. In this way, we contribute more circular economy through our to the recycling of a large proportion network, expertise and size. of the waste that occurs. 36 37 02 Sustainability | The greenest logistics provider The greenest logistics provider | Sustainability 02

In 2020, the Group High degree of waste separation in connection with the installation achieved a source at source of a heat pump at the terminals in separation rate of The Group has the ambition to have Haugesund in Norway and Taulov in the highest possible degree of waste Denmark. Furthermore, solar panels 53 vans separation at source. For many years have been installed at the terminal we have had an even and high degree in Greve in Denmark, which is rented running on fossil fuel have been of separation at source. In 2020, by Bring, which are guaranteed to replaced with electric ones, which 81.6% of the Group’s waste was provide a minimum of 300 000 kWh is equivalent to a reduction separated at source, which is at per year. in emissions of approximately the same level as 2019. In a year 82% of increased growth, we are very Our assessment and the future 120 tonnes of CO2 pleased that we have achieved this The Group has achieved a stable high level of separation at source. source separation rate over several years. This trend has continued in 2020, Retreaded tyres which we are very pleased about. No The Group has entered into tyre specific targets have been set for agreements where arrangements are the degree of source separation. year. Equivalent diesel vehicles emit vehicle fleet for many years. We have among others. The types of eco- made for the purchase of retreaded an average of 160g/km, which results approximately 500 of these and a labels are the Nordic Swan Ecolabel, In the autumn of 2020 tyres, where the core is reused and PURCHASING AND INVEST- in a reduction in emissions of approx- return agreement has now been en- Good Environmental Choice, EU new tread is applied. By following MENTS IN INNOVATIVE imately 128 tonnes of CO􀣗. We have tered into with the manufacturer of Ecolabel, FSC/PEFC or equivalent. we received delivery of through on this agreement we have COMPANIES, FIXED also placed an order for a further 317 these vehicles. Well-used vehicles The cleaning company, which acco- implemented this process, and 380 ASSETS AND PROPERTY electric vans with delivery in 2021. are returned to the manufacturer, and unts for 70% of cleaning undertaken retreaded tyres were delivered for The Group's size and range of services then restored to “shiny and new” con- in Norway, uses new innovative mops 380 heavy goods vehicles in Norway in mean that we have a significant level Testing of fossil free trucks dition, before being sold in a market and cloths. This reduces chemical retreaded the autumn. By buying retreaded of annual purchasing. This has finan- In Norway, in 2020 we have received that does not have the same range consumption by 90% and water tyres instead of brand-new ones, we cial, environmental and social impact. two smaller electric 7.5 tonne trucks, and uptime requirements as Posten. consumption by 70%, which results tyres save the environment 50 kilos of raw Purchasing in the Group is pervasive and a large electric three-axle truck in a reduction in CO􀣗 emissions of material per tyre (which is primarily in our value chain, as it involves the for testing. In addition, an electric Securing buildings against 72% compared with traditional for heavy goods steel, rubber and oil). 19 tonnes suppliers, affects operations and two-axle truck (19 tonnes) has been climate change cleaning methods. This corresponds vehicles in Norway of raw material have thus been ultimately our customers. The Group ordered, as well as a large truck that Recent climate change is causing to 3 tonnes of CO􀣗 per year per saved here. has regular dialogue with the supplier will run on liquefied biogas. Learning more acute events as a result of 1 000 square metres of floor area. market both during the procurement from these tests will be important extreme precipitation, floods, ava- Recycled polyester work uniforms process and during the contract for the Group's further investment lanches and landslides. This will Our assessment and the future In a new Group contract for work period. This is done through category in fossil free alternatives in Norway, have an impact on the Group's We are satisfied that through both uniforms, specific terms have been management to ensure that new and including in heavier vehicles. properties and we must consider procurement and category manage- negotiated for the use of recycled innovative sustainable products and the location of the current terminals ment, we are constantly testing new polyester. This will be tested on an solutions can be tested, and then Ensuring good conditions for and the planning of where new sustainable products and solutions, ongoing basis, and if it proves success- improved and scaled up. It also HVO¹ in Sweden ones will be located. Examples of and are upscaling several of these. ful, all polyester in all garments will involves environmental investments The Group seeks sustainable solutions measures that have been taken to We will continue to have good be replaced with recycled polyester. in own terminals and buildings. both for its own and for its subcon- meet climate change are to raise the dialogue with the supplier market to tractors' vehicles. Following a tender plot of land in Tromsø by one metre gain knowledge about new products Increased environmental focus The Group's focus on and contri- competition for HVO in Sweden at the due to the expected rise in sea and solutions that can support our at our terminals bution sustainable development end of 2020, arrangements have been levels. In Førde, we have increased goal of sustainable value creation. The Group has entered into an agree- through purchasing can be linked, made for competitive conditions so the height of the embankment ...this has saved the ment to optimise energy use at our inter alia, to the United Nations that subcontractors can fill up with between us and the stream that This year, the Group has also environment terminals and reduce power consump- Sustainable Development Goal 13 biodiesel rather than diesel in 2021. previously flooded. We have made gathered expertise in purchasing and tion. New terminals being built in “Industry, Innovation and Infrastru- It is estimated that up to 2.5 million a flood path so that the building will the environment through a separate Tromsø and Kristiansand will be certi- cture”, sub-goal 13.3. litres of biodiesel will be used in 2021. not be hit if it should happen again. forum that meets on a monthly basis. 19 tonnes fied in accordance with BREEAM, at This corresponds to a reduction of The forum has become a success the “Very Good” level. BREEAM is the Here’s what we’ve done in 2020: up to 3 400 tonnes of CO􀣗 e. Eco-labelling in procurements factor when it comes to ensuring a of raw world's oldest, and Europe's leading, Requirements are set for eco- common, high level of competence. environmental certification tool for Vans: Electricity replacing diesel Return agreement for electric labelling in a growing number of Work will continue this year to material buildings. In 2020, we replaced 53 vans running mopeds new procurements. This applies to accommodate the new Group on fossil fuel with electric ones. These Paxster is an electric, one-single driver envelopes, paper towels, toilet strategy of being the greenest Major investments have been made drive an average of 15 800 km per vehicle that has been in Posten's paper and cleaning products, logistics player.

38 1 HVO = Hydrogenated Vegetable Oil | RME = Rapeseed Methyl Ester 39 02 Sustainability | A responsible social player and employer A responsible social player and employer | Sustainability 02

WORKING CONDITIONS IN inspection/audit and follow-up. We buy different services A responsible social THE SUPPLY CHAIN from approximately For Posten and Bring, a sustainable We also identify high-risk categories supply chain is about working con- for human rights violations and other ditions, the environment and ethics social requirements. The transport 15 000 player and employer being managed in a serious way by our services category consists of our suppliers. This means, among other direct suppliers that are closely suppliers in things, that suppliers contribute to linked to the business and provide This goal is about our role as a critical social reducing climate emissions, that services on our behalf. Other sup- 40 countries function, which became very clear when the suppliers' employees have proper pliers considered high risk are in the employment agreements, satisfactory categories of electronics, office pandemic hit. It is also about decent working wages, freedom of association, that furniture and work clothes. conditions for employees and our subcontractors. work hours regulations are complied with and that employees' health and Suppliers' obligations safety are safeguarded. We there- All new suppliers must accept and fore work in a structured manner to sign the Group's minimum require- ensure a responsible and sustainable ments, the “Supplier Declaration supply chain. concerning Ethical Standards”. The Code of Conduct includes require- The Group's business model is based ments for working conditions, human ...and around on a combination of its own employ- rights, wages, forced labour and free- ees, drivers and terminals - and the use dom of organisation. For transport of suppliers. We purchase various suppliers, which have a significant 6 000 services from approximately 15 000 environmental impact, we require Our stakeholders suppliers in 40 countries. About 6 000 all new suppliers to sign the Group's of these are external of these are external transport sup- environmental declaration. transport suppliers believe we can exert pliers. The work is therefore impor- influence in these areas: tant in several areas. We must give Follow-up of suppliers our customers confidence that they We evaluate our suppliers through have a supplier that takes responsi- background checks, self-evaluations, Working conditions in the bility and ensures that we and our unannounced checks with driver inte- supply chain suppliers meet the customer's rviews, vehicle checks and system expectations for sustainable and audits of carriers. Safety, development and responsible operations. The Group's well-being of employees requirements for and follow-up of In 2020, 81 spot checks related to Viable local communities suppliers' working conditions can wage and employment agreements be linked to the United Nations were carried out as well as 26 system Diversity and equal opportunities Sustainable Development Goal 8 audits. These resulted in 21 carriers We want to give “Decent work and economic growth” preparing improvement plans. 66 new and in particular sub-goal 8.8. self-evaluations were conducted by suppliers. In addition, various un- customers Here’s what we’ve done in 2020: announced inspections were carried out on drivers and vehicles. In seven piece of mind Screening and prioritisation cases, the supplier relationship was that have a supplier who of suppliers terminated due to deviations related takes responsibility and Each year, we conduct an overall to breaches of the Code of Conduct ensures that we and our analysis to assess which suppliers for Suppliers. None of these are re- Here you will find the results of our have significant environmental and lated to the environment or climate. suppliers meet customers' work in 2020. In the fact booklet social impact. External transport expectations for “Sustainability at Posten” (attachment) service providers are considered Our assessment and the future you will find detailed information to be a category with potentially about guidelines, responsibilities sustainable significant adverse environmental Goals and goal achievement and detailed tables. and social impact. Most are assessed The work is evaluated on an ongoing and sound in relation to social criteria. This results basis, with a formalised evaluation at in a risk-based priority list for further the end of the year. The status of the operation 40 41 02 Sustainability | A responsible social player and employer A responsible social player and employer | Sustainability 02

Sickness absence was work is presented to the sustaina- • Establish a climate program for and still are working from home. Main- • Service competence Number of accidents bility council in the supplier chain, transport suppliers taining a satisfactory physical work • Agile and interdisciplinary (H2 injuries) the HR management group and the • Complete new Group processes situation has been important for this competence 6% internal control committee. The for supplier management group of employees, in addition to • Technological competence Group's management also presents • Initiate a system for digitised motivation and digital management. 156 6.1 the status of the work to the Board. background checks on transport Furthermore, a need has been identi- 270 suppliers The pandemic has had some impact fied to increase overall and commer- 6.0 Goal 2021 The work in this area was also • Offer e-learning courses for on a sickness absence. There was cial understanding, customer under- 250 5.9% 5.9 evaluated in various ways by suppliers on our Code of Conduct a significant increase in March and standing and digital understanding external players in 2020: for suppliers April which resulted in an increase among all employees. A roadmap 230 5.8 Goal • Establish a new plan against work- from 2019 of 0.1 percentage points. has been drawn up for measures that 210 2020 5.7 1. In 2020, the Norwegian Digitali- related crime among external are differentiated on the basis of the 5.8% sation Agency published the re- transport suppliers Systematic safety work different target groups and needs. 190 5.6 port “Benchmarking the procure- • Carry out audits and inspections Despite challenges related to corona, These will be implemented in the 170 ment function in state-owned according to the plan our systematic safety work continued. strategy period and will contribute 5.5 150 2017 2018 2019 2020 enterprises: Overall report”. This Travel restrictions have led to some to strengthening the Group's 14 15 16 17 18 19 20 gave us good feedback and em- SAFETY, DEVELOPMENT of internal security audits being carried competitiveness. phasises that Posten is one of AND WELL-BEING OF out digitally. The other measures have ... an increase of three companies where the pro- EMPLOYEES continued, such as investigating the Increased digital learning curement functions have made Our employees are the Group's most serious incidents, annual safety We conduct systematic competence most progress on corporate social most important resource. If we are meetings and focusing on the regi- development through various courses 0.1% responsibility. to succeed in achieving our goals stration of near-accidents. All the and programmes for employees. driven by Covid-19- 2. In 2020, the Norwegian Safety and strategies, we must develop tools to be used in injury prevention Digital learning has been the most related absence Investigation Authority published our existing employees and attract work are gathered in a “Best practice” utilised form of learning in 2020 as a a “Thematic report on serious the competence we need today and presentation aimed at HR / HSE ad- natural consequence of restrictions accidents involving heavy goods in the future. The Group regularly visers and managers at all levels. At related to Covid-19. Several new vehicles: Framework conditions implements measures to ensure the end of the year, a campaign was digital learning initiatives have been for ordering goods transport by safety and upgrade its employees’ also launched against injuries from made available to employees. Exam- We have initiated significant road”. The purpose of the report competence and ability to change. fall injuries, which is the type of inci- ples of digital courses that have emergency preparedness was “to register and assess atti- This is primarily achieved through dent that occurs most frequently. been completed: Teams, Information work due to tudes to road traffic safety among dialogue between employees and security, Working environment for those ordering transport assign- their manager in daily work, but also Hired personnel and subcontractors managers, Virtual collaboration and ments, as regards the choice of through competence measures such are used to some extent to carry out Effective coaching in everyday life. Covid-19 suppliers, the drawing up of con- as courses, subject-specific compe- work under our management at our tracts, the ordering of transport tence programs and e-learning. terminals. These staff are given the Sharing knowledge ...where we have, among assignments and follow-up of sup- necessary training through revisions The Group has chosen to join the non- other things, used resources pliers.” The Group was one of the We have a goal that no one becomes of our “Safety Standard” and self- profit organization Digital Norway. Number of on infection control and companies included in the report. sick or is injured from working in the evaluations. Injuries which includes This collaboration gives us access near-accidents internal information, secured The findings in the report were Group. Safety, development and these groups will be registered in to networks and sharing of knowledge the working environment anonymised. The dialogue with the well-being for employees can be separate reporting from 2021. across companies. This includes the with regard to infection/ Safety Investigation Authority gave linked to the United Nations development and sharing of free 26 122 us important input on areas for Sustainable Development Goal Updated competence strategy courses, webinars and digital prevention and the situation 50 000 improvement, including those 8 “Decent Work and Economic As a result of a new Group strategy, meeting places. for those working from home 45 000 related to the procurement of Growth”, sub-goal 8.8. our competence strategy has been

transport services. updated. Access to competent drivers, Insight work has been carried out 40 000 3. Several of our largest customers Here’s what we’ve done in 2020: Lean and continuous improvement, related to user experiences in also carry out audits and give us chartering and logistics competence processes for learning and develop- 35 000

feedback on improvements needed Corona emergency preparedness are increasingly considered critical ment. The purpose has been to 30 000 where necessary. Extensive emergency preparedness competencies. We have also mapped collect data and analyse user needs work took place throughout 2020 to other areas of competence considered as input for future system support 25 000

We are strengthening our ambitions deal with the corona situation. We to be particularly important to work for learning. It has also provided 20 000 in this area and the priority measures have used resources on infection with across the Group, such as: valuable insight into process improve- 14 15 16 17 18 19 20 for 2021 are: control to maintain normal activities • Analysis competence ments and further work on operation- • Implement a new supplier manage- in the operational part of the busi- • Social and emotional competence alisation of the competence strategy. The registration of near accidents and hazardous conditions reveals risk factors ment system ness. Office employees havebeen and management Retraining is offered to employees in while raising awareness of safety work. 42 43 02 Sustainability | A responsible social player and employer A responsible social player and employer | Sustainability 02

connection with restructuring. obtained digitally, with all employees as a result of the biggest restructuring The last few years have been charac- services. The value of our services We have also participated in volun- being given the opportunity to in the Group's history - the change terised by good HSE results. The down- has been enhanced during the pan- tary work for competence sharing in participate and a response rate of to mail delivery every other day. ward trend in sickness absence has demic period, as Posten and Bring collaboration with other companies 89%. This year's survey returned a levelled off somewhat, while the have maintained deliveries in all and NHO with the aim of offering high score of 5.7 for the factor of Learning organisation frequency of personal injuries has parts of the country. learning for those made unemployed competence, and 5.9 for the factor We strive to be a continuous lessened in the last two years. as a result of the pandemic. of commitment. Good dialogue with learning organisation so that we can This work supports the United Nati- employee representatives is an best meet customer requirements Systematic injury prevention, sick- ons Sustainable Development Goal Over 700 leaders taking courses important contribution to this work. or expectations from managers and ness absence follow-up and zero 11 “Sustainable Cities and Commu- The Group is working to develop its 95.4% of staff work in the enterprise co-workers. To map our potential tolerance for discrimination have nities”, which aims to make cities managers through management under a collective agreement. for improvement, we gather insights proven to be effective approaches. and communities inclusive, safe, training. In 2020, we started imple- from our own employees through robust and sustainable. We are menting the “Manager Talent” develop- We also offer apprenticeships and for example dialogue, organisational The plan for the further development required by law to have operations ment programme for all managers in the trainee programmes. Apprentices and research and evaluation of learning of the toolbox is: all over the country, and therefore Group. The programme will increase trainees add up-to-date professional measures. Furthermore, we have • A new revised model for sickness act as insurance and a supplier for individual and collective implemen- competence to the operation. The dialogue with our customers, absence follow-up will be intro- other transport providers. tation capacity and help realise our goal of the trainee programme is, partners and comparable companies. duced for the entire business in We provide services to all strategies and goals. In addition to among other things, to attract and Norway. Here’s what we’ve done in 2020: residents and businesses physical gatherings in the winter of develop talent with critical compe- Our assessment and the future This is designed to strengthen in the country and 2020, parts of the programme have tence. In 2020, our trainee programme Targeted efforts to develop important efforts to prevent recurring and AMOI - a digital, local marketplace have more than been conducted as digital meetings attracted more applicants than ever competence among different target long-term sickness absence, In June, Posten launched a solution and webinars. The program will con- before. We also have many appren- groups are put at the top of agenda among other things. that makes it easy for local stores to tinue during 2021 with the emphasis tices in disciplines associated with through the competence strategy. • We are further developing our sys- offer goods online, with the option 300 local on training in management skills in our operational operations. 74.8% of We have come a long way in imple- tem to make our work long-term of home delivery. The e-commerce their own working day. our employees completed employee menting measures within some of sickness absence even platform AMOI gives local stores a units interviews in 2020. the critical areas of expertise. For more effective. new sales channel at a time when in Norway Involved and environmentally other areas, work is being done to • Tools will be developed and runnig a physical store is challenging. aware employees Turnover operationalise the measures. This piloted to prevent negative work AMOI is owned and operated by We map conditions related to being The Group had a turnover of perma- includes establishing an employer exposure and strengthen positive Posten. employed by Posten and Bring through nent employees who left for various branding strategy, career paths, working environment factors. our annual organisational survey. The reasons of 18% in 2020. Among our learning journeys and digital commu- Newspaper delivery to all survey helps to measure commitment, employees in Norway, turnover was nication surfaces for learning that VIABLE LOCAL From July 2020, Posten has been In collaboration with well-being and frameworks for doing 14%, while for the rest of the Group meet the needs of the competence COMMUNITIES responsible for newspaper distri- Coop, we launched a nati- a good job. In 2020, all answers were it was 4%. It has been high in Norway strategy and insight into user needs. For 374 years, Posten has conveyed bution in those parts of Norway where onwide agreement for messages, and later goods, domes- there are no other distributors, tically and internationally. Our infra- which is approximately 15% cent of home delivery structure is important today in a the country's households. Posten Nordic, national and local perspec- won a tender competition under the of groceries tive. We provide services throughout auspices of the Ministry of Transport The annual organisational Our new strategic target vision is made possible the Nordic region. In Norway we deliver and Communications, thus ensuring survey had a response rate of by competent and committed employees, and the to all residents and businesses, and the delivery of newspapers to all survey shows a high score on these factors: have more than 300 local units. subscribers from Monday to Friday Most of our initiatives directly or in these areas. indirectly affect local communities. These include service development, Collaboration with Coop equipment selection, environmental We launched a nationwide solution ...and the solution is Competence 5.7 focus and our internal business for the home delivery of groceries in available for 89% management. The Group impacts collaboration with Coop in April. The local communities via centrally solution makes it possible to order 9 out of 10 Commitment 5.9 developed solutions and concepts, groceries via Coop's online store. as well as our local, daily operations. The goods are picked up at the local households Coop store and driven home by Posten. During the reporting year, We help to make it possible to live The solution is available to 2.2 in Norway ...it helps to measure commitment, responses were obtained and work in all parts of the country million households, corresponding well-being and frameworks for through our physical and digital to 91% of Norway's households. 44 doing a good job digitally 45 02 Sustainability | A responsible social player and employer A responsible social player and employer | Sustainability 02

According to Ipsos, Satisfied customers in society. We believe that diver- Collaboration with Norwegian gender balance in operational The proportion of women The Ipsos reputation survey for sity and inclusion pay off, both for People's Aid positions. At present, we have no in the Group is 2020 shows that our customers are increased innovation and better In collaboration with Norwegian female managers in top-level 74% more satisfied than ever. 74% of value creation. We are a responsible People's Aid, the Group has been operational positions, only in respondents said that they have a employer that creates the greatest a racism-free zone since 2001. corporate staff units and the CEO. 31% have a good impression good impression of Posten, which possible competitiveness by utilising In 2020, this collaboration was of Posten ranks tenth out of the 108 companies the total resource pool in society in renewed as “Rich in Diversity - a work- The Group conducts the “Manage- ...and we have a proportion in the report. This good result is a the best possible way. place for all” at a launch conference ment Review”, which is a process for of female leaders of 80 large improvement over the survey at which the CEO participated. systematic management evaluation 75 year before, when Posten ended It is important to us to ensure good Together with Norwegian People's and succession planning. The with 62% and 21st place. Bring came access to qualified employees by Aid and Fagforbundet Post og “Management Review” challenges 70 in 20th place, 15 places higher than assessing all applicants regard- Finans, we have held several the managers to assess diversity

65 last year. less of gender, age or ethnicity. meetings to look at both existing in their own management team and Goal Our recruitment processes must and potential measures to ensure carry out succession planning with 2020/ 60 be characterised by all applicants diversity and inclusion. The parties emphasis on the greatest possible 28% 2021 Our assessment and the future 31% 55 2020 has been a demanding year for experiencing equal opportunities for have also planned for several degree of gender balance, age society in general. As individuals, we employment, regardless of age, activities such as courses on distribution and diversity. We 50 have had to change the way we relate gender, sexual orientation or discrimination and diversity measure, report and discuss diver- 10 11 12 13 14 15 16 17 18 19 20 to each other, our routines and our religious, ethnic and cultural management. The internal launch sity in management every year. actions.Posten is pleased that we background. of “Rich in diversity - a workplace ...this is 12 percentage points have been able to maintain stable for all” will also be conducted. This In addition, we will work to increase ...in addition, higher than last year, thus operations throughout 2020 and We strive to have a qualified candi- has been postponed until 2021 as a the proportion of employees with sending Posting up to thus take responsibility for nationally date of each gender in the final result of the corona pandemic. a multicultural background in both important infrastructure with the interview. Furthermore, diversity management and corporate staff. 40% opportunity to reach everyone. is emphasized in the nominations Together for equal opportunities We will continue to set clear th of Group Management 10 place We are proud to have developed for management programmes, in Posten, and the other members of goals and develop measures to new services and solutions that succession planning and project “Nordic CEOs for a sustainable future” realise our ambitions in this area. consists of women, out of the 108 contribute to making everyday life participation and we focus on have adopted equal opportunities as Our experience is that a clearly including our CEO easier for the country's inhabitants making female leaders visible in one of two priority sustainability areas. stated intolerance for discrimination companies in the report and businesses. internal channels. Through the work In addition, the Group conducted has an effect. Therefore, we must on increased diversity and gender external measurement through the continue with measures, defined The government-appointed Demo- equality, the Group contributes to SHE Index in order to compare the target figures and reporting on graphy Committee chaired by Victor the United Nations Sustainable Group's actual gender balance with diversity and gender equality. Norman delivered its report in 2020. Development Goals 8 “Decent Work other companies. We ended at 29th The report1 points to a number of and Economic Growth”, sub-goal place out of 110 companies2. We work with diversity across societal, demographic challenges 8.8, and Sustainable Development other areas of discrimination (such in the years to come. These are Goal 5 “Gender Equality”. In the reporting year, all employees as ethnicity, religion, disability, etc.) 6 out of 10 especially linked to an aging popu- have been encouraged to complete through, among other things, our of the Group's Board of lation and ensuring sustainable Here’s what we’ve done in 2020: a self-evaluation of their employer hiring and recruitment processes Directors are women local communities in rural Norway. through Equality Check. We scored where we have an active focus on With our national network it is Diversity in focus 4.5 out of a maximum of 5 (as of 31 hiring all qualified candidates natural for us to continue to examine At the end of 2020, the proportion December 2020). regardless of background. how we can support these challenges of women in the Group was 31%. and other societal needs in the best The proportion of female managers The Group’s unit for misconduct did As a tool in this work, we collaborate We measure the Group's Bring came in at possible way. is 28%, the proportion of female not handle any cases concluding with the unions and the Working actual gender balance managers at level 3 is 35% , and 40% that discrimination had taken place Environment Committee to evaluate through the th DIVERSITY AND EQUAL of Group Management are women. during 2020. how Posten works on discrimination 20 place OPPORTUNITIES The proportion of employees in the across different stages in our SHE Index Equal opportunities are relevant Group in Norway over 50 years is Our assessment and the future employment relationships. This ...which was throughout the Group and in all high. During the diversity work, we Through our measurements and re- work corresponds to the four-step ...where we ended at job categories. Our goal is for the work to balance the age composi- ports, we see that the measures and model mentioned in the equal gender balance among managers tion in management groups as well our awareness of diversity are pro- opportunities framework (see th 15 places to mirror the gender balance in the as increase the proportion of women, ducing results. We must continue page 18 of the fact booklet). 29 place Group as a whole, and for diversity and managers are also challenged in to work with gender balance at all higher than last year within the Group to reflect diversity these areas in succession planning. managerial levels and improve the out of 110 companies

46 1 NOU 2020: 15 “Norway - Examination of the consequences of demographic challenges in rural areas” 47 2 In 2021 02 Sustainability | An effective cost structure An effective cost structure | Sustainability 02

INFORMATION SECURITY reviews. We consider collaboration An efficient cost structure Work on information security shall to be particularly important in Mandatory support and secure the operation of following up risk-reducing security the business. Our delivery capacity controls and information security basic training depends on having the correct infor- breaches. that contributes to long mation throughout the entire value in information chain and that it is available when Cyber attacks​​ often exploit vulner- needed. Customers, partners, abilities where the value chain is security term value creation employees and recipients of postal weakest and then go on to impact and logistics services must experi- more important business processes. has been introduced ence that the Group provides It is important to understand how for all employees, and will The changes in the market require implementation power adequate protection of their busi- vulnerabilities affect each other be completed during the ness data and personal information. through the value chain and to ensure first quarter of 2021 and speed. An important step on the way to becoming efficient security management. the best at sustainable development is to ensure long- We must have the ability to prevent, detect and limit the consequences The corona pandemic has affected term value development through efficient operations of undesirable information security the current reporting year; both To help and profitable investments. incidents. The threat that the Group the way we use technology and the faces, due to both external and balance we have between work and internal influences, is constantly private life. Security solutions have understand changing. From a societal perspec- made remote work possible and tive, it is important to understand helped maintain the Group's and resist the risk that any stoppage of trans- delivery capability. port poses for other value chains online fraud in society. In line with the Group's Competence and awareness Our stakeholders development and use of new, digital All employees with access to the and fraudulent requests, believe we can make a solutions, the need to secure an Group's information constitute an the Group has created a difference in these areas: increasing amount of data that important defence against infor- separate information page is collected and managed by the mation security breaches. Great about this on the internet Group is highlighted. Digital value emphasis is therefore placed on Information security chains are growing and are highly training and awareness for those interdependent. A general develop- who are given access to the Group's Anti-corruption, competition law ment in society is increased expec- IT systems and information. and privacy tations and demands from the Socio-economic value creation authorities, customers and the In the current reporting year, the population. Our work can be linked, Group has strengthened its staff by inter alia, to the United Nations one full-time equivalent position Sustainable Development Goal dedicated to working on training and 8, “Decent Work and Economic communication of information se- Growth, sub-goals 8.2 and 8.8. curity. Mandatory basic training has been introduced for all employees, Here’s what we’ve done in 2020: and will be completed during the first quarter of 2021. Holistic security The Group works with information “National Security Month” is an security throughout the value chain, annual campaign to increase know- ...from its launch in across business processes and ledge about information security September to the end Here you will find the results of our suppliers. We set requirements for for business and the population. of the year, work in 2020. In the fact booklet information security for all procure- We have contributed by arranging a “Sustainability at Posten” (attachment) ments and this is also included in the security seminar and a programme you will find detailed information agreements we enter into. During for discussion in departmental about guidelines, responsibilities 42 400 the contract period, we follow up meetings. and detailed tables. the security work of our main IT visits to these pages suppliers in the form of risk assess- Posten and Bring's brand names were recorded ments, vulnerability tests and safety are often misused in online fraud 48 49 02 Sustainability | An effective cost structure An effective cost structure | Sustainability 02

The Norwegian National Security contributing to good relationships continue in 2021. The integrity Authority deems the vulnerability with key partners. Inadequate programme is based on the Group’s External auditing of the Group's picture to be becoming increasingly compliance with integrity standards, Code of Conduct, which was information security work during complex. They make it clear that such as violation of applicable adopted in updated form by the the reporting year concluded vulnerability reduction measures are anti-corruption and competition Board in 2019. All new employees central to preventing or minimising legislation, could cause significant receive the Code of Conduct when the impact of activities that threaten reputational damage and have they join the Group. The Code of that the security in the digital space. financial implications. Managers Conduct is available to all employees and other key personnel receive on our intranet. Furthermore, we implementation Risk management will be a pre- information on and training in the focus on the Code of Conduct requisite for being able to determine integrity standard to ensure a high through training seminar and other of information a correct and acceptable risk level of competence internally activities throughout the year. picture. In addition, we will work within the organisation. These Surveys and general experience security is well systematically on security measures employees play a key role in confirm that knowledge of the that have the greatest effect in communicating the requirements Code of Conduct is good. taken care of the time to come. We will also that will apply in the Group. Our increasingly rely on benchmarking goal is to prevent and uncover Update of anti-corruption and that organisation and as a tool for measuring maturity any violations of applicable anti- guidelines processes are appropriate and efficiencyin the information corruption and competition legi- In general, impartiality and security field. slation. The Group shall have robust conflicts of interest have been procedures for dealing with alleged relevant themes throughout 2020, We have achieved our current goals violations of such legislation. especially in view of extensive media and are in a positive development coverage on many fronts. In 2020, phase, which we are very pleased Here’s what we’ve done in 2020: the anti-corruption corporate action and fraudulent requests. To help personal data has been leaked or on the 24/7 Security Operation with. rule was supplemented with wording understand and resist this threat, lost. These were handled in Centre (SOC) and the Incident The Group’s risk-based approach on impartiality and conflicts of the Group has created a separate accordance with applicable laws Response Team (IRT), services that Going forward, it is important that As part of the process for assessing interest, as well as other financial information page on the subject on and guidelines. This is on a par are constantly evolving. we continueto work on good infor- the risk of violation of anti-corruption irregularities. The corporate action our website. From its launch in with what one would expect given mation and communication with legislation, in 2020, as in previous rule is thereby well integrated with September to the end of the year, the threat picture in today's digital Our assessment and the future employees, customers and partners, years, an anonymous survey was the Group’s other governing docu- 42 400 visits to these pages have society. We have not experienced any so that we can maintain a strong de- carried out. It dealt with the topics ments. An update of the Group’s been recorded. We also share serious security incidents in 2020 fence against a constantly changing of anti-corruption, anti-competitive integrity handbook on the same information about this topic via External quality assurance of and we have received positive feed- threat picture. We will continue to practices and privacy. This year, topics will be published in 2021. customer service and social media. information security work back from external audits that the develop and use new tools, as well the survey was sent to a somewhat Cyber attacks​​ are becoming more security work is effective. We are as measure the effect of information smaller group than in previous The Group’s partners must under- Reported violations advanced and targeted. Examples aware that today's security soluti- security work. years. The Group occasionally has take to comply with the Group’s Identified vulnerabilities and actual from companies affected show that ons must be developed to support assignments involving transport- Code of Conduct for Suppliers, information security breaches are the consequences can be very tomorrow's needs. ANTI-CORRUPTION, ation in countries where corruption which stipulates, among other handled through the Group's Inci- serious. Based on this risk, an COMPETITION LAW AND is widespread, which in itself could things, that corruption is not dent Management Process. This also external audit of the Group's infor- In order to fulfil the Group's goal of PRIVACY pose a risk. Throughout 2020, raising acceptable and that suppliers includes procedures for handling mation security work was carried being the customer's first choice, as The Group has an explicit and awareness in these parts of the should actively combat all forms breaches of personal data security. out during the reporting year. well as a leader in technology and clear stance on anti-corruption and business has followed the initiatives of corruption. innovation, we must make use of the anti-competitive practices. The that have taken place for the Group For 2020, we can report the The overall assessment concluded opportunities that exist in cloud Group has zero tolerance of corrup- in general. Updated guidelines on following from substantiated that the implementation of infor- services and 5G, among other future- tion and distances itself completely anti-competitive practices complaints received about mation security is well taken care of, oriented solutions. On this basis, it from all conduct that may violate Integrity programme developed In 2020, we completed a customer privacy violations: and that organisation and processes is important that security work is any anti-corruption legislation. We have an integrity programme significant update and further • The Group has received 12 are appropriate. supported by standardisation and We are relentlessly focused on that helps to strengthen the Group’s development of the guidelines complaints from customers or the reuse of security functionality. maintaining a high standard of standard on ethics and integrity, on anti-competitive practices, third parties and these have been Technical intrusion tests were also The collaboration between suppliers, integrity. The Group demands that including anti-corruption. Various which together constitute a confirmed by us. We have not conducted against the Group's IT business, IT and security must ensure the same standard be followed by tools have been developed to comprehensive set of guidelines. received any complaints from systems which have helped us to safeguards of our information values ​​ its subcontractors and partners. enable managers and other Group The guidelines have been commu- regulators. detect vulnerabilities and rectify throughout the value chain and High integrity standards internally personnel take active ownership nicated to senior executives and • In total, 14 cases have been them. Our ability to detect infor- life cycle. and externally help raise the bar of, and comply with, applicable made available to all employees identified where the customer's mation security breaches is based for our entire industry, thereby requirements. This effort will on the Group’s intranet. 50 51 02 Sustainability | An effective cost structure

Employee training whistleblowing. We believe this has separate committee consisting of The current anti-corruption guide- reduced the risk of violation of the members from HSE and Finance, lines were updated in 2019 and Code of Conduct. in addition to the CFO. Posten's communicated to employees at framework for green financing will all levels in the Group. Throughout Training will be further intensified also be assessed by an external 2020, the main focus has been on through 2021. This will be tailored party. The external party will review senior executives in the divisions to take into account the risk profile the framework and provide an and some subsidiaries. Training of the relevant part of the business. assessment of the extent to sessions, including dilemma training, An updated overall risk assessment which the Group's investment is were held throughout the year for all will be prepared during 2021 in sustainable. This is done through the Executive Vice Presidents’ which the Group’s various businesses a rating in the form of “shades of management teams. are assessed against specific risks. green”. Such risk assessment will incorporate During the reporting year, we the risk-based approach that has TCFD reporting conducted an internal audit of already been used for each part of The Group also plans to report in Executive Vice Presidents and the business. accordance with the Task Force on corporate staff managers to verify Climate-related Finance Disclosure knowledge of, and focus on, comp- There were no confirmed corruption (TCFD), which is a report of the risk liance with the Group’s governing incidents in 2020. The Group was to the business given different anti-corruption documents. not subjected to any fines or climate scenarios. The reporting sanctions for non-compliance with shall identify climate-related In the spring of 2020, a presen- competition legislation during 2020. threats and opportunities by tation on the topics of impartiality addressing issues related to four and conflicts of interest was held SOCIO-ECONOMIC areas: management, strategy, risk for Group Management and the VALUE CREATION management and goals, and Board of Directors. Dilemma training Our services are an important part methods. Scenarios related to was also conducted with the board of the infrastructure in the country, climate change have been prepared members. and thus contribute, both directly and various types of risks have been and indirectly, to socio-economic assessed. This will be a topic that There was also a focus on con- value creation through our operations the divisions will include in the risk ducting training for employees and throughout our value chain. The analysis. who do not have access to a PC Group has an efficient cost structure on a daily basis, similar to the that contributes to long term value Our assessment and the future training completed by employees creation for our owner. Furthermore, The strategic work on socio- who do use a PC. we are a large employer with many economic value creation through, employees who generate tax revenue among other things, focus on the Our assessment and the future for society. environment, was put on the agenda The Group regularly assesses at an early stage and anchored in whether our efforts on these issues Here’s what we’ve done in 2020: the Group strategy. We are happy are effective enough, including with the work, but always want to whether the guidelines are clear and Green financing improve. whether these are sufficiently well- We work to develop and invest in known within the Group. Such assess- long-term profitability. The financial This work will highlight Posten and ment is carried out annually, in pa- risk of not contributing to the green Bring as green players for financial rallel with the annual risk analysis, transition is growing. New rules and institutions. It is planned that the and involves evaluation tools such demands are constantly being intro- reporting of green financing will as an electronic employee survey. duced by customers, while new become an integral part of the demands are also being made by Annual report and Sustainability In recent years, we have focused investors. In 2020, we started work report, and will include several on the Code of Conduct and on a framework for green financing. areas such as finance, ESG and communicating its content to all This defines green projects which TCFD. The latter is fully reported in employees. In addition, we have can be financed in the form of green the Annual report and Sustainability carried out e-learning and other bonds, for example. An annual report report 2021. training on key topics such as anti- of what has been financed will be corruption, conflicts of interest and produced. This is followed up by a 52 53 03 Finans | Resultater Resultater | Finans 03 03 Financials

Corporate Governance...... 56 Financial statements and notes for Posten Norge Group...... 62 Income statement...... 63 Statement of comprehensive income...... 63 Balance sheet...... 64 Statement of cash flows...... 66 Statement of changes in equity...... 67 Notes...... 68 Financial statements and notes for Posten Norge AS...... 131 Income statement...... 131 Statement of comprehensive income...... 131 Balance sheet...... 132 Statement of cash flows...... 134 Statement of changes in equity...... 135 Notes...... 136 Alternative performance measures (APM)...... 177 Statement by the Board of Directors...... 183 Independent auditor's report...... 184

We shall create a sustainable and efficient cost structure that contributes to long term value creation for the Group and our owners.

54 55 03 Financials | Corporate Governance Corporate Governance | Financials 03

as by developing the Group as an ates in the mail and logistics busi- in the development of the Group. attractive workplace with a diverse ness areas with the Nordic region This entails continuously working and inclusive working environment. In as its local market. The markets in on product and services portfolios, Corporate the opinion of the Board, fulfilling its which the Group operates are char- structures, processes and systems, social responsibilities contributes to acterised by fierce competition and to increase the overall customer val- Posten’s good reputation and posi- major technological and structural ue and reduce the unnecessary use tive development. Attitudes towards changes. These changes present of resources. Governance corporate social responsibility are Posten with significant challeng- described in the Board of Directors’ es with regard to adapting to new SECTION 3 EQUITY Report and in the Group’s sustain- customer requirements, competi- AND DIVIDENDS ability report, in accordance with tiveness, market position and prof- section 3-3b of the Accounting Act. itability. Capital structure The documents are available on the The following fundamental princi- The Group’s equity at 31 December Each year the Board of Posten Norge establish and further develop a high until it is succeeded by agreements Group’s website, see postennorge.no. ples form the basis for the develop- 2020 was NOK 7 367 million, which AS (Posten) submits a report on standard for corporate governance, or decisions concerning the universal Posten’s activities are labour-­ ment of the Group: results in a return on equity of 37.5%. compliance with the Norwegian equivalent to Norwegian standards service obligation pursuant to sec- intensive. In total, the Group employs • Posten shall develop strong, pro- The decline in letter volumes for Code of Practice for Corporate Gov- for best practice, including the tion 6 of the Postal Service Act. around 12 400 full-time equivalents. fitable and sustainable market addressed mail has increased in ernance (Code of Practice). Code of Practice.(See nues.no) The Board establishes goals, Health, Safety and the Environment positions within the areas in which recent years and been further ac- An account of how the Code of Posten is a limited company whol- strategies and the risk profile, both (HSE) is therefore a high priority the Group operates. celerated by the Covid­-19 pandem- Practice has been followed up in ly owned by the Norwegian state. on a group-wide level and for each within corporate social responsibility • Posten shall ensure a satisfactory ic. At the same time, e-commerce Posten and the Group is provided in The Group’s corporate governance is segment. These support the Group’s work. The company’s aim is to ensure return on all investments and has increased sharply, resulting in sections 1-15 below. This includes de- based on and is in accordance with goals. Goals and strategies are set that nobody is injured or becomes competitive value development large volumes and good earnings in tails of how the principles have been Norwegian law and the Norwegian based on regular assessments and sick as a result of working in or for over time. the logistics segment. This has led met, the reason for any deviations, if State’s ownership policy in force at processes (at least once per year) the Group. Continuous and targeted • Posten shall provide services to a positive overall impact on the applicable, and how Posten rectified any given time. that are intended to ensure that the work is carried out on preventive and to meet its universal service Group’s profit and cash flow. It must any deviations from the recommenda- Good corporate governance is a Group has a well-founded and oper- health-promoting measures. obligations. be expected that the negative trend tions. The report below complies with prerequisite for a profitable and vig- ational strategy at all times. Goals, A code of conduct has been devel- • Posten’s business shall be custo- in mail volumes will continue, which the structure of the Code of Practice. orous company. The Board of Posten strategies and risk profiles are decid- oped that is included in the Group’s mer-oriented, meet customers’ poses a major risk to the Group’s fu- The Norwegian State is the com- believes there is a clear link between ed based on these evaluations and integrity programme. The aim of the requirements efficiently, and be ture cash flow and profit. In order to pany’s sole owner. As a result of good corporate governance and cre- processes. See also Section 10 Risk integrity programme is to increase available where customers are. ensure the Group’s financial freedom, this, Posten’s corporate governance ating value for the company’s owner. management and internal control. awareness and knowledge about how • Posten shall have a balanced port- it is necessary to have a satisfactory deviates from section 6 of the Code Through its operations, Posten is a to handle typical ethical dilemmas. folio of activities that strengthens equity ratio and sufficient liquid as- of Practice on general meetings, SECTION 2 OPERATIONS prominent social actor, which entails This will help to ensure that the its capacity to serve the customers’ sets. The Group’s capital structure, section 7 on nomination committees Section 3 of Posten’s articles of as- a special responsibility for how the Group always takes human rights, needs. including equity, is considered sat- and section 14 on takeovers. sociation describes the company’s company’s activities are performed. anti­-corruption, competitive practic- • Posten shall be a trusted third par- isfactory and necessary in view of Responsibility for managing the operations. There it is stated that The Group’s shared core values es, working conditions, HSE, discrim- ty for customers. the Group’s ability to implement the Norwegian State’s ownership lies the company shall run postal and create an important foundation for ination and environmental conditions • Posten shall ensure a unified cul- company’s goals and strategies with- with the Ministry of Trade, Industry logistic operations on a commercial the business and the Board’s work into consideration. The Group’s work ture and shared values, which also in an acceptable risk profile. and Fisheries. basis, as well as other activities di- with regard to employees and its ex- with integrity is further described in provide room for diversity. The Board must also provide infor- rectly related thereto. Section 3 of ternal environment, such as custom- the sustainability report. • Posten shall work to extract cost Dividends mation on corporate governance in the company’s articles of associa- ers, suppliers and business partners. As well as ensuring that Posten benefits through efficiency me- Posten’s general meeting is not accordance with section 3-3b of the tion further states that the company The shared values are: “take respon- runs profitably on commercial terms, asures, coordinating the value bound by the Board’s proposal con- Accounting Act. Section 16 contains shall be a provider that can meet sibility”, “play for the team” and the Group must fulfil its universal chain, industrialisation and conti- cerning the payment of dividends, cf. a summary of where the information the society’s need for nationwide “strive for more”. In addition to this service obligation, meet its owner’s nuously improving processes, as section 20-4 (4) of the Limited required by section 3-3b of the Ac- postal services. The full text of the platform of shared values, ethical required rate of return and adapt its well as transparent and integrated Liability Companies Act, and the counting Act can be found. articles of association is available on guidelines and management princi- activities to the structural changes business management. company is thus subject to the posten­norge.no. ples have been established. that take place in the market. This • Posten shall work actively to re- current dividend expectations. The SECTION 1 Posten’s universal service obli- Posten believes it is important to also means that the service-requirer duce the company’s impact on the government’s expectation of annual IMPLEMENTATION gation is described in the Postal take responsibility for how its activi- must pay for unprofitable universal external environment. dividends is 50% of Group profit AND REPORTING Service Act and Posten’s licence ties impact people, the environment service obligations. • Posten shall develop good, at- after tax. Before the annual dividend ON CORPORATE granted by the Ministry of Transport and society. This is achieved by Within this framework Posten has tractive workplaces. is determined, an independent as- GOVERNANCE and Communications. The current reducing the impact of its activities developed over the past decades Continuous improvement is an sessment of the Group’s equity and The Board believes it is important to licence is valid from 1 July 2020 and on the external environment, as well into an industrial group that oper- important common denominator liquidity must be carried out. The 56 57 03 Financials | Corporate Governance Corporate Governance | Financials 03

Board of Directors shall carry out an SECTION 7 NOMINATION composition in 2020 was as follows: should be handled by the Board. This a year. The audit committee shall op- control environment in addition to overall assessment to determine a COMMITTEE • From 1 January to 19 June: Six also includes the limits of the chief erate as a case preparation body for good control processes. This work is prudent dividend level. shareholder-appointed board executive’s authority. Matters that the Board and support the Board in based on the company’s articles of The Norwegian State is the sole members (three men and three typically appear on the agenda of carrying out its responsibility for fi- association, the rules of procedure shareholder and the company there- SECTION 4 EQUAL women) and four employee­- the Board on a regular basis are the nancial reporting, risk management, for the Board, and other internal gov- fore has no nomination committee. TREATMENT OF elected board members (two preparation and implementation of internal control and external audit- erning documents, as well as general The shareholder-appointed board SHAREHOLDERS AND men and two women). the Group’s strategies, the processing ing. The committee’s main duties laws and clear recommendations members are nominated by the Min- TRANSACTIONS WITH • From 19 June: Six shareholder-­ and approval of quarterly and annual are: to prepare the Board’s follow-­up based on best practices. istry of Trade, Industry and Fisheries CLOSE ASSOCIATES appointed board members (three reports, monthly performance reports, work on reporting processes for the The Group’s governing documents and are elected by the general meet- All shares in Posten are owned by the men and three women) and four HSE issues, investments and related financial accounts (including on- establish how the management ing in accordance with section 20-4 Norwegian State. Due to Norwegian employee-elected board members follow-up work, evaluation of the going contact with the company’s and control of the Group shall be (1) of the Limited Liability Companies State-ownership, the Code of Prac- (one man and three women). Group’s risks and internal control as external auditor regarding the audit carried out. The documents set out Act. Posten deviates from this sec- tice’s recommendation concerning well as HR and organisational issues. of the annual financial statements), group-wide requirements with regard tion of the Code of Practice. share issues is not deemed relevant Independence of the The Board’s responsibility for re- to supervise the systems for internal to conduct in important areas and Four members of the Board are to Posten. Board of Directors viewing and reporting risk manage- control and risk management and to processes, including how the Group chosen by and from the Group’s Information regarding transactions The Board acts as a collegial body ment and internal control is described supervise the work and independ- shall ensure the consideration of the employees in Norway. A group-wide with related parties is provided in and not as individual representatives in more detail under section 10. ence of the external auditor. outside world in value creation. scheme was established for the the annual report, see note 24. of various interest groups. The Board Posten’s code of conduct does The audit committee held 6 meet- Risk management and internal election of employee representa- of Directors assesses the independ- not allow Board members or employ- ings in 2020. control must be integrated into the tives to the Board of Posten. This SECTION 5 SHARES ence of its members on a continuous ees to participate in or attempt to The external auditor is present for Group’s processes. Managers on all means that all employees in the AND NEGOTIABILITY basis. As at 31 December 2020, all influence decisions when special cir- all relevant points on the agenda in levels are responsible for ensuring Norwegian part of the Group can be All shares are owned by the Norwe- of the shareholder-appointed board cumstances exist that may weaken meetings of the audit committee. that risk management and good elected and have voting rights. gian State. members were deemed to be inde- confidence in their independence. internal control systems are estab- Due to state ownership, the Board SECTION 8 BOARD pendent board members, since they Anyone who becomes aware of po- The Board of Directors’ lished within their respective areas, does not regard this section of the OF DIRECTORS, were not considered to have com- tential conflicts of interest must remuneration committee that these have the necessary effect, Code of Practice’s as relevant to COMPOSITION AND mercial, family or other relationships immediately report this to their A remuneration committee has been and that they are automated to the Posten. INDEPENDENCE that could be deemed to affect their immediate superior. established which is subject to a extent this is considered expedient. evaluations or decisions as board The Board’s work and its meetings separate mandate. In 2020 the remu- An internal control committee has SECTION 6 GENERAL members of Posten. are led by the Chair of the Board and neration committee comprised the been established to ensure ade- Composition of the MEETING based on presentations by the chief Chair of the Board and three Board quate and effective internal control Board of Directors The Norwegian State, through the SECTION 9 THE executive. The company expects members, of which one Board mem- of specified risk areas. The internal As the sole shareholder, the Norwe- Minister of Trade and Industry, is the WORK OF THE BOARD these presentations to provide a ber is an employee representative. control committee is responsible for gian state designates and selects company’s general meeting. OF DIRECTORS good and satisfactory basis for The remuneration committee holds ensuring progress and deliveries re- all the shareholder-appointed Board In accordance with section 8 of considering matters. The Board has regular meetings throughout the lated to the centrally mandated in- members, including the Chair of the the company’s articles of associa- The Board’s duties appointed a Vice-chair of the Board year. The committee prepares and ternal control reviews and is respon- Board. There are currently six share- tion, the ordinary general meeting The Board is responsible for the who functions as the chair if the recommends proposals to the Board sible for reporting these to the CEO, holder-appointed board members. must be held by the end of June overall management of the Group Chair of the Board cannot or ought related to remuneration for the chief the audit committee and the Board. There are no deputies for the share- each year. and supervises the Group’s activities not lead the work of the Board. executive. The committee otherwise Annual internal control reviews are holders’ representatives on the Board. Posten deviates from the Code of in general. The Board held a total of eight contributes to the thorough and in- conducted of priority areas. The re- By virtue of the agreement the em- Practice in this section because sec- This overall responsibility is de- board meetings in 2020, of which one dependent handling of remuneration views result in proposals concerning ployees have the right to elect up to tion 20-5 (1) of the Limited Liability scribed in detail in the adopted in- was an extraordinary board meeting. issues for leading employees. specific measures aimed at improv- four members of the Board. Companies Act states that the Minis- structions for the Board of Directors The Board conducts an annual The remuneration committee held ing internal control. The implemen- Board members are elected for try of Trade, Industry and Fisheries is and in the Board’s plan for its own evaluation of its work and its com- four meetings in 2020. tation of proposed measures is the terms of two years at a time. responsible for sending notification work. Both of these documents are petence. The Board is also evaluated responsibility of line management. The Board members’ backgrounds of both ordinary and extraordinary revised on an annual basis. by the company’s owner. SECTION 10 RISK Each year an overall assessment of are described in the annual report general meetings and for deciding The guidelines for the chief exec- MANAGEMENT AND the Group’s risk is conducted. This and on the Group’s website. the method of notification. utive’s work form part of the rules of The Board’s audit committee INTERNAL CONTROL risk assessment is based on strate- During 2020, two of the employee­ The Board, chief executive, com- procedure for the Board. The Board has established an audit The Board ensures that the com- gies, business plans and targets. The elected board members have been pany auditor and the Office of the Together these documents clarify committee which is subject to a pany has good internal controls process is based on COSO’s frame- replaced by new board members, Auditor General are invited to the the tasks and responsibilities of the separate mandate. The audit com- and appropriate systems for risk work for risk management. The aim is while there have been no changes general meeting. Board and the chief executive, in- mittee consists of two shareholder-­ management, and monitors these to evaluate risks affecting strategy, among the shareholder-elected board cluding which matters shall, can and appointed Board members. The audit regularly. The Board emphasises the finance, operations and reputation, members. This means that the Board’s committee meets at least five times importance of a good and efficient as well as environmental risks and 58 59 03 Financials | Corporate Governance Corporate Governance | Financials 03

risks associated with information se- plies to all of the Group’s employees. 2020 are presented in note 2 to the tablished to ensure that Posten acts counting Act. Below is an overview of the board of directors. curity. The results of this process are This is continually being promoted. annual financial statements. professionally and uniformly in its of where in the above report this 7. “provisions of the articles of consolidated to form an assessment This standard is a part of the Group’s communications. information is provided. association which regulate the of the main risks to which the Group integrity programme which shall SECTION 12 Financial information is reported appointment and replacement of is exposed. An annual assessment of help to ensure a high and precise REMUNERATION OF quarterly at stipulated times as set 1. “details of the recommendations Board members”: see the report’s the willingness and capacity to as- ethical standard with regard to anti-­ EXECUTIVE PERSONNEL out on the company’s website in and rules on corporate govern- section 8 The Board of Directors: sume risk is also conducted, which is corruption, competitive practices, The Board has prepared a statement accordance with the Oslo Stock Ex- ance which cover the enterprise composition and independence. described in the Group’s risk assess- social dumping and the handling of concerning the determination of change’s information requirements. or which the enterprise otherwise 8. “provisions of the articles of as- ment. Risk is managed partly through information. The Group’s suppliers salaries and other benefits for the The Board also emphasises the decides to follow”: See the report’s sociation and powers of attorney the operational management, partly and partners must sign the Group’s chief executive and other senior ex- importance of good communication section 1 Implementation and re- which give the Board the power through preventive measures from “Ethical standards for suppliers” ecutives. This statement is prepared with the company’s owner outside porting on corporate governance. to decide that the company shall central control functions, and part- when contracts are signed and there- in accordance with section 7 of the the general meeting. 2. “Information on where the rec- buy back or issue shares or equi- ly through independent, external by commit themselves to living up to articles of association and builds ommendations and regulations ty certificates” Posten does not supervision. The annual risk assess- the same ethical standards. In addi- upon the principles in the Govern- SECTION 14 TAKE-OVERS mentioned in no. 1 are publicly have any provisions in the articles ment is followed up with actions and tion to this, systematic risk assess- ment’s guidelines for Norwegian Posten deviates from this section available”: see the report’s sec- of association or powers of attor- recommendations in order to man- ments are conducted of suppliers State-­ownership on this subject. The of the Code of Practice. Posten is tion 1 Implementation and report- ney that give the Board the power age and control the individual risk and checks/audits carried out. statement consists of two parts. a limited liability company wholly­ ing on corporate governance. to decide that the company shall factors and avoid events that can Openness is a significant ele- Part one concerns the management owned by the Norwegian state, and 3. “reasons for any non-compliance buy back or issue shares or equity adversely affect the Group’s opera- ment in the company’s general risk remuneration policy that has been the Board therefore deems this sec- with the recommendations and certificates. See also the report’s tions and reputation. management and internal control. conducted in the preceding fiscal tion of the Code of Practice not to rules mentioned in no. 1”: There section 3 Equity and dividends Posten’s consolidated financial Openness is especially important for year, while part two contains guide- be relevant. are three instances of non-com- and section 4 Equal treatment of statements are presented in ac- the prevention and rectification of lines for determining management pliance described in detail in sec- shareholders and transactions cordance with the applicable IFRS non-compliance. All employees and salaries for the coming fiscal year. SECTION 15 AUDITOR tion 6 General meeting, section 7 with close associates. regulations. The Group’s reporting business partners are therefore en- The statement shall be presented Posten has an independent external Nomination committee, and sec- process for the financial accounts is couraged to report any censurable to the ordinary general meeting. auditor selected by the general tion 14 Takeovers. described in the Group’s governing and/or illegal conditions as soon as The Board considers incentive meeting on the recommendation of 4. “a description of the main ele- documents, which includes proce- possible. This is a part of the individ- systems to be an important tool for the Board. ments in the company’s, as well dures and rules for monthly, quarter- ual’s responsibility. focusing management on increasing The auditor takes part in Board as the Group’s if consolidated ly and annual reporting. The Group’s A whistleblowing system has been company profitability in line with the meetings that handle the annual accounts are also prepared, accounting policies are described in established to ensure reports are owner’s interests. It is against this financial statements in order to im- systems for internal control and more detail in the Group’s account- properly received and followed up. background that a bonus scheme for prove the Board’s basis for making risk management related to the ing manual. The reporting and con- The corporate unit for misconduct individuals in key positions has been decisions. In the same or a sepa- accounts reporting process”: see solidation of financial accounting in- shall ensure that the reports are not established. Payment under these rate meeting, the auditor presents the report’s section 10 Risk man- formation is carried out in a common met with negative reactions or sanc- schemes will be covered by the the audit and gives his view of the agement and internal control. reporting system. The Group utilises tions. The Board’s audit committee company’s business. Group’s accounting policies, risk ar- 5. “provisions of the articles of a common Group account plan and reviews the report from the Group’s Information about total remunera- eas, internal control procedures and association which fully or partly the Group accounts department corporate unit for misconduct every tion and the Board’s statement con- the Group’s bookkeeping. The con- expand or exclude provisions of makes use of both built-in system six months. The audit committee cerning the determination of salaries clusions are presented in an annual, chapter 5 of the Public Limited controls and manual controls to informs the Board to the extent and other benefits for executives, numbered letter to the board. Companies Act”: see the report’s ensure complete and consistent ac- deemed necessary. is included in note 2 to the annual The Group’s policy allows the use section 6 General meetings. counting information. The consolida- financial statements. of the auditor in audit-related tasks 6. “the composition of the Board of tion of accounting information takes SECTION 11 that meet the applicable independ- Directors, corporate assembly, place at multiple levels within the REMUNERATION OF THE SECTION 13 ence requirement, in addition to the representative and control com- Group. Subsidiaries are responsible BOARD OF DIRECTORS INFORMATION AND statutory audit. mittee; if applicable any working for their Group/Company accounts The board members’ fees are set at COMMUNICATIONS committee for these bodies, being reported in accordance with the general meeting each year. Remu- The Group follows an open com- SECTION 16 as well as a description of the the Group’s policies and routines. neration is not dependent on results munications strategy to support REQUIREMENTS main elements in the applicable The Group has established an ad- and none of the shareholder-appoint- the business strategies, goals and PURSUANT TO instructions and guidelines for visory investment committee which ed board members has share options, values. Good communication shall SECTION 3-3B OF THE the bodies’ and, if applicable, handles all cases that entail invest- a pension scheme or agreement on contribute to a good reputation, ACCOUNTING ACT. the committees’ work”: see the ment and sales in accordance with salary after leaving his/her position strong brands, satisfied customers The Board must provide information report’s section 8 The Board of specified authorisation limits. from the company. Details of the and proud employees. Guidelines on corporate governance in accord- Directors, composition and inde- A common code of conduct ap- remuneration for board members in for a code of conduct have been es- ance with section 3-3b of the Ac- pendence and section 9 The work 60 61 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement & Statement of comprehensive income

INCOME STATEMENT Amounts in MNOK Financial statements Note 2020 2019 Revenue 1 23 996 24 212 Costs of goods and services 9 937 10 340 and notes Payroll expenses 2 8 523 8 846 Depreciation and amortisation 8,9,17 1 463 1 552 Write-downs of intangible assets and tangible fixed assets 8,9,17 169 172 Posten Norge Group Other operating expenses 4 2 650 2 666 Operating expenses 22 742 23 575 Other income and (expenses) 5 119 (479) Share of profit from associated companies 10 112 5 Operating profit 1 485 162 Financial income 6 455 398 Financial expenses 6 595 539 Net financial income/(expense) (141) (142) Profit before tax 1 344 21 Tax expense 7 221 8 Profit for the year 1 123 13 Attributable to controlling interests 1 119 (2) Attributable to non­-controlling interests 4 15

STATEMENT OF COMPREHENSIVE INCOME Amounts in MNOK

Note 2020 2019

Profit for the year 1 123 13 Pension remeasurement 3,7 (61) (25) Items that will not be reclassified to income statement (61) (25) Translation differences 63 (45) Hedging of net investment 7,20 (46) 21 Translation differences 17 (23) Cash flow hedging 7,20 (5) 2 Items that will be reclassified to income statement 12 (21) Other comprehensive income/(loss) (50) (47) Total comprehensive income/(loss) 1 073 (34) Total comprehensive income/(loss) is distributed as follows: Attributable to controlling interests 1 069 (48) Attributable to non-controlling interests 4 15

62 63 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Balance sheet Balance sheet

BALANCE SHEET Board meeting on 25 March 2021 Amounts in MNOK

Note 31.12.2020 31.12.2019

ASSETS Intangible assets 8 1 823 1 897 Deferred tax assets 7 282 311 Tangible fixed assets 9 5 409 5 611 Right-of-use assets 17 2 854 3 821 Andreas Enger (Chair) Investments in associated companies 10 28 339 Interest-bearing non-current receivables 12,14 57 56 Other financial non-current assets 10,12,20 189 137 Non-current assets 10 644 12 171

Interest-free current receivables 12,15,20 3 067 3 740 Anne Carine Tanum (Deputy Chair) Interest-bearing current receivables 12,14 125 44 Liquid assets 12,16 4 633 3 912 Current assets 7 826 7 696 Assets held for sale 23 1 173 Assets 19 643 19 867 Tina Stiegler Henrik Höjsgaard Finn Kinserdal Liv Fiksdahl EQUITY AND LIABILITIES Share capital 21 3 120 3 120 Other equity1) 23 4 237 3 177 Non-controlling interests 9 66 Equity 7 367 6 363 Provisions for liabilities 11 797 1 178 Gerd Øiahals Lars Nilsen Ann Elisabeth Wirgeness Tove Gravdal Rundtom Non-current lease liabilities 12,17 2 515 3 376 Interest-bearing non-current liabilities 12,18,20 1 108 2 220 Interest-free non-current liabilities 12,19,20 16 6 Non-current liabilities 3 639 5 602 Current lease liabilities 12,17 625 793 Interest-bearing current liabilities 12,18,20 1 411 1 178 Tone Wille (Group CEO) Interest-free current liabilities 11,12,19,20 4 420 4 610 Tax payable 7 210 142 Current liabilities 6 667 6 724 Liabilities held for sale 23 1 174 Equity and liabilities 19 643 19 867

1) Including accumulated positive translation differences and hedging reserves of MNOK 61 associated with operations held for sale

64 65 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Cash flow statement Statement of changes in equity

CASH FLOW STATEMENT STATEMENT OF CHANGES IN EQUITY The Group prepares the cash flow statement according to the indirect method, i.e. cash flows from investments Amounts in MNOK and financing activities are reported gross, whereas the accounting result is reconciled against net cash flows from Controlling interests operating activities. Share Share premium Hedging Translation Retained Other Non-control- Total capital reserves reserve differences earnings equity ling Interests equity

Amounts in MNOK Equity 01.01.2020 3 120 992 (1) 279 1 907 3 177 66 6 363

Note 2020 2019 Profit for the year 1 119 1 119 4 1 123

Profit before tax 1 344 21 Other comprehensive result (5) 17 (61) (50) (50) Tax paid in the year 7 (165) (92) Total comprehensive result (5) 17 1 057 1 069 4 1 073 (Gain)/loss from sales of non-current assets and subsidiaries (73) (81) Changes in non-controlling interests (8) (8) (61) (69) Ordinary depreciation and write-downs 8,9,17 1 632 1 724 Other changes in equity (13) 13 Share of profit from associated companies 10 (112) (5) Equity 31.12.2020 3 120 992 (7) 283 2 969 4 237 9 7 367 Financial items without cash flow effect 57 126 Share Share premium Hedging Translation Retained Other Non-control- Total Changes in receivables and payables 30 319 capital reserves reserve differences earnings equity ling Interests equity Changes in other working capital 278 (26) Equity 31.12.2018 3 120 992 (3) 302 2 039 3 330 31 6 481 Changes in other accruals1) (280) 302 Effect of change of principle 49 49 49 (IFRS 16) Interest received 105 121 Equity 01.01.2019 3 120 992 (3) 302 2 088 3 379 31 6 530 Interest paid (209) (268) Profit for the year (2) (2) 15 13 Cash flows from operating activities 2 607 2 143 Investments in non-current assets 9 (700) (646) Other comprehensive result 2 (23) (25) (47) (47) Cash effect from purchase of businesses 23 (97) (7) Total comprehensive result 2 (23) (27) (48) 15 (34)

Cash effect from investments in associated companies 10 (16) Dividend (124) (124) (124)

Proceeds from sale of non-current assets 9 133 243 Changes in non-controlling interests 9 9 4 13

Cash effect from sale of businesses 23 28 16 Other changes in equity (39) (39) 17 (22)

Cash effect from sale of associated companies 10 364 73 Equity at 31.12.2019 3 120 992 (1) 279 1 907 3 177 66 6 363 Changes in other financial non-current assets (27) Cash flows used in investing activities (299) (339) Payment of lease liabilities 17 (851) (890) Repayment of borrowings 18 (779) (500) Dividend paid 21 (124) Cash flows used in financing activities (1 630) (1 514) Change in liquid assets 677 291 Liquid assets at the start of the year 3 912 3 613 Currency differences 91 7 Liquid assets classified as held for sale 23 (47) Liquid assets at the end of the year 16 4 633 3 912

1) Restructuring accruals made in 2019 were paid out in 2020.

66 67 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Accounting principles Accounting principles

Notes to the accounts for POSTEN NORGE GROUP Accounting Principles Associated note(s) IFRS/IAS standard Posten Norge AS was established 1. Changes in accounting principles and IAS 8 Posten Norge Group as a company on 1 December 1996 disclosures and is today a Norwegian-registered Accounting principles ...... 68 2. Issued and amended standards not yet IAS 8 limited liability company with the effective or lacking approval by the EU Income statement ...... 78 Norwegian state, represented by 3. Accounting estimates Note 3 Pensions IAS 12, IAS 19, IAS 36, Note 1 Segments ...... 78 the Ministry of Trade, Industry and Note 5 Other income and expenses IAS 37, IFRS 16 Note 2 Payroll expenses and other remuneration...... 82 Fisheries as its sole shareholder. Note 7 Taxes Note 3 Pensions...... 89 Note 8 Intangible assets Posten Norge AS is a Nordic mail Note 4 Other operating expenses ...... 92 Note 11 Provisions for liabilities and logistics group developing and Note 17 Leasing obligations (lease agreements) Note 5 Other income and expenses ...... 93 delivering overall solutions within Note 26 Effects of the Corona pandemic Note 6 Financial income and financial expenses ...... 94 mail, communication and logistics Note 7 Taxes...... 95 in the Nordics. Posten Norge AS’ 4. Foreign currency translation IAS 21 Non-financial assets and liabilities ...... 98 address is Biskop Gunnerus gate 14, Note 8 Intangible assets...... 98 5. Consolidation principles Note 23 Changes to group structure IFRS 3, IFRS 10, IFRS 0001 Oslo, Norway. 11, IFRS 12, IAS 28 Note 9 Tangible fixed assets...... 102 6. Segment reporting Note 1 Segments IFRS 8 Note 10 Investments in companies and businesses...... 104 ACCOUNTING PRINCIPLES Note 11 Provisions for liabilities ...... 105 7. Revenue from contracts with customers Note 1 Segments IFRS 15 Posten Norge’s consolidated finan­ Financial assets and liabilities ...... 107 8. Pensions Note 3 Pensions IAS 19 cial statements have been prepared Note 12 Overview of financial assets and liabilities ...... 107 in accordance with International 9. Taxes Note 7 Taxes IAS 12 Note 13 Financial risk and capital management ...... 109 Financial Reporting Standards (IFRS) 10. Intangible assets Note 8 Intangible assets IAS 38 Note 14 Interest-bearing non-current and current liabilities...... 114 and interpretations by IFRS Inter­ 11. Tangible fixed assets Note 9 Tangible fixed assets IAS 16 Note 15 Interest-free current receivables ...... 115 pretations Committee (IFRIC), set by Note 16 Liquid assets...... 116 12. Investments in subsidiaries and Note 10 Investments in companies and businesses IFRS 10, IFRS 11, IFRS the International Accounting Stand­ associated companies 12, IAS 28 Note 17 Leasing obligations (lease agreements)...... 116 ards Board and approved by the EU. Note 18 Interest-bearing non-current and current liabilities...... 118 13. Write-downs of non-financial assets Note 8 Intangible assets IAS 36 The financial statements have Note 9 Tangible fixed assets Note 19 Interest-free non-current and current liabilities...... 119 been prepared on a historical cost Note 10 Investments in companies and businesses Note 20 Derivatives and hedging...... 120 basis, except for financial assets and Note 17 Leasing obligations (lease agreements) Equity information...... 122 liabilities (including derivatives) that 14. Provisions for liabilities Note 5 Other income and expenses IAS 19, IAS 37 Note 21 Equity...... 122 have been measured at fair value. Note 11 Provisions for liabilities Other matters...... 123 The financial statements are pre- 15. Contingent liabilities and assets Note 11 Provisions for liabilities IAS 37 Note 22 Guarantees/assets pledged as security...... 123 sented in Norwegian kroner (NOK), Note 23 Changes to group structure ...... 123 16. Financial instruments Note 6 Financial income and financial expenses IFRS 7, IFRS 9, IFRS 13, rounded to the nearest million, if Note 12 Overview of financial assets and liabilities IAS 32 Note 24 Related parties...... 127 not otherwise stated. As a result of Note 13 Financial risk and capital management Note 25 Regulatory issues ...... 127 rounding adjustments, the figures in Note 14 Interest-bearing non-current and current receivables Note 26 Impact of the Corona pandemic ...... 128 Note 15 Interest-free current receivables one or more rows or columns includ- Note 16 Liquid assets ed in the financial statements and Note 18 Interest-bearing non-current and current liabilities notes may not add up to the total of Note 19 Interest-free non-current and current liabilities that row or column. Note 20 Derivatives and hedging The table below gives an overview of relevant accounting principles for 17. Accounts receivable Note 15 Interest-free current receivables IFRS 7, IFRS 9, IFRS 13, the Group, with references to the IFRS 15, IAS 32 applicable notes and accounting 18. Cash and cash equivalents Note 16 Liquid assets IFRS 7, IFRS 9, IFRS 13, standards. IAS 7, IAS 32 19. Leasing Note 17 Leasing obligations (lease agreements) IFRS 16 20. Borrowings Note 18 Interest-bearing non-current and current liabilities IFRS 7, IFRS 9, IFRS 13, IAS 32 21. Equity Statement of changes in equity IAS 1 Note 21 Equity 22. Held for sale Note 23 Changes to group structure IFRS 5 23. Events after the reporting period Note 25 Regulatory issues IAS 10

68 69 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Accounting principles Accounting principles

1. CHANGES IN that represent a significant risk of terms of the related pension liability. currency). The Group’s presentation of changes in equity). If a foreign previous interests held, and the ACCOUNTING PRINCIPLES causing material adjust ments to the Details are given in note 3. currency is Norwegian kroner, which subsidiary or associated company identifiable assets and liabilities, is AND DISCLOSURES carrying amounts of assets and lia- is also the parent company’s func- is sold, the accumulated translation classified as goodwill in the balance The accounting policies applied are bilities within the next financial year 3.3 Provisions tional currency. differences related to the entity are sheet. Should negative goodwill consistent with previous years. In are described below: In determining the fair value of pro- reclassified to the income statement arise from a business combination, addition, the Group implemented visions for restructuring expenses 4.2 Transactions and and included as part of gain or loss the identification and measurement some amended standards and inter­ 3.1 Estimated impairment and other provisions, assumptions balance sheet items on the disposal. of identifiable assets and liabilities pretations relevant for the business of assets and estimates are made in relation Transactions in foreign currencies is reassessed. Any negative goodwill published by the IASB (International Impairment exists when the car- to discount rates, the expected set- are translated into the functional 5. CONSOLIDATION that arises following this reassess- Accounting Standards Board) and rying value of an asset or cash tlement value and settlement date. currency at the exchange rate on the PRINCIPLES ment is recognised in the income approved by the EU, effective from generating unit (definition in sec- Additional information is disclosed transaction date. The consolidated financial state- statement immediately. the accounting year starting on tion 13) exceeds its recoverable in note 11. On the balance sheet date, mon- ments present the total financial When agreements are made for 1 January 2020. The implementation amount. Calcu­lations of recoverable etary balances in foreign currencies result and position for the parent additional consideration (contingent of these amended standards and amounts require the use of esti- 3.4 Deferred tax assets are translated at the exchange rate company Posten Norge AS and the consideration) in connection with interpretations has not resulted mates. There is uncertainty related Deferred tax assets are recognised applicable on the balance sheet date. companies over which Posten Norge the acquisition of companies, in significant changes in the to assumptions and parameters in when it is probable that the Group Foreign exchange gains and losses re- AS has control. Control is achieved the additional consideration is consolidated financial statements. connection with the estimation of will have sufficient profits to utilise sulting from the settlement and trans- when the Group is exposed, or has measured at fair value and included future cash flows when evaluating the tax benefit. Management’s judg- lation of monetary items are recog- rights, to variable returns from its in- in the acquisition cost at the time 2. ISSUED AND AMENDED impairment and the choice of dis- ment is required to determine the nised as finance income and finance volvement with the investee and has of acquisition. The change in value STANDARDS NOT YET count rate in the calculation of the size of the tax benefit to be utilised, costs, respectively. If the currency the ability to affect those returns of the additional consideration is EFFECTIVE OR LACKING present value of the cash flows. based on the timing and value of position is considered to constitute through its power over the investee. only recognised as goodwill if the APPROVAL BY THE EU These estimates are particularly future taxable profits. Note 7 has cash flow hedges or the hedging of a The consolidated financial state- change is within 12 months and is a The following standards and state- relevant when assessing goodwill more details. net investment in a foreign business, ments have been prepared using result of new or changed facts and ments that are relevant for Posten and other intangible assets. Details the gain or loss is recognised in other uniform accounting principles circumstances existing at the time of Norge have been issued but have yet on the key assumptions used to 3.5 Leasing obligations comprehensive income. for similar transactions and other acquisition. Other changes in value to take effect or lacked approval by determine the recoverable amount (lease agreements) Non­-monetary items in foreign events, provided that the circum- of the additional consideration are the EU for the financial year 2020: of a cash-generating unit, including In accordance with IFRS 16, the non­ currencies measured at historical stances otherwise are the same. recognised in the income statement. sensitivity analyses, are provided in cancellable lease period (including cost are translated using the ex- The classification of items in the in- The adjustments are measured at Amended IAS 1 related to note 8. the period of notice) and any options change rates at the dates of the come statement and balance sheet the exchange rate on the balance the classification of loans as reasonably certain to be exercised initial transactions. Non-monetary has been determined according to sheet date or at the rate when the short-term or long-term debt 3.2 Pensions are recognised in the lease liability. items in foreign currencies meas- uniform definitions. Intercompany adjustment occurred, if this differs The change in IAS 1 Presentation There is also uncertainty related to Several of the Group’s significant ured at fair value are translated transactions and balances, including from the balance sheet date. of Financial Statements applies the estimation of pension liabilities. lease agreements, particularly within using the exchange rates at the date internal pro fit and unrealised gains Non-­controlling interests in the for financial statements starting The present value of the pension property, include options for renew- when the fair value is determined. and losses, have been eliminated. acquired company are measured for after 1 January 2023. The changes liabilities depends on a number of als of the agreements. The Group each purchase, either at fair value or will not lead to significant changes factors determined by actuarial as- applies judgment in determining the 4.3 Subsidiaries and 5.1 Subsidiaries at its share of the acquired compa- compared with the Group’s present sumptions. Any changes in these as- lease period. associated companies Companies where the Group has ny’s net assets. The proportion of eq- implementation of IAS 1. sumptions will impact the carrying The determination of the discount When consolidating subsidiaries control (subsidiaries) are fully uity related to non­-controlling inter- amount of pension liabilities. rate as the basis for calculating the and recognising investments in as- consolidated line by line in the ests is shown on a separate line in the 3. ACCOUNTING Assumptions used in the calcula- present value of future leasing ob- sociate companies according to the consolidated financial statements. Group’s equity. For non­-controlling ESTIMATES tion of net pension cost include the ligations also involves judgment. A equity method, the profit or loss, Subsidiaries are consolidated interests, the share of the profit/ loss The preparation of the Group’s discount rate. The Group determines methodology for this process has assets and liabilities of subsidiaries from the date on which control is for the year after tax is shown in the financial statements requires man- the appropriate discount rate at the been developed. Section 19 and and investments in associates are achieved and deconsolidated from income statement and the share of agement to make estimates and end of each year. This is the interest note 17 have details. translated from functional curren- the date that control ceases. other comprehensive income in total assumptions affecting revenues, rate that should be used to deter- cy to Norwegian kroner, which is The Group applies the acquisition comprehensive income. expenses, assets and liabilities, the mine the present value of estimated 4. FOREIGN CURRENCY the Group’s presentation currency. method to account for business Transactions with non-controlling accompanying notes and the disclo- future cash outflows expected to be TRANSLATIONS Assets and liabilities are translated combinations. The consideration owners in subsidiaries that do not sure of contingent liabilities. Man- required to settle the pension liabil- based on the exchange rate on the is measured at fair value of assets result in any loss of control are ac- agement carries out significant ac- ities. In determining the appropriate 4.1 Functional currency and balance sheet date. Income and transferred, liabilities incurred, and counted for as equity transactions. counting considerations (judgments) discount rate, the Group considers presentation currency expenses are translated at the aver- equity interests issued. Identifiable In the event of loss of control and in applying the Group’s accounting the interest rates of high-quality The financial statements of the age monthly exchange rate. Foreign assets, liabilities and contingent lia- consequent deconsolidation of the policies. Material critical accounting corporate bonds that are denomi- individual entities in the Group are exchange differences are recognised bilities are initially recognised at fair subsidiary, gain or loss is recognised judgments will be described. Sourc- nated in the currency in which the measured using the currency of the in other comprehensive income and value. The excess of the aggregate in the income statement. Any re- es of estimation uncertainty and benefits will be paid, and that have economic environment in which the specified separately in the state- of the consideration transferred, tained investment is measured at fair assumptions concerning the future terms to maturity approximating the entity primarily operates (functional ment of equity (ref. the statement non-­controlling interests and any value at the time of the transaction.

70 71 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Accounting principles Accounting principles

5.2 Associated companies short-term (less than one year). Ac- very short delivery time, 1­-2 days, of the defined benefit liability at nancial year, with the exception of: 13 “Write-downs of non-financial An associated company is an entity cordingly, the Group does not pro- and the recognition of income is the balance sheet date, less the fair • deferred tax liabilities arising from assets” has a more detailed over which the Group has significant vide information about balance sheet therefore normally made when the value of plan assets. The gross lia- the initial recognition of taxable description). Intangible assets influence. Significant influence -nor items related to current deliveries. letter is delivered to the post office/ bility is calculated by independent non-depreciable goodwill with definite lives are amortised mally exists when the Group owns 20 Sales revenue is measured at fair in the letter box. Letter services actuaries applying the “projected • deferred tax arising from a first­ on a straight-line basis over their to 50 percent of the voting capital. value of the consideration net of also comprise the sale of stamps, unit credit” method. When pension time recognition of an asset or estimated useful economic life. Investments in associated compa value added tax and discounts. franking and international mail. The assets exceed pension liabilities, liability in a transaction that Amortisations start from the date nies are accounted for by the equity sale of stamps is considered to be prepaid pensions are classified as • is not a business when the intangible asset is availa- method. The investment is initially 7.1 Revenue: Logistics segment advance payment for the sale of a long-term asset in the balance combination, and ble for its intended use. Intangible recognised at cost. For investments The segment’s revenue is mainly gen- letter products and is recognised sheet if it is likely that the excess • on the transaction date, im- assets not yet available for use are in associates, goodwill is included in erated by terminal and transport ser- as income when the service delivery value can be utilised or repaid. The pacts neither the accounting also tested for impairment. the investment’s cost. The Group’s vices of parcels, freight and tempera- takes place. Franking machines recognition of pension funds is profit nor taxable income share of profit or loss is classified ture-controlled deliveries, in addition (pre­-paid franking) are recognised limited to the present value of all (taxable loss) 10.1 Intangible assets: as operating income or expense. to the sale of warehouse services. on the basis of the customer’s financial benefits that materialise • deferred tax concerning invest- Development costs Received dividends reduce the Transport services comprise na- postage consumption, and other in terms of refunds from the plan or ments in subsidiaries, branches The Group’s development costs investment’s carrying value. tional and international transport, postage sales are recognised when reductions in future contributions to and associates where the parent mainly relate to the development of together with express deliveries and letter products are delivered. the plan. Net pension expenses are company can control the time for IT systems intended for internal use. 6. SEGMENT REPORTING home deliveries. Transport services International mail comprises income classified as payroll expenses in the reversing the temporary diffe- Development costs are recognised Reporting segments are aggregated can include a number of associated from foreign postal services. This is income statement, except the inte rence, and it is probable that the in the balance sheet if all of the fol- from underlying operating segments additional services but are mainly currently recognised on the basis rest element, which is classified as temporary difference will not re- lowing criteria are met: based on an assessment of the risks considered to be one delivery ob- of the calculation of volumes and finance income/finance expenses. verse in the foreseeable future. • The product or process is clearly and yields relating to the types of ligation. The services are taken to preliminary prices, and is adjusted The effect on previously earned Tax increasing and tax reducing tem- defined, and cost elements can be products or services, production income over time, as the customer is the following year when final prices rights resulting from changes in porary differences that are reversed identified and reliably measured processes, customer groups, dis- considered to benefit from the fact are received from the International the schemes’ yields is recognised or can be reversed are netted. Taxes • The product’s technical solution tribution channels and statutory that the goods are coming increas- Post Cooperation. immediately in the income state- are not offset across national bor- has been demonstrated or other requirements, as well as ingly nearer the agreed delivery point. Fees for banking services are rec- ment. Actuarial gains and losses are ders. A deferred tax asset is recog- • The product or process will be management reporting. The division Most transport services are delivered ognised based on performed bank- recognised in other comprehensive nised when it is probable that the sold or used in the business of reporting segments has been within 1­-7 days, and provisions are ing services. income in the period in which they company will have sufficient taxable • It is probable that the asset will prepared in accordance with areas made for incomplete transport. In addition, Posten is paid for occur and will not be reclassified to profits to utilise the tax asset. De- generate future economic benefits whose operating results are reviewed Warehouse services comprise sev- government procurements of profit or loss in future periods. ferred tax liabilities and deferred • Adequate technical, financial and regularly by Posten’s Board to en- eral separate delivery obligations, commercially non-viable postal and tax assets that can be recognised in other resources are available to able the Board to make decisions including storage, handling and banking services, recognised over 9. TAXES the balance sheet are stated at their complete the project about resources to be allocated to pick-up services in addition to the time (monthly) and limited to an The tax expense comprises tax nominal value and netted. Only when all the criteria are met can the segment and assess its perfor- unloading of vehicles, sealing of pal- amount equalling the current year’s payable for the period and changes If authorities notify a change in the expenses relating to development mance. The Group defines Posten’s lets, installation/repair of equipment estimated additional expenses in deferred tax liabilities/assets. the previous year’s tax return, the work be recognised in the balance Board as the chief decision maker. and construction of sales pallets. regarding licensing requirements. Tax is recognised in the income expense will normally be recognised sheet. Otherwise, the costs will be The segments’ accounting princi- The distribution of transaction pric- statement, except to the extent as part of the current year’s taxes. expensed as incurred. ples are the same as those used to es to each delivery obligation will 8. PENSIONS that it relates to items recognised prepare and present the consolidat- normally be derived directly from an The Group has both defined contri- in other comprehensive income or 10. INTANGIBLE ASSETS 10.2 Intangible ed financial statement. associated agreement. The storage bution and defined benefit pension directly in equity. In such cases, Intangible assets are recognised assets: Goodwill of goods is recognised over time as plans. The net pension expenses for the tax is also recognised in other in the balance sheet if probable Goodwill arises on acquisitions of 7. REVENUE FROM the customer receives the benefit the defined benefit pension plans comprehensive income or directly future economic benefits can be businesses (described in more detail CONTRACTS WITH for each day the goods are stored. comprise the pension contributions in equity, respectively. proven and attributed to the asset, under sections 5.1 and 5.2). CUSTOMERS Storage handling is, however, recog- of the period, including future salary income or directly in equity. In this and the cost of the asset can be The recognition of income shall re- nised at the time when the service is increases and the interest expense case, the tax is also recognised in reliably measured. Intangible assets 11 TANGIBLE flect the transfer of goods or servic- delivered, and control is considered on the estimated pension liability, other comprehensive income or di- are recognised in the balance sheet FIXED ASSETS es to the customer. In all segments, to be transferred to the customer. less the contributions from employ- rectly in equity, respectively. at their acquisition cost net of any Tangible fixed assets are recog- revenue is recognised when a cus- ees and estimated yield on the pen- Tax payable is calculated on the accumulated depreciation and nised in the balance sheet at their tomer achieves control over goods or 7.2 Revenue: Mail segment sion assets. For defined contribution basis of the taxable income for the write-downs. Acquisition costs also acquisition cost net of accumulated services and thereby can determine The segment’s revenue is generated plans, the premium less the employ- year. The net deferred tax liability/ include in-house payroll costs if the depreciation and impairment. The the use of them and receive the ben- from the sale of letter products and ees’ contribution is recognised as asset is computed on the basis of recognition criteria are met. acquisition cost of fixed assets in- efits from the goods or services. banking services. expenses when incurred. temporary differences between the Goodwill and other intangible cludes costs directly attributable According to the contracts ap- The delivery of letter products The liability recognised in the bal- carrying amount and tax values of assets with indefinite useful lives to the acquisition, construction or plied, the Group’s current delivery is mainly recognised over time. ance sheet for the defined benefit assets and liabilities and tax losses are not amortised but assessed installation of the assets. For larger obligations in both segments are However, letter services often have pension plans is the present value carried forward at the end of the fi- for impairment annually (section investments involving a long manu-

72 73 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Accounting principles Accounting principles

facturing period, interest is capital- generating unit is defined as the amount can be reliably measured. ognised in the financial statements foreign currency (Japanese yen), the and is applied to hedge. ised as part of the acquisition cost if smallest identifiable group of assets Provisions are reviewed on each unless they have been acquired in fair value option has not been ap- Hedge accounting ceases when: directly attributable. The acquisition generating incoming cash flows and balance sheet date, and their level a business combination. Such lia- plied, nor do the liabilities contain a. the hedging instrument expires, is cost of fixed assets is decomposed shall essentially be independent of reflects the best estimate of the bilities are provided for. Significant embedded derivatives. Accordingly, sold, terminated or exercised, or when the fixed asset consists of incoming cash flows from other as- liability. When the effect of the contingent liabilities are disclosed, the Group’s financial obligations are b. the hedge no longer meets the components that have different use- sets or groups of assets. time value of money is material, the unless it is unlikely that the liability basically classified as subsequently criteria for hedge accounting as ful economic lives. Costs relating to The Group calculates future cash liability is recognised at the present will result in payments. measured at amortised cost. The described above normal maintenance and repairs are flows based on estimated results value of future cash flows. Details Contingent assets are not recog- Group has applied the opportunity expensed when incurred. Costs re- (forecasts and long-term plans) over on provisions for pension liabilities nised in the financial statements but to use fair value options (FVO) for fi- 16.1.a Cash flow hedging lating to replacements and renewals a period of three years, adjusted are provided in section 8. disclosed if it is probable that the nancial liabilities in foreign currency The effective part of changes in which significantly increase the use- for depreciation, investments and Group will benefit from them. (Japanese yen), as such classifica- fair value of a hedging instrument ful economic life of the fixed assets changes in working capital. The 14.1 Provisions: Restructuring tion to a significant degree reduces in a qualifying cash flow hedge is are recognised in the balance sheet. extrapolation period contains an Restructuring expenses are costs 16. FINANCIAL any inconsistency in the measure- recognised in other comprehensive Tangible fixed assets are extrapolation of the cash flows after incurred by the Group based on a INSTRUMENTS ment between the obligation and income. The ineffective part of the depreciated down to their residual the forecast period, using a con- decision that entails a significant Financial instruments are recognised related derivatives. Significant hedging instrument is recognised values on a straight-line basis over stant growth rate. The present value change in the Group’s defined busi- in the balance sheet when the Group changes due to the Group’s own directly in the income statement. their estimated useful economic of future cash flows is calculated ness areas, either concerning the has become a party to the instru- credit risk are recognised in other If the hedged cash flow results life. Depreciation starts from the using a weighted required rate of scope of the activities or the man- ment’s contractual terms. Financial comprehensive income. in the recognition of an asset or date when the tangible fixed asset is return of total capital and is calcu- ner in which the business is operat- instruments are derecognised when Financial instruments are classi- liability, the gains and losses pre- available for its intended use. Land lated before tax. ed. Provisions for restructuring are the contractual rights or obligations fied as non-current when their ex- viously recognised in other com- is not depreciated. With the exception of goodwill, expensed when the programme has have been fulfilled, cancelled, ex- pected realisation date is more than prehensive income are reclassified The assets’ residual values, if write-downs recognised in prior pe- been determined and announced, pired or transferred. 12 months after the balance sheet and recognised together with the any, depreciation method and useful riods are reversed if new information and the costs are identifiable, quan- Financial instruments are initially date. Other financial instruments asset or liability. For other cash flow lives are reviewed annually. indicates that a write-down require- tifiable and not covered by corre- measured at fair value at the set- are classified as current assets or hedges, gains and losses previously ment no longer exists or has been sponding revenues. tlement date, normally at the trans- liabilities. recognised in other comprehensive 12. INVESTMENTS IN reduced. However, a write­-down is action price. Subsequent measure- income and accumulated in equity SUBSIDIARIES AND not reversed if it implies that the 14.2 Provisions: ments depend on the classification 16.1 Financial are reclassified to the income state- ASSOCIATED COMPANIES carrying amount exceeds the value Onerous contracts of the financial asset or liability. The instruments: Hedging ment in the same period as the cash Subsidiaries are consolidated into that had been determined if no im- A provision for onerous contracts classification is determined by the The Group uses derivatives to man- flow constituting the hedged item is Posten Norge’s consolidated finan- pairment loss had been recognised. is recognised when the Group’s ex- Group’s business model for man- age currency and interest rate risk. recognised. When a hedging instru- cial statements. Investments in as- pected income from a contract is aging financial instruments and the The Group’s criteria for classifying a ment ceases to be highly effective, sociated companies are accounted 13.1 Impairment: Goodwill lower than the unavoidable expens- characteristics of the cash flows of derivative as a hedging instrument, hedge accounting is prospectively for using the equity method (details and other assets with es incurred to meet the obligations each instrument. and either the whole or parts of an discontinued. In this case, the ac- are given under section 5 “Consoli- indefinite useful lives of the contract. As a main rule, the Financial assets are classified as individual item or a group of items cumulated gain or loss on a hedging dation principles”). Goodwill, intangible assets with in- Group defines unavoidable expens- subsequently measured at either as a hedging object, are as follows: instrument in equity will not be re- definite useful lives and intangible es as direct costs related to the amortised cost, fair value over 1. the derivative is applied to hedge versed until the hedged transaction 13. WRITE-DOWNS OF assets under development are sub- loss and does not include indirect comprehensive income or fair value an expected transaction, a net in- actually occurs. If it is no longer ex- NON-FINANCIAL ASSETS ject to an impairment test annually, costs in the estimated provision. A over profit and loss. Financial liabil- vestment in a foreign business or pected that the hedged transaction A write-down requirement exists irrespective of whether there are any provision is generally made when a ities are classified as subsequently a recognised asset or obligation, will occur, previously accumulated if the carrying amount of a valua- indications of impairment or not. reliable estimate of the obligation measured at either amortised cost 2. the hedge is earmarked and do- gains or losses on the hedging in- tion unit exceeds its recoverable amount can be estimated. or fair value over profit and loss. cumented, strument in equity will be reversed amount. The recoverable amount 13.2 Impairment: Other assets The Group’s financial assets 3. the requirement for hedge effe- and recognised in the income state- is the higher of fair value less sales with definite useful lives 15. CONTINGENT mainly comprise debt instruments ctiveness is met. ment immediately. costs and value in use, where value An impairment test on other assets LIABILITIES AND ASSETS (receivables), and the Group has no Hedge effectiveness is analysed on in use is the present value of esti- with definite useful lives is made when Contingent liabilities include: significant equity instruments. The an ongoing basis and is met when 16.1.b Hedging of net mated cash flows relating to future there are indications of impairment. • possible liabilities resulting from receivables’ cash flows only include 1. there is a financial relation bet- investment in a foreign entity use. If cash flows relating to an past events whose existence de- the principal and any interest, and ween the hedge object and in- The Group uses currency futures to individual asset are independent of 14. PROVISIONS pends on future events all receivables are held only to re- strument, i.e., the Group normally hedge its net investments in foreign cash flows relating to other assets, FOR LIABILITIES • liabilities that have not been ceive contractual cash flows (no expects that the values systema- entities. Changes in currency fu- the individual asset constitutes a Provisions are recognised when recognised because it is not intention of sale exists). The receiv- tically change in line with chan- tures that are designated as hedging valuation unit. If not, a valuation unit the Group has a present obligation probable that they will result in ables are classified as subsequently ges in the underlying risk, instruments are recognised in other is identified at a higher level and (legal or actual) as a result of a past payments measured at amortised cost. 2. credit risk does not dominate the comprehensive income together is called a cash-generating unit. A event, it is probable (more probable • liabilities that cannot be measu- None of the Group’s financial value changes and with translation differences related cash-generating unit shall be de- than not) that the liability will result red with sufficient reliability liabilities is held for trading purp­ 3. and the degree of hedging refle- to the investment until any sale of fined consistently over time. A cash­ in a financial settlement and the Contingent liabilities are not rec- ses. With the exception of loans in cts the actual quantity hedged the investment, whereby the accu-

74 75 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Accounting principles Accounting principles

mulated translation differences are recognised at fair value and sub- agreements include other services the exercise of an option is reason- for the major part of the remaining in the income statement in the same recognised in the income statement. sequently measured at amortised and components such as shared ably certain, especial weight has lease period in the main agreement. period as the gain or loss of the sale The ineffective part of the hedge cost, less provisions for losses. The costs, fuel and charges. Non-leasing been given to whether the asset is is recognised. instrument is recognised directly in Group applies a simplified meth- components are separated from the important for operations and part of Finance leases the income statement. od to provide for expected credit lease agreement and recognised as the Group’s strategic plans. As lessor, the Group has no signifi- 21.2 Hedge reserve losses on the trade receivables and operating costs in the consolidated The Group has also taken into cant finance lease agreements. The hedge reserve includes the total 16.1.c Fair value hedging measures the loss provisions at an financial statements. account the time of an option’s net change in fair value of the hedg- Derivatives that qualify as fair value amount corresponding to the ex- exercise date, as the degree of cer- Operating leases ing instrument in a cash-flow hedge hedges are measured at fair value, pected lifetime credit loss. Accrued Assessment of agreements tainty decreases the further off the For operating leases, the Group until the hedged cash flow occurs or and changes in fair value are recog- (actual) credit losses reduce the in the Group complying with exercise date is. recognises lease payments as other is no longer expected to occur. nised in the income statement. Cor- trade receivables’ balance sheet the standard’s definition and income, mainly on a straight-line ba- respondingly, changes in fair value value directly. requirement for recognition Assessment of lease payments sis, unless another systematic basis 21.3 Costs relating to related to hedged risk in the hedged In order to be within the scope of Right-­of­-use assets and lease liabil- better reflects the pattern whereby equity transactions item are recognised in the income 18. CASH AND CASH IFRS 16, the contract must satisfy ities shall be measured at the pres- the benefit of the underlying asset Transaction costs directly related statement. EQUIVALENTS the definition of a lease. The assets ent value of the lease payments. is reduced. The Group recognises to equity transactions are recog- Cash and cash equivalents include must be identifiable, and the lessee Lease payments include fixed expenses incurred in the earning of nised directly in equity net of taxes. 16.2 Financial instruments: liquid assets like cash in hand and must have the right to control the payments and any payments varying the lease income as costs. Other transaction costs are recog- Derivatives that are not bank deposits. Cash and cash equiv- use of the assets in a given period. by an index or interest rate, but not nised in the income statement. hedging instruments alents are short-term liquid invest- Significant agreements in the variable lease payments depending 20. LOANS Derivatives not classified as hedging ments that can be converted into a Group mainly concern rental con- on the use of the asset. Loans are initially recognised at fair 22. HELD FOR SALE instruments are measured at fair known amount in cash within three tracts for buildings and terminals, in Lease payments also include re- value when paid, net of transaction Assets and liabilities are classified value over profit and loss. Changes months and are subject to insignifi- addition to the Group’s car fleet. sidual value guarantees, purchase costs incurred. In subsequent pe- as held for sale if their carrying in fair value of such derivatives are cant risk. Leasing of real estate and means options and any termination expens- riods, the loans are recognised at value in all material respects will be recognised in the income statement. of transport will generally be en- es. Wear and tear and any damage amortised cost using the effective recovered through a sale rather than 19. LEASING compassed by the definition in the caused during ordinary use of the interest method. Amortised cost is through continued use. Assets and 16.3 Impairment: OBLIGATIONS standard and be classified as leases. leased asset is expensed as incurred. the amount at which the financial liabilities classified as held for sale Financial instruments (LEASE AGREEMENTS) The Group has performed a review obligation is initially measured less are measured at the lower of the For financial assets measured at of various lease agreements and in Discount rate repayments (instalments, interest carrying amount and fair value net of amortised cost, the Group makes a 19.1 The Group as lessee particular assessed the treatment The present value of the lease pay- and service charges), including ef- sales expenses, and are presented provision for expected credit loss. IFRS 16 Leases requires that the of them, in addition to agreements ments shall be discounted at the fective interest. separately as assets held for sale The Group’s financial assets main- lessee capitalises lease agreements with transporters (transport agree- lessee’s incremental borrowing rate and liabilities held for sale in the ly comprise receivables, including in order to reflect the value of the ments). Most of the transport when the interest rate implicit in 21. EQUITY balance sheet. The criteria for the trade receivables, without signif- right­-of-­use asset and the corre- agreements in the Group are either the lease cannot be easily deter- classification as held for sale are icant financing components. For sponding lease obligation in the of such a character that no specific mined. The method to determine the 21.1 Translation differences considered met when it is highly financial assets without significant balance sheet. The lease obligation asset can be identified, or are short- Group’s incremental borrowing rate Translation differences arise in con- probably that the sale will be carried financing components, a simplified is measured at the present value of term, and these agreements are is consistently applied and reflects; nection with currency differences in out and the asset or disposal group model is applied whereby the ex- the lease payments, and the right- therefore outside the definition of a 1. the loan interest for the asset the consolidation of foreign subsid- is immediately available for sale in pected credit loss over the entire of-use asset is derived from this lease according to the standard. class in question, and iaries and when recognising foreign its current condition. Non-current lifetime is recognised. The simplified calculation. At subsequent meas- 2. the length of the lease period. associated companies according assets classified as held for sale are model does not require any follow-­ urements, the right-of-use asset Assessment of lease period to the equity method. Currency not depreciated. up of credit risk. is depreciated, whereas the lease Several of the Group’s significant 19.2 The Group as lessor differences relating to monetary If an accrued (actual) credit loss is obligation is reduced by instalment lease agreements, especially within For contracts where the Group items (debts or receivables where 23. EVENTS AFTER THE established, because the Group can- payments. In addition, interest of real estate, include options for ex- is lessor, each lease agreement settlements are neither planned nor REPORTING PERIOD not reasonably expect to recover the the lease obligation is expensed. tending the lease agreements. IFRS is classified as either operating likely to occur within a short peri- New information about the Group’s entire or parts of a financial asset, Lease agreements that can be 16 requires that the non­-cancellable or finance. A lease agreement is od), and, in reality, constitute a part positions on the balance sheet date the financial asset’s gross balance defined as “low value assets” are not lease period (including the period classified as a finance lease if it in of a company’s net investment in is considered in the financial state- sheet value is directly reduced. capitalised. Short-term lease agree- of notice) and any options reason- all material respects transfers all a foreign subsidiary, are treated as ments. Events taking place after the Write-downs of financial assets ments, where the non-cancellable ably certain to be exercised, be risk and reward of the ownership of translation differences. When a for- reporting period that do not affect measured at amortised cost are rec- lease period is less than 12 months, recognised in the lease liability. The an underlying asset. A sublease is eign entity is sold, the accumulated the Group’s position on the balance ognised in the income statement. are also directly expensed. The Group assumes that “reasonably considered a finance lease if the translation difference related to the sheet date, but will do so in the fu- Group has chosen not to apply IFRS certain” is a probability level signifi- asset, or parts of it, is subleased entity is reclassified and recognised ture, are disclosed if significant. 17. ACCOUNTS RECEIVABLE 16 for intangible assets. cantly higher than 50 percent. Accounts receivable are initially Several of the Group’s lease In the consideration of whether 76 77 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement Income statement

NOTE 1 SEGMENTS Segments in the Group are reported in accordance with areas whose operating results are reviewed regularly by RESULTS PER SEGMENT Posten’s Board to enable the Board to make decisions about resources allocation to each segment and assess its earnings. Revenues, assets and investments are also reported on a geographical basis, split between Norway, 2020 Logistics Post Other Eliminations1) Group Sweden and other countries, cf. section 6 “Segment reporting” and 7 “Revenue from contracts with customers” in the Group’s accounting principles. External revenue 18 354 5 641 23 996

Internal revenue 216 400 1 295 (1 911) For financial reporting purposes, Norwegian shelf ve transport services. the Group has divided operations • Special transport with a carrying Holdings & Ventures shall maximise Total revenue 18 571 6 041 1 295 (1 911) 23 996 into two segments, Logistics and capacity of up to 130 tonnes the value of portfolio companies and External expenses including depreciation 16 227 4 997 1 347 22 573 Mail. The split complies with interna- • Temperature-regulated transport venture investments in the Nordics Internal expenses 1 077 717 118 (1 911) tional accounting standards (IFRS). Sea transport comprises large and comprises the Group’s express Write-downs of intangible assets and tangible Segment Logistics comprises divi- ship­ments carried on ships in regular services and thermo business. 137 31 169 sion E-commerce and logistics and service. Segment Mail comprises letter fixed assets International logistics. Holdings & Parcel transport is the transport products (addressed and unad- Operating expenses 17 441 5 745 1 465 (1 911) 22 742 Ventures also reports as part of the of parcels both internationally and dressed) and banking services. The Share of profits from associated companies 112 112 segment. Segment Mail includes di­ domestically. The service includes segment includes division Mail and vision Mail. Division Network Norway the following categories: operations in Bring Mail Nordic. Operating profit/(loss) 1 285 371 (170) 1 485 is divided between Segment Logis- • Contract parcels, parcels directly Division Mail is responsible for Net financial items (141) tics and Segment Mail based on the to third parties the traditional mail services in Nor- Taxes 221 type of services delivered to the two • Service parcels, parcels picked way (including services covered by segments. The division shall ensure up by the recipient at the delivery licences). Services delivered by divi- Profit for the year 1 123 cost-effective operations for letters, point sion Mail are mail and newspaper dis- 1) The new organisational structure in 2020 has led to fewer inter-segment transactions parcels and freight in Norway. • Parcels in the mailbox tribution, sale and customer service, The divisions are key units in the Warehouse services comprise Post-in-shops, post offices, rural management of the Group and storage, handling and pick-up ser- postal services and postal business 2019 Logistics Post Other Eliminations Group develop and implement business vices in addition to the unloading centres. In addition, the division shall External revenue 17 474 6 738 24 212 strategies within their own business of vehicles, sealing of pallets, in- be a driving force for the Group’s ef- Internal revenue 653 896 1 340 (2 890) areas, thereby supporting the group stallation/repair of equipment and forts within digital services through strategy. The divisions are respon- construction of sales pallets. The services such as Digipost. Total revenue 18 127 7 634 1 340 (2 890) 24 212 sible for developing and delivering service has the following categories: Other comprises the owner External expenses including depreciation 15 972 5 851 1 599 23 405 services of high quality. • storage function and group-shared func- Internal expenses 1 693 1 147 30 (2 890) • interim storage tions (group staffs). The Group has Write-downs of intangible assets and tangible 91 66 15 172 The segments include • customs storage established group staffs with the fixed assets the following: • refrigerated and frozen storage responsibility for management, Operating expenses 17 756 7 063 1 643 (2 890) 23 575 Segment Logistics comprises bulk The segment is also responsible shared functions and technical and part loads, parcels, warehous- for the Group’s Norwegian and inter- development within HR, Communi- Other income and (expenses) (20) (441) (18) (479) ing, home deliveries, express and national operation of vehicles and cation, Strategy, Economy, Finance, Share of profits from associated companies 13 (8) 5 temperature-regulated services. equipment. Property, Legal and IT and Digitali- Operating profit/(loss) 364 120 (321) 162 The transport services include na- Division E-commerce and logistics sation. The group staffs develop and tional and international transport. is responsible for all parcel products professionalise the technical envi- Net financial items (142) The various services in the segment to e-commerce customers, in addi- ronments in the Group, are driving Taxes 8 are described below. tion to groupage and part loads, home forces and contribute to realise the Profit for the year 13 Freight transport is the transport of deliveries and warehousing in Norway. business strategies. goods over 35 kilos. Delivery can be Division International logistics op- Elimination: eliminations of inter- by car, boat, train or plane, interna- erates the international freight traffic nal transactions. tionally and domestically. The service by road, railway, air and sea in addi- Internal revenue is revenue be- includes the following categories: tion to industrial direct freight and tween the segments of the Group. • Groupage and part loads, mostly industry solutions for manufacturing The pricing of transactions with oth- transport on cars or trains and offshore customers. The division er segments is based on commercial • Air cargo also manages the car fleet primarily terms as if the segments were inde- • Routine deliveries to installations for the logistics network in Norway to pendent parties. Internal revenue is on the mainland and at sea on the ensure competitive and cost-effecti­ eliminated against internal costs. 78 79 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement Income statement

Revenue categories (external income) The Group’s deliveries mainly comprise transport and postal services delivered over time and can include a number INVESTMENTS PER SEGMENT of associated additional services. The most significant additional services are considered to be part of one delivery obligation. Received consideration for the services is therefore not broken down. 2020 Logistics Mail Other Group The Group’s assets related to the contracts are basically trade receivables, ref. note 15. As per the applicable con- tracts, the Group’s ongoing delivery obligations in both segments are short-term (less than one year). For this reason, Investments in non-current assets 552 146 3 700 the Group does not provide information on balance sheet items concerning ongoing delivery obligations. Depreciation 1 049 384 30 1 463 Write-downs 137 31 169 DELIVERIES OVER TIME1) 2020 2019 Parcels and freight 8 938 8 435 2019 Logistics Mail Other Group Other Logistics business 9 416 9 040 Investments in non-current assets 502 138 6 646 Logistics 18 354 17 474 Depreciation 1 026 493 35 1 552 Mail and banking services 5 117 5 832 Write-downs 91 66 15 172 Government procurements 523 619 Other (mainly dialogue services) 286 Mail 5 641 6 738 External revenue 23 996 24 212

1) Some of the Group’s services are delivered at a certain point of time. These services are not separated from income delivered over time, as they are considered insignificant

Geographical information Posten Norge has its main office in Oslo, Norway, but has operations also in Sweden, Denmark, Finland, Belgium, France, Greece, Hong Kong, Italy, the Netherlands, Poland, Slovakia, Great Britain and Germany. The table below is an overview of the distribution of revenue and expenses between Norway, Sweden and other countries.

2020 2019

External revenue Norway 14 788 15 306 Sweden 5 033 5 106 Other countries 4 174 3 800 Total revenue 23 996 24 212 Assets Norway 16 219 16 285 Sweden 2 238 2 676 Other countries 1 186 906 Total assets1) 19 643 19 867 Investments Norway 537 492 Sweden 111 85 Other countries 52 69 Total investments 700 646

1) Total assets includes MNOK 1 173 classified as held for sale. See note 23

80 81 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement Income statement

NOTE 2 PAYROLL EXPENSES AND OTHER REMUNERATION The Board of Directors External board members have no pension schemes or other benefits other than board remuneration. Employee repre- The note shows the Group’s payroll expenses for employees and expensed remuneration to the Group’s Board, sentatives only have pension schemes related to their employment in Posten Norge AS. The Annual General Meeting executives and auditors. Information about the Group’s bonus and pension schemes for executives and the determines the remuneration to the Board of Directors of Posten Norge AS. The board fees for 2020 were approved in statement on executives’ remuneration is also given in the note. the Annual General Meeting on 19 June 2020, and the board members received the following remuneration:

2020 2019 2020 Salaries 6 849 6 998 Board Audit Compensation Remuneration Social security tax 961 1 029 fees Committee Committee Pension expenses 521 566 Andreas Enger, Chair 3) 466 31 Other benefits 192 253 Anne Carine Tanum, Vice-Chair 281 13 Payroll expenses 8 523 8 846 Henrik Höjsgaard 232 13 Number of full-time equivalent positions 12 377 13 995 Finn Kinserdal 2) 232 71 Number of employees 31.121) 12 919 14 270 Liv Fiksdahl 232

1) The number of employees is the number of permanent and temporary employees that generated salary expenses in December Tina Stiegler 232 43 Odd Christian Øverland, employee representative (until 30.06.2020) 1) 114 3 Social security tax on pensions is classified as pension expenses (details in note 3). Gerd Øiahals, employee representative (from 30.06.2020) 1) 118 11 Ann Elisabeth Wirgeness, employee representative 1) 232 2020 2019 Tove Gravdal Rundtom, employee representative (from 01.01.2020) 1) 232 Board fees 1) 2 847 2 732 Lars Nilsen, employee representative 1) 232 Fees for the statutory audit – Group auditor 7 547 6 749 Total 2 603 114 70

Fees for the statutory audit to other audit firms 206 734 (All amounts in TNOK and exclusive of social security tax) 1) For employee representatives, the amounts only concern compensation for the board position stated Fees for other attestation services 939 689 2) Leader of the Audit Committee 3) Leader of the Compensation Committee Fees for tax advisory services 336 192 Fees for other non-audit services 519 1 135 2019 Total auditors’ fees 9 547 9 499 Board Audit Compensation Remuneration (All amounts in TNOK and exclusive of VAT) fees Committee Committee 1) Includes board fees to external board members in part-owned subsidiaries Idar Kreutzer, Chair (until 30.06.2019) 2) 223 6 Fees to the group auditor concerned the audit firm EY. Andreas Enger, Chair (from 01.07.2019) 2) 229 6 Tove Andersen, Vice-Chair (until 30.06.2019) 3) 134 34

Anne Carine Tanum, Vice-Chair 4) 249 5 Henrik Höjsgaard 225 5 Finn Kinserdal 5) 225 55 Liv Fiksdahl 225 Tina Stiegler (from 01.07.2019) 114 21 Odd Christian Øverland, employee representative 1) 225 5 Ann Elisabeth Wirgeness, employee representative 1) 225 Erling Andreas Wold, employee representative 1) 225 Lars Nilsen, employee representative 1) 225 Total 2 524 110 28

(All amounts in TNOK and exclusive of social security tax) 1) For employee representatives, the amounts only concern compensation for the board position stated 2) Leader of the Compensation Committee 3) Leader of the Audit Committee until 30.06.2019 4) Vice-Chair from 01.07.2019 5) Leader of the Audit Committee from 01.07.2019 82 83 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement Income statement

Group management - compensation 2019 Group management is defined as the persons with the authority and responsibility for executing and monitoring the Bonus Salary and Bonus paid Other Group’s operations. Unless otherwise stated, the amounts below cover the entire year. Basic Pension Period of Severance Group management earned holiday pay (earned in benefits pay1) cost notice pay agreement 20192) paid in 20193) 2018)4) paid5)

6) 2020 Tone Wille 5 418 5 440 805 289 119 6 mth. No Bonus Salary and Bonus paid Other Irene Egset Basic Pension Period Severance 3 200 696 2 995 500 697 119 6 mth. No Group management earned holiday pay (earned benefits (from 01.01.2019) 7) 8) pay1) cost of notice pay agreement 20202) paid in 20203) in 2019)4) paid5) Gro Bakstad 2 840 634 2 874 434 243 1 526 6 mth. No Tone Wille 6) 5 510 5 665 289 121 6 mth. No Per Erik Roth 7) 2 400 168 2 411 344 168 119 6 mth. No Irene Egset 7) 3 254 760 3 347 696 192 121 6 mth. No Randi Løvland 1 960 451 1 986 338 227 316 6 mth. 9 mth. Gro Bakstad 2 840 1 838 634 173 957 6 mth. No (until 16.08.2020) Per Öhagen 7) 3 400 867 3 424 470 186 119 6 mth. No Hans Øyvind Ryen Christian Brandt 2 650 220 990 47 126 6 mth. No 2 500 118 538 57 26 6 mth. No (deputised from 17.08.2020) 8) (from 14.10.2019) 7) Per Erik Roth 7) 2 440 533 2 717 168 7 121 6 mth. No Morten Stødle 2 520 573 2 587 549 185 119 6 mth. No

Randi Løvland 7) 1 960 327 37 53 6 mth. 9 mth. Alexandra Saab Bjertnæs 2 050 495 2 083 453 246 119 6 mth. No (until 29.02.2020) 9) Thomas Tscherning 9) 2 940 621 3 253 583 85 937 6 mth. 9 mth. Nina Yttervik 2 400 438 1 877 161 101 6 mth. No (from 01.03.2020) 7) Total 29 228 4 622 27 591 4 477 2 381 3 520 Per Öhagen 7) 3 457 918 3 531 867 192 121 6 mth. No (All amounts in TNOK and exclusive of social security tax) 1) Basic pay as at 31.12.2019 or at the time of leaving Group management Christian Brandt 7) 10) 2 543 563 2 586 525 254 121 6 mth. No 2) Earned bonus is for the year shown and for the period as a member of Group management, and as accrued in the accounts. Includes neither holiday pay nor social security tax 3) Salary and holiday pay paid out in the year shown 4) Bonus paid was earned and accrued in the previous year Morten Stødle 2 562 599 2 642 573 176 121 6 mth. No 5) Other benefits include all other benefits (cash and non-cash)received in the year, and include the taxable part of pension insurance premiums, free car and car allowance, pension compensation and electronic communication Alexandra Saab Bjertnæs 7) 2 150 487 2 199 495 249 121 6 mth. No 6) The Group CEO’s salary terms were set to MNOK 5,4 per year in addition to free phone/broadband, car compensation of TNOK 283 per year and parking at the office. She is also a member of the company’s pension and personnel insurance schemes in line with the collective schemes prevailing in Posten Norge AS. The CEO’s bonus scheme was Thomas Tscherning 11) 3 280 646 3 257 682 23 1 087 6 mth. 9 mth. terminated on 1 January 2019 7) Has an agreement for severance pay for up to one year if the non-compete clause comes into effect Total 35 045 5 250 30 976 4 639 1 799 3 170 8) Group director Irene Egset received a starting compensation of TNOK 500, reported under Other benefits. 9) Group director Thomas Tscherning received his salary in Swedish kroner, translated to NOK at an average exchange rate for the year of 0,9305 (All amounts in TNOK and exclusive of social security tax) 1) Basic pay as at 31.12.2020 or at the time of leaving Group management 2) Earned bonus is for the year shown and for the period as a member of Group management, as accrued in the accounts. Includes neither holiday pay nor social security tax 3) Salary and holiday pay paid out in the year shown Bonus schemes Pension schemes of the pension basis exceeding 12 G. 4) Bonus paid was earned and accrued in the previous year 5) Other benefits include all other benefits (cash and non-cash)received in the year, and include the taxable part of pension insurance premiums, free car and car allowance, Posten Norge has a bonus scheme Group management has the same The executive left the Group on 29 pension compensation and electronic communication 6) The Group CEO’s salary terms were set to MNOK 5,5 per year in addition to free phone/broadband, car compensation of TNOK 283 per year and parking at the office. She is for members of Group management pension schemes and pension terms February 2020. also a member of the company’s pension and personnel insurance schemes in line with the collective schemes prevailing in Posten Norge AS. The CEO’s bonus scheme was with the exception of the Group as other employees in the Group, ref. One member of Group manage- terminated on 1 January 2019 7) Has an agreement for severance pay for up to one year if the non-compete clause comes into effect CEO. The scheme has two parts, one item 3,5 in the “Statement on the ment who joined in 2014 has a Swed- 8) As a deputised member of Group management, Hans Øyvind Ryen had an old age pension, the basis for which was in excess of 12G. This ceased when his appointment was made permanent element based on the consolidated determination of salaries and other ish pension scheme, where the an- 9) Bonus earned in 2019 of TNOK 451 was not paid after leaving the Group management group results and one on individu- remuneration to executives in Pos- nual contribution depends on salary 10) Bonus paid comprised TNOK 118 in bonus earned as a member of Group management, and TNOK 407 bonus earned before becoming a member of Group management 11) Group director Thomas Tscherning received his salary in Swedish kroner, translated to NOK at an average exchange rate for the year of 1,0227. His salary adjustment for al results, with an upper limit of 6 ten Norge AS and Posten Norge AS’ level and age. The contribution rates 2020 will be paid in 2021 months’ salary. The final decision wholly owned subsidiaries”. are maximum 42% of the pension ba- regarding bonuses is made by the There has been an exception for sis for the person in question. CEO. In general, bonuses only paid one executive joining Group manage- to persons holding their positions as ment before 31 December 2006. This Severance pay at 31 December. executive has had a defined benefit For members of Group management Posten Norge AS and most of the pension scheme of 66 percent based with severance pay arrangements, Group’s subsidiaries have bonus on operations with a retirement age the agreements include clauses of schemes for key personnel in man- of 64 years. This scheme was closed curtailment against other income. agement related to result achieve- on 31 December 2006. The executive ment and/or individual criteria left the Group on 16 August 2020. Loans and guarantees (details in the “Statement on the One member of Group manage- No loans or guarantees were provided determination of salaries and other ment who started in 2009 has had a for members of Group management. remuneration to executives in Pos- defined contribution pension based ten Norge AS and Posten Norge AS’ on operations, where the annual wholly owned subsidiaries” below). contribution is limited to 25 percent 84 85 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement Income statement

STATEMENT ON THE DETERMINATION OF SALARIES AND OTHER adjustment for existing executives. on which the manager can have an In addition, the ability to deliver REMUNERATION TO EXECUTIVES IN POSTEN NORGE AS AND influence. according to the owner’s required POSTEN NORGE AS’ WHOLLY OWNED SUBSIDIARIES Variable salary The basis for calculating the bonus rate of return is heavily emphasised In accordance with the state’s guide- shall comprise both common group when the Group’s long-term plan is (Approved by the Board ees in 2020 has been in accordance PART II POLICY lines, individual agreements on var- goals and individual goals for each determined. on 18 February 2021) with “Statement of salaries and FOR EXECUTIVE iable salary with senior employees manager. The objectives shall be The annual non-economic targets This statement is based on “Guide- other remuneration to executives in REMUNERATION IN can be made on the basis of perfor- linked to the results achieved sup- are related to areas such as absence lines for salaries and other remunera- Posten Norge AS and Posten Norge THE COMING YEAR mance, with an economic framework porting the Group’s three main goals: due to illness and injuries, in addition tion to executives in state enterprises AS’ wholly owned subsidiaries”, The guidelines in this Part II apply to of up to six months’ wages. A system • The customer’s first choice to sustainable value creation. For and companies” (established by the adopted on 13 February 2020 (in the Posten Norge AS. If not specifically of variable salary (bonus scheme) • Leading in technology and innovation absence due to illness, the Group Ministry of Trade, Industry and Fish- following, “last year’s statement”). stated in the text, the guidelines ap- must be transparent and clearly un- • Best in creating sustainable value, must achieve a 2 percent reduction eries effective from 13 February 2015) One new Group Director was em- ply correspondingly to Posten Norge derstandable. made possible through competent in 2021 compared with the result for and has been prepared by the Board ployed in 2020. The terms of the AS’ wholly-owned subsidiaries. All Group Directors have made and engaged employees 2020 to reach a bonus of 75 per- in accordance with the Articles of agreement are in accordance with agreements on such annual bonuses. Objectives that contribute to cent. For H2 injuries, the Group must Association section 7, ref. the Public last year’s statement. 1. Main principles for the The Group CEO has since a change reach the main goals will be within manage a 10 percent reduction to Limited Companies Act section The agreement for one of the executive remuneration policy in 2019 not had any variable sala- the following categories: economic/ achieve a bonus of 75 percent. 6-16a prevailing before 1 January 2021. Company’s Group Directors made Total remuneration for leading em- ry. Posten’s scheme has as a main financial targets, HSE (Health, Safety The goal for sustainable value The declaration shall be reviewed before 2011 deviates from the Nor- ployees in the Company shall be rule a maximum bonus potential and Environment), the external envi- creation is related to the increase in in Posten Norge AS’s Annual General wegian state’s guidelines, as the competitive, but not leading, com- of 25 percent of the annual salary. ronment, customers, technology and the share of vehicles on renewable Meeting. The declaration applies Group Director in question has 6 pared with similar companies. There are three exceptions in the innovation. energy. The goal in this area is a until the Board either repeals it or months’ period of notice and also an Posten Norge AS shall have ade- Group from this main rule today: one 60 percent of the bonus shall be demanding 38,8 percent of the adopts a new declaration. agreement of 9 months’ severance quate oversight and ensure that the agreement with a Group Director related to financial goals and 40 per- Group’s vehicles to be operated The declaration applies to the pay. In addition, the same Group statement of salaries is complied has a maximum bonus potential of cent to other main goals. Bonus goals by renewable energy, which will Group CEO and Group Directors Director has an old age pension with in all companies for which the 30 percent, and in one of the wholly shall always include the Group’s re- give a bonus of 75 percent. Should reporting to the Group CEO (Group scheme where the pension basis statement applies. The Board in each owned subsidiaries, two agreements turn on invested capital (ROIC) and the Group achieve an additional 10 management). The statement corre- exceeds 12G (a Swedish pension company shall be familiar with the to- fall outside the main rule: one with a at least one HSE target. The corpo- percent reduction, this will give a spondingly applies to the CEO and scheme). tal compensation for each executive. maximum potential of four months’ rate goals for members of group man- bonus of 100 percent. executives reporting to the CEOs Posten Norge AS’ salary increase salary and one with a maximum bo- agement shall constitute between When the goal is qualitative, a in Posten Norge AS’ wholly owned in 2020 was in line with the leading 2. Elements of executive pay nus potential of six months’ salary. 60 and 100 percent of the bonus description of the requirements for subsidiaries. These groups are called sector limit of 1,7 percent for both Both the two agreements in the potential, and the individual targets achieving 50, 75 or 100 percent bo- “senior employees”. executives and employees. The Basic salary wholly-owned subsidiary are related between 0 and 40 percent. In wholly nus shall be prepared. The statement has two main parts. Group CEO’s salary was adjusted by The main element of executive pay to an ongoing sales process. owned subsidiaries, the corporate Should the Group achieve its finan- Part I deals with the executive re- 1,7 percent in 2020. shall be the fixed salary. The annual goals set for the Group goals shall constitute a minimum of cial goals, it is expected that an ex- muneration policy that has been The Board shall contribute to shall contribute to the highest pos- 30 percent of the bonus potential. ecutive who has performed well will followed in the preceding financial 2. Posten Norge AS’ wholly moderation in the remuneration of sible value for the owner. The Board The financial annual goals at the achieve a variable salary (bonus) of year, ref. the Public Limited Com- owned subsidiaries executives. On the employment wants to set ambitious goals. Should group level approved by the Board between 15 and 20 percent of the ba- panies Act section 6-16 a, first, Three senior employees in wholly­ of new Group Directors, the Com- all goals be reached, this will result are the basis for the Group’s ROIC sic salary. This level is considered to third and fourth paragraphs. Part II owned subsidiaries have agreements pensation Committee is consulted in 75 percent of the maximum bonus goal. Should this goal be reached, it be normal bonus terms in the market. contains guidelines for determining made before 13 February 2015 that before the remuneration is deter- achievement. In order to reach 100 will result in 75 percent of the max- management salaries for the coming deviate from the Norwegian state’s mined, in order to comply with this percent, a predefined “stretch” must imum bonus achievement. In order Other benefits fiscal year, ref. the Public Limited guidelines, as they have retirement principle. be accomplished. A smaller bonus to reach 100 percent, a predefined Senior employees may receive ben- Companies Act former section 6-16 pension where the pension basis ex- To support ongoing reviews of sal- share can be earned if one is close “stretch”, implying a higher result efits in kind customary for compara- a, second paragraph. The guidelines ceeds 12 G. ary levels, market information about to the goal (50 percent, so-called than the goal approved by the Board, ble positions. in Part II apply in full when new In other respects, the remunera- executive compensation shall be ob- “threshold”). Financial goals are set must be accomplished. For Group agreements are made in the coming tion to senior employees in wholly tained every other year from a rec- when the prognoses are approved by Directors without direct profit re- Insurance financial year. owned subsidiaries in 2020 has been ognised international company with the Board and can be both common sponsibility, this goal will constitute Senior employees shall have the in accordance with the Norwegian adequate statistics from Norway, group goals and individual goals for 60 percent. For Group Directors same level of insurance coverage as PART I POLICY EXECUTIVE state’s guidelines. Sweden and Denmark. The informa- each executive. with profit responsibility, the bonus other employees. REMUNERATION IN No senior employees have shares tion shall be received in good time The individual goals shall be set goal shall be divided in two, one part THE PREVIOUS YEAR or options, nor has any long­ before the annual salary assessment. for one year at a time and be de- based on ROiC for the Group and Severance pay term incentive scheme for senior The market information is used both scribed and based on objective, one part based on adjusted operat- Advance agreements can be made 1. Posten Norge AS employees been established in in recruiting new leaders and in the definable and measurable criteria ing result for the director’s own area. for a reasonable amount of sever- The remuneration to senior employ­ wholly-owned subsidiaries. consideration of the annual salary 86 87 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement Income statement

ance pay for senior employees in Severance pay is not applicable 5.Pension benefits NOTE 3 PENSIONS Posten Norge AS, valid if the em- for voluntary resignations or if there Senior employees shall have the The Group has both defined contribution and defined benefit plans. The defined benefit schemes are predictable ployee does not contest the notice. are valid reasons for dismissal, same pension scheme and the same for the employee, as the benefits have been agreed in advance. The premium payments depend on factors such as With the exception of advance or if during the severance period pension terms as other employees in the members’ service time, age and salary level. In the contribution schemes, the payments are determined as a agreements where the company’s irregularities or omissions are the company. Posten Norge AS and percentage of the employee’s salary. The size of the pension assets determines how much pension the employee top executive waives employment discovered that can lead to liability, the Norwegian wholly-owned subsid- is entitled to, and consequently, the employees bear the return risk on what has been paid into the scheme. The protection, the size of the severance or if the individual is prosecuted for iaries shall have defined contribution majority of the Group’s pension schemes are defined as contribution plans. More information is available in section 3 pay shall not be finally determined in breaches of the law. schemes, where the pension basis “Accounting estimates” and 8 “Pensions” in the Group’s accounting principles. the advance agreements. shall not exceed 12G. For foreign Severance pay and salary in the 3. Options, share programmes wholly-owned subsidiaries, the indi- period of notice shall not exceed Senior employees shall not receive vidual national rules and practices 2020 2019 12 months’ salary. On employment compensation in the form of share shall be followed. Pension costs: in a new position or income from options or shares in the parent The employer’s payments to the a business where the person in company or subsidiaries, or a cash contribution scheme shall be made Present value of the pensions earned for the year 118 126 question is the active owner, bonus linked to an assessed growth only in the period of employment, Net interest expense on net liability 22 30 severance pay should be reduced by in the value of the share. so that no costs are incurred after a Plan changes recognised in income statement 3 a proportionate amount calculated senior employee has resigned from on the basis of the new annual 4.Board remuneration his/her position in the company. Gross pension costs incl. social security tax (benefit based) 140 159 income. The reduction can take Senior employees shall not receive Employee contributions (1) effect only when the normal period special compensation for board po- Interest element reclassified to finance items (20) (27) of notice for the position has ended. sitions in other group companies. Net pension costs incl. social security tax (benefit based) 119 131

Defined contribution pension schemes 505 544 Employee contributions (104) (109) Total pension expenses included in the operating profit for the year 521 566 Net pension liabilities: Estimated accrued secured liabilities (640) (564) Estimated value of the pension assets 271 264

Net estimated secured pension liabilities (370) (300) Estimated accrued unsecured pension liabilities (605) (600) Classified as Held for sale 264 Net pension liabilities in balance sheet (712) (900)

Pension liabilities recognised as provisions for liabilities 712 900 Changes in liabilities:

Net liabilities at 1.1. (900) (882) Gross pension expenses (140) (159)

Premium payments and benefits paid 166 166 Contributions from scheme members 1 Changes in pension estimates recognised in other comprehensive income (78) (32) Translation differences (24) 6 Classified as Held for sale 264 Net pension liabilities at 31.12. (712) (900)

88 89 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement Income statement

Defined contribution schemes in the private sector). The new AFP Assumptions 2020 2019 The Group has defined contribution scheme is a multiple company plan For 2020, changes have been made Main categories of pension assets at fair value schemes for most of the employees considered a defined benefit plan. to the financial assumptions, mainly Equity instruments (shares, bonds) 181 171 in Norway, Sweden and Denmark, For the time being, however, there is in accordance with recommenda- and the premiums are expensed inadequate information available to tions from the Norwegian Account- Debt instruments 65 66 when paid to the pension supplier. measure the pension obligation in a ing Standards Board (NRS). Posten Property 18 16 The Norwegian subsidiaries gener- reliable manner, and the scheme is Norge uses covered bonds (OMF) as Other assets 7 11 ally have somewhat lower contribu- therefore accounted for as a contri- its basis for the discount rate. Pos- tion rates and lower pension bases bution plan. ten has decided that covered bonds Total pension assets 271 264 than the parent company (cf. note 2 (OMF) in 2020 qualify as corporate Pension estimate gain at 01.01. 513 545 for Posten Norge AS). Defined benefit schemes bonds with adequate credit worthi- Changes in pension plan, pension liabilities Some companies in the Group’s The Group has pension schemes de­ ness and market depth to be the ba- Swedish operations had defined fined as benefit pension plans. Some sis for the discount rate under IAS 19. Changes in discount rate, pension liabilities (78) (80) benefit schemes, which, pursuant to of these schemes are nevertheless The subsidiaries have princi- Changes in other financial assumptions, pension liabilities (1) 30 IAS 19, do not qualify for recognition presented as contribution plans and pally applied the same long-term Changes in demographic assumptions, pension liabilities 15 in the balance sheet. In accordance expensed on a current basis. The economic assumptions for benefit with Swedish rules, the pension lia- majority of the Group’s defined ben- schemes as the parent company, but Changes in other factors, pension liabilities (5) (7) bility is covered by capital insurance efits schemes relate to the fact that they are adjusted for country-specif- Changes in financial assumptions, pension assets 8 8 and accounted for as a contribution Posten Norge AS withdrew from the ic macro-economic circumstances Changes in demographic assumptions, pension assets (4) 2 scheme in the consolidated financial Norwegian Public Service Pension (ref. note 2 for Posten Norge AS). statements. Fund on 1 January 2006, giving those Changes in other factors, pension assets 1 2 The defined contribution pension employed at the transition date the Sensitivity (Loss)/gain for the year in total comprehensive income (78) (32) plans in Sweden and Denmark had right to various compensation and The table below shows estimated Pension estimate gain at 31.12. 434 513 variable contribution rates based on guarantee schemes. These schemes effects of changes in some assump- different calculation bases and rate were closed on that date, meaning tions for defined benefit pension Defined contribution pension schemes ranges. that the obligations will be phased schemes. The estimates are based Number of members 15 419 16 651 out over time (ref. note 2 for Posten on facts and circumstances at 31 Share of salary 1-45% 1-54% AFP (early retirement) scheme Norge AS). December 2020 with the assump- On 1 January 2011, the parent com- Pension funds in the Group basi- tion that all other premises are Defined benefit pension schemes pany and most of the Norwegian cally relate to benefit schemes for unchanged. The actual figures can Actuarial assumptions subsidiaries transferred to a new AFP subsidiaries of Bring Cargo in Great deviate from these estimates. Discount rate 1,1-1,7% 1,45-2,3% scheme (the joint scheme for AFP Britain. Expected salary regulation 2-2,5% 2-2,5%

Expected G regulation 2-2,5% 2-2,5% Discount rate Pension regulation Voluntary retirement

Expected pension regulation 1,2-2% 0,7-2% Change (percentage points) 1 % -1 % 1 % -1 % 1 % -1 %

Expected yield 1,4-2,7% 1,8-2,3% Change in gross pension liabilities (reduction)/increase (146) 174 19 (9) (11) 11 Expected voluntary retirement (below 50 years) 4-5% 4-5% Percentage change -16 % 19 % 2 % -1 % -1 % 1 % Expected voluntary retirement (over 50 years) 1,5-5% 1,5-5% Expected use of AFP 40-60% 40-60% Demographic assumptions on mortality rate K2013 K2013

90 91 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement Income statement

NOTE 4 OTHER OPERATING EXPENSES NOTE 5 OTHER INCOME AND EXPENSES Other operating expenses are costs not directly related to the sale of goods and services, salaries and personnel Other income and expenses comprise significant income and costs of limited predictive value and include costs or depreciation/write-downs. restructuring costs and gains and losses on sales of fixed assets (details in sections 3 “Accounting estimates” and 14 “Provisions for liabilities” in the Group’s accounting principles). 2020 2019

IT services 732 706 2020 2019 Other external services 549 525 Restructuring expenses 76 (480) Cost of premises 481 483 Gains on sale of fixed assets and subsidiaries 54 80 Other rental expenses 81 93 Other expenses (11) (79) Tools, fixtures, operating materials 130 114 Total other income/(expenses) 119 (479) Repair and maintenance of equipment 121 116 Insurance, guarantee and compensation expenses 128 127 Restructuring expenses addition to reorganisations of staff Other income and expenses Marketing 84 107 In 2020, a provision of MNOK 106 and support functions in connection Other income and expenses in 2020 from 2019 related to reduced dis- with the new group structure. mainly comprised costs in connec- Travel expenses 89 157 tribution frequency was reversed (a Total provisions for restructuring tion with the sales process for the Accounting and payroll services 42 45 cost reduction) due to new service are shown in note 11. subsidiary Bring Frigo AB in the Logis- Other expenses 211 192 products and several more voluntary tics segment. Note 23 has more infor- solutions than originally estimated. Gains on sale of fixed mation on companies held for sale. Operating expenses 2 650 2 666 A provision for restructuring costs assets and subsidiaries In 2019, other income and expens- of MNOK 30 was made in 2020 relat- Gain on sale of fixed assets in 2020 es primarily constituted provisions The increase in costs related to IT services and other external services is due to somewhat higher project activities. ed to the closing down of post offic- mainly concerned the sale of the for losses due to structural changes The reduced travel expenses are a result of an extended use of home office and web-based meetings. es to be replaced by Post-in-shop. In subsidiary Bring Freight Forwarding in the thermo business in the Logis- Other expenses included telephone and postage, freight, office and IT stationery, publications, membership dues, 2019, restructuring costs concerned AB in the Logistics segment (note tics segment. losses on receivables and other operating expenses. provisions for reduced distribution 23) and in 2019 primarily the sale of frequency and restructuring of route property in the Logistics segment. preparation in the Mail segment, in

92 93 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement Income statement

NOTE 6 FINANCIAL INCOME AND FINANCIAL EXPENSES NOTE 7 TAXES The note gives an overview of the Group’s financial income and expenses, including income and costs related to the The note details the authorities’ taxation of the profit in the Group companies. The tax expense is calculated on Group’s financing, interest costs on lease obligations, translation currency effects from receivables and debt in for- the basis of the accounting result and is split into the period’s tax payable and change in deferred tax/deferred eign currencies, in addition to gains and losses from financial derivatives (ref. also section 16 “Financial instruments” tax assets. Deferred tax liabilities/assets arise when the accounting and taxable accruals differ (ref. also section 3 in the Group’s accounting principles). “Accounting estimates” and section 9 “Taxes” in the Group’s accounting principles).

2020 2019 2020 2019

Interest income 15 18 Income tax Currency gains 257 252 Tax payable 205 119 Gain on derivatives 6 22 Change in deferred tax/(deferred tax assets) 16 (110) Gain on loans at fair value through profit and loss1) 90 Tax expense 221 8 Other financial income 86 105 Tax payable for the year 210 142 Financial income 455 398 Adjustments of payments in previous years (5) (22) Interest expenses 78 109 Tax payable 205 119 Interest expenses on lease obligations 132 145 Effective tax rate in % 17% 37% Currency losses 260 255 Reconciliation of the effective tax rate with the Norwegian tax rate: Loss on derivatives 104 1 Profit before tax 1 344 21

1) Loss on loans at fair value through profit and loss 6 22% tax 296 5 Other financial expenses 21 23 Write-down of goodwill 23 Financial expenses 595 539 Non-deductible expenses 67 41 Net financial expense (141) (142) Non-taxable income (33) (9) 1) Change in value on loans in Japanese yen where the “fair value option” has been applied, corresponding to value changes in combined interest rate and currency swaps recognised as “Loss on derivatives” in 2020 or “Gain on derivatives” in 2019. Note 20 has more information. Profit share in associated companies after tax (24) (3) Effect from tax rates in other countries (2) Interest income in 2020 comprised exchange rate between Norwegian interest costs on pension liabilities Effect of change in tax rate recognised in income statement (1) interest on bank deposits, and other and Swedish kroner, between Norwe- amounting to MNOK 20 for the Group. Adjustment previous years (5) (28) financial income return on market-­ gian kroner and euros and between Details on interest expenses on lease based investments and bond funds. Norwegian kroner and yen. Details obligations are given in note 17. Change in deferred tax assets not recognised in balance sheet (77) (22) Net currency gains, gain on deriva- on derivatives are given in note 20. Note 13 has information on the Tax expense 221 8 tives and net loss on derivatives are Interest expenses were mostly in- Group’s financial risk and capital mainly a result of gains and losses terest costs on long-term financing. management. caused by the development in the In 2020, interest expenses included 2020 2019 Changes in pension estimates (17) (7) Result of hedging of foreign entities (13) 6 Cash flow hedging (2) 1 Change in deferred tax recognised in other comprehensive income for the year (32) (1)

The effective tax rate was 17 percent, a reduction from last year’s 37 percent. The reason for the change is an increase in non-taxable gains on sales of subsidiaries and shares in associated companies. In addition, the Group has recognised a significantly larger part of deferred tax assets not previously recorded in the balance sheet, related to losses carried forward now expected to be utilised against group contributions to be received in 2021.

94 95 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Income statement Income statement

There has been no change in the ordi- ward were significantly reduced due concerning recognition in the bal- Changes in deferred tax assets nary tax rate for companies domiciled to good results in 2020. The effect ance sheet. Deferred tax assets not Recognised Effect from Additions, Classified in Norway, but some minor changes of this was counterbalanced by the re cognised mainly comprised tax in income different Recognised purchased Translation as Held 01.01.2020 statement tax rates in OCI subsidiaries Other1) differences for sale 31.12.2020 in other countries. The tax rate of 22 increase in deferred tax assets in losses carried forward in Sweden Tangible fixed assets 36 (19) 9 (1) 14 39 percent is the basis in the calculation Sweden previously not carried in the and Denmark. Losses carried forward of the value of deferred tax assets for balance sheet, related to tax losses included in the basis for deferred tax Gains and losses account (48) (19) (67) the Group’s Norwegian companies. carried forward which are expected assets carried in the balance sheet Receivables 7 1 8 Deferred tax assets were reduced to be utilised against group contri- were recognised on the basis of ex- Currency 3 (1) 2 by MNOK 29 of which MNOK 30 are butions in 2021. pected future profits and opportuni- deferred tax assets transferred to An assessment was made of com- ties for group contribution. There is Pensions (173) 7 (17) (3) 31 (155) held for sale. Tax losses carried for- panies with deferred tax assets no time limit related to the losses. Contribution fund 8 10 18 Provisions (62) 46 (4) 4 (15) Financial instruments (1) 13 (15) (3) Lease agreements (75) (8) (1) (84) Other 5 11 1 (4) 14 Tax losses carried forward (399) 52 3 (27) (36) 93 (263) Total deferred tax assets (701) 88 3 (32) 9 36 (43) 136 (507) Total deferred tax assets not 390 (76) (1) (25) 38 (107) 224 recognised in balance sheet Total deferred tax assets (311) 13 3 (32) 9 11 (5) 30 (282) in balance sheet

1) The changes to Tax losses carried forward and Total deferred tax assets not recognised in balance sheet are related to companies that have been sold by the Group

Recognised Effect from Additions, Classified in income different Recognised purchased Translation as Held 01.01.2019 statement tax rates 1) in OCI subsidiaries Other2) differences for sale 31.12.2019 Tangible fixed assets 34 3 36 Gains and losses account (33) (15) (48) Receivables (1) (21) 29 7 Currency 3 3 Pensions (169) 3 (7) (173) Contribution fund 8 8 Provisions (57) (79) 73 1 (62) Financial instruments (9) 1 7 (1) Lease agreements 11 17 (103) (75) Other 3 (2) Tax losses carried forward (397) (24) 1 12 9 (399) Total deferred tax assets (610) (112) 1 (1) 10 11 (701) Total deferred tax assets not 396 2 (1) 3 (10) 390 recognised in balance sheet Total deferred tax assets (214) (110) (1) 13 1 (311) in balance sheet

1) The column includes the effect of change in tax rate recognised in the income statement and in other comprehensive income of MNOK – 1 and MNOK 2, respectively. 2)The effects of the change to IFRS 16 in 2019 were shown on one line. In 2020 these have been allocated to receivables, provisions and lease agreements. These amounts have been adjusted in column ’Other’ in 2019 to get the correct opening balances in 2020

96 97 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Non-financial assets and liabilities Non-financial assets and liabilities

NOTE 8 INTANGIBLE ASSETS IT systems For intangible assets with definite Write-downs of IT systems Total intangible assets related to useful economic lives, the amortisa- and projects in progress Intangible assets are non-physical assets and mainly concern capitalised IT development, including specially IT development recognised in the tion period for the Group was 3-10 In 2020, IT systems and projects adapted software, and goodwill in connection with acquisitions of businesses. Intangible assets and goodwill are balance sheet at 31 December years in 2020 (the same as in 2019) in progress were written down by a subject to significant estimation uncertainty (ref. section 3 “Accounting estimates” and section 10 “Intangible 2020 constituted MNOK 309, of depending on the useful economic total of MNOK 131, of which MNOK assets” in the Group’s accounting principles). which MNOK 292 concerned Posten life of each individual component 110 concerned projects in progress, Norge AS. Approximately MNOK 120 based on an individual assessment. mainly related to the development Projects in IT systems Goodwill Total constituted group-shared ERP and of a new transport control system progress HR systems, EPM system and data Projects in progress in the Logistics segment. In 2019, Carrying amount 01.01.2020 399 248 1 250 1 897 warehouse solutions. Digital web Projects in progress at 31 Decem- corresponding write-downs of IT Additions 32 112 144 solutions for customers and a group- ber 2020 amounted to MNOK 230, systems and projects in progress shared CRM system had a recorded of which approximately MNOK 100 amounted to MNOK 28. Additions in-house developed intangible assets 20 20 value of MNOK 38. In addition, a concerned projects for developing Amortisation for the year (115) (115) solution for secure digital mail, a new transport control system. In Goodwill Write-downs for the year (21) (110) (131) solutions related to address and addition, development related to Goodwill is allocated to cash-gener- Adjustments to cost price/scrapping 1 1 route registers, production support reporting and production support ating units. Goodwill in the Group is systems and several projects on web systems and the management of the summarised below. Translation differences 2 34 36 solutions were carried in the balance Group’s infrastructure were carried Transfers from projects in progress 40 (40) sheet. in the balance sheet.

Transfers to Held for sale (30) (1) (30) Carrying amount 31.12.2020 309 230 1 284 1 823 Acquisition cost 01.01.2020 2 396 269 3 030 5 688 Opening Closing balance Group Translation balance Accumulated amortisation and write-downs 01.01.2020 (1 997) (21) (1 779) (3 792) 01.01.20 Additions transfers Write-downs differences 31.12.20 Posten Norge AS Acquisition cost 31.12.2020 2 454 346 3 084 5 884 522 522 - division E-commerce and logistics Accumulated amortisation and write-downs 31.12.2020 (2 144) (116) (1 800) (4 061) Bring Cargo 180 1 181 Carrying amount 31.12.2020 309 230 1 284 1 823 Bring Cargo International Sverige 207 22 229 Depreciation method Straight-line Bring Intermodal (form. Bring Linehaul) 10 10 Useful life 3 - 10 years Bring E-commerce & Logistics 101 6 106 Bring Courier & Express 131 1 133 Projects in IT systems Goodwill Total progress Netlife Gruppen 1) 75 75 Carrying amount 01.01.2019 335 353 1 361 2 049 Total Logistics segment 1 225 31 1 256 Additions 93 16 109 Bring Mail Nordic 25 3 28 Additions in-house developed intangible assets 18 18 Total Mail segment 25 3 28 Amortisation for the year (139) (139) Posten Norge Group 1 250 34 1 284

Write-downs for the year (13) (15) (102) (130) 1) From 2020, Netlife Gruppen reports as part of the Logistics segment Adjustments to cost price/scrapping (1) (1) Translation differences (1) (9) (10) Transfers from projects in progress 125 (125) Carrying amount 31.12.2019 399 248 1 250 1 897 Acquisition cost 01.01.2019 2 381 359 3 108 5 849 Accumulated amortisation and write-downs 01.01.2019 (2 046) (6) (1 748) (3 800) Acquisition cost 31.12.2019 2 396 269 3 030 5 688 Accumulated amortisation and write-downs 31.12.2019 (1 997) (21) (1 779) (3 792) Carrying amount 31.12.2019 399 248 1 250 1 897 Depreciation method Straight-line Useful life 3 - 10 years

98 99 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Non-financial assets and liabilities Non-financial assets and liabilities

Opening Closing for significant changes in factors that affect the requirement. The Group mainly operates in the Norwegian and Swedish balance Group Translation balance markets with cash flows in Norwegian and Swedish kroner. The required rate of return per segment is stated in the table 01.01.19 Additions transfers Write-downs differences 31.12.19 below. Posten Norge AS - division E-commerce 522 522 and logistics Bring Cargo 180 180 Overview of goodwill and key assumptions per segment: Bring Cargo International Sverige 213 (6) 207 Discount rate before tax (WACC) Bring Intermodal (form. Bring Linehaul) 10 10 Segment Goodwill 2020 2019 Bring Express Norge 135 (135) Logistics 1) 1 256 8% (9,0%) 8,4% (8,8%) Bring Express Sverige 56 (56) Mail 28 8,4 % 8,8 % Bring Express Danmark 42 (42) Total Group 1 284

Bring E-commerce & Logistics 102 (1) 101 1) The numbers in brackets relate to key assumptions for Netlife Gruppen, which operates in a different market from other logistics operations Bring Courier & Express 131 (1) 131 generating units in the Group. As- halving this would have implied an Bring Frigo Sverige 42 (42) (1) Results of the impairment tests in 2020 sumptions analysed were growth, increased requirement for a write­ Total Logistics segment 1 200 (42) (8) 1 150 Based on the criteria described the required rate of return and the down of approximately MNOK 10. Netlife Gruppen 135 (60) 75 above, no requirement for write- operating profit (EBIT) margin. For other cash generating units, no downs of goodwill items was uncov- When changing the growth as- additional need for write-downs was Bring Mail Nordic 26 (1) 25 ered as at 31 December 2020. In 2019, sumptions (reduced from 1,5 to 0 identified. Total Mail segment 161 (60) (1) 100 a total of MNOK 102 related to good- percent), required rate of return Posten Norge Group 1 361 (102) (9) 1 250 will was written down, of which MNOK (increased by 0,5 and 1 percent) and 42 related to Bring Frigo Sweden and forecasted EBIT (reduced by 10 to MNOK 60 related to Netlife Gruppen. 50 percent), the analyses showed a Additions to goodwill by management based on the most and inflation. write-down requirement for the cash There were no additions in 2020 (nor recent available general economic Sensitivity analyses generating unit Netlife Gruppen. The in 2019). indicators and market expectations, Other assumptions (growth Sensitivity analyses were performed test for Netlife Gruppen was sensi- Details on acquisitions and sales considered against strategic goals, and required rate of return). on key assumptions for the cash tive for changes in forecast EBIT, and of companies, together with other historical and other factors. The extrapolation period contains a changes in the Group’s structure, are In the Logistics segment, profit calculation of cash flows after the given in note 23. margins are characterised by strong forecast period, using a constant competition and price pressure. growth rate. Growth rates do not Impairment of goodwill Several efforts are under way to exceed the long-term average rate in Goodwill is subject to annual im- increase cost-effectiveness in the the areas where the Group operates. pairment tests. If there are any in- segment. Hence, the Group’s fore- For the Logistics segment, the long- dications of impairment during the casts for the Logistics segment term growth rate applied in impair- year, goodwill is tested when these include profitability improvements. ment tests in 2020 was 1,5 percent indications occur. The Group uses Significant cost elements are exter- (2 percent in 2019). the value in use as the recoverable nal service costs that are affected The present value of future cash amount for goodwill. Information on by price negotiations and inflation. flows is calculated using a weighted impairment tests carried out in 2020 The Group is sensitive to fluctua- required rate of return of total capi- is also given in note 26 Impact of the tions in market trends in Norway and tal for each segment before tax. The Corona pandemic. the Nordic countries, especially re- required rate of return for equity is lated to the Logistics segment. This calculated by using the capital asset Forecasts (operating results) is reflected in the growth rates of pricing model (CAPM). The required Future cash flows are calculated on the Group entities. rate of return for debt is estimated the basis of estimated results over The Mail segment is characterised on the basis of long-term risk-free a period of three years, adjusted by declining letter volume and some interest with the addition of a credit for depreciation, investments and increased price pressure. Significant margin derived from the Group’s mar- changes in working capital. Fore- cost elements are salaries and ex- ginal long-term interest rate on loans. casts and long-term plans for group ternal service and operating expens- The Group’s required rate of return entities are prepared and approved es affected by price negotiations per segment is assessed each year 100 101 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Non-financial assets and liabilities Non-financial assets and liabilities

NOTE 9 TANGIBLE FIXED ASSETS Plant under Vehicles, constr., Plant under Tangible fixed assets comprise various types of property and operating equipment needed for the type of business furniture, Buildings and machinery and constr., conducted by the Group. The largest values are represented by mail and logistics terminals (ref. section 11 “Tangible Machinery equipment property installations buildings Total fixed assets” in the Group’s accounting principles). Carrying amount 01.01.2019 534 949 4 022 117 191 5 812 Effects of change of principle (IFRS 16) (12) (10) (1) (23) Plant under Vehicles, constr., Plant under Additions 16 267 57 92 86 519 furniture, Buildings and machinery and constr., Disposals (3) (74) (67) (144) Machinery equipment property installations buildings Total Carrying amount 01.01.2020 587 898 4 025 31 71 5 611 Depreciation for the year (82) (246) (174) (503) Additions 10 280 8 150 88 536 Write-downs for the year (10) (10) Adjustment to cost price/scrapping 1 (27) (3) (29) Disposals (148) (1) (1) (150) Translation differences (1) (5) (4) (1) (12) Additions on purchase of companies 52 52 (note 23) Transfers from assets under construction 122 55 206 (176) (206) 1 Disposals on sale of companies (note 23) (3) (4) (7) Carrying amount 31.12.2019 587 898 4 025 31 71 5 611 Depreciation for the year (68) (260) (179) (507) Acquisition cost 01.01.2019 1 399 2 624 5 484 117 191 9 815 Accumulated depreciation and write-downs Write-downs for the year (12) (11) (2) (26) (865) (1 675) (1 462) (4 002) 01.01.2019 Adjustment to cost price/scrapping (11) 3 (1) (8) Acquisition cost 31.12.2019 1 415 2 543 5 689 31 71 9 750 Translation differences 3 30 11 1 45 Accumulated depreciation and write-downs (828) (1 646) (1 665) (4 139) 31.12.2019 Transfers from assets under construction 62 54 38 (117) (38) Carrying amount 31.12.2019 587 898 4 025 31 71 5 611 Transfers to Held for sale (40) (76) (4) (19) (138) Depreciation method Linear Linear Linear Carrying amount 31.12.2020 542 754 3 947 45 121 5 409 Useful life 3 - 20 years 3 - 15 years 3 - 50 years Acquisition cost 01.01.2020 1 415 2 543 5 689 31 71 9 750 Accumulated depreciation and write-downs (828) (1 646) (1 665) (4 139) 01.01.2020 Additions of tangible used to build a new terminal for par- was MNOK 35. Acquisition cost 31.12.2020 1 359 2 124 5 772 45 121 9 421 fixed assets cels. The plant is under regulation Accumulated depreciation and write-downs A significant part of the investments and the building will be finalised in Disposals of tangible (816) (1 370) (1 825) (4 012) 31.12.2020 in the last two years comprised new 2024. The cost framework of the fixed assets Carrying amount 31.12.2020 542 754 3 947 45 121 5 409 buildings and production equipment building is approximately MNOK 600. This year’s disposals of tangible in connection with the establishment In December 2017, the Group pur- fixed assets (including the sale of Depreciation method Linear Linear Linear of a new nationwide logistics net- chased a site in Tromsø in Breivika. companies) totalled MNOK 156, and Useful life 3 - 20 years 3 - 15 years 3 - 50 years work and a new joint terminal struc- The site will be used to build a new mainly concerned disposals of trans- ture. A new terminal structure of in production building for parcels and port vehicles. total 19 terminals was determined to freight and will be finalised in the Further information on acquisi- support interaction and establish an summer of 2021. The planned cost of tions/sales of businesses is provided integrated value chain between par- the building is approximately MNOK in note 23. cels and freight, with the objective 300. As at 31 December 2020, the of reducing the total cost level and plant had a balance sheet value of Other matters securing the necessary competitive MNOK 107. power. 16 of the terminals have start- In the first quarter of 2020, two Interest on building loans ed operations, and the 3 remaining companies with two sites in Kris- Tangible fixed assets in the Group will be ready during 2021/24. The tiansand were purchased, where a included capitalised building loan largest projects in 2020 concerned new terminal is to be built. The plant interest amounting to MNOK 87 at building new logistics centres in is under construction and will be fi- 31 December 2020 (MNOK 97 at 31 Kristiansand and Tromsø. nalised in the fourth quarter of 2021. December 2019), and mainly related In February 2017, the Group ac- The building has a cost framework of to the terminal at Robsrud (Østland- quired a site at Kokstad near Flesland MNOK 280, and the carrying amount sterminalen) and the logistics centre airport in Bergen. The site will be of the plant as at 31 December 2020 at Alnabru in Oslo. There were no 102 103 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Non-financial assets and liabilities Non-financial assets and liabilities

additions to building loan interest in the balance sheet in 2020. Final settlement on the sale of Dansk Fragtmænd A/S 2020 Insurance The Group has secured significant parts of the business and property through traditional insurance coverage. For Sales sum including extraordinary dividend 364 vehicles, the Group only has statutory liability coverage. The Group is self-insured for the part concerning collision Book value incl. translation differences 349 damage waiver. Gain on final settlement 15 Translation differences reclassified to income statement 95 NOTE 10 INVESTMENTS IN COMPANIES AND BUSINESSES Total gain 110 The Group has investments in associated companies and other shares. Investments in associated companies are accounted for according to the equity method in the consolidated financial statements (ref. also section 5 “Consol- idation principles” and section 12 “Investments in subsidiaries and associated companies” in the Group’s accounting Condensed financial information for associated companies (100 percent basis) principles). Profit for Company Assets Liabilities Equity Turnover the year Investments in associated companies Norbjørn AS 39 4 35 23 4 Additions/ Share of Book Ownership Book value disposals 2020 profit/(loss) Change in value Materiallageret AS 30 4 26 10 4 Entity Country/city share 01.01.20 incl. transl.diff. 20201) transl. diff. 31.12.20 Danske Fragtmænd A/S Denmark 313 (349) 36 Shares and other investments Materiallageret AS Longyearbyen 34% 10 1 11 As at 31 December 2020, the Group had investments in other shares of MNOK 43, classified as other financial non-current assets. Norbjørn AS Tromsø 34% 16 1 17 Associated companies 339 (349) 2 36 28 NOTE 11 PROVISIONS FOR LIABILITIES 1) Result from associated company in 2020 in the income statement includes gain on sold shares. The Group’s provisions comprise provisions related to restructuring, pensions and other types of provisions (ref. also section 3 “Accounting estimates”, section 14 “Provisions for liabilities” and section 15 “Contingent liabilities and Additions/ Share of Book assets” in the Group’s accounting principles). Ownership Book value disposals 2019 profit/(loss) Change in value Entity Country/city share 01.01.19 incl. transl.diff. 2019 transl. diff. 31.12.19 Restructuring Pension Other Total Danske Fragtmænd A/S Denmark 26% 393 (86) 11 (4) 313 Balance 01.01.2019 109 882 371 1 362 Materiallageret AS Longyearbyen 34% 9 1 10 Effects of change of principle (IFRS 16) (53) (281) (334) Norbjørn AS Tromsø 34% 16 16 Provisions made during the year 489 489 Other 2 5 (7) Reversals of previous year’s provisions (9) (1) (10) Associated companies 404 (65) 5 (4) 339 Translation differences (1) (6) 1 (6) Danske Fragtmænd A/S Provisions utilised during the year (102) (47) (149) Danske Fragtmænd AS is the largest logistics company for domestic transport of goods in Denmark. Posten Norge Change in pension liabilities during the year 24 24 AS’ ownership in Danske Fragtmænd A/S was acquired in July 2013. Posten Norge AS had a buy-back agreement of Balance 31.12.2019 432 900 43 1 375 the shares in Danske Fragtmænd A/S over a period of 5 years, with the addition of interest. In 2020, Posten’s remain- ing shares in the company were sold back for MNOK 364, and the Group no longer has any shares in the company. Provisions made during the year 30 7 36 Reversals of previous year’s provisions (106) (106) Posten Norge AS’ ownership share in Danske Fragtmænd A/S was recognised in the Group’s balance sheet at the Interest effect from discounting (2) (2) following values: Translation differences 2 24 25 Disposals incl. Translation Year Book value 01.01 transl. diff Profit share differences Book value 31.12 Provisions utilised during the year (163) (31) (194) 2020 313 (349) 36 Change in pension liabilities during the year 51 51 2019 393 (86) 11 (4) 313 Liabilities classified as Held for sale (264) (264) Balance 31.12.2020 192 712 19 923 At the end of 2019, recognised translation differences amounted to MNOK 59. Until the sales date, additional translation differences of MNOK 36 were recognised. In total in 2020. MNOK 95 was reclassified from other Current part of provisions 119 8 127 comprehensive income at the sale of shares in the company. The final settlement of the sale gave a gain of Non-current part of provisions 73 712 10 797 MNOK 15. Total gain in the income statement was MNOK 110. 104 105 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Non-financial assets and liabilities Financial assets and liabilities

Restructuring NOTE 12 OVERVIEW OF FINANCIAL ASSETS AND LIABILITIES MNOK 27 of this year’s provision of MNOK 30 concerned personnel related measures and MNOK 3 other measures. In The note gives an overview of the classification of the Group’s financial assets and liabilities and their carrying 2020, because of new service products and more voluntary solutions than initially estimated, a reversal of MNOK 106 amounts ref. section 16 “Financial instruments” in the Group’s accounting principles. was made of a provision related to reduced distribution frequency. The utilised provision during the year included payments related to distribution frequency of approximately MNOK 65, route preparation of appr. MNOK 60 and reorganisation of staff and support functions of appr. MNOK 20. The remainder was payments of gift pensions, At fair value At amortised cost severance pay and other reorganisation provisions. Fair value Derivatives at Valuation over income fair value over Derivatives Other hierarchy statement income at fair value financial The liabilities as at 31 December are specified below: 2020 Note level (FVO) statement over OCI Receivables liabilities 31.12.2020

2020 2019 Assets Interest-bearing Personnel related measures 188 426 14 57 57 non-current receivables Other measures 4 6 Other financial 20 2 126 7 57 189 Total restructuring 192 432 non-current assets Interest-free current 15,20 2 2 3 064 3 067 receivables The disbursements in the Group are expected to be MNOK 119 in 2021 and MNOK 73 in later years. Note 5 has more Interest-bearing current 14 125 125 information. receivables Liquid assets 16 4 633 4 633 Pension Pensions are described in note 3. Financial assets 8 065 Liabilities Disputes Non-current lease 17 2 515 2 515 No disputes with significant risk exposure for the Group have been noted in 2020. obligations Interest-bearing 18 2 424 683 1 108 non-current liabilities Interest-free 19,20 2 11 2 16 non-current liabilities Current lease obligations 17 625 625 Interest-bearing current 18 1 411 1 411 liabilities Interest-free current liabilities, 7,19,20 2 3 7 4 620 4 630 incl. tax payable Financial liabilities 10 306 Total value hierarchy level 1 (net) Total value hierarchy (424) 120 (9) (313) level 2 (net) Total value hierarchy level 3 (net)

106 107 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Financial assets and liabilities Financial assets and liabilities

At fair value At amortised cost atives and loans in foreign currency (Japanese yen), where the fair value option (FVO) pursuant to IFRS 9 has been Fair value over Derivatives at applied, was measured on the basis of sources described in level 2. Note 20 has details. Valuation Derivatives Other income fair value over 2019 Note hierarchy at fair value Receivables financial 31.12.2019 statement income level over OCI liabilities (FVO) statement Fair value of financial instruments measured at amortised cost in the balance sheet Information about fair value shall be provided in accordance with the disclosure requirements in IFRS 7, even though Assets the assets or liabilities are not measured at fair value in the balance sheet. Interest-bearing non-cur- 14 56 56 The fair value of receivables and other financial liabilities at 31 December 2020 was approximately the same as book rent receivables value (amortised cost). Other financial non-cur- 20 2 118 4 15 137 rent assets Interest-free current 15,20 2 100 4 3 636 3 740 NOTE 13 FINANCIAL RISK AND CAPITAL MANAGEMENT receivables The note describes the Group’s financial risks, including market risk (currency and interest rate risk), credit risk and Interest-bearing current 14 44 44 liquidity risk. The Group utilises derivatives to reduce market risk. Note 20 provides detailed information about de- receivables rivatives and hedging (ref. also section 16 “Financial instruments” in the Group’s accounting principles). Liquid assets 16 3 912 3 912 Financial assets 7 880 Posten Norge has a centralised fi- Group cannot fulfil its financial Norge are: Liabilities nance function with the principal ob- obligations. • Interest-rate swaps: Exchange of Non-current lease jective to secure the Group’s finan- interest rate terms related to an 17 3 376 3 376 obligations cial flexibility, as well as monitoring 1. Market risk agreed principal for a determined Interest-bearing and managing financial risk. period. In the agreed period, the 18 2 415 1 805 2 220 non-current liabilities Use of financial derivatives parties in the swap exchange fixed Interest-free non-current Risk categories and risk management strategy and floating interest in the same 19,20 2 4 2 6 liabilities Financial derivatives are agreements currency. Current lease obligations 17 793 793 Financial risk comprises used to determine interest terms, • Currency swaps: An agreement 1. Market risk: Arises as a conse- exchange rates and values of equity between two parties to exchange Interest-bearing current 18 2 247 931 1 178 liabilities quence of the Group’s open posi- instruments for specific periods. Fi- one currency with another, with tions in currency and interest rate nancial derivatives in Posten Norge an agreement to exchange these Interest-free current liabilities, 7,19,20 2 5 7 4 740 4 753 instruments. The risk is related to are used to manage market risk arising back again on a future date at an incl. tax payable variations in profit or loss due to from the Group’s ordinary operations. agreed rate. Financial liabilities 12 325 changes in market prices or ex- The following derivatives are used • Combined interest rate and cur- change rates. by the Group for hedging purposes: rency swaps: The parties exchan- Total value hierarchy level 1 (net) 2. Credit risk: Risk of loss caused by Futures: An agreement to pur- ge both currency and interest rate a counterparty/customer who fails chase/sell currency on a future date terms. Total value hierarchy level (663) 213 (3) (454) 2 (net) to fulfil his/her payment obligations at a predetermined rate. Posten to the Group. Credit risk concerns all Norge primarily uses currency fu- Currency risk Total value hierarchy level 3 (net) financial assets with counterparties/ tures to hedge investments in and The currency risk is limited by re- customers, mainly trade accounts loans to subsidiaries in foreign cur- ducing the effects of changes in receivable, interest-bearing secu- rencies, in addition to income and the exchange rate by using forward rities, granted but not yet utilised costs in foreign currency. contracts. Foreign currency balances The tables above are the basis for reflecting varying levels of valuation such a way that the valuation method credit/overdraft facilities, as well as Swaps: Agreement where two in bank accounts are minimised at further information about financial uncertainty, based on the measure- has been changed from amortised counterparty risk from derivatives parties exchange cash flows over an the subsidiary level and are actively assets and liabilities with references ment method’s objectivity: cost to fair value, or vice versa. There and currency contracts. agreed period. The most important managed at Group level in order to to the subsequent notes. In addition Level 1: Use of listed prices in ac- were no transfers between level 1 and 3. Liquidity risk: The risk that the forms of swaps utilised by Posten avoid large positive/negative effects. to showing the classification cate- tive markets. level 2 of fair value measurements in gories pursuant to IFRS 9, the tables Level 2: Use of valuation methods 2020, and no registrations of finan- The Group’s most important exchange rates: Exchange rate 01.01.2020 Average exchange rate 2020 Exchange rate 31.12.2020 also show on which level the Group’s with observable market data as input. cial assets or liabilities in or out of financial instruments at fair value Level 3: Use of valuation methods level 3. Swedish kroner (SEK) 0,944 1,023 1,044 have been assessed. where input is based on a significant Danish kroner (DKK) 1,320 1,439 1,407 degree of non-observable market Fair value of financial Euro (EUR) 9,864 10,726 10,470 Information on fair value data. instruments measured at fair Applied methods for determining fair No financial assets or liabilities value in the balance sheet British pound (GBP) 11,594 12,064 11,646 value are defined in three categories have been reclassified in 2020 in The fair value of the Group’s deriv- US Dollar (USD) 8,780 9,415 8,533

108 109 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Financial assets and liabilities Financial assets and liabilities

As the Norwegian krone (NOK) is the krone. Forward contracts are used to at fixed interest rates ((including the Carrying amount Effect of change +/- 100 basis points Group’s functional and presentation manage this exposure. first year’s instalment on long-term currency, Posten Norge is exposed The Group has net income from debt, but excluding lease obliga- Through income statement Through OCI to currency risks for the Group’s net foreign mail companies for the distri- tions, value adjustments of loans 2) investments in foreign businesses. bution of mail in Norway. This results and other interest-bearing debt). As Net interest-bearing debt (receivable) with floating interest rate (1 612) (16) In order to reduce this currency risk, in income in currency, mainly euros. at 31 December 2020, fixed interest 2) Net interest-bearing debt (receivable) with floating interest rates is calculated as interest-bearing debt with floating interest rates reduced by liquid assets. The accounting effects of changes in market risk are recognised in the income statement or other comprehensive income, depending on where the effect was first recognised. Posten Norge enters into forward At the end of 2020, this exposure agreements totalled MNOK 758 (36 contracts. was not secured. percent) of the Group’s long-term The parent company finances the interest-bearing debt (MNOK 961 in The table above shows the sensitivi- outstanding receivables from March. The facility was renegotiated in 2015 subsidiaries by providing long-term Interest rate risk 2019). In addition, the Group has ty of the Group’s currency and inter- Measures including the use of ana- and runs for 5 years with a mutual financing in the subsidiaries’ func- Interest rate risk is mainly related to entered into two interest rate swaps est rate derivatives. lytical tools and close follow-up re- option to extend for two additional tional currencies. As a consequence, the Group’s debt portfolio. This type with a future start date resulting in The currency sensitivity shows sulted in a reduction of outstanding years. The option for the first year’s the parent company is exposed to of risk is managed at group level. The fixed interest terms for one loan that the effect in the income statement receivables maturing throughout the extension was exercised in 2016 for currency risk if the loans are made in Group’s goal is to have 20-70 per- at 31 December 2020 had floating or other comprehensive income by year. The effects of the Corona pan- the year 2021, and the option for the currencies other than the Norwegian cent of the long-term loan portfolio interest. Note 20 has details. changing the exchange rate at 31 demic are described in note 26. second year’s extension in 2017 for December 2020 by +/- 20 percent. 2022. The overdraft facility amount- Forward currency contracts related Market-based investments ed to MEUR 350 in the agreement’s 2020 Sensitivity analysis market risk to hedging foreign investments are As part of its liquidity management, five first years, reducing to MEUR Purchase Currency Sales Currency recognised in other comprehensive the Group has invested heavily in 280 in 2021 and 2022. Maturity Effect of changes +/- 20% (NOK)1) currency amount currency amount income, whereas value changes in interest funds. As at 31 December Through income Through OCI forward contracts related to loans 2020, the Group had NOK 3,5 billion Maximum risk exposure statement in foreign currencies are recognised invested in various interest funds As the Group did not have financial Hedging of investments NOK 680 SEK 653 2021 137 in the income statement in total, as (NOK 3,4 billion in 2019). According assets outside the balance sheet at in foreign entities this will offset the effect of currency to the Group’s guidelines, interest 31 December 2020, the maximum Hedging of currency NOK 49 SEK 50 2021 10 gain/losses on the loans recognised funds used shall be liquid and have a risk exposure is considered to be loans to subsidiaries in the income statement. rating of BBB- at a minimum. Note 16 represented by the book value of the Hedging of currency loan NOK 37 EUR 4 2021 7 The interest rate sensitivity shows has details. financial assets in the balance sheet. from subsidiaries the effect in the income statement Note 15 specifies the current inter- 1) Foreign exchange rate at 31.12.2020 of changes in the floating interest Bank deposits est-free receivables including trade rate of +/- 1 percentage point for the The Group’s principal bank connec- accounts receivable by age and the Carrying amount Effect of change +/- 100 basis points Group’s net interest-bearing liabili- tion has an AA- rating. provision for losses on receivables. Through income statement Through OCI ties excluding lease obligations. The Group had not guaranteed Derivatives for third-party debt at 31 December Net interest-bearing debt (receivable) with floating interest rate2) (2 913) (29) 2. Credit risk To reduce credit risk, the Group has 2020 (ref. note 22 concerning guar- 2) Net interest-bearing debt (receivable) with floating interest rates is calculated as interest-bearing debt with floating interest rates reduced by liquid assets. The Group has the following guide­ guidelines to enter into derivative antees). The accounting effects of changes in market risk are recognised in the income statement or other comprehensive income, depending on where the effect was first recognised. lines to reduce credit risk: contracts only with counterparties with ratings equal to or better than 3. Liquidity risk 2019 Sensitivity analysis market risk Trade accounts receivable A-. To reduce credit risk further, the Available liquidity and any currency Purchase Currency Sales Currency Maturity Effect of changes +/- 20% (NOK)1) The Group has policies to ensure Group made a CSA (Credit Support exposure are followed up by the currency amount currency amount that credit sales are made only to Annex) agreement for one of the Group’s centralised finance function Through income Through OCI statement customers with satisfactory pay- derivatives related to a loan in Japa- on a daily basis. The Group’s short¬- ment ability, and that outstanding nese yen (note 20 has details). term capital requirement is covered Hedging of investments NOK 617 SEK 653 2020 124 in foreign entities amounts do no exceed established by overdraft and certificate loans. Hedging of currency credit limits. Note 15 has details. As Overdraft facilities The table below shows the matu- NOK 47 SEK 50 2020 9 loans to subsidiaries at 31 December 2020, the Group has The Group has an agreement on rity structure of the Group’s debt Hedging of currency loan no significant credit exposure to one overdraft facilities, which had not exclusive of leasing obligations. The NOK 70 EUR 7 2020 14 from subsidiaries single counterparty. been utilised at 31 December 2020. maturity structure for the Group’s As a consequence of the uncer- The overdraft facility has been leasing obligations is included in 1) Foreign exchange rate at 31.12.2019 tainty related to the Corona pan- agreed with a Nordic bank syndicate, note 17. demic, there has been extra empha- where all the participants have a sis on the follow-up of the Group’s rating equal to or better than A-.

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Maturity structure of the Group’s loans/financial obligations Key figures for capital management 2021 2022 2023 2024 Total 2020 20201) 2019

Debt to credit institutions 1) 411 111 410 111 1 043 Interest-bearing debt 5 660 2 537 7 567

Bond loans 1 000 350 1 350 Interest-bearing liquid assets 4 633 4 633 3 912

Financial derivatives (interest rate swaps) 2) 3 1 3 2 8 Net interest-bearing debt 1 027 (2 097) 3 655

Financial derivatives (currency futures) 2) 6 6 Total equity 7 367 7 440 6 363

Other debt excl. financial derivatives 4 618 4 618 Total capital 19 643 16 216 19 867 Total Group 6 037 462 412 113 7 025 Debt ratio 0,1 (0,3) 0,6 Expected future interest payments 3) 32 16 8 1 58 Equity ratio 37,5 % 45,9 % 32,0 %

Average interest rate 1,52% Operating profit before depreciation (EBITDA) 2 886 1 953 2 361

1) The change in value of the loan in Japanese yen of MNOK 126 is offset in the table by currency swaps, ref. note 20 for further information. Net debt/operating profit before depreciation (EBITDA) 0,4 (1,1) 1,5 2) Includes derivatives recognised as assets. 3) Based on interest rate level at 31.12.2020 1) Excluding effects of IFRS 16. Financial leases included in accordance with IAS 17

Capital management based investments and unutilised long-term intercompany loans or Debt covenants (EBITDA) without IFRS 16 effects. Violating the terms of covenants The Group has centralised the man- overdraft facilities less certificate overdraft facilities and short-term The Group has debt covenants in In addition, Posten Norge has loan can result in a demand to repay all agement of the capital structure loans and shall constitute a mini- credit facilities within the Group’s connection with external financing. agreements with clauses requiring interest-bearing debt or to renegoti- and the overall responsibility for the mum of 15 percent of the Group’s cash pool system. Compliance with the covenants an equity ratio of 20 percent at a ate the loan agreements. Group’s liquidity management. This revenue for the last 12 months. The The Group measures capital uti- is calculated on the basis of the minimum. As at 31 December 2020, There are no clauses regarding an- shall secure an effective use of the Group’s long-term liquidity reserve lisation by using the debt ratio, i.e., Group’s accounting figures without the Group had an equity ratio of 46 nual regulations of the levels of debt Group’s capital, financial safety and at 31 December 2020 was 6,1 billion net interest-bearing debt divided effects from IFRS 16 Leases. percent without IFRS 16 effects. covenants in the loan agreements. flexibility. kroner (6,4 billion kroner in 2019), by equity. Net interest-bearing debt The Group’s overdraft facility of The following covenants also The level of the financial key ratios The Group’s goal is to achieve corresponding to 25,4 per-cent of comprises interest-bearing current MEUR 280 as at 31 December 2020 apply to the majority of the loan in the covenants is followed up and maximum accessibility, flexibility the Group’s revenue. and non-current liabilities less liquid has a clause stating that net inter- agreements: reported to management on a regu- and return on the Group’s liquid The Group has long-term credit assets in the form of cash, bank de- est-bearing debt cannot exceed 3,5 “Change of control”: a minimum of lar basis. assets and at the same time limit facilities constituting a satisfactory posits and short-term investments. times 12 months’ rolling operating 51 percent public ownership The Group has throughout 2020 credit risk. This is achieved by con- financing reserve. In addition, the In addition, net interest-bearing result before depreciation (EBITDA). “Negative pledge”: a prohibition on and at the end of the year complied centrating all available liquidity in Group has diversified its sources of debt divided by operating result be- As at 31 December 2020, the Group mortgage assets with the covenants in the loan agree- the Group’s cash pool, and by having capital and has bonds, private place- fore depreciation (EBITDA) is used had a net interest-bearing receiv- “Cross default”: a default in one ments. a conservative investment profile, ment loans with international lenders to measure whether the operating able, corresponding to 1,1 times agreement means that all agree- with emphasis on liquidity. as well as bilateral agreements with profit is adequate to service the operating result before depreciation ments are deemed in default. In order to secure the Group finan- Nordic finance institutions. Group’s external debt. There were no cial flexibility, targets for the liquid- Subsidiaries are not permitted to changes in the Group’s goals, princi- ity reserve have been defined. The raise external financing but receive ples or processes related to capital liquidity reserve comprises market­ funding from the Group through management during 2020.

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NOTE 14 INTEREST-BEARING NON-CURRENT AND CURRENT RECEIVABLES NOTE 15 INTEREST-FREE CURRENT RECEIVABLES The note gives an overview of the Group’s interest-bearing non-current and current receivables, including sublease The note gives an overview of the Group’s interest-free current receivables, including trade receivables, together receivables (ref. section 16 “Financial instruments” in the Group’s accounting principles). with the ageing of receivables and the provision for losses (ref. section 16 “Financial instruments” and section 17 “Accounts receivable” in the Group’s accounting principles).

2020 2019 2020 2019 Long-term sublease receivables 49 39 Other non-current receivables 8 17 Accounts receivable 2 431 2 838 Interest-bearing non-current receivables 57 56 Accrued income 314 419 Current sublease receivables 6 7 Prepaid expenses 227 238 Other current receivables 119 37 Receivables from employees 3 4 Interest-bearing current receivables 125 44 Short-term derivatives 3 104 Other receivables 90 137 Interest-free current receivables 3 067 3 740 The Group’s other interest-bearing current receivables mainly comprised prepayments toa deposit fund and a pre- Accounts receivable by due date: mium fund in Storebrand for Posten Norge AS. Note 17 Leasing obligations (lease agreements) has information on the Group’s lease agreements. Not due 2 202 2 377 0 - 30 days 208 384 31 - 60 days 29 29 61 - 90 days 9 33 Over 90 days 44 66 Provisions for losses on receivables (61) (50) Total accounts receivable 2 431 2 838 Expected credit losses Balance at 01.01 50 39 Provisions made during the year 29 44 Actual losses recognised against provisions (16) (26) (Over)/underfunded accruals in previous years 2 (6) Classified as Held for sale (4) Balance at 31.12 61 50 Total actual losses on receivables 28 26 Provisions for losses on receivables by: Individual receivables 41 42 General provision 20 8 Total 61 50

The Group’s carrying amount of inter- to similarities in credit risk. credit losses on accounts receivable, est-free current receivables was ap- The Group has guidelines to ensure and measures the provision at an proximately the same as their fair val- that credit sales are made only to amount corresponding to the expect- ue at 31 December 2020. The Group customers with adequate payment ed credit loss during their lifetime. had no significant credit risk relating ability and that outstanding amounts This is derived from a combination of to one individual contracting party, do not exceed established credit lim- individual assessments and a general or to several contracting parties that its. The Group applies the simplified assessment based on due-date anal- could be regarded as one group due method for provisions for expe­cted yses and historical data.

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Other interest-free receivables are services and unbilled but delivered associated with bank services and The following amounts concerning lease agreements were recognised in the balance sheet: due within one year, and their nom- logistics services. Post-in-Shops. inal value is considered to be the Other receivables primarily com- Short-term derivatives are de- 2020 2019 same as fair value. prised receivables connected with scribed in note 20 Derivatives and Property 2 269 3 026 Accrued income mainly includes foreign value added tax, social hedging. Vehicles 584 793 income related to foreign postal security refunds and receivables Machines 1 2 NOTE 16 LIQUID ASSETS Total right-of-use assets 2 854 3 821 Liquid assets comprise cash in hand, bank deposits and short-term investments at low risk (ref. section 18 “Cash and cash equivalents” in the Group’s accounting principles). Additions of right-of-use assets in 2020 amounted to MNOK 591 (MNOK 829 in 2019).

2020 2019 2020 2019 Non-current lease obligations 2 515 3 376 Cash and cash equivalents 1 166 533 Current lease obligations 625 793 Short-term investments 3 468 3 378 Total lease obligations 3 140 4 168 Liquid assets 4 633 3 912

The reduction in total right-of­use assets and lease obligations from 2019 was primarily a consequence of the fact that The improved liquidity is mainly due banks can settle withdrawals and liquid interest funds at low risk. The the subgroup Bring Frigo Sweden was classified as held for sale as at 31 December 2020 (ref. note 23 Changes to group to positive effects from better oper- deposits against each other, and the investments constituted an impor- structure). ating results, in addition to proceeds net position will accordingly repre- tant part of the Group’s liquidity Group’s undiscounted lease obligations by due date: from the sale of operations and sent the balance between the bank reserve. Note 13 also has information shares in Danske Fragtmænd A/S. and the group account holder. about market-based investments Less than 1 year 716 Instalments on debt were also paid. As at 31 December 2020, Posten and interest funds. A corporate cash pool in Nordea had unutilised credit facilities on The Group has a bank guarantee 1-2 years 582 is used in Norway, Sweden, Denmark the cash pool account in Nordea of in Nordea, limited to MNOK 550, to 2-3 years 453 and the UK, where in accordance MNOK 500. cover the employees’ withheld tax. 3-4 years 354 with the agreements, Posten Norge The Group’s short-term invest- AS is the group account holder. The ments consisted of investments in 4-5 years 303 5-10 years 897 NOTE 17 LEASING OBLIGATIONS (LEASE AGREEMENTS) 10-20 years 270 The note shows effects of the Group’s lease agreements on the Group’s financial position and earnings, both as les- More than 20 years 17 see and lessor (ref. also section 19 “Leasing” in the Group’s accounting principles). Total non-discounted lease obligations at 31.12.2020 3 593

1. The Group as lessee The following amounts concerning lease agreements were recognised in the income statement: The Group’s lease agreements primarily concerned the lease of buildings, office premise and vehicles. Most of the right-of-use assets regarded the lease of the Group’s main office in Posthuset, Biskop Gunnerus’ gate 2020 2019 14A, terminals in Norway and Sweden and buildings in the warehouse business. In addition, the Group had almost 7 Depreciation property 481 497 000 lease agreements for vehicles. Depreciation vehicles 360 412 Depreciation machines 1 1 Total depreciation 842 910 Write-downs property 12 31 Total write-downs 12 31 Interest costs on lease obligations 132 145 Costs related to current lease agreements 116 125 Costs related to lease agreements concerning assets of low value, non-current 38 18 Income from operational subleases of right-of-use assets 46 25 Gain/(loss) from sales and lease-back transactions 52

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Total outgoing cash flows related ly varying between 3 and 25 years. terminals at Berger and in Ålesund, The Group did not raise any new of 2,3 percent and mature in the Group had certificate loans to lease agreements in 2020 were Several of the agreements have a in addition to a thermo warehouse in long-term loans in 2020. Repay- period 2021 2024. The Group also totalling MNOK 300. The certificate MNOK 1 146 (MNOK 1 203 in 2019), renewal option that can be exercised Denmark. ments and ordinary instalments on had non-current liabilities at floating loans were classified as current of which MNOK 851 (MNOK 890 in during the agreement’s last period. loans amounted to MNOK 779. interest amounting to MNOK 1 419 interest-bearing liabilities, and the 2019) concerned payment of lease When the agreement is made, the 2. The Group as lessor As at 31 December 2020, the (including the first year’s instalment outstanding balance was reduced by obligations, and the rest was pay- Group considers whether it seems In 2020, the Group had some minor Group had non-current liabilities on long-term debt) with a weighted MNOK 100 from 2019. ments of interest, short-term lease reasonable that the option to renew rental agreements related to office (including the first year’s instalment average interest rate of 1,3 percent Note 13 Financial risk and capital agreements and lease agreements of will be exercised. The Group’s poten- buildings and properties not in use on long-term debt) at fixed interest as 31 December 2020, maturing in management has details on the low value. tial future lease payments connect- by the Group. There were also vari- rates amounting to MNOK 800. They the period 2021-2024. instalment profiles for liabilities. ed with renewal options not included ous agreements relating to vehicles, had a weighted average interest rate As at 31 December 2020, the Options to renew a in the lease obligations amounted primarily short-term contracts. lease agreement to MNOK 1 501 (gross) as at 31 De- None of these agreements is con- Reconciliation of liabilities from financing activities

The Group’s lease agreements of cember 2020. Approximately half of sidered significant for the Group. 2020 2019 property have lease periods normal- this amount concerns the logistics Liabilities at 01.01 3 388 3 882 Cash flows from financing activities (779) (500) NOTE 18 INTEREST-BEARING NON-CURRENT AND CURRENT LIABILITIES Change in fair value (90) 6 Interest-bearing non-current and current liabilities comprise debt to credit institutions, bond loans, certificate loans Liabilities at 31.12. 2 519 3 388 and other interest-bearing debt. Non-current liabilities are split between fixed interest and floating interest. Planned down-payments and the first year’s instalment of interest-bearing non-current liabilities are included in current liabili- ties (ref. also section 16 “Financial instruments” and section 20 “Borrowings” in the Group’s accounting principles). NOTE 19 INTEREST-FREE NON-CURRENT AND CURRENT LIABILITIES The Group’s interest-free liabilities mainly comprised short-term items such as trade accounts payable, other provi- Interest-bearing non-current liabilities sions concerning salaries, public charges and other incurred expense (ref. section 16 “Financial instruments” in the 2020 2019 Group’s accounting principles). Liabilities at fixed interest

Liabilities to credit institutions 307 139 2020 2019

Bond loans 188 438 Non-current derivatives 14 4 Total non-current liabilities at fixed interest 495 577 Other non-current liabilities 2 2 Liabilities at floating interest Interest-free non-current liabilities 16 6 Liabilities to credit institutions 450 721 Provisions for payroll expenses and public charges 1 875 1 860 Bond loans 163 913 Accounts payable 989 1 079 Other non-current liabilities 1 10 Provisions for accrued expenses 801 897 Total non-current liabilities at floating interest 614 1 644 Prepaid revenue 471 387 Interest-bearing non-current liabilities 1 108 2 220 Restructuring 119 197 Current derivatives 11 12 Interest-bearing current liabilities Other current liabilities 153 177 2020 2019 Interest-free current liabilities 4 420 4 610 First year’s instalment on non-current liabilities 1 111 778 Certificate loan 300 400 Provisions for salary expenses and sions for foreign postal businesses, as eign postal businesses and unused Interest-bearing current liabilities 1 411 1 178 public charges mainly comprised well as provisions for transport costs sold stamps. provisions for holiday pay, earned and maintenance and service costs Note 11 has details on provisions but unpaid salaries and public dues. related to the Group’s vehicle fleet. for restructuring costs. The provision for accrued expenses Prepaid income is primarily con- Other current liabilities mainly included provisions for remuneration nected to the advance billing of comprised securities for financial for “Post-in-Shop” services, provi- franking machines, income from for- instruments.

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NOTE 20 DERIVATIVES AND HEDGING fixed interest swap of MNOK 250. of MNOK 27 in 2019). If the hedges changes in the value of the combined Posten Norge also entered into an become ineffective, the change in interest rate and currency swaps. All derivatives are used in the hedging of currency and interest rate risk. The value of the derivatives fluctuates in amortising bilateral loan with float- value is recognised in the income As at 31 December 2020, the val- relation to the underlying prices, and the note shows the fair value of open derivatives at the balance sheet date (ref. ing interest terms and maturity on statement. In 2020, no hedging in- ue of the loan from the Japanese also section 16 “Financial instruments” in the Group’s accounting principles). 16 December 2024. In 2018, approx- effectiveness was recognised in the life insurance company was MNOK imately half of the loan was hedged income statement (none in 2019). 424 (MNOK 415 in 2019), a change 1) 2020 Assets Liabilities Nominal value with two fixed interest swaps with a in value since the borrowing date a) Cash flow hedging future start date in 3 years. Accord- c) Other financial hedges of MNOK 126. This change in value Interest-rate swaps NOK 7 (13) 1 008 ingly, the loan had floating interest (derivatives not included corresponds to the interest and terms for 3 years and fixed terms for in hedging relations currency swap agreements, and the b) Hedging of net investment about half of the loan from Decem- according to IFRS) derivative is recognised as an asset. Forward currency contracts SEK 2 (6) 653 ber 2020. An interest swap for approximately c) Other financial hedges (derivatives not Almost all critical terms (the dates Forward contracts SEK and EUR one third of the loan of 5 billion Jap- included in hedge accounting according to IFRS) for interest determination, calcu- Posten Norge uses forward currency anese yen partly converted the loan Interest-rate swaps NOK (2) 100 lation methods, reference interest contracts in Swedish kroner and eu- to fixed interest. The interest rate rate etc.) related to the derivatives ros for hedging loans in currencies swap has the same maturity date as Forward currency contracts SEK (3) 50 described above are in accordance from the parent company to foreign the loan, but does not qualify for Forward currency contracts EUR 4 with underlying loan agreements. subsidiaries. Rolling forward con- hedge accounting. In the table of Combined interest-rate/currency swaps NOK 126 299 The cash flows of the interest rate tracts totalled MSEK 50 and MEUR derivatives and hedging relation- swaps will therefore in all material 3,5 as at 31 December 2020. The ships, it is included in the line “in- Total 135 (24) respects correspond with the inter- changes in value are recognised in terest rate swaps” at a fair value of 1) Amounts in transaction currencies est payments on the loans. Hence, the income statement and will offset MNOK -2 as at 31 December 2020. there are no significant sources for changes in the loans taken through Upon entering into the loan agree- hedging ineffectiveness. the income statement caused by ment of 5 billion Japanese yen in 2019 Assets Liabilities Nominal value1) currency fluctuations. 2013 and the combined interest rate a) Cash flow hedging Hedge reserve in equity and currency swap, Posten Norge Interest-rate swaps NOK 5 (4) 1 283 The Group’s statement of changes Combined interest rate also made a CSA (Credit Support b) Hedging of net investment in equity shows net movements in and currency swaps Annex) agreement. This agreement hedge reserves. In 2008 and 2013, the Group entered defines how two swap counterparties Forward currency contracts SEK 3 (7) 653 into long-term loan agreements with shall act when the value of a swap c) Other financial hedges (derivatives not b) Hedging of net investment Japanese life insurance companies changes in favour of one of the par- included in hedge accounting according to IFRS) in foreign entities of 3 and 5 billion Japanese yen, ties during the swap period. A depos- Interest-rate swaps NOK 1 (4) 248 Posten Norge uses forward currency respectively, at fixed interest rate it shall be paid/received to reduce Forward currency contracts SEK (1) 50 contracts for hedging investments terms. At the same time, combined the credit risk if the swap’s value in foreign subsidiaries and has en- interest rate and currency swap exceeds the threshold value (MEUR Forward currency contracts EUR 1 7 tered into rolling forward contracts agreements were made, effectively 2). The swap’s value is measured Combined interest-rate/currency swaps NOK 216 447 totalling MSEK 653 in 2020 (the giving the Group loans in Norwegian monthly, and if the value in one of the Total 226 (17) same as in 2019). The changes in the kroner with floating interest. The loan parties’ favour is larger than MEUR value of the contracts including re- from 2008 was paid down in 2020. 2, the excess value shall be paid into 1) Amounts in transaction currencies alised loss/gain due to settlements Posten Norge has made use of the the counterparty’s account. As at 31 on roll-over are recognised in other “fair value option” in IFRS 9 for meas- December 2020, Posten Norge had The derivatives in the table above currency swaps is primarily deter- In 2015, Posten Norge raised a bond comprehensive income and offset uring these loans. Changes in interest received MEUR 10 from the coun- are classified by type of hedging mined by discounting future cash loan of 7 years of MNOK 350 at a the translation differences from the rates or exchange rates resulting in ter-party. This is recognised as a cur- for accounting purposes, and the flows at discount rates derived from fixed coupon that in its entirety was investments until the investments changes in the value of the Japanese rent liability in the balance sheet. objective of the derivatives is observable market data. swapped to floating interest in the are disposed of. In 2020, this con- yen denominated loans measured described below. For all derivatives, the fair value is same transaction. MNOK 88 was stituted a loss of MNOK 60 (a gain in Norwegian kroner correspond to confirmed by the finance institutions swapped back to fixed interest in Information on fair value with which the company has made 2015 and MNOK 100 in 2017. The fair value of forward currency agreements. In 2017, Posten Norge raised a contracts is determined by applying bond loan of MNOK 1 000 with ma- the forward exchange rate on the a) Cash flow hedging turity on 28 September 2021. The balance sheet date. loan has a floating reference interest The fair value of interest rate and Interest rate swaps rate and was partly hedged by a 120 121 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Equity information Other matters

NOTE 21 EQUITY NOTE 22 GUARANTEES/ASSETS PLEDGED AS SECURITY The shares in the parent company Posten Norge AS are owned in full by the Norwegian state, represented by the The Group has provided various guarantees, including rental guarantees, contract guarantees, debt guarantees, and Ministry of Trade, Industry and Fisheries. In Norwegian groups of companies, it is the share capital in the parent other payment guarantees, in connection with current operations. The Group has not pledged property of any signifi- company that is significant, and equity is the basis and limitation for distributing dividends (ref. section 20 “Equity” cant value. in the Group’s accounting principles).

2020 2019 As at 31 December 2020, the share capital consisted of 3 120 000 shares at a nominal value of NOK 1 000. Before the annual dividend is determined, an independent evaluation of the financial situation in the Group and fu- Guarantees for group companies 996 832 ture prospects shall be made. The proposed dividend for the accounting year 2020 is MNOK 560. Other guarantees 20 22 At the Annual General Meeting in June 2020, it was determined that no dividends be distributed for the accounting Total guarantees 1 016 854 year 2019. The owner’s return on capital requirement is 9 percent after tax. Guarantees for group companies’ payments in connection with bank Posten Norge AS has provided debt primarily consisted of guar- guarantees provided for the Group’s Equinor with a delivery guarantee antees provided by Posten Norge subsidiaries. Bring Cargo AS has guar- for Bring Cargo AS, and the City of AS to its subsidiaries in Norway anteed fuel purchases for the subsidi- Stockholm for Bring Courier & Ex- and Sweden related to the rental of ary Bring Trucking a.s. press AB. No amounts have been set premises and vehicles. Posten Norge The increase in guarantees for for these guarantees. AS has also given Nordea a guaran- group companies was mainly due to tee indemnifying the bank for any guarantees for leased vehicles.

NOTE 23 CHANGES TO GROUP STRUCTURE The note provides information about significant changes in Group structure including the acquisition and disposal of companies and businesses (ref. section 5 “Consolidation principles” in the Group’s accounting principles).

The following changes in the Group’s structure have taken place in 2020:

Companies established and acquired in 2020

Posten Eiendom In the first quarter of 2020, Posten Eiendom AS acquired the companies Posten Eiendom Kristiansand I AS and Pos- ten Eiendom Kristiansand II AS for a total of MNOK 32. In the third quarter of 2020, the companies were merged, with Kristiansand I AS as the acquiring company. The company owns a site in Kristiansand on which the Group plans to build a new terminal. Posten Eiendom AS acquired the company KOV 1 AS for MNOK 6 in the third quarter. The company owns a site in Bergen and is part of the Group’s plans to build a new terminal in Bergen.

The acquisitions can be summarised as follows:

Total purchase Purchase price Purchase price - Group goodwill price Assets/land 9 43 52 Provisions for liabilities - deferred tax 9 9 Non-curent liabilities 4 4 Total liabilities 5 9 14 Total purchase price 4 32 38 Net cash outflows (38)

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Non-controlling owner interests acquired in 2020 Effect on the Group’s balance sheet at the sales date: In 2020, the Group bought out the non-controlling interests in Bring Polarbase AS and Netlife Gruppen AS for a total of MNOK 53. The transactions are accounted for as equity transactions. After this, the Group owns 100 percent of Bring Frigo AS Bring Freight Forwarding AS Other companies1) Total these companies. Assets:

The following companies were sold out of the Group or liquidated in 2020 Right-of-use assets 174 52 9 235 Tangible fixed assets 4 3 7 Bring Freight Forwarding AB In December 2020, Posten Norge AS sold Bring Freight Forwarding AB and operations in Bring Åkeri AB to Sandahls- Other financial non-current assets 4 72 76 bolagen Sweden AB. Bring Freight Forwarding is engaged in domestic transport in Sweden and has warehouse opera- Non-current assets 178 129 12 318 tions based in Vårgårda and Vara. Turnover amounts to approximately MSEK 250 per year. Interest-bearing current receivables 68 3 71 Interest-free current receivables 115 50 5 171 2020 Current assets 183 53 5 231 Sale price1) 135 Total assets 361 182 17 560 Book value of net assets 76 Liabilities Gain/final settlement 59 Long-term lease liabilities 168 42 2 213 Of which Minority Interests’ share (16) Non-current liabilities 168 42 2 213 Translation differences taken to Income statement 13 Interest-bearing current liabilities 26 9 35 Total gain 54 Interest-free current liabilities 116 32 4 151 1) Group’s share of the sale price was MNOK 101 Current liabilities 116 64 12 192 Bring Frigo AS Total liabilities 284 104 15 403

In December 2019, Posten Norge entered into an agreement for the sale of the thermo business Bring Frigo AS to Nor- 1) Bring Warehousing AB and Posten Eiendom Førde AS. Log Gruppen AS, and the sale was effected with accounting effect from 1 February 2020. The effects of the sale were recognised in 2019. Bring Frigo’s operations comprised transport and logistics solutions for temperature-control led Held for sale freight domestically as well as abroad and had a turnover of nearly MNOK 980 in 2019. Bring Frigo Sverige AB with subsidiaries (Bring Frigo SE) In December 2020, the Group put the subgroup Bring Frigo Sweden up for sale, and indicative biddings from several 2020 buyers were received in January 2021. At year-end 31 December 2020, Bring Frigo SE was classified as held for sale in Sale price1) 35 the balance sheet. The estimated sales price is expected to exceed the carrying value of the subgroup. Accordingly, Book value of net assets 77 no loss provision was made at the reclassification to held for sale. Bring Frigo SE is part of the Logistics segment and operates a network for temperate logistics. This comprises Loss on sale (42) vehicles for temperate transport, refrigerated and frozen warehousing and terminals adapted for the transport of Transaction costs (22) goods in a temperature-controlled network. Provisions as at 31.12.2019 65 Total loss

1) Settlement was made in the form of shares in Nor-Log

124 125 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Other matters Other matters

31.12.2020 NOTE 24 RELATED PARTIES ASSETS HELD FOR SALE Two parties are related if one party can influence the other party’s decisions. Relations with related parties are con- sidered to be normal in business. Intangible assets 30 Deferred tax assets 30 Posten Norge AS is the parent in accordance with the equity method. AS are distributed among the group Tangible fixed assets 138 company and has direct and In 2020, there were no significant companies in accordance with vari- indirect control of approximately 80 transactions with associated compa- ous formulas that vary depending on Right-of-use assets 506 companies, mainly in the Nordics. nies, or major balances with them as the type of cost. Non-current assets 704 Directly owned subsidiaries are at 31 December 2020. Some of the board members had Interest-free current receivables 419 shown in note 9 in the financial Internal trade in the Group is car- board or executive positions in other statements for Posten Norge AS. ried out in accordance with separate enterprises. The Group is not aware Interest-bearing current receivables 3 The Group has ownership shares in agreements and at arm’s length of transactions where these posi- Liquid assets 47 associated companies, accounted for terms. Shared costs in Posten Norge tions could have had any influence. Current assets 468 TOTAL ASSETS HELD FOR SALE 1 173 NOTE 25 REGULATORY ISSUES Regulatory issues describe relevant matters and regulations not mentioned in other notes. LIABILITIES HELD FOR SALE

Provisions for liabilities 264 Postal regulations es Act, Posten shall maintain product banking services for 2019 was MNOK Non-current liabilities 459 Postal regulations comprise the acco­unts for regulatory purposes. 104,1 in 2020, including interest of Postal Services Act with associated The accounts shall be submitted to MNOK 2,1. The amount was a supple- Current lease liabilities 144 regulations and the delivery require- the Norwegian Communications Au- mentary payment from the state to Interest-free current liabilities 305 ments of the licence awarded to thority annually. Posten’s appointed Posten due to higher net costs for Tax payable 2 Posten. auditor performs control procedures the services than those constituting In line with the Norwegian Par- and issues a statement confirming the basis for the prepayment. Current liabilities 451 liament’s amendment of the Postal that the accounts have been prepared In 2020, a total of MNOK 523 was TOTAL LIABILITIES HELD FOR SALE 1 174 Services Act in the spring of 2019, in accordance with the requirements. recognised as income for the gov- Posten’s ordinary mail distribution Posten’s net costs related to the ernment procurements of commer- to letter boxes was reduced to every duty to deliver postal services that cially non-viable postal and banking As at 31 December 2020, accumulated positive translation differences and hedge reserves recognised in equity other day from July 2020. are commercially non-viable shall, services. In addition, MNOK 64 was related to held for sale amounted to MNOK 61. At the same time, the Ministry pursuant to the Postal Services Act, taken to income for government The process is expected to be finalised during the first half-year of 2021. of Transport adjusted the require- be covered by government procure- payment pursuant to the tender con- ments for the distribution time for ments granted over the state budget. tract of newspaper distribution in Other changes to group structure in 2020 domestic mail in Posten’s licence. This also applies for basic bank sparsely populated areas. • Posten Eiendom Bergen was demerged into 7 companies as part of the Group’s plans to build a new terminal in Bergen. At least 85 percent of the mail shall services through Posten’s rural mail • Bring Logistic AB and Smartpak AB were merged with Bring Parcels AB as part of simplifying the Group’s structure be delivered within three weekdays network. The annual advance grant to Basic banking services in • Bring Cargo AS bought out the non-controlling owner interests in Bring Polarbase AS, after which the companies after posting and at least 97 percent government procurements is adjusted the rural postal network were merged. within five weekdays. the following year based on a recalcu- Posten is obliged to offer basic • As part of the reorganisation of the Group and establishing a new group structure, some business combinations were After the transition to mail distri- lation of the requirement according to banking services in the rural postal carried out in January 2020 in order to adjust the businesses to the new structure and strategy. Businesses were bution every other day, newspaper the final product accounts. The recal- network, ref. the act on basic bank- transferred between the Norwegian, Swedish and Danish companies in Bring Courier & Express and Bring E-commer- distribution takes place 6 days a culation shall secure against over or ing services through Posten Norge ce & Logistics, in addition to transferring activities from Bring Cargo AS to Bring Cargo International AS. week in areas without any alternative under compensation. AS’ sales network. The obligation newspaper distribution. Posten won For 2020, Posten received MNOK is met through an agent agreement the tender for week-days in a com- 449 for government procurements with DNB. The procurement of bank- petition arranged by the Ministry of of commercially non-viable postal ing services in Posten’s remaining Transport, in competition with two and banking services. This was in sales network (post offices and other parties. line with Posten’s pre-calculation. In Post-in-Shops) ended at the end of accordance with later estimates, the September 2020 when the agree- Product accounts and Group has recognised MNOK 421 as ment with DNB expired for this part government procurements income for 2020. of the network. of commercially non- The result effect of the final set- viable postal services tlement of government procurements Future prospects In accordance with the Postal Servic- of commercially non-viable mail and For 2021, the Norwegian Parliament 126 127 03 Financials | Financial statements and notes for Posten Norge Group Financial statements and notes for Posten Norge Group | Financials 03 Other matters Other matters

granted MNOK 566 for government basis for any suggested changes. For transitional arrangement was set malisation during 2021 in line with Financial risk bles to a reasonable degree. procurements of commercially non­ Posten it is vital that the government up, meaningthat low value goods up the most recent general terms and viable postal services. The amount reimburses Posten for the net costs to NOK 350 be exempt from decla- market expectations and were also Market risk Liquidity risk is in line with Posten’s advance cal- of the commercially non-viable ser- ration, assumed to expire on 1 July assessed against strategic goals, The Corona pandemic has led to The Group is solid and has a good culations and principally concerns vices if no room is allowed for con- 2021. Posten cooperates with the history and other factors. There is large changes in market prices, ex- liquidity reserve. net costs for mail distribution every tinued adjustments to the service customs and duty authorities to se- still some uncertainty about how change rates and interest levels. The The Group has covenants in con- other day (MNOK 538). level in line with falling mail volumes cure effective and consumer-friendly long the situation will last, the Group has significant investments nection with external financing. Cov- Mail distribution every other day, and changes in customer needs. duty/VAT handling when the transi- financial consequences and any in bond funds. As at 31 December enant compliance is calculated based as implemented from July 2020, In the autumn of 2019, the Nor- tion period expires. consequences of a recession in the 2020, the Group had 3,5 billion kro- on the Group’s accounting figures will not be adequate to ensure ac- wegian Parliament approved the Posten’s agreement with DNB on economy following the crisis. The ner invested in various bond funds without the effects of IFRS 16 Leases. ceptable profitability. The postal proposal to introduce VAT on all banking services in the rural postal uncertainty was assessed by sensi- (3,4 billion kroner at 31 December Financial covenants are complied with services must be further adjusted in e-commerce import of goods, re- network expires at the end of June tivity analyses. 2019). Unrealised gains in 2020 as at 31 December 2020 and the pub- line with changed market conditions gardless of value, from 2020. In that 2021. On 3 February 2021, the Ministry totalled MNOK 90. Posten Norge lishing of the report. and customer needs. In 2020, the connection, a simplified registration of Transport distributed for public Other assumptions (growth uses financial instruments to man- Details of financial risk, capital Ministry of Transport and Commu- and reporting solution (VOEC – VAT review a proposal for an amendment and required rate of return) age market risk from the Group’s management and loan covenants are nications received studies on the on E-commerce) was established for to the act. Should the amendment be No specific Covid-19 adjustments ordinary operations, and variations given in note 13. consequences of further reductions foreign suppliers for calculating and passed, Posten’s obligation to offer were made to the required rate of in results due to these changes are in government procurements in order paying VAT on goods up to a value such services in the rural postal net- return. The various components of therefore limited. Other changes in sources to have a best possible knowledge of NOK 3 000. At the same time, a work will end. the required rate of return were, of estimation uncertainty however, estimated on the basis of Credit risk There is estimation uncertainty con- updated information. The Group Several of the Group’s customers are nected with the assessment of pen- NOTE 26 IMPACT OF THE CORONA PANDEMIC updated the long-term growth rates affected by the pandemic, and this sion obligations. The present value correspondingly. The required rate increases the uncertainty related of pension obligations depends on In March 2020, the World Health Organisation (WHO) declared Covid-19 (the Corona virus) to be a pandemic. The of return applied in the impairment to the customers’ operations and factors such as the discount rate, pandemic spread to large parts of the world and has affected all parts of society strongly. Strict restrictions were tests for goodwill was 8,0 and 8,4 liquidity. The Group’s credit forum which is normally determined at the introduced for the population in Norway and the other Nordic countries. National infection control measures have in the Logistics and Mail segments, assesses the status of outstanding end of each year. As a consequence since then been adjusted to the infection situation and consequently eased in periods with low infection levels, but respectively, whereas the long-term trade receivables and the develop- of the Corona pandemic, the interest tightened again with rising levels, or replaced by local restrictions in areas with larger outbreaks. At the end of the growth rate was 1,5 percent and 0,0 ment of the largest customers, in ad- level is significantly reduced in both year, the infection level had increased again with the subsequent lock-down of society. percent (goodwill within mail is not dition to specific customer scenar- the short and the long term. This has related to traditional mail services). ios requiring an active decision. Of resulted in an increase in the Group’s The financial consequences of the enue or profit for the segment were Write-down of non- Based on the criteria described total outstanding trade receivables pension obligations in the balance Corona pandemic have been close- significantly affected. The negative financial assets above, no need for a write-down of there was no significant negative sheet, a total increase of MNOK 75 ly followed up by the Group. The consequences were also compen- goodwill was uncovered in 2020. A change in receivables due as at 31 (before the classification of Bring periodical normalisation of society sated by significant growth within Prognoses total of MNOK 131 in intangible as- December 2020 compared with 31 Frigo Sweden as held for sale). has resulted in less negative finan- private parcel volumes and home The restrictions introduced as a con- sets under development was written December 2019. The expected loss- Note 3 has more information on the cial consequences of the Corona deliveries. sequence of the pandemic, and the down, but this was not related to the es on receivables are provided for in Group’s pension obligations. pandemic. The distinction between In the Mail segment, the pandemic negative effects they have had on Corona pandemic (note 8 has details accordance with an expected loss effects from the Corona pandemic has had negative consequences for the Group’s turnover and operations, and sensitivity analyses). model and cover uncertain receiva- and other external market changes, addressed as well as unaddressed were indicators of a fall in value in trends or internal circumstances in mail due to the increased fall in vol- the first half-year. Updated impair- the organisation has become less ob- umes. The negative trends have less- ment tests for relevant areas were vious in the second half-year of 2020. ened in the second half-year 2020 carried out in the second quarter also in this area. 2020. The situation was mainly un- Operating income and In the business sector, Norwegian changed or improved for these areas operating result and Nordic authorities have intro- in the second half-year, and no addi- The development showed that for duced several initiatives in order to tional indications of any fall in value the Logistics segment in the first safeguard jobs. Delays of payment of have been identified. Irrespective half-year 2020, the largest negative public dues and relief of duties have of this, annual impairment tests for consequence concerned the cor- been granted. Reduced social secu- goodwill and intangible assets under porate market. The negative conse- rity tax of four percentage points for development were car­ried out in the quences were, however, declining, the third term in Norway resulted in fourth quarter. and in the second half-year 2020 cost savings of approxi­mately MNOK The forecasts used in the impair- there were few indications that rev- 50 for the Group. ment tests assumed a gradual nor-

128 129 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Income statement & Statement of comprehensive income

INCOME STATEMENT Financial statements Amounts in MNOK Note 2020 2019

Revenue 13 017 13 202 Costs of goods and services 3 209 3 063 and notes Payroll expenses 1 6 227 6 620 Depreciation and amortisation 7,8,16 939 1 034 Posten Norge AS Write-downs of intangible assets and tangible fixed assets 7,8,16 162 24 Other operating expenses 3 1 894 1 904 Operating expenses 12 430 12 644 Other income and (expenses) 4 29 (874) Income from sale of shares in associated companies 9 121 19 Operating profit 738 (297) Financial income 5 511 314 Financial expenses 5 656 501 Net financial income/(expense) (145) (187) Profit before tax 593 (484) Tax expense 6 100 (35) Profit for the year 492 (449)

STATEMENT OF COMPREHENSIVE INCOME Amounts in MNOK

Note 2020 2019

Profit for the year 492 (449) Pension remeasurement 2,6 (27) Items that will not be reclassified to income statement (27) Cash flow hedging 6,18 (5) 2 Items that will be reclassified to income statement (5) 2 Other comprehensive income/(loss) (32) 2 Total comprehensive income/(loss) 460 (447)

130 131 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Balance sheet Balance sheet

BALANCE SHEET Board meeting on 25 March 2021 Amounts in MNOK

Note 31.12.2020 31.12.2019

ASSETS Intangible assets 7 1 044 1 125 Deferred tax assets 6 137 158 Tangible fixed assets 8 951 933 Andreas Enger (Chair) Right-of-use assets 16 6 926 7 452 Investments in subsidiaries 9 3 605 3 562 Investments in associated companies 9 16 258 Interest-bearing non-current receivables 11,13 1 382 1 474 Other financial non-current assets 9,11,19 167 125 Anne Carine Tanum (Deputy Chair) Non-current assets 14 227 15 088 Interest-free current receivables 11,14,19 1 642 1 804 Interest-bearing current receivables 11,13 2 037 2 086 Liquid assets 11,15 4 574 3 819 Current assets 8 254 7 709 Assets 22 481 22 797 Tina Stiegler Henrik Höjsgaard Finn Kinserdal Liv Fiksdahl EQUITY AND LIABILITIES Share capital 20 3 120 3 120 Other equity 2 891 2 431 Equity 6 011 5 551 Provisions for liabilities 10 664 825 Gerd Øiahals Lars Nilsen Ann Elisabeth Wirgeness Tove Gravdal Rundtom Non-current lease liabilities 11,16 6 903 7 302 Interest-bearing non-current liabilities 11,17,19 1 107 2 210 Interest-free non-current liabilities 11,18,19 15 6 Non-current liabilities 8 026 9 518 Current lease liabilities 11,16 559 580 Interest-bearing current liabilities 11,17,19 3 976 3 138 Tone Wille (Group CEO) Interest-free current liabilities 10,11,18,19 3 179 3 130 Tax payable 6 67 54 Current liabilities 7 780 6 902 Equity and liabilities 22 481 22 797

132 133 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Statement of cash flows Statement of changes in equity

STATEMENT OF CASH FLOWS The Company prepares the statement of cash flows in accordance with the indirect method, i.e., cash flows from in- STATEMENT OF CHANGES IN EQUITY vestments and financing activities are reported gross, whereas the accounting result is reconciled against net cash Amounts in MNOK flows from operating activities. Share premium Retained Share capital reserves Hedging reserve earnings Other equity Total equity

Amounts in MNOK Equity 01.01.2020 3 120 992 (1) 1 439 2 431 5 551

Note 2020 2019 Profit for the year 492 492 492

Profit/(loss) before tax 593 (484) Other comprehensive result (5) (27) (32) (32) Tax paid in the year 6 (58) (57) Total comprehensive result (5) 466 460 460 (Gain)/loss from sales of non-current assets and shares (43) (9) Equity 31.12.2020 3 120 992 (7) 1 906 2 891 6 011 Ordinary depreciation and write-downs 7,8,16 1 101 1 058 Share premium Retained Write down of shares in subsidiaries 9 63 424 Share capital reserves Hedging reserve earnings Other equity Total equity Gain from sale of associated companies (108) Equity 31.12.2018 3 120 992 (3) 1 595 2 584 5 704 Dividends received from financial investments (117) Effect of change of principle (IFRS 6 6 6 16) Financial items without cash effect 201 176 Equity 01.01.2019 3 120 992 (3) 1 601 2 589 5 709 Changes in receivables and payables (37) 219 Profit for the year (449) (449) (449) Changes in other working capital 161 (152) Other comprehensive result 2 2 2 Changes in other accruals1) (234) 349 Total comprehensive result 2 (449) (447) (447) Interest received 162 200 Dividend (124) (124) (124) Interest paid (364) (410) Other changes in equity1) 412 412 412 Cash flows from operating activities 1 318 1 612 Equity at 31.12.2019 3 120 992 (1) 1 439 2 431 5 551 Investments in non-current assets 7,8 (360) (275) 1) Gain on transaction with related party at fair value Cash effect from purchase of shares 9 (138) (148) Cash effect from investments in associated companies 9 (16) Proceeds from sale of non-current assets 8 11 22 Cash effect from sale of shares 9 8 Cash effect from sale of associated companies 9 350 73 Dividends received from subsidiaries 117 Changes in loans to subsidiaries 13 214 265 Changes in other financial non-current assets (27) (2) Cash flows used in investing activities 175 (81) Payment of lease liabilities 16 (569) (603) Repayment of borrowings 17 (779) (500) Dividend paid 20 (124) Change in balance group account 610 298 Cash flows used in financing activities (738) (1 227) Change in liquid assets 755 304 Liquid assets at the start of the year 3 819 3 515 Liquid assets at the end of the year 15 4 574 3 819

1) Restructuring accruals made in 2019 were paid in 2020.

134 135 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Accounting principles Accounting principles

Notes for Posten Norge AS POSTEN NORGE AS Accounting Principles Associated note(s) IFRS/IAS standard Posten Norge AS was established as Accounting principles ...... 136 1. Changes in accounting principles and IAS 8 a company on 1 December 1996 disclosures Income statement ...... 145 and is today a Norwegian-registered 2. Issued and amended standards not yet IAS 8 Note 1 Payroll expenses and other remuneration...... 145 limited liability company with the effective or lacking approval by the EU Note 2 Pensions...... 146 Norwegian state, represented by the 3. Accounting estimates Note 2 Pensions IAS 12, IAS 19, IAS 36, IAS 37, Note 3 Other operating expenses...... 169 Ministry of Trade, Industry and Fish- Note 4 Other income and expenses IFRS 16 Note 4 Other income and expenses ...... 169 eries as its sole shareholder. Note 6 Taxes Note 5 Financial income and financial expenses ...... 151 Note 7 Intangible assets Posten Norge AS is a Nordic mail Note 6 Taxes...... 152 Note 10 Provisions for liabilities and logistics group developing and Non-financial assets and liabilities ...... 154 Note 16 Leasing obligations delivering overall solutions within (lease agreements) Note 7 Intangible assets ...... 154 mail and logistics in the Nordics. Pos- Note 24 Effects of the Corona pandemic Note 8 Tangible fixed assets...... 156 ten Norge AS’ address is Biskop Gun- 4. Foreign currency translation IAS 21 Note 9 Investments in companies and businesses ...... 158 nerus gate 14, 0001 Oslo, Norway. Note 10 Provisions for liabilities ...... 160 5. Revenue from contracts with customers IFRS 15 Financial assets and liabilities ...... 162 ACCOUNTING PRINCIPLES 6. Pensions Note 2 Pensions IAS 19 Note 11 Overview of financial assets and liabilities ...... 162 The financial statements of Posten 7. Taxes Note 6 Taxes IAS 12 Note 12 Financial risk and capital management ...... 164 Norge AS have been prepared in Note 13 Interest-bearing non-current and current receivables...... 164 8. Intangible assets Note 7 Intangible assets IAS 38 accordance with International Finan- Note 14 Interest-free current receivables...... 165 9. Tangible fixed assets Note 8 Tangible fixed assets IAS 16 cial Reporting Standards (IFRS) and Note 15 Liquid assets...... 166 interpretations by IFRS Interpreta- 10. Investments in subsidiaries and associated Note 9 Investments in companies IFRS 10, IFRS 11, IFRS 12, IAS 27, Note 16 Leasing obligations (lease agreements)...... 166 tions Committee (IFRIC), set by the companies and businesses IAS 28 Note 17 Interest-bearing non-current and current liabilities...... 169 International Accounting Standards 11. Write-downs of non-financial assets Note 7 Intangible assets IAS 36 Note 18 Interest-free non-current and current liabilities...... 170 Note 8 Tangible fixed assets Board and approved by the EU. Note 19 Derivatives and hedging...... 171 Note 9 Investments in companies The financial statements have Equity information...... 173 and businesses been prepared on a historical cost Note 16 Leasing obligations Note 20 Equity ...... 173 basis, except for financial assets and (lease agreements) Other matters ...... 174 liabilities (including derivatives) that 12. Provisions for liabilities Note 4 Other income and expenses IAS 19, IAS 37 Note 21 Guarantees/assets pledged as security...... 174 have been measured at fair value. Note 10 Provisions for liabilities Note 22 Related parties ...... 174 The financial statements are pre- 13. Contingent liabilities and assets Note 10 Provisions for liabilities IAS 37 Note 23 Regulatory issues ...... 175 sented in Norwegian kroner (NOK), 14. Financial instruments Note 5 Financial income and financial IFRS 7, IFRS 9, IFRS 13, IAS 32 Note 24 Impact of the Corona pandemic ...... 176 rounded to the nearest million, if expenses not otherwise stated. As a result of Note 11 Overview of financial assets and liabilities roun- ding adjustments, the figures Note 12 Financial risk and capital in one or more rows or columns in- management cluded in the financial statements Note 13 Interest-bearing non-current and and notes may not add up to the to- current receivables Note 14 Interest-free current receivables tal of that row or column. Note 15 Liquid assets The table below gives an overview Note 17 Interest-bearing non-current of relevant accounting principles for and current liabilities the Group, with references to the Note 18 Interest-free non-current and current liabilities applicable notes and accounting Note 19 Derivatives and hedging standards. 15. Accounts receivable Note 14 Interest-free current receivables IFRS 7, IFRS 9, IFRS 13, IFRS 15, IAS 32 16. Cash and cash equivalents Note 15 Liquid assets IFRS 7, IFRS 9, IFRS 13, IAS 32 17. Leasing Note 16 Leasing obligations IFRS 16 (lease agreements) 18. Borrowings Note 17 Interest-bearing non-current IFRS 7, IFRS 9, IFRS 13, IAS 32 and current liabilities 19. Equity Statement of changes in equity IAS 1 Note 20 Equity 20. Events after the reporting period Note 23 Regulatory issues IAS 10

136 137 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Accounting principles Accounting principles

1. CHANGES IN ical accounting judgments will be In determining the appropriate 4. FOREIGN CURRENCY related to current deliveries. Fees for banking services are rec- ACCOUNTING PRINCIPLES described. Sources of estimation discount rate, the Company consid- TRANSLATION Sales revenue is measured at the ognised on the basis of performed AND DISCLOSURES uncertainty and assumptions con- ers the interest rates of high-quality fair value of the consideration net of banking services. The accounting policies applied are cerning the future that represent a corporate bonds that are denomi- value-added tax and discounts. In addition, Posten is paid for 4.1 Functional currency and consistent with previous years. In significant risk of causing material nated in the currency in which the Revenue is generated by transport government procurements of com- presentation currency addition, the Company implement- adjustments to the carrying amounts benefits will be paid, and that have services, the sale of postal services mercially non-viable postal services The financial statements are ed some amended standards and of assets and liabilities within the terms to maturity approximating the and banking services: recognised over time (monthly), and presented in Norwegian kroner interpretations published by the next financial year are described terms of the related pension liability. Transport services comprise na- limited to an amount equalling the (NOK), which is also the Company’s IASB (the International Accounting below: Details are given in note 2. tional and international transport, current year’s estimated additional functional currency. Standards Board) and approved by mainly the transport of parcels and expenses regarding licensing re- the EU, relevant for the business 3.1 Estimated impairment 3.3 Provisions goods. They can include a number quirements. 4.2 Transactions and and effective from the accounting of assets In determining the fair value of pro­ of associated additional services balance sheet items year starting on 1 January 2020. The Impairment exists when the carrying visions for restructuring expenses but are mainly considered to be one 6. PENSIONS Transactions in foreign currencies implementation of these amended value of an asset or cash generating and other provisions, assumptions delivery obligation. The services are The Company has both defined con- are translated into the functional standards and interpretations has unit (see definition in section 11) and estimates are made in relation taken to income over time, as the tribution and defined benefit pen- currency at the exchange rate on the not resulted in significant changes to exceeds its recoverable amount. to discount rates, the expected set- customer is considered to benefit sion plans. The net pension expenses transaction date. the financial statements. Calculations of recoverable amounts tlement value and settlement date. from the fact that the goods are com- for the defined benefit pension plans On the balance sheet date, mone- require the use of estimates. There is Additional information is given in ing increasingly nearer the delivery comprise the pension contributions tary balances in foreign are translat- 2. ISSUED AND AMENDED uncertainty related to assumptions note 10. point. The majority of the transport of the period, including future salary ed at the exchange rate applicable STANDARDS NOT YET and parameters in connection with services are delivered within 1-7 days, increases and the interest expense on the balance sheet date. Foreign EFFECTIVE OR LACKING the estimation of future cash flows 3.4 Deferred tax assets and provisions are made for incom- on the estimated pension liability, exchange gains and losses resulting APPROVAL BY THE EU when evaluating impairment and Deferred tax assets are carried in the plete transport. less the contributions from employ- from the settlement and translation The following standards and state- the choice of discount rate in the balance sheet when it is probable Letter services comprise the de- ees and estimated yield on the pen- of monetary items are recognised as ments that are relevant for Posten calculation of the present value of that the Company will have sufficient livery of letter products and are pri- sion assets. For defined contribution finance income and finance costs, Norge AS have been issued but have the cash flows. These estimates are taxable profits to utilise the tax marily recognised over time. Letter plans, the premium less the employ- respectively. yet to take effect or lacked approval particularly relevant when assessing benefit. Management’s judgment is services often have, however, very ees’ contribution is recognised as an Non-monetary items in foreign by the EU for the financial year 2020: goodwill and other intangible as- required to determine the size of the short delivery time, 1-2 days, and the expense when incurred. currencies measured at historical sets. Details of the key assumptions tax benefit to be utilised, based on recognition of income is therefore The liability recognised in the cost are translated using the ex- Amended IAS 1 related to used to determine the recoverable the timing and value of future taxa- normally made when the letter is balance sheet for the defined change rates at the dates of the the classification of loans as amount of a cash-generating unit, ble profits. Note 6 has more details. delivered to the post office/ in the benefit pension plans is the present initial transactions. Non-monetary short-term or long-term debt including sensitivity analyses, are letter box. Letter services also com- value of the defined benefit liability items in foreign currencies measured The change in IAS 1 Presentation of provided in note 7. 3.5 Leasing obligations prise the sale of stamps, franking at the end of the reporting period, at fair value are translated using the Financial Statements applies for fi- (lease agreements) and international mail. The sale of less the fair value of plan assets. exchange rates at the date when the nancial statements starting after 3.2 Pensions In accordance with IFRS 16, the non­ stamps is considered to be advance The gross liability is calculated by fair value is determined. 1 January 2023. The changes will not There is also uncertainty related to cancellable lease period (including payments for the sale of letter prod- independent actuaries applying lead to significant changes com- the estimation of pension liabilities. the period of notice) and any options 5. REVENUE FROM ucts and is recognised as income the “projected unit credit” method. pared with the Company’s present The present value of the pension reasonably certain to be exercised CONTRACTS WITH when the service delivery takes When pension assets exceed pen- implementation of IAS 1. liabilities depends on a number of are recognised in the lease liability. CUSTOMERS place. Franking machines (pre-paid sion liabilities, prepaid pensions are factors determined by actuarial Several of the Company’s significant franking) are recognised on the basis classified as a long-term asset in The recognition of income shall 3. ACCOUNTING assumptions. Any changes in these lease agreements, particularly within of the customer’s postage consump- the balance sheet if it is likely that reflect the transfer of goods or ser- ESTIMATES assumptions will impact the carrying property, include options for renew- tion, and other postage sales are the excess value can be utilised or vices to the customer. Income is rec- The preparation of the Company’s amount of pension liabilities. als of the agreements. The Company recognised when letter products are repaid. The recognition of pension ognised when a customer achieves fi- nancial statements requires man- Assumptions used in the calcu- applies judgment in determining the delivered. International mail com- funds is limited to the present value control over goods or services and age- ment to make estimates and lation of net pension cost include lease period. prises income from foreign postal of all financial benefits that mate- thereby can determine the use of assump- tions affecting revenues, the discount rate. The Company The determination of discount services in accordance with ordinary rialise in terms of refunds from the them and receive the benefits from expenses, assets and liabilities, determines the appropriate discount rate as a basis for calculating fu- terminal fee agreements. This is plan or reductions in future con- the goods or services. the accompanying notes and the rate at the end of each year. This is ture lease obligations also require currently recognised on the basis of tributions to the plan. Net pension According to the contracts ap- disclosure of contingent liabilities. the interest rate that should be used judgment. A methodology has been the calculation of volumes and pre- expenses are classified as payroll plied, the Company’s current deli­ Management carries out significant to determine the present value of established for this process. Section liminary prices and is adjusted the expenses in the income statement, very obligations are short-term (less accounting considerations (judg- estimated future cash outflows ex- 17 and note 16 have details. following year when final prices are except the interest element, which is than one year). Accordingly, the ments) in applying the Company’s pected to be required to settle the received from the International Post classified as finance income/finance Company does not provide infor- accounting policies. Material crit- pension liabilities. Cooperation. expenses. The effect on previously mation about balance sheet items

138 139 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Accounting principles Accounting principles

earned rights resulting from changes at their nominal value and netted. other resources are available to 10. INVESTMENTS IN value the asset would have had if no sponding revenues. in the schemes’ yields is recognised If authorities notify a change in complete the project. SUBSIDIARIES AND write-down had been recognised. immediately in the income state- the previous year’s tax return, the Only when all the criteria are met ASSOCIATED COMPANIES 12.2 Provisions: ment. Actuarial gains and losses are change will normally be recognised can the expenses relating to develop- Posten Norge AS accounts for in- 11.1 Impairment: Goodwill Onerous contracts recognised in other comprehensive as part of the current year’s taxes. ment work be recognised in the bal- vest- ments in subsidiaries and asso- and other assets with A provision for onerous contracts income in the period in which they ance sheet. Otherwise the costs will ciated companies at historical cost. indefinite useful lives is recognised when the Company’s occur and will not be reclassified to 8. INTANGIBLE ASSETS be expensed as incurred. Goodwill, intangible assets with in- expected income from a contract is profit or loss in future periods. Intangible assets are recognised 11. WRITE-DOWNS OF definite useful lives and intangible lower than the unavoidable expens- in the balance sheet if probable 8.2 Intangible assets: Goodwill NON-FINANCIAL ASSETS assets under development are sub- es incurred to meet the obligations 7. TAXES future economic benefits can be Goodwill arises on acquisitions of A write-down requirement exists if ject to an impairment test annually, of the contract. As a main rule, the The tax expense comprises tax pay- proven and attributed to the asset, businesses and constitutes the the carrying amount of a valuation irrespective of whether any indica- Company defines unavoidable ex- able for the period and changes in and the cost of the asset can be excess value between the consid- unit exceeds its recoverable amount. tions of impairment exist. penses as direct costs related to the deferred tax liabilities/assets. Tax reliably measured. Intangible assets eration and fair value of identifiable The recoverable amount is the high- loss and does not include indirect is recognised in the income state- are recognised in the balance sheet assets and liabilities at the time of er of fair value less sales costs and 11.2 Impairment: Other assets costs in the estimated provision. A ment, except to the extent that it at their acquisition cost net of any the acquisition. value in use, where value in use is with definite useful lives provision is generally made when a relates to items recognised in other accumulated depreciation and the present value of estimated cash An impairment test on other assets reliable estimate of the obligation comprehensive income or directly in write-downs. Acquisition costs also 9. TANGIBLE flows relating to future use. If cash with definite useful lives is carried amount can be made. equity. In such cases, the tax is also include in-house payroll costs if the FIXED ASSETS flows relating to an individual asset out when there are indications of recognised in other comprehensive recognition criteria are met. Tangible fixed assets are recognised are independent of cash flows re- impairment. 13. CONTINGENT income or directly in equity. Goodwill and other intangible as- in the balance sheet at their acquisi- lating to other assets, the individual LIABILITIES AND ASSETS Tax payable is calculated on the sets with indefinite useful lives are tion cost net of accumulated depre- asset constitutes a valuation unit. If 12. PROVISIONS Contingent liabilities include: basis of the taxable income for the not amortised but assessed for im- ciation and impairment. The acqui- not, a valuation unit is identified at FOR LIABILITIES • possible liabilities resulting from year. The net deferred tax liability/ pairment annually (section 11 “Write- sition cost of fixed assets includes a higher level and is called a cash­ Provisions are recognised when the past events whose existence de- asset is computed on the basis of downs of non-financial assets” has a costs directly attributable to the generating unit. A cash-generating Company has a present obligation pends on future events temporary differences between the more detailed description). Intangi- acquisition, construction or installa- unit shall be defined consistently (legal or actual) as a result of a past • liabilities that have not been recog- carrying amount and tax values of ble assets with definite lives are am- tion of the assets. For larger invest- over time. A cash-generating unit is event, it is probable (more proba- nised because it is not probable assets and liabilities and tax losses ortised on a straight-line basis over ments involving a long manufacturing defined as the smallest identifiable ble than not) that the liability will that they will result in payments carried forward at the end of the fi- their estimated useful economic life. period, interest is capitalised as part group of assets generating incoming result in a financial settlement, and • liabilities that cannot be measured nancial year, with the exception of: Amortisations start from the date of the acquisition cost if they are cash flows and shall essentially be the amount can be reliably meas- with sufficient reliability. • deferred tax liabilities arising when the intangible asset is availa- directly attributable. The acquisition independent of incoming cash flows ured. Provisions are reviewed on Contingent liabilities are not rec- from initial recognition of taxable ble for its intended use. Intangible cost of fixed assets is broken down from other assets or groups of assets. each balance sheet date, and their ognised in the financial statements non-depreciable goodwill assets not yet available for use are when the fixed asset consists of The Company calculates future level reflects the best estimate of unless they have been acquired in • deferred tax arising from a first­ also tested for impairment. components that have different use- cash flows based on estimated re- the liability. When the effect of the a business combination. Such liabi- time recognition of an asset or ful economic lives. Costs relating to sults (forecasts and long-term plans) time value of money is material, the lities are provided for. Significant liability in a transaction that 8.1 Intangible assets: normal maintenance and repairs are over a period of three years, adjust- liability is recognised at the present contingent liabilities are disclosed, • is not a business combination, Development costs expensed when incurred. Costs con- ed for depreciation, investments value of future cash flows. Details on unless it is unlikely that the liability and The Company’s development costs cerning replacements and renewals and changes in working capital. The provisions for pension liabilities are will result in payments. • on the transaction date im- mainly relate to the development of which significantly increase the use- extrapolation period contains an provided in section 6 “Pensions”. Contingent assets are not recog- pacts neither the accounting IT systems intended for internal use. ful economic life of the fixed assets extrapolation of the cash flows after nised in the financial statements but profit nor taxable income Development costs are recognised are recognised in the balance sheet. the forecast period, using a constant 12.1 Provisions: Restructuring disclosed if it is probable that the (taxable loss). in the balance sheet if all of the fol- Tangible fixed assets are depre- growth rate. The present value of Restructuring expenses are costs Company will benefit from them. Tax increasing and tax reducing lowing criteria are met: ciated down to their residual values future cash flows is calculated using incurred by the Company based on tem- porary differences that are • The product or process is clearly on a straight-line basis over their a weighted required rate of return of a decision that entails a significant 14. FINANCIAL reversed or can be reversed are off- defined, and cost elements can be estimated useful economic life. De- total capital and is calculated be- change in the Company’s defined INSTRUMENTS set against each other. A deferred identified and measured reliably preciation starts from the date when fore tax. business areas, either concerning the Financial instruments are recog- tax asset is re- cognised when it is • The product’s technical solution the tangible fixed asset is available With the exception of goodwill, scope of the activities or the manner nised in the balance sheet when the probable that the Company will have has been demonstrated for its intended use. Land is not de- write-downs recognised in prior pe- in which the business is operated. Company has become a party to the sufficient taxable profits to utilise • The product or process will be preciated. riods are reversed if new information Provisions for restructuring are instrument’s contractual terms. Fi- the tax asset. sold or used in the business The assets’ residual values (if any), indicates that an impairment no expensed when the programme has nancial instruments are derecognised Deferred tax liabilities and de- • It is probable that the asset will depreciation method and useful longer exists or has been reduced. been determined and announced, when the contractual rights or obliga- ferred tax assets that can be recog- generate future economic benefits lives are reviewed annually. However, a write-down reversal and the costs are identifiable, quan- tions have been fulfilled, cancelled or nised in the balance sheet are stated • Adequate technical, financial and cannot be so large as to exceed the tifiable and not covered by corre- transferred, or have expired.

140 141 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Accounting principles Accounting principles

Financial instruments are initially pected realisation date is more than ognised in other comprehensive in- there has been a significant increase and bank deposits. Cash and cash Company mainly concern contracts measured at fair value at the settle- 12 months after the balance sheet come are reclassified and recognised in credit risk after the initial recogni- equivalents are short-term liquid for buildings and terminals, in addi- ment date, normally at transaction date. Other financial instruments are together with the asset or liability. tion of the financial asset. investments that can be converted tion to the Company’s car fleet. price. Subsequent measurements classified as current. For other cash flow hedges, gains The method is primarily applied into a known amount in cash within These will generally be encom- depend on the classification of and losses previously recognised in to the financing of and lending to three months and are subject to in- passed by the definition in the the financial asset or liability. The 14.1 Financial other comprehensive income and ac­ the Company’s subsidiaries. The as- significant risk. standard and be classified as leases. classification is determined by the instruments: Hedging cumulated in equity are reclassified sessment of change in credit risk is The Company has performed a Company’s business model for man- The Company uses derivatives to ma- to the income statement in the same made in each reporting period. The 17. LEASING OBLIGATIONS review of various contracts and in aging financial instruments and the nage currency and interest rate risk. period as the cash flow constituting risk drivers for internal loans include (LEASE AGREEMENTS) particular assessed the treatment of characteristics of the cash flows of The Company’s criteria for classi- the hedged item is recognised. short-term and repeated defaults, them, in addition to agreements with each instrument. fying a derivative as a hedging instru- When a hedging instrument ceases developments in the utilisation of the 17.1 Posten Norge AS as lessee transporters (transport agreements). Financial assets are classified as ment, and either the whole or parts of to be highly effective, hedge ac- limits of the Group cash pool and in- IFRS 16 Leases requires that the Most of the transport agreements subsequently measured at amor- an individual item or a group of items counting is prospectively discontin- stalment payment delays. lessee capitalises lease agreements in the Company are either of such a tised cost, fair value over other com- as a hedging object, are as follows: ued. In this case, the accumulated The Company’s other financial in order to reflect the value of the character that no specific asset can prehensive income or fair value over 1. the derivative is applied to hedge gain or loss on a hedging instrument assets mainly comprise receivables, right-of-use asset and the corre- be identified, or are short-term, and profit and loss. Financial liabilities an expected transaction or a re- in equity will not be reversed until including trade receivables, without sponding lease obligation in the bal- these agreements are therefore out- are classified as subsequently meas- cognised asset or obligation; the hedged transaction actually oc- significant financing components. ance sheet. The lease obligation is side the definition of a lease accord- ured at either amortised cost or fair 2. the hedge is earmarked and docu- curs. If it is no longer expected that For financial assets without sig- measured at the present value of the ing to the standard. value over profit and loss. mented; the hedged transaction will occur, nificant financing components, a lease payments, and the right-of-use The Company’s financial assets 3. the requirement for hedge effe- previously accumulated gains or simplified model is applied, whereby asset is derived from this calcula- Assessment of lease period mainly comprise debt instruments ctiveness is met. losses on the hedging instrument expected credit loss over the entire tion. At subsequent measurements, Several of the Company’s significant (receivables), and the Company has Hedge effectiveness is analysed on in equity will be reversed and rec- lifetime is recognised. The simplified the right-of-use asset is depreciat- lease agreements, especially within no significant equity instruments. an ongoing basis and is met when: ognised in the income statement model does not require any follow-­ ed, whereas the lease obligation is real estate, include options for ex­ The receivables’ cash flows only in- 1. there is a financial relation betwe- immediately. up of changes in credit risk. reduced by instalment payments. In tending the lease agreements. IFRS clude the principal and any interest, en the hedge object and instru- If an accrued (actual) credit loss addition, interest on the obligation is 16 requires that the non-cancellable and all receivables are held only to ment, i.e., the Company normally 14.1.b Fair value hedging is established because the Company expensed. lease period (including the period receive contractual cash flows (no expects that the values systema- Derivatives that qualify as fair cannot reasonably expect to recov- Lease agreements that can be of notice), and any options reason- intention of sale exists). The receiv- tically change in line with changes value hedges are measured at fair er the entire or parts of a financial defined as “low value assets” are not ably certain to be exercised, be ables are classified as subsequently in the underlying risk value, and changes in fair value are asset, the financial asset’s gross bal- capitalised. Short-term lease agree- recognised in the lease liability. The measured at amortised cost. 2. credit risk does not dominate recognised in the income statement. ance sheet value is directly reduced. ments, where the non-cancellable Company assumes that “reasonably None of the Company’s financial li- changes in value; and Correspondingly, changes in fair Write-downs of financial assets lease period is less than 12 months, certain” is a probability level signifi- abilities is held for trading purposes. 3. the degree of hedging reflects value related to hedged risk in the measured at amortised cost are re- are also directly expensed. The cantly higher than 50 percent. With the exception of loans in foreign the actual quantity hedged and is hedged item are recognised in the cognised in the income statement. Company has chosen not to apply In the consideration of whether currency (Japanese yen), the fair val- applied to hedge. income statement. IFRS 16 for intangible assets. the exercise of an option is reasona- ue option has not been applied, nor Hedge accounting ceases when: 15. ACCOUNTS Several of the Company’s lease bly certain, special weight has been do the liabilities contain embedded a. the hedging instrument expires, is 14.2 Financial instruments: RECEIVABLE agreements include other services attached to whether the asset is derivatives. Accordingly, the Compa- sold, terminated or exercised; or Derivatives that are not Accounts receivable are initially rec- and components such as shared important for operations and part of ny’s financial obligations are mainly b. the hedge no longer meets the hedging instruments ognised at fair value and subsequent- costs, fuel and charges. Non-leasing the Company’s strategic plans. classified as subsequently measured criteria for hedge accounting as Derivatives not classified as hedging ly measured at amortised cost, less components are separated from the The Company has also taken into at amortised cost. The Company has described above. instruments are measured at fair val- provisions for losses. The Company lease agreement and recognised as account the option’s exercise date, applied the opportunity to use fair ue in the income statement. Changes uses a simplified method for provi- operating costs. as the degree of certainty decreases value options (FVO) for financial lia- 14.1.a Cash flow hedging in fair value of such derivatives are sions for expected credit losses on the further off the exercise date is. bilities in foreign currency (Japanese The effective part of changes in recognised in the income statement. accounts receivable and measures Assessment of agreements in yen), as such a classification signif- fair value of a hedging instrument the loss provision at an amount equiv- the Company which comply Assessment of lease payments icantly reduces any inconsistency in a qu- alifying cash flow hedge is 14.3 Impairment: alent to the expected lifetime credit with the standard’s definition Right-of-use assets and liabilities in the measurement between the recognised in other comprehensive Financial instruments loss. Accrued (actual) credit losses and requirement for recognition shall be measured at the present obligation and related derivatives. income. The ineffective part of the For financial assets measured at am- reduce the accounts receivable’s bal- In order to be within the scope of value of the lease payments. Significant changes due to the Com- hedging instrument is recognised ortised cost, the Company makes a ance sheet value directly. IFRS 16, the contract must satisfy Lease payments include fixed pany’s own credit risk are recognised directly in the income statement. provision for expected credit loss. the definition of a lease. The assets payments and any payments subject in other comprehensive income. If the hedged cash flow results in The Company either recognises the 16. CASH AND CASH must be identifiable, and the lessee to index or interest rate variations, Financial instruments are classi- the recognition of an asset or liability, next twelve months’ expected losses EQUIVALENTS must have the right to control the but not lease payments that vary de- fied as non-current when their ex- the gains and losses previously rec- or the expected lifetime losses if Cash and cash equivalents include use of the assets in a given period. pending on the use of the asset. liquid assets such as cash in hand Significant agreements in the Lease payments also include resid- 142 143 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Accounting principles Income statement

ual value guarantees, purchase op- and any payments subject to index ing instrument in a cash-flow hedge NOTE 1 PAYROLL EXPENSES AND OTHER REMUNERATION tions and any termination expenses. or interest rate variations, but not until the hedged cash flow occurs or The note shows the payroll expenses for employees and expensed remunerations to the Board, executives and au- Wear and tear and any damage lease payments that vary depending is no longer expected to occur. ditor of Posten Norge AS. Information about bonuses, pension schemes for executives and the statement on execu- caused during ordinary use of the on the use of the asset. In addition, tives’ remunerations is included in note 2 for the Group. leased asset is expensed as in- lease payments include residual val- 19.2 Costs related to curred. ue guarantees, purchase options and equity transactions any termination costs. Transaction costs directly related to 2020 2019 Discount rates When a sublease is classified as a equity transactions are recognised Salaries 5 082 5 309 The present value of the lease pay- financial lease agreement, the Com- directly in equity net of taxes. Other Social security tax 620 701 ments shall be discounted at the pany de-recognises the right-of-use transaction costs are recognised in lessee’s incremental borrowing rate asset and recognises the net invest- the income statement. Pension expenses 381 436 when the interest rate implicit in the ment as a sublease receivable. Any Other benefits 143 173 lease cannot be easily determined. difference between the value of the 20. EVENTS AFTER THE Payroll expenses 6 227 6 620 The method to determine the Com- right-of-use asset and the sublease REPORTING PERIOD pany’s incremental borrowing rate is receivable is recognised directly in New information about the Compa- Number of full-time equivalent positions 8 854 10 268 consistently applied and reflects: the income statement. ny’s positions on the balance sheet Number of employees 31.121) 9 240 10 422 1. the loan interest for the asset At subsequent measurements, the date is considered in the financial 1) The number of employees is the number of permanent and temporary employees that generated salary expenses in December class in question, and Company recognises finance income statements. Events taking place after 2. the length of the lease period. on the sublease receivable based on the balance sheet date that do not a pattern reflecting a periodic return. affect the Company’s position on the Social security tax on pensions is classified as pension expenses (details in note 2). 17.2 Posten Norge AS as lessor balance sheet date, but will do so in For contracts where the Company is Operating leases the future, are disclosed if significant. 2020 2019 lessor, each lease agreement is clas- For operating leases, the Company sified as either operating or finance. A recognises lease payments as other Board fees 2 787 2 662 lease agreement is as a finance lease income, mainly on a straight-line Fees for the statutory audit 1 637 1 551 if it in all material respects transfers bases, unless another systematic Fees for other attestation services 890 676 all risks and rewards of the ownership basis better reflects the pattern of an underlying asset. A sublease whereby the benefit of the underly- Fees for tax advisory services 232 146 is considered a finance lease if the ing asset is reduced. The Company Fees for other non-audit services 233 366 asset, or parts of it, is subleased for recognises expenses incurred in the Total auditors’ fees 2 993 2 739 the major part of the remaining lease earning of the lease income as costs. period in the main agreement. (All amounts in TNOK and exclusive of VAT) 18. LOANS Finance leases Loans are initially recognised at fair Auditors’ fees concerned the audit are based on defined criteria for the owned subsidiaries” in the same For financial lease agreements, the value when paid, net of transaction firm EY. Details on remuneration to entire Group, targets for the Group note. Individuals employed after 31 Company recognises a sublease costs incurred. In subsequent peri- the Board and executives are given as well as indi- vidual goals. Upper December 2006 belong to a self-in- in the balance sheet at the imple- ods, the loans are recognised at am- in the consolidated accounts’ note 2. limits have been set for bonus pay- sured defined contribution scheme. mentation date at an amount cor- ortised cost using the effective in- ments in the various schemes. For employees with salaries exceed- responding to the net investment in terest rate method. Amortised cost Bonus schemes ing 12 G, the annual contributions are the lease agreement. is the amount at which the financial Posten Norge AS has a bonus Pension schemes limited to 25 percent of the pension The lease agreement’s implicit obligation is measured initially less scheme for members of Group man- Senior employees mainly have the basis in excess of 12 G. This scheme interest rate shall be applied at repayments (instalments, interest agement, with the exception of the same pension schemes and pension was closed in February 2015. the initial measurement of the net and service charges etc.), including Group CEO. terms as other employees in the investment. For subleases, the dis- effective interest. In addition, Posten Norge AS has Company, ref. note 2 for the Group Loans and guarantees count rate in the main agreement bonus-based remuneration for sen- and “Statement on the determina- No loans or guarantees were given to can be applied if the sublease 19. EQUITY ior employees reporting to the group tion of salaries and other remuner- members of Group management. agreement’s implicit interest rate directors, other key personnel and ation to executives in Posten Norge cannot be easily determined. Lease 19.1 Hedge reserve sales personnel. Bonus payments AS and Posten Norge AS’ wholly payments included in the meas- The hedge reserve includes the total urement comprise fixed payments net change in fair value of the hedg-

144 145 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Income statement Income statement

NOTE 2 PENSIONS 2020 2019 The Company has both defined contribution and defined benefit plans. The defined benefit schemes are predictable Main categories of pension assets at fair value for the employee as the benefits have been agreed in advance. The premium payments depend on factors such as the Equity instruments (shares, bonds) 2 3 members’ service time, age and salary level. In the contribution schemes, the payments are determined as a percent- age of the employee’s salary. The size of the pension assets determines how much pension the employee is entitled Debt instruments 16 14 to, and consequently the employees bear the return risk on what has been paid into the scheme. More information is Property 3 3 available in section 3 “Accounting estimates” and section 6 “Pensions” in the Company’s accounting principles. Other assets 2 2

Total pension assets 23 22 2020 2019 Pension estimate gain/(loss) at 01.01. 453 453 Pension costs: Present value of the pensions earned for the year 108 115 Changes in discount rate, pension liabilities (23) (13) Net interest expense on net liability 16 23 Changes in other financial assumptions, pension liabilities 13 Plan changes recognised in income statement 3 Changes in demographic assumptions, pension liabilities 7 Gross pension costs incl. social security tax (benefit based) 124 142 Changes in other factors, pension liabilities (12) (6) Employee contributions (1) Changes in other factors, pension assets 1 (1) Interest element reclassified to finance items (14) (20) Gain/(loss) for the year in total comprehensive income (34)

Net pension costs incl. social security tax (benefit based) 109 121 Pension estimate gain/(loss) at 31.12. 418 453

Defined contribution pension schemes 368 418 Defined contribution pension schemes

Employee contributions (96) (102) Number of members 12 577 13 946

Total pension expenses included in the operating profit for the year 381 436 Share of salary 5,7-21,3% 5,7-21,3%

Net pension liabilities: Defined benefit pension schemes

Estimated accrued secured liabilities (23) (23) Actuarial assumptions Estimated value of the pension assets 23 22 Discount rate 1,70% 2,30% Net estimated secured pension liabilities (1) Expected salary regulation 2,25% 2,25% Estimated accrued unsecured pension liabilities (591) (592) Expected G regulation 2,00% 2,00% Net pension liabilities in balance sheet (591) (592) Expected pension regulation 1,5-2,5% 1,5-2,5% Changes in liabilities: Expected yield 2,70% 2,30% Net liabilities at 1.1. (592) (608) Expected voluntary retirement (below 50 years) 4,00% 4,00% Gross pension expenses (119) (142) Expected voluntary retirement (over 50 years) 1,50% 1,50% Premium payments and benefits paid 155 157 Expected use of AFP 40-60% 40-60% Contributions from scheme members 1 Demographic assumptions on mortality rate K2013 K2013 Changes in pension estimates recognised in other comprehensive income (34) Net pension liabilities at 31.12. (591) (592) Contribution schemes aries in the interval 7,1 to 12 G. Defined benefit schemes Most of the Company’s pension The majority of the Company’s costs are contribution pensions and AFP (early retirement) scheme benefit schemes relate to the fact disability pensions where the amount On 1 January 2011, the Company that Posten Norge AS withdrew paid to the pension supplier annually transferred to a new AFP scheme (the from the Norwegian Public Service is expensed in the income statement. joint scheme for AFP in the private Pension Fund (SPK) in January The employees contribute through sector, ref. note 3 for the Group). 2006, giving those employed at the salary deductions. Employees who continue to be transition date the right to various For 2020, the contribution rates members of the Norwegian Public compensation and guarantee were 5,7 percent for salaries up to Service Pension Fund (SPK) have re- arrangements. The schemes were 7,1 of the national insurance basic tained their rights in accordance with closed at this time, meaning that amount (G) and 21,3 percent for sal- the AFP scheme in the public sector. the obligations will be phased out 146 147 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Income statement Income statement

over time. The pension assets in salaries in excess of 12 G. Pension ob- the significant workforce reductions NOTE 3 OTHER OPERATING EXPENSES the schemes are managed by life ligations related to salaries in excess during the year. In 2019, the change Other operating expenses are costs not directly related to the sale of goods and services, salaries and personnel insurance companies. of 12 G and early retirement pensions in discount rate was offset by the costs or depreciation/impairment. In 2010, it was decided to coordi- are financed by the Company’s oper- difference between estimated and nate the public service pension with ations. actual take-up tendency and retire- the private benefit scheme (AFP), ment age. 2020 2019 which would reduce the pension Assumptions The retirement age for Norwegian IT services 685 676 from SPK for a significant number of For 2020, changes have been made employees is generally 67 years. Other external services 302 279 employees in Posten. For this reason, to the financial assumptions, mainly a compensation scheme was agreed, in accordance with recommenda- Sensitivity Cost of premises 294 311 and an obligation recorded in the tions from the Norwegian Account- The table below shows estimated Other rental expenses 55 72 balance sheet. ing Standards Board (NRS). Posten effects of changes in some assump- Tools, fixtures, operating materials 114 96 The Company has a disability Norge AS uses covered bonds (OMF) tions for defined benefit pension pension without a paid-up policy, as its basis for the discount rate and schemes. The estimates are based Repair and maintenance of equipment 101 99 providing benefits corresponding to set the rate to 1,7 percent in 2020 on facts and circumstances at 31 Marketing 78 98 the maximum amount allowed pursu- compared with 2,3 percent in 2019. December 2020 with the assump- Insurance, guarantee and compensation expenses 64 54 ant to the Occupational Pension Act The estimate variation of MNOK tion that all other premises are and is accounted for as a contribu- 34 for 2020 is mainly due to a lower unchanged. The actual figures can Travel expenses 40 67 tion scheme. The Company also has discount rate and more active re- deviate from these estimates. Accounting and payroll services 27 33 significant obligations concerning tired people as a consequence of Telephone costs 36 35 Other expenses 98 83 Discount rate Pension regulation Voluntary retirement Operating expenses 1 894 1 904 Change (percentage points) 1% -1% 1% -1% 1% -1% Change in gross pension liabilities (reduction)/ (39) 45 24 (21) (9) 10 increase The increase in costs related to IT services and other external services is due to some increase in project activities. Percentage change -7% 8% 4% -4% -2% 2% The reduction in travel expenses is a consequence of extended use of home offices and web-based meetings. Other expenses included freight, stationery, IT equipment, publications, membership dues, losses on receivables and other operating expenses.

NOTE 4 OTHER INCOME AND EXPENSES Other income and expenses comprise significant income and costs of limited predictive value, and include restruc- turing costs, write-downs of shares and gains and losses on sales of tangible fixed assets (see sections 3 “Account- ing estimates” and 12 “Provisions” in the Company’s accounting principles).

2020 2019

Restructuring expenses 76 (443) Gain/(loss) on sale of fixed assets and subsidiaries 18 8 Gain/(losses) on subleases and termination of lease agreements 9 (18) Other income/(expenses) (74) (421) Total other income/(expenses) 29 (874)

148 149 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Income statement Income statement

Restructuring addition to reorganisations of staff of shares in the subsidiary Netlife NOTE 5 FINANCIAL INCOME AND FINANCIAL EXPENSES In 2020, a provision of MNOK 106 and support functions. Gruppen AS of MNOK 48 and Bring The note gives an overview of the Company’s financial income and expenses, including income and costs related to from 2019 related to reduced dis- Total provisions for restructuring Express Suomi OY of MNOK 10, in the Company’s financing, interest costs on lease obligations, currency effects from receivables and debt in foreign tribution frequency was reversed (a are shown in note 10. addition to costs for the sales pro- currencies, in addition to gains and losses from financial derivatives (ref. section 14 “Financial instruments” in the cost reduction) due to new service cess of the subsidiary Bring Frigo AB. Company’s accounting principles). products and several more voluntary Gain on sale of fixed Note 9 has more information on solutions than originally estimated. assets and subsidiaries write-downs of shares in subsidiaries. A provision of MNOK 30 was made Gain on sale of fixed assets in 2020 Other income and expenses in 2020 2019 in 2020 for restructuring costs relat- mainly concerned the sale of the 2019 mostly concerned write-downs Interest income from group companies 60 75 ed to the closing down of post offic- subsidiary Bring Frigo AS. of shares in subsidiaries of MNOK Interest income 12 10 es to be replaced by Post-in-shop. In 424, primarily shares in Bring Frigo 2019, restructuring costs concerned Other income and expenses AB, Netlife Gruppen AS and Bring Interest income on financial subleases 10 11 provisions for reduced distribution Other income and expenses in Cargo International A/S. Currency gains 126 50 frequency and restructuring of route 2020 primarily comprised costs in Gain on derivatives 18 63 preparation in the Mail segment, in connection with the write-down Gain on loans at fair value through profit and loss1) 90 Dividends received 103 Other financial income 91 105 Financial income 511 314 Interest expenses to group companies 7 17 Interest expenses 72 102 Interest expenses on group lease obligations 214 211 Interest expenses on lease obligations 68 80 Currency losses 102 51 Loss on derivatives 175 15 Loss on loans at fair value through profit and loss1) 6 Other financial expenses 17 19 Financial expenses 656 501 Net financial expense (145) (187)

1) Change in value on loans in Japanese yen where the “fair value option” has been applied, corresponding to value changes in combined interest rate and currency swaps recognised as “Loss on derivatives” in 2020 or “Gain on derivatives” in 2019. Note 19 has more information.

Interest income from group concerned gains and losses as a for the Company. Interest expenses companies mainly related to loans result of the currency development on lease obligations are described in and the group cash pool. Interest between Norwegian and Swedish note 16. income in 2020 primarily comprised kroner, between Norwegian kroner Dividends received relates to interest on bank deposits. Other and euros and between Norwegian dividends from the subsidiary Bring financial income included returns on kroner and Japanese yen. Parcels AB. market-based investments. Interest Note 19 has details on derivatives. The Group’s note 13 has details of income on financial subleases is Interest expenses mainly concerned the Group’s financial risk and capital described in note 16. long-term financing. In 2020, this management. Net currency gains on loans and included interest costs on pension net losses on derivatives primarily obligations constituting MNOK 14

150 151 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Income statement Income statement

NOTE 6 TAXES Changes in deferred tax assets The note details the authorities’ taxation of the profit in the Company. The tax expense is calculated on the basis Recognised in income Recognised of the accounting result and is split into the period’s tax payable and change in deferred tax/deferred tax assets. 01.01.2020 statement in OCI 31.12.2020 Deferred tax liabilities/assets arise when the accounting and taxable accruals differ (ref. also section 3 “Accounting Tangible fixed assets 67 (6) 62 estimates” and section 7 “Taxes” in the Company’s accounting principles). Receivables 59 1 60

2020 2019 Currency 3 (1) 2

Income tax Pensions (131) 9 (8) (130) Tax payable 71 33 Contribution fund 8 10 18 Change in deferred tax/(deferred tax assets) 30 (68) Provisions (68) 41 (27) Tax expense 100 (35) Financial instruments (1) (2) (3) Tax payable for the year 67 54 Lease agreements (95) (23) (118) Adjustments of payments in previous years 4 (22) Total deferred tax/(tax assets) in the balance sheet (158) 30 (9) (137) Tax payable 71 33

Effective tax rate in % 17% 7% Recognised in income Recognised 01.01.2019 statement in OCI 31.12.2019 Reconciliation of the effective tax rate with the Norwegian tax rate: Tangible fixed assets 53 13 67 Profit before tax 593 (484) Gains and losses 2 (2) 22% tax 130 (107) Receivables (4) 63 59 Write-down of shares in subsidiaries 14 93 Currency 3 3 Other non-deductible expenses 23 9 Pensions (134) 3 (131) Non-taxable income (69) (9) Contribution fund 8 8 Adjustment previous years 2 (22) Provisions (7) (63) (68) Tax expense 100 (35) Financial instruments (10) 7 1 (1) Lease agreements (95) (95) 2020 2019 Total deferred tax/(tax assets) in the balance sheet (90) (68) 1 (158) Changes in pension estimate (8) Cash flow hedging (2) 1 There has been no change in the ordinary tax rate during 2020. Change in deferred tax recognised in comprehensive income for the year (9) 1 Deferred tax assets were reduced by MNOK 21, mainly due to a reduction in provisions following payments in 2020 of restructuring provisions, ref. note 10. This was partly offset by changes in net lease agreements carried in the bal- ance sheet (ref. note 16). The effective tax rate was 17 percent, mainly due to non-taxable income from dividends received and gain on the sale There has been no change in the tax rate from 2019. of shares, in addition to a write-down of shares of MNOK 63 (tax effect MNOK 14) and other non-deductible costs.

152 153 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Non-financial assets and liabilities Non-financial assets and liabilities

NOTE 7 INTANGIBLE ASSETS IT systems 110 concerned projects in progress, Several initiatives to increase cost­ Total intangible assets related to mainly related to the development effectiveness in the segment have Intangible assets are non-physical assets and mainly concern capitalised IT development, including specially IT development recognised in the of a new transport control system been taken, and forecasts therefore adapted software, and goodwill in connection with acquisitions of businesses. Intangible assets and goodwill are balance sheet at 31 December in the Logistics segment. In 2019, include profitability improvements. subject to significant estimation uncertainty (ref. section 3 “Accounting estimates” and section 8 “Intangible assets” 2020 constituted MNOK 292. Ap- corresponding write-downs of IT Significant cost elements are exter- in the Company’s accounting principles). proximately MNOK 120 constituted systems and projects in progress nal service costs that are affected group-shared ERP and HR systems, amounted to MNOK 23. by price negotiations and inflation. IT systems Projects in progress Goodwill Total EPM system and data warehouse Market trends in Norway affect the Carrying amount 01.01.2020 361 242 522 1 125 solutions. Digital web solutions for Goodwill Logistics segment in Posten Norge customers and a group-shared CRM Goodwill is allocated to cash­ AS. This is reflected in the growth Additions 27 106 133 system had a recorded value of generating units. Goodwill in Posten rates of the cash-generating unit. Additions in-house developed intangible assets 20 20 MNOK 38. In addition, a solution for Norge AS amounted to MNOK 522 as secure digital mail, solutions related at 31 December 2020 (MNOK 522 in Other assumptions (growth Amortisation for the year (104) (104) to address and route registers, pro- 2019), all related to E­-commerce and and required rate of return) Write-downs for the year (21) (110) (131) duction support systems and several logistics. The extrapolation period contains a projects on web solutions were car- calculation of cash flows after the Transfers from projects in progress 28 (28) ried in the balance sheet. Impairment of goodwill forecast period, using a constant Carrying amount 31.12.2020 292 230 522 1 044 For intangible assets with definite Goodwill is subject to annual im- growth rate. Growth rates do not Acquisition cost 01.01.2020 2 248 263 522 3 033 useful economic lives, the amorti- pairment tests. If there are any in- exceed the long-term average rate sation period was 3-10 years in 2020 dications of impairment during the in the areas in which E-commerce Accumulated amortisation and write-downs 01.01.2020 (1 887) (21) (1 908) (the same as in 2019) depending on year, goodwill is tested when such and logistics operate. The long-term Acquisition cost 31.12.2020 2 314 346 522 3 181 the useful economic life of each indications occur. The Company growth rate applied in impairment Accumulated amortisation and write-downs 31.12.2020 (2 022) (116) (2 138) individual component based on an uses the value in use as the recover- tests in 2020 was 1,5 percent (2 per- individual assessment. able amount for goodwill. cent in 2019). Carrying amount 31.12.2020 292 230 522 1 044 The present value of future cash Depreciation method Straight-line Projects in progress Forecasts (operating result) flows is calculated using a weighted Useful life 3 - 10 years Projects in progress at 31 Decem- Future cash flows are calculated on required rate of return of total cap- ber 2020 amounted to MNOK 230, the basis of estimated results over ital for the division before tax. The of which approximately MNOK 100 a period of three years, adjusted required rate of return for equity is IT systems Projects in progress Goodwill Total concerned projects for developing a for depreciation, investments and calculated by using the capital asset Carrying amount 01.01.2019 291 349 522 1 162 new group-shared transport control changes in working capital. Fore- pricing model (CAPM). The required Additions 84 12 96 system. In addition, development casts and long-term plans for group rate of return for debt is estimated related to reporting and production entities are prepared and approved on the basis of long-term risk-free Additions in-house developed intangible assets 18 18 support systems and the manage- by management based on the most interest with the addition of a credit Amortisation for the year (127) (127) ment of the Group’s infrastructure recent available general economic margin derived from the Group’s Write-downs for the year (8) (15) (23) were carried in the balance sheet. indicators and market expectations, average long-term interest rate on considered against strategic goals, loans. The required rate of return is Adjustments to cost price/scrapping (1) (1) Write-downs of IT systems historical and other factors. assessed each year for significant Transfers from projects in progress 122 (122) and projects in progress In the cash­-generating entity changes in factors that affect the Carrying amount 31.12.2019 361 242 522 1 125 In 2020, IT systems and projects E­-commerce and logistics, profit requirement. The required rate of in progress were written down by a margins are characterised by strong return for E-commerce and logistics Acquisition cost 01.01.2019 2 091 355 522 2 968 total of MNOK 131, of which MNOK competition and price pressure. is stated in the table below. Accumulated amortisation and write-downs 01.01.2019 (1 800) (6) (1 806) Acquisition cost 31.12.2019 2 248 263 522 3 033 Accumulated amortisation and write-downs 31.12.2019 (1 887) (21) (1 908) Carrying amount 31.12.2019 361 242 522 1 125 Depreciation method Straight-line Useful life 3 - 10 years

154 155 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Non-financial assets and liabilities Non-financial assets and liabilities

Overview of goodwill and key assumptions: Discount rate before tax Vehicles, Plant under constr., Plant under (WACC) furniture, Buildings and machinery and constr., Machinery equipment property installations buildings Total Goodwill 2020 2019 Carrying amount 01.01.2019 478 369 51 88 1 987 E-handel og Logistikk 522 8,0 % 8,4 % Additions 11 60 7 79 4 161 Total 522 Disposals (15) (15) Depreciation for the year (74) (116) (11) (200) Results of the impairment tests in 2020 Write-downs for the year (1) (1) Based on the criteria described above, no requirement for write-downs of goodwill items was uncovered as at 31 December 2020 (as in 2019). Adjustment to cost price/scrapping 1 1 Transfers from assets under 122 29 5 (151) (5) Sensitivity analyses construction Sensitivity analyses were performed on key assumptions for the cash generating unit in the Company. Assumptions ana- Carrying amount 31.12.2019 537 328 52 16 1 933 lysed were growth (reduced to 1 and 0 percent), the required rate of return (increase of 0,5 and 1 percentage point) and Acquisition cost 01.01.2019 1 231 1 148 127 88 1 2 594 the forecast operating profit (EBIT) margin (reduced by 10 to 50 percent). No write-down requirement was identified. Accumulated depreciation and The value in use is considered to be significantly higher than the carrying amount for the cash-generating unit. (753) (779) (76) (1 607) write-downs 01.01.2019 Acquisition cost 31.12.2019 1 256 1 010 127 16 1 2 410 Accumulated depreciation and (719) (682) (75) (1 476) NOTE 8 TANGIBLE FIXED ASSETS write-downs 31.12.2019 Tangible fixed assets comprise various types of property and operating equipment needed for the type of business Carrying amount 31.12.2019 537 328 52 16 1 933 conducted by the Company. The largest values are represented by mail and logistics terminals (ref. section 9 “Tangi- Straight- Straight- Straight- ble fixed assets” in the Company’s accounting principles). Depreciation method line line line 3 - 20 Useful life 3 - 15 years 3 - 20 years Vehicles, Plant under constr., Plant under years furniture, Buildings and machinery and constr., Machinery equipment property installations buildings Total Carrying amount 01.01.2020 537 328 52 16 1 933 Additions to tangible fixed assets Additions 9 73 3 120 1 207 Approximately MNOK 42 of total additions of MNOK 207 was investments in new hand terminals. The rest concerned mechanical mail and parcel processing equipment for mail and logistics terminals, ICT, transport equipment and fur- Disposals (5) (5) niture. Depreciation for the year (58) (101) (10) (169)

Write-downs for the year (11) (2) (1) (14)

Adjustment to cost price/scrapping Transfers from assets under 61 41 1 (102) (1) construction Carrying amount 31.12.2020 539 333 45 34 1 951 Acquisition cost 01.01.2020 1 256 1 010 127 16 1 2 410 Accumulated depreciation and (719) (682) (75) (1 476) write-downs 01.01.2020 Acquisition cost 31.12.2020 1 300 1 015 123 34 1 2 474 Accumulated depreciation and (762) (682) (79) (1 523) write-downs 31.12.2020 Carrying amount 31.12.2020 539 333 44 34 1 951 Straight- Straight- Straight- Depreciation method line line line 3 - 20 Useful life 3 - 15 years 3 - 20 years years

156 157 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Non-financial assets and liabilities Non-financial assets and liabilities

NOTE 9 INVESTMENTS IN COMPANIES AND BUSINESSES Capital contribution and write-downs of shares For those companies where the carrying value of the shares exceeded the value in use of net assets, subsidiaries In the financial statements of Posten Norge AS, investments in subsidiaries and associated companies are were written down. Capital contributions were also given to some companies and accounted for as additions to the recognised at historical cost (ref. section 10 “Investments in subsidiaries and associated companies” in the investment. The table below shows write-downs and capital contributions made in 2020 and 2019. Company’s accounting principles).

2020 Write-downs Capital contributions and contributions in kind Investments in subsidiaries Bring Equipment AS 10 Voting and Acquired/ ownership Book value Book value Bring Cargo International Norge AS 30 Subsidiary established Address Primary activity 31.12.20 31.12.20 31.12.19

Bring Cargo AS 10.06.2004 Oslo Transport 100% 1 137 1 137 Bring Linehaul Bildrift AS 3 15

Posten & Bring Holding 1 AS 07.10.2019 Oslo Transport 100% 546 546 Bring Ventures AB 1

Posten & Bring Holding 2 AS 07.10.2019 Oslo Transport 100% 537 537 Netlife Gruppen AS 48

Posten Eiendom Robsrud AS 08.06.2006 Oslo Property 100% 480 480 Bring Express Suomi OY 10

Bring Cargo International AB 23.03.2011 Sweden Transport 100% 233 233 Bring Transportløsninger AS 2

Bring Frigo AB 20.01.2006 Sweden Transport 100% 131 131 Total 63 56

Bring Parcels AB 1999/2008 Sweden Transport 100% 91 91

Netlife Gruppen AS 31.07.2016 Oslo Dialogue services 100% 87 85 2019 Write-downs Capital contributions and contributions in kind

Bring Mail Nordic AB 01.09.2005 Sweden Mail 100% 86 86 Bring Frigo AB 225 67

Bring Warehousing AS 12.04.2000 Oslo Third-party logistics 100% 62 62 Bring Cargo International A/S 72 72

Posten Eiendom Alnabru AS 01.01.2008 Oslo Property 100% 57 57 Netlife Gruppen AS 120

Bring Transportløsninger AS 30.06.2016 Oslo Transport 100% 45 47 Bring Express Suomi OY 5

Bring Intermodal AS1) 2000/2009 Jaren Transport 100% 37 37 Espeland Transport AS 2

Bring Cargo International 24.09.2019 Oslo Transport 100% 30 Posten & Bring Holding 1 AS 546 Norge AS Posten & Bring Holding 2 AS 537 Bring Express Suomi OY 01.07.2003 Finland Transport 100% 16 26 Total 424 1 222 Bring Linehaul Bildrift AS 31.05.2020 Oslo Transport 100% 12

Bring Equipment AS 31.10.2019 Oslo Transport 100% 10

Espeland Transport AS 30.06.2016 Alvdal Transport 100% 5 5 The capital contributions to Bring Equipment AS, Bring Cargo International Norge AS and Bring Linehaul Bildrift AS were given as the companies started up full operations after business combinations. The capital contribution to Bring Shared Services AB 07.06.2011 Sweden Shared services 100% 1 1 Bring Ventures was given in connection with the establishment of the company. Bring Ventures AB 31.12.2020 Sweden Venture company 100% 1 Posten Norge AS bought out the non-controlling owner interests in Netlife Gruppen AS for MNOK 50 in 2020 and Bring Cargo International A/S 18.11.2010 Denmark Transport 100% now owns 100 percent of the company.

Bring Cargo Inrikes AB 30.11.2012 Sweden Transport 100%

Posten Eiendom AS 08.06.2006 Oslo Property 100% Investments in associated companies Posten Eiendom Bodø AS 04.05.2015 Oslo Property 100% Primary Voting and ownership Book value Book value Acquired Address activity 31.12.20 31.12.20 31.12.19 Posten Eiendom Molde AS 04.05.2015 Oslo Property 100% Danske Fragtmænd A/S 04.07.2013 Denmark Transport 242 Bring AS 08.03.2005 Oslo None 100% Norbjørn AS 17.12.2019 Tromsø Sea transport 34% 16 16 Sold, liquidated and merged companies Total 16 258 Bring Frigo AS 01.01.2006 Oslo Transport 100%

Bring Logistik AB 31.10.2011 Sweden Shared services 100%

Total investments in subsidiaries 3 605 3 562

1) formerly Bring Linehaul AS

Ref. note 23 in the consolidated financial statements.

158 159 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Non-financial assets and liabilities Non-financial assets and liabilities

Posten Norge AS had a buy-back agreement of the shares in Danske Fragtmænd A/S over a period of 5 years, with The liabilities as at 31 December are specified below: the addition of interest. In 2020, Posten’s remaining shares in the company were sold back for MNOK 364 (of which MNOK 14 constituted extraordinary dividends), and the Company no longer has any shares in the company. 2020 2019 At the end of 2019, the recorded value of Danske Fragtmænd A/S was MNOK 242. The record gain was MNOK 121. Personnel related measures 186 410 Other measures 3 3 Shares and other investments As at 31 December 2020, the Company had investments in other shares of MNOK 33, classified as other financial Total restructuring 188 413 non-current assets.

The disbursements are expected to be MNOK 119 in 2021 and MNOK 69 in later years. Note 4 has more information. NOTE 10 PROVISIONS FOR LIABILITIES Pensions The Company’s provisions comprise provisions related to restructuring, pensions and other types of provisions Pensions are described in note 2. (ref. also section 3 “Accounting estimates”, section 12 “Provisions” and section 13 “Contingent liabilities and assets” in the Company’s accounting principles). Disputes The Company has not noted any disputes with significant risk exposure in 2020. Restructuring Pension Other Total

Balance 01.01.2019 79 608 28 715 Effects of change of principle (IFRS 16) (30) (3) (33) Provisions made during the year 452 452 Reversals of previous year’s provisions (9) (1) (10) Provisions utilised during the year (79) (12) (92) Change in pension liabilities during the year (16) (16) Balance 31.12.2019 413 592 11 1 016 Provisions made during the year 30 30 Reversals of previous year’s provisions (106) (106) Provisions utilised during the year (148) (8) (156) Change in pension liabilities during the year (1) (1) Balance 31.12.2020 188 591 4 783 Current part of provisions 119 1 119 Non-current part of provisions 69 591 3 664

Restructuring MNOK 27 of this year’s provision of MNOK 30 concerned personnel measures and MNOK 3 other measures. In 2020, because of new service products and more voluntary solutions than initially estimated, a reversal of MNOK 106 was made of a provision related to reduced distribution frequency. The utilised provision during the year included pay- ments related to distribution frequency of approximately MNOK 65, route preparation of appr. MNOK 60 and reor- ganisation of staff and support functions of appr. MNOK 20.

160 161 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Financial assets and liabilities Financial assets and liabilities

NOTE 11 OVERVIEW OF FINANCIAL ASSETS AND LIABILITIES At fair value At amortised cost The note gives an overview of the Company’s classification of financial assets and liabilities and their carrying Fair value Derivatives Valuation Derivatives Other over income at fair value amounts (ref. section 14 “Financial instruments” in the Company’s accounting principles.) 2019 Note hierarchy at fair value Receivables financial 31.12.2019 statement over income level over OCI liabilities (FVO) statement At fair value At amortised cost Assets Fair value Derivatives Interest-bearing non-current 13 1 474 1 474 Valuation over income at fair value Derivatives Other receivables hierarchy statement over income at fair value financial 2020 Note level (FVO) statement over OCI Receivables liabilities 31.12.2020 Other financial non-current 19 2 118 4 3 125 assets Assets Interest-free current Interest-bearing non-current 14,19 2 100 4 1 700 1 804 13 1 382 1 382 receivables receivables Interest-bearing current Other financial non-current 13 2 086 2 086 19 2 126 7 35 167 receivables assets Liquid assets 15 3 819 3 819 Interest-free current 14,19 2 3 1 640 1 642 receivables Financial assets 9 303 Interest-bearing current 13 2 037 2 037 Liabilities receivables Non-current lease obligations 16 7 302 7 302 Liquid assets 15 4 574 4 574 Interest-bearing non-current 17 2 415 1 794 2 210 Financial assets 9 803 liabilities Liabilities Interest-free non-current 18,19 2 4 2 6 liabilities Non-current lease obligations 16 6 903 6 903 Current lease obligations 16 580 580 Interest-bearing non-current 17 2 424 683 1 107 liabilities Interest-bearing current 17 2 247 2 890 3 138 liabilities Interest-free non-current 18,19 2 11 2 15 liabilities Interest-free current liabilities, 6,18,19 2 12 3 161 3 174 incl. tax payable Current lease obligations 16 559 559 Financial liabilities 16 409 Interest-bearing current 17 3 976 3 976 liabilities Total value hierarchy level 1 (net) Interest-free current liabilities, 6,18,19 2 9 2 3 235 3 245 incl. tax payable Total value hierarchy (663) 205 4 (454) level 2 (net) Financial liabilities 15 806 Total value hierarchy Total value hierarchy level 3 (net) level 1 (net) Total value hierarchy (424) 117 (6) (313) level 2 (net) The tables above are the basis for measure- ment method’s objectivity: el 1 and level 2 of fair value measure- Total value hierarchy further information about financial Level 1: Use of listed prices in active ments in 2020, and no registrations of level 3 (net) assets and liabilities with references markets. financial assets or liabilities in or out to the subsequent notes. In addition Level 2: Use of valuation methods of level 3. to showing the classification cate- with observable market data as input. gories pursuant to IFRS 9, the tables Level 3: Use of valuation methods Fair value of financial also show on which level the Com- where input is based on a significant instruments measured at fair pany’s financial instruments at fair degree of non-observable market value in the balance sheet value have been assessed. data. The fair value of the Company’s No financial assets or liabilities derivatives and loans in foreign cur- Information on fair value have been reclassified in 2020 in rency (Japanese yen), where the fair Applied methods for determining such a way that the valuation meth- value option (FVO) pursuant to IFRS fair value are defined in three cat- od has been changed from amor- 9 has been applied, was measured egories reflecting varying levels of tised cost to fair value, or vice versa. on the basis of sources described in valuation uncertainty, based on the There were no transfers between lev- level 2. Note 19 has details.

162 163 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Financial assets and liabilities Financial assets and liabilities

Fair value of financial disclosure requirements of IFRS 7, cember 2020 was approximately the NOTE 14 INTEREST-FREE CURRENT RECEIVABLES instruments measured even though the assets or liabilities same as book value (amortised cost). The note gives an overview of the Company’s interest-free current receivables, including trade receivables, together at amortised cost in are not measured at fair value in the with the ageing of receivables and the provision for losses (ref. section 14 “Financial instruments” and section 15 the balance sheet balance sheet. “Accounts receivable” in the Company’s accounting principles). Information about fair value shall The fair value of receivables and be provided in accordance with the other financial liabilities at 31 De- 2020 2019

Accounts receivable 1 045 1 019 NOTE 12 FINANCIAL RISK AND CAPITAL MANAGEMENT Receivables from group companies 122 167 Posten Norge has a centralised finance function with the principal objective of securing the Group’s financial Accrued income 270 348 flexibility, as well as monitoring and managing financial risk. Prepaid expenses 153 118 Receivables from employees 1 1 The Group’s note 13 describes the Group’s financial risks and applies to Posten Norge AS, including market risk Short-term derivatives 3 104 (currency and interest rate risk), credit risk and liquidity risk. The Company uses derivatives to reduce market risk, and Group note 19 provides detailed information about derivatives and hedging (see also section 14 “Financial Other receivables 42 41 instruments” in the Company’s accounting principles). Interest-free current receivables 1 637 1 798 Accounts receivable by due date: Not due 935 850 NOTE 13 INTEREST-BEARING NON-CURRENT AND CURRENT RECEIVABLES The note gives an overview of the Company’s interest-bearing non-current and current receivables, including 0 - 30 days 104 140 sublease receivables. Non-current and current receivables mainly comprise loans from Posten Norge AS to other 31 - 60 days 12 9 group companies (ref. section 14 “Financial instruments” in the Group’s accounting principles). The note also includes 61 - 90 days 1 14 current and non-current financial sublease receivables. Over 90 days 2 12 Provisions for losses on receivables (9) (7) Total accounts receivable 1 045 1 019 2020 2019 Expected credit losses Non-current loans to group companies 1 117 1 204 Balance at 01.01 7 6 Long-term sublease receivables 259 257 Provisions made during the year 17 22 Other non-current receivables 6 13 Actual losses recognised against provisions (12) (19) Interest-bearing non-current receivables 1 382 1 474 (Over)/underfunded accruals in previous years (3) (2) Current loans to group companies 1 895 2 026 Balance at 31.12 9 7 Current sublease receivables 27 24 Total actual losses on receivables 12 19 Other current receivables 115 35 Provisions for losses on receivables by: Interest-bearing current receivables 2 037 2 086 General provision 9 7

The change in interest-bearing non­ include receivables concerning the premium funds in Storebrand. The Company’s carrying amount of ers with adequate payment ability date analyses and historical data. current receivables is mainly due group cash pool system and the first Note 16 Leasing obligations (lease interest-free current receivables and that outstanding amounts do Accrued income mainly includes to a reduction in loans to Posten’s year’s instalment of non-current agreements) has information on the was approximately the same as their not exceed established credit limits. income related to foreign postal property companies and changed loans. Company’s financial sublease re- fair value as at 31 December 2020. The Company applies the simplified services. Other receivables primarily classification of Posten’s loans to The Company’s other interest-bear- ceivables. The Company had no significant method for provisions for expected comprised receivables connected subsidiaries. ing current receivables mainly com- credit risk relating to one individu- credit losses on accounts receivable with social security refunds and re- Current loans to group companies prise prepayments to deposit and al contracting party, or to several and measures the provision at an ceivables associated with bank ser- contracting parties that could be amount corresponding to the ex- vices and Post-in-Shops. regarded as one group due to simi- pected credit loss during their life- Note 19 “Derivatives and hedging” larities in credit risk. The Company time. This is derived from a combi- has information on short-term deriv- has guidelines to ensure that credit nation of individual assessments and atives. sales are carried out only to custom- a general assessment based on due 164 165 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Financial assets and liabilities Financial assets and liabilities

NOTE 15 LIQUID ASSETS Company’s undiscounted lease obligations by due date: Liquid assets comprise cash in hand, bank deposits and short-term investments at low risk (ref. section 16 “Cash and cash equivalents” in the company’s accounting principles). Less than 1 year 787 1-2 years 704 2020 2019 2-3 years 620 Cash and cash equivalents 1 106 441 3-4 years 566 Short-term investments 3 468 3 378 4-5 years 528 Liquid assets 4 574 3 819 5-10 years 2 444 The improved liquidity is mainly due banks can settle withdrawals and liquid interest funds at low risk. The 10-20 years 3 293 to positive effects from improved deposits against each other, and the investments constituted an impor- More than 20 years 1 259 operating profits compared with net position will accordingly repre- tant part of the Company’s liquidity 2019 in addition to the sale of shares sent the balance between the bank reserve. Note 12 has more informa- Total non-discounted lease obligations at 31.12.2020 10 202 in an associated company. Instal- and the group account holder. tion on market-based investments ments on debt were also paid. As at 31 December 2020, Posten and interest funds. A corporate cash pool in Nordea had unused credit facilities on the The Company has established a The following amounts concerning lease agreements were recognised in the income statement: is used in Norway, Sweden, Denmark cash pool account in Nordea of bank guarantee in Nordea, limited to 2020 2019 and the UK, where in accordance MNOK 500. MNOK 550, to cover the employees’ Depreciation property with the agreements Posten Norge The Company’s short-term invest- withheld tax. 478 499 AS is the group account holder. The ments consisted of investments in Depreciation vehicles 188 208 Total depreciation 666 707 NOTE 16 LEASING OBLIGATIONS (LEASE AGREEMENTS) Write-downs property 17 The note shows lease agreements’ effects on Posten Norge AS’ financial position and earning, both as lessee and Total write-downs 17 lessor (ref. also section 17 “Lease obligations (lease agreements” in the Company’s accounting principles. Interest costs on lease obligations 282 291 Costs related to current lease agreements 65 45 1. Posten Norge AS as lessee Costs related to lease agreements concerning assets of low value, non-current 24 13 The Company’s lease agreements primarily comprised the lease of office premises, buildings and vehicles. The most significant lease agreements concerned Østlandsterminalen at Robsrud, Posten and Bring’s logistics Income from operational subleases of right-of-use assets 30 19 centre at Alnabru and Posthuset, Biskop Gunnerus’ gate 14 A. In addition, Posten Norge AS had almost 4 000 lease agreements for vehicles. Total outgoing cash flows related exercised during the agreement’s concern Østlands-terminalen at to lease agreements in 2020 were last period. When the agreement Robsrud, Posten and Bring’s logistics The following amounts concerning lease agreements were recognised in the balance sheet: MNOK 962 (MNOK 976 in 2019), of is made, the Company considers centre at Alnabru and the terminal 2020 2019 which MNOK 563 (MNOK 603 in whether it seems reasonable that at Berger. Property 6 542 7 058 2019) concerned down payments of the option to renew will be exer- lease obligations, and the rest was cised. The Company’s potential 2. Posten Norge AS as lessor Vehicles 383 394 payments of interest, short-term future lease payments not included In 2017, Posten Norge AS entered Total right-of-use assets 6 926 7 452 lease agreements and lease agree- in the lease obligation connected into an agreement with Bergertermi- ments of low value. with renewal options amounted to nalen AS to lease a newly built termi- Additions of right-of-use assets in 2020 amounted to MNOK 236 (MNOK 745 in 2019). NOK 6,0 billion (undiscounted) as nal at Berger. The building is used for Options to renew a at 31 December 2020 (5,9 billion warehousing, and was in 2020 sub- 2020 2019 lease agreement kroner in 2019), of which NOK 5,0 leased to the subsidiary Bring Ware- Non-current lease obligations 6 903 7 302 The Company’s property lease billion concerned lease agreements housing AS. The sublease agreement agreements have lease periods made with other companies in the has primarily the same terms as the Current lease obligations 559 580 normally varying between 3 and 25 Posten Group, as some properties principal agreement. Total lease obligations 7 462 7 882 years. Several of the agreements are owned through investments in The Company had no other signifi- have a renewal option that can be subsidiaries. The largest amounts cant lease agreements.

166 167 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Financial assets and liabilities Financial assets and liabilities

Finance lease agreements NOTE 17 INTEREST-BEARING NON-CURRENT AND CURRENT LIABILITIES 2020 2019 Interest-bearing non-current and current liabilities comprise debt to credit institutions, bond loans, certificate loans and other interest-bearing debt. Non-current liabilities are split between fixed interest and floating interest. Planned down Gain/(loss) from change in sublease agreements 15 (16) payments and the first year’s instalment of interest-bearing non-current liabilities are included in interest-bearing current Finance income on sublease receivables 10 11 liabilities (ref. section 14 “Financial instruments” and section 18 “Loans” in the Company’s accounting principles). Total gain/(loss) from finance lease agreements 25 (5) Interest-bearing non-current liabilities 2020 2019

Maturity of the Company’s non-discounted lease payments: Liabilities at fixed interest Liabilities to credit institutions 307 139 Less than 1 year 39 Bond loans 188 438 1-2 years 39 Total non-current liabilities at fixed interest 495 577 2-3 years 39 Liabilities at floating interest 3-4 years 38 Liabilities to credit institutions 450 721 4-5 years 37 Bond loans 163 913 More than 5 years 146 Total non-current liabilities at floating interest 613 1 633 Total non-discounted lease payments at 31.12. 339 Interest-bearing non-current liabilities 1 107 2 210 Unearned finance income related to outstanding lease payments (53) Net sublease receivables at 31.12.20201) 286 Interest-bearing current liabilities

1) Net sublease receivables at 31 December 2019 were MNOK 282 2020 2019 First year’s instalment on non-current liabilities 1 111 778 Certificate loan 300 400 Liabilities to group companies 2 565 1 960 Interest-bearing current liabilities 3 976 3 138

Posten Norge AS did not raise any est rate of 2,3 percent and mature Norge AS had certificate loans new long-term loans in 2020. Ordi- in the period 2021 - 2024. Posten totalling MNOK 300. The certificate nary instalments and down payments Norge AS also had non-current li- loans were classified as current on loans amounted to MNOK 779. abilities (including the first year’s interest-bearing liabilities, and the As at 31 December 2020, Posten instalment on long-term debt) of outstanding balance was reduced by Norge AS had non-current liabilities MNOK 1 419 at floating interest at a MNOK 100 from 2019. (including the first year’s instalment weighted average interest rate of 1,3 Liabilities to group companies on long-term debt) at fixed interest percent at 31 December 2020, ma- concerned the group cash pool. rates amounting to MNOK 800. turing in the period 2021-2024. Group note 12 has information on They had a weighted average inter- As at 31 December 2020, Posten the instalment profiles for liabilities.

Reconciliation of liabilities from financing activities

2020 2019

Liabilities at 01.01 3 388 3 882 Cash flows from financing activities (779) (500) Change in fair value (90) 6 Liabilities at 31.12 2 519 3 388

168 169 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Financial assets and liabilities Financial assets and liabilities

NOTE 18 INTEREST-FREE NON-CURRENT AND CURRENT LIABILITIES NOTE 19 DERIVATIVES AND HEDGING Interest-free liabilities mainly comprised short-term items such as trade accounts payable, other provisions All derivatives are used in the hedging of currency and interest rate risk. The value of the derivatives fluctuates in concerning salaries, public charges and other incurred expenses (ref. section 14 “Financial instruments” in relation to the underlying prices, and the note shows the fair value of open derivatives at the balance sheet date the Company’s accounting principles). (ref. section 14 “Financial instruments” in the Company’s accounting principles).

2020 2019 2020 Assets Liabilities Nominal value1)

Non-current derivatives 14 4 a) Cash flow hedging Other non-current liabilities 1 2 Interest-rate swaps NOK 7 (13) 1 008 Interest-free non-current liabilities 15 6 b) Other financial hedges (derivatives not included in hedge accounting according to IFRS) Provisions for payroll expenses and public charges 1 453 1 424 Interest-rate swaps NOK (2) 100 Accounts payable 472 441 Forward currency contracts SEK 2 (9) 703 Provisions for accrued expenses 459 509 Forward currency contracts EUR 4 Prepaid revenue 456 366 Combined interest-rate/currency swaps NOK 126 299 Liabilities to group companies 79 76 Total 135 (24) Restructuring 119 189 1) Amounts in transaction currencies Current derivatives 11 12 Other current liabilities 129 113 2019 Assets Liabilities Nominal value1) Interest-free current liabilities 3 179 3 130 a) Cash flow hedging Interest-rate swaps NOK 5 (4) 1 283 Provisions for salary expenses and sions for foreign postal businesses as eign postal businesses and unused b) Other financial hedges (derivatives not public charges mainly comprised well as provisions for transport costs sold stamps. included in hedge accounting according to IFRS) provisions for holiday pay, earned and maintenance and service related Note 10 has details on restructur- Interest-rate swaps NOK 1 (4) 248 but unpaid salaries and public dues. to the Company’s vehicle fleet. ing costs. Forward currency contracts SEK 3 (8) 703 The provision for accrued expenses Prepaid revenue is primarily con- Other current liabilities mainly Forward currency contracts EUR 1 7 included provisions for remuneration nected to the advance billing of comprised securities for financial for “Post-in-Shop” services, provi- franking machines, income from for- instruments. Combined interest-rate/currency swaps NOK 216 447 Total 226 (17)

1) Amounts in transaction currencies

The derivatives in the table above For all derivatives, the fair value is bond loan of MNOK 1 000 with ma- are classified by type of hedging for confirmed by the finance institutions turity on 28 September 2021. The accounting purposes, and the objec- with which the Company has made loan has a floating reference interest tive of the derivatives is described agreements. and was partly hedged by a fixed below. interest swap of MNOK 250. Posten a) Cash flow hedging Norge also entered into an amor- Information on fair value tising bilateral loan with floating The fair value of forward currency Interest rate swaps interest terms and maturity on 16 contracts is determined by applying In 2015, Posten Norge raised a bond December 2024. In 2018, approxi- the forward exchange rate on the loan of 7 years of MNOK 350 at a mately half of the loan was hedged balance sheet date. fixed coupon that in its entirety was with two fixed interest swaps with a The fair value of interest rate and swapped to floating interest in the future start date in 3 years. Accord- currency swaps is primarily deter- same transaction. MNOK 88 was ingly, the loan had floating interest mined by discounting future cash swapped back to fixed interest in terms for 3 years and fixed terms for flows at discount rates derived from 2015 and MNOK 100 in 2017. about half of the loan from Decem- observable market data. In 2017, Posten Norge raised a ber 2020.

170 171 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Financial assets and liabilities Equity information

Almost all critical terms (the dates are hedged at group level by forward currency swap agreements, and the NOTE 20 EQUITY for interest determination, calcu- currency contracts in Posten Norge derivative is recognised as an asset. The shares in Posten Norge AS are owned in full by the Norwegian state, represented by the Ministry of Trade, Indus- lation methods, reference interest AS. As at 31 December 2020, the An interest swap for approximately try and Fisheries (ref. section 19 “Equity” in the Company’s accounting principles). rate etc.) related to the derivatives Company has made forward contract one third of the loan of 5 billion Jap- described above are in accordance of MSEK 653 (the same as in 2019). anese yen partly converted the loan As at 31 December 2020, the share capital consisted of 3 120 000 shares at a nominal value of NOK 1 000. with underlying loan agreements. to fixed interest. The interest rate Before the annual dividend is determined, an independent evaluation of the financial situation and future prospects The cash flows of the interest rate Combined interest rate swap has the same maturity date as in the Group and Posten Norge AS shall be made. The proposed dividend for the accounting year 2020 is MNOK 560. swaps will therefore in all material and currency swaps the loan, but does not qualify for At the Annual General Meeting in June 2020, it was determined that no dividends be distributed for the accounting respects correspond with the inter- In 2008 and 2013, the company hedge accounting. In the table of year 2019. est payments on the loans. Hence, entered into long-term loan agree- derivatives and hedging relation- there are no significant sources for ments with Japanese life insurance ships, it is included in the line “in- hedging ineffectiveness. companies of 3 and 5 billion Japa- terest rate swaps” at a fair value of nese yen, respectively, at fixed in- MNOK -2 as at 31 December 2020. Hedge reserve in equity terest rate terms. At the same time, Upon entering into the loan agree- The Company’s statement of chang- combined interest rate and currency ment of 5 billion Japanese yen in es in equity shows net movements in swap agreements were made, effec- 2013 and the combined interest rate hedge reserves. tively giving the Company loans in and currency swap, the Company Norwegian kroner with floating in- made a CSA (Credit Support Annex) b) Other financial hedges terest. The loan from 2008 was paid agreement. This agreement defines (derivatives not included down in 2020. how two swap counterparties shall in hedging relations Posten Norge has made use of the act when the value of a swap chang- according to IFRS) “fair value option”(FVO) in IFRS 9 for es in favour of one of the parties dur- measuring these loans. Changes in ing the swap period. A deposit shall Forward contracts SEK and EUR interest rates or exchange rates re- be paid/received to reduce the cred- The Company uses forward curren- sulting in changes in the value of the it risk if the swap’s value exceeds the cy contracts in Swedish kroner and Japanese yen denominated loans threshold value (MEUR 2). The swap’s euros for hedging loans in currencies measured in Norwegian kroner are value is measured monthly, and if the from the Company to foreign sub- offset by changes in the value of the value in one of the parties’ favour is sidiaries. Rolling forward contracts combined interest rate and currency larger than MEUR 2, the excess value totalled MSEK 50 and MEUR 3,5 as swaps. shall be paid into the counterparty’s at 31 December 2020. The changes As at 31 December 2020, the val- account. As at 31 December 2020, in value are recognised in the income ue of the loan from the Japanese the Company had received MEUR 10 statement and will offset changes in life insurance company was MNOK from the counter-party. This is rec- the loans taken trough the income 424 (MNOK 415 in 2019), a change ognised as a current liability in the statement caused by currency fluc- in value since the borrowing date balance sheet. tuations. of MNOK 126. This change in value Investments in foreign subsidiaries corresponds to the interest and

172 173 03 Financials | Financial statements and notes for Posten Norge AS Financial statements and notes for Posten Norge AS | Financials 03 Other matters Other matters

NOTE 21 GUARANTEES/ASSETS PLEDGED AS SECURITY The balance sheet included the following amounts resulting from transactions with related parties: The Company has provided various guarantees, including rental guarantees, contract guarantees, debt guarantees, 2020 2019 and other payment guarantees, in connection with current operations. The Company has not pledged property of any Finance sublease receivables 271 282 significant value. Accounts receivable 111 138

2020 2019 Other receivables 3 023 3 259

Guarantees for group companies 968 677 Lease obligations 5 577 5 660 Other guarantees 6 9 Accounts payable 5 26 Total guarantees 974 686 Other payables 2 639 2 010 Net (4 816) (4 017)

In total, guarantees have increased and the City of Stockholm for Bring sidiaries in all, in the form of a so­ since last year due to an increase of Courier & Express AB. No amounts called “Letter of Support”. They all Other receivables and other liabilities guarantees to subsidiaries for leased are attached to these guarantees. expire in the first half of 2021. Other receivables and other liabilities mainly concerned the cash pool system and loans to subsidiaries (ref. notes 13 vehicles. As the parent company, Posten Ref. also the Group’s note 22 Guar- and 15). As at 31 December 2020, Posten Norge AS has provided general guar- antees/assets pledged as security. Norge AS has provided delivery guar- antees to support the subsidiaries Remuneration to the Board and management antees to Equinor for Bring Cargo AS financially. This applies to nine sub- Notes 2 and 3 in the consolidated financial statements have information about the remuneration to the Board and management. Some of the board members have board or executive positions in other enterprises. Some of the members of NOTE 22 RELATED PARTIES group management in Posten Norge AS have board positions in other enterprises. Posten Norge AS is not aware of transactions where these positions could have had any influence. Two parties are related if one party can influence the other party’s decisions. Relations with related parties are considered normal in business. NOTE 23 REGULATORY ISSUES Regulatory issues describe relevant matters and regulations not mentioned in other notes. The Company’s related parties are Directly owned subsidiaries are ried out in accordance with separate primarily subsidiaries in the Group shown in note 9. In addition, Posten agreements and at arm’s length with which Posten Norge AS has Norge AS has interests in associated terms. Shared costs in Posten Norge Postal regulations week in areas without any alternative are commercially non-viable shall, transactions. Posten Norge AS is the companies (see note 9). The table AS are distributed between the Postal regulations comprise the newspaper distribution. pursuant to the Postal Services parent company and has direct and below shows transactions with sub- group companies in accordance with Postal Services Act with associated Posten won the tender for week- Act, be covered by government pro- indirect control of approximately 80 sidiaries and other related parties. various formulas which vary depend- regulations and the delivery require- days in a competition arranged by curements granted over the state companies, primarily in the Nordics. Internal trade in the Group is car- ing on the type of cost. ments of the licence awarded to the Ministry of Transport, in compe- budget. This also applies for basic Posten. tition with two other parties. bank services through Posten’s rural In line with the Norwegian Par- mail network. The annual advance 2020 2019 liament’s amendment of the Postal Product accounts and grant to government procurements Purchases of goods and services from Services Act in the spring of 2019, government procurements is adjusted the following year based Subsidiaries 565 530 Posten’s ordinary mail distribution of commercially non- on a recalculation of the require- to letter boxes was reduced to every viable postal services ment according to the final product Associated companies 6 other weekday from July 2020. In accordance with the Postal Servic- accounts. The recalculation shall Sales of goods and services to At the same time, the Ministry es Act, Posten shall maintain product secure against over or under com- Subsidiaries 1 405 1 525 of Transport adjusted the require- accounts for regulatory purposes. pensation. Associated companies 1 ments for the distribution time for The accounts shall be submitted to For 2020, Posten received MNOK domestic mail in Posten’s licence. the Norwegian Communications Au- 449 for government procurements Lease payments for property to At least 85 percent of the mail shall thority annually. Posten’s appointed of commercially non-viable postal Subsidiaries 417 390 be delivered within three weekdays auditor performs control procedures and banking services. This was in Lease payments for property from after posting and at least 97 percent and issues a statement confirming line with Posten’s pre-calculation. In within five weekdays. that the accounts have been prepared accordance with later estimates, the Subsidiaries 61 75 After the transition to mail distri- in accordance with the requirements. Group has recognised MNOK 421 as bution every other day, newspaper Posten’s net costs related to the income for 2020. distribution takes place 6 days a duty to deliver postal services that The result effect of the final set-

174 175 03 Financials | Financial statements and notes for Posten Norge AS Alternative Performance Measures (APM) for Posten Norge Group | Financials 03 Other matters

tlement of government procurements with DNB expired for this part of the In the autumn of 2019, the Norwe- of commercially non-viable mail and network. gian Parliament approved the pro- banking services for 2019 was MNOK posal to introduce VAT on all e-com- 104,1 in 2020, including interest of Future prospects merce import of goods, regardless of Alternative MNOK 2,1. The amount was a supple- For 2021, the Norwegian Parliament value, from 2020. In that connection, mentary payment from the state to granted MNOK 566 to government a simplified registration and report- Posten due to higher net costs for the procurements of commercially non­ ing solution (VOEC – VAT on E-com- services than those constituting the viable postal services. The amount merce) was established for foreign Performance basis for the prepayment. is in line with Posten’s advance cal- suppliers for calculating and paying In 2020, a total of MNOK 523 was culations and principally concerns VAT on goods up to a value of NOK 3 recognised as income for the gov- net costs for mail distribution every 000 . At the same time, a transition- ernment procurements of commer- other day (MNOK 538). al arrangement was set up, meaning cially non-viable postal and banking Mail distribution every other day, that low value goods up to NOK Measures (APM) services. In addition, MNOK 64 was as implemented from July 2020 will, 350 be exempt from declaration, taken to income for government not be adequate to ensure adequate assumed to expire on 1 July 2021. payment pursuant to the tender con­ profitability. The postal services Posten cooperates with the customs Posten Norge Group tract of newspaper distribution in must be further adjusted in line with and duty authorities to secure a best sparsely populated areas. changed market conditions and cus- possible effective and consumer­ tomer needs. In 2020, the Ministry of friendly duty/VAT handling when the Basic banking services in Transport and Commu- nications re- transition period transpires. the rural postal network ceived studies on the consequences Posten’s agreement with DNB on Posten is obliged to offer basic of further reductions in government banking services in the rural post- banking services in the rural postal procurements in order to have a best al network expires at the end of network, ref. the act on basic banking possible knowledge basis for any June 2021. On 3 February 2021, the services through Posten Norge AS’ suggested changes. For Posten it is Ministry of Transport distributed sales network. The obligation is met vital that the government reimburs- for public review a proposal for an through an agent agreement with es Posten for the net costs of the amendment to the act. Should the DNB. The procurement of banking commercially non-viable services if amendment be passed, Posten’s ob- services in Posten’s remaining sales no room is allowed for continued ad- ligation to offer such services in the network (post offices and Post-in- justments to the service level in line rural postal network will end. shops) ended at the end of Sep- with falling mail volumes and chang- tember 2020 when the agreement es in customer needs.

NOTE 24 IMPACT OF THE CORONA PANDEMIC The Group’s note 26 describes the effects of the Corona pandemic, and this also applies for Posten Norge AS. The note describes the effect on operating income and operating result, write-downs of non-financial assets, financial risk and other changes in sources of estimation uncertainty. More information on write-downs of non-financial assets and changes in sources of estimation uncertainty for Posten Norge AS is provided in note 7 and note 2.

ALTERNATIVE PERFORMANCE MEASURES (APM) APPLIED IN THE 2020 ANNUAL REPORT The Groups financial information has been prepared in accordance with international accounting standards (IFRS). In addition, information is given about alternative performance measures that are regularly reviewed by management to improve the understanding of the result. The alternative performance measures presented may be defined differently by other companies. The Group’s performance measures and other target figures applied in the annual and quarterly reports are de- scribed below. 176 177 03 Financials | Alternative Performance Measures (APM) for Posten Norge Group Alternative Performance Measures (APM) for Posten Norge Group | Financials 03

Organic growth Operating profit/loss before financial items and tax (EBITDA) are They give the users of the financial Organic growth provides the Group’s management, Board and other users of the financial information with the depreciation (EBITDA), important financial parameters for information the opportunity to opportunity to analyse the underlying growth of operations. adjusted operating profit/loss, the Group and the basis for “adjusted assess the operating result on the operating profit/loss (EBIT) operating profit/ loss”. The adjusted basis of variable current items, as Group management follows the operating profit/ loss is EBITDA be- restructuring costs, gains and losses Year 2020 Year 2019 Group’s financial situation by using fore write-downs and other income on the sale of non-current assets + Revenue (current year) 23 996 24 212 common target figures (KPIs) and and expenses, but includes deprecia- and other income and costs outside - Revenue (last year) 24 212 23 894 target figures showing income and tion. Operating profit/loss (EBIT) in- the Group’s normal operations = Nominal change in revenue (216) 317 expenses related to the Group’s cludes the Group’s write-downs, oth- considered to have limited predictive ordinary operations. The alternative er income and expenses, and income value are excluded. It is also target figures applied in the reports from associated companies. assumed that the target figures Year 2020 Year 2019 to Group management comprise The target figures are valuable contribute to a more comparable + Nominal change in revenue (216) 317 earnings excluding items of a limited for the users of Posten’s financial evaluation of the operating results of predictive value. information, including management, the Group’s competitors. +/- Impact of exchange rates (516) (42) Profit/loss before depreciation, the Board and external parties. +/- Acquisitions of companies (44) +/- Sale of companies1) 868 251 Year 2020 Year 2019 +/- Change in government procurements 96 (83) + Revenue 23 996 24 212 +/- IFRS 16 effects 31 - Costs of goods and services 9 937 10 340 = Organic change in revenue 232 430 - Payroll expenses 8 523 8 846

1) Adjustment of revenue for companies sold - Other operating expenses 2 650 2 666 = EBITDA 2 886 2 361

Year 2020 Year 2019

+ Organic change in revenue 232 430 Year 2020 Year 2019 / Adjusted revenue2) 23 575 24 073 + EBITDA 2 886 2 361 = Organic growth 1,0 % 1,8% - Depreciation 1 463 1 552 2) Adjustment of revenue for currency effects, acquisitions, government procurements and IFRS 16 effects. = Adjusted operating profit 1 423 808

Year 2020 Year 2019

+ Adjusted operating profit 1 423 808 / Revenue 23 996 24 212 = Adjusted profit margin 5,9 % 3,3%

Year 2020 Year 2019

+ Adjusted profit margin 1 423 808 - Write-downs 169 172 +/- Other income and (expenses) 119 (479) + Share of profit or loss from associated companies 112 5 = Operating profit (EBIT) 1 485 162

Year 2020 Year 2019

+ Operating profit (EBIT) 1 485 162 / Revenue 23 996 24 212 = EBIT margin 6,2 % 0,7%

178 179 03 Financials | Alternative Performance Measures (APM) for Posten Norge Group Alternative Performance Measures (APM) for Posten Norge Group | Financials 03

Net interest-bearing debt Net interest-bearing debt and the Group’s accounting figures (with- 31.12.2020 31.12.2019 (NIBD) and liquidity reserve liquidity reserve are indicators of out the effect of IFRS 16 Leases), of A primary objective of the Group’s the Group’s liquidity and are closely which net liabilities/ EBITDA is one. + Commercial financial investments 3 468 3 378 financial guidelines is to secure followed by the Group’s centralised The debt ratio shows the share of + Syndicate facility 2 932 3 452 financial freedom of action for the finance function. The liquidity re- equity related to both short- and - Certificate loans 300 400 Group. Such freedom makes it pos- serve is also an individual target that long-term debt. sible to operationalise strategies can be used to assess the Group’s The Group’s liquidity reserve in- = Long-term liquidity reserve 6 100 6 430 and achieve the business’ goals. liquidity requirements. cludes all assets available to finance The Group shall at all times have Net interest-bearing debt com- operations and investments. It is allo- 31.12.2020 31.12.2019 adequate access to capital to cover prises both short-term and long- cated to amounts available according normal fluctuations in the Group’s term interest-bearing debt reduced to agreements in the short and longer + Long-term liquidity reserve 6 100 6 430 liquidity needs, refinancing risk and by commercial financial investments term and as such is a useful target in + Deposits on group account 1 091 381 normal expansion without individual and cash and cash equivalents. considering whether the Group has + Deposits outside group account 59 92 projects triggering a need for special The Group has covenants in adequate liquidity to achieve the financing measures, i.e. adequate conne- ction with external financing. Group’s approved strategy. + Bank overdraft not utilised 500 500 resources to realise the Group’s ap- Compli- ance with the covenants = Short-term liquidity reserve 7 749 7 404 proved strategies. is calculated on the basis of the

Invested capital and return on invested capital (ROIC) 31.12.2020 31.12.20201) 31.12.2019 The Group creates value for the owners by investing cash today that contributes to increased cash flows in the future. + Interest-bearing non-current liabilities 3 623 1 123 5 596 Value is generated as long as the business is growing and achieves a higher return on its invested capital (ROIC) than + Interest-bearing current liabilities 2 037 1 413 1 971 the capital costs (WACC). It is a useful tool to measure whether the investments generate adequate return. Items included in the calculation of invested capital are shown below: - Commercial financial investments 3 468 3 468 3 378 - Cash 16 16 60 31.12.2020 31.12.2019 - Bank deposits corporate cash pool account 1 095 1 095 382 + Intangible assets 1 921 2 023 - Bank deposits 55 55 91 + Tangible fixed assets 9 112 9 535 = Net interest-bearing debt/(receivables) 1 027 (2 097) 3 655 + Current assets 7 873 7 574 1) Not including IFRS effects. Financial leases included as per IAS 17. - Total liquid assets 4 087 3 654 - Interest-bearing current assets 87 59 31.12.2020 31.12.20201) 31.12.2019 - Interest-free current liabilities 4 755 4 525 + Net interest-bearing debt/(receivables) 1 027 (2 097) 3 655 + Tax payable 129 83 / Equity on the balance sheet date 7 367 7 440 6 363 + Dividends and group contributions (1) 8 = Debt/equity ratio 0,1 (0,3) 0,6 = Invested capital 10 106 10 985 1) Not including IFRS effects Rolling 12 months’ figures

31.12.2020 31.12.20201) 31.12.2019 31.12.2020 31.12.2019 + Net interest-bearing debt/(receivables) 1 027 (2 097) 3 655 + Last 12 months’ accumulated adjusted operating profit 1 423 808 / EBITDA 2 886 1 953 2 361 / Invested capital 10 106 10 985 = Net interest-bearing debt/(receivables)/EBITDA 0,4 (1,1) 1,5 = Return on invested capital (ROIC) 14,1 % 7,4% 1) Not including IFRS effects

180 181 03 Financials | Alternative Performance Measures (APM) for Posten Norge Group Statement of the Board of Directors | Financials 03

Other alternative performance measures Statement of the Board of Directors The Group uses and presents some other individual performance measures considered to be useful for the market We confirm that, to the best of our knowledge, the financial statements have been prepared in accordance with and the users of the Group’s financial information. These measures are shown in the table below: approved accounting standards and give a true and fair view of the Group and parent company’s consolidated assets, liabilities, financial position and results of operations. Year 2020 Year 2019

+ Total investments in owned tangible fixed assets 752 646 We also confirm that the Board of Directors’ report provides a true and fair view of the development, performance and financial position of the business of the Group and the parent company, together with a description of the key risks - Investments due to acquisitions 52 and uncertainties that the Company is facing. = Investments before acquisitions 700 646

31.12.2020 31.12.2019

+ Profit after tax last 12 months 1 123 13 / Average equity on balance sheet date1) 6 865 6 422 25 March 2021 = Return on equity after tax (ROE) 16,4 % 0,2%

1) (Opening + closing balance)/2

31.12.2020 31.12.2019

+ Equity at balance sheet date 7 367 6 363 Andreas Enger (Chair) / Equity and liabilities (total capital) 19 643 19 867 = Equity ratio 37,5 % 32,0%

Anne Carine Tanum (Deputy Chair)

Tina Stiegler Henrik Höjsgaard Finn Kinserdal Liv Fiksdahl

Gerd Øiahals Lars Nilsen Ann Elisabeth Wirgeness Tove Gravdal Rundtom

Tone Wille (Group CEO)

182 183 2 Statsautoriserte revisorer Foretaksregisteret: NO 976 389 387 MVA Ernst & Young AS Tlf: +47 24 00 24 00

Dronning Eufemias gate 6A, NO-0191 Oslo www.ey.no Postboks 1156 Sentrum, NO-0107 Oslo Medlemmer av Den norske revisorforening

on risk free rate, market risk premium and beta values for comparable companies. We considered the INDEPENDENT AUDITOR’S REPORT mathematical accuracy of the models and the sensitivity of the assumptions applied. We tested the consistency of the application of key assumptions and evaluated the Group’s accuracy in previous years’ impairment tests. To the Annual Shareholders' Meeting of Posten Norge AS We refer to the consolidated financial statements’ section 3.1 and 10 in the accounting principles about

estimated impairment of assets and intangibles and note 8 on intangible assets. Report on the audit of the financial statements Other information Opinion Other information consists of the information included in the Company’s annual report other than the financial statements and our auditor’s report thereon. The Board of Directors and Chief Executive Officer We have audited the financial statements of Posten Norge AS, which comprise the financial statements (management) are responsible for the other information. Our opinion on the financial statements does not for the parent company and the Group. The financial statements for the parent company and the Group cover the other information, and we do not express any form of assurance conclusion thereon. comprise the balance sheets as at 31 December 2020, income statement, statements of comprehensive income, the statements of cash flows and changes in equity for the year then ended and notes to the In connection with our audit of the financial statements, our responsibility is to read the other information, financial statements, including a summary of significant accounting policies. and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, In our opinion, the financial statements have been prepared in accordance with laws and regulations and based on the work we have performed, we conclude that there is a material misstatement of this other present fairly, in all material respects, the financial position of the Company and the Group as at 31 information, we are required to report that fact. We have nothing to report in this regard. December 2020 and their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU. Responsibilities of management for the financial statements Basis for opinion Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards as adopted by the EU, and for such internal We conducted our audit in accordance with laws, regulations, and auditing standards and practices control as management determines is necessary to enable the preparation of financial statements that generally accepted in Norway, including International Standards on Auditing (ISAs). Our responsibilities are free from material misstatement, whether due to fraud or error. under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company and the Group in accordance with In preparing the financial statements, management is responsible for assessing the Company’s ability to the ethical requirements that are relevant to our audit of the financial statements in Norway, and we have continue as a going concern, disclosing, as applicable, matters related to going concern and using the fulfilled our ethical responsibilities as required by law and regulations. We have also complied with our going concern basis of accounting, unless management either intends to liquidate the Company or to other ethical obligations in accordance with these requirements. We believe that the audit evidence we cease operations, or has no realistic alternative but to do so. have obtained is sufficient and appropriate to provide a basis for our opinion. Auditor’s responsibilities for the audit of the financial statements Key audit matters Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are Key audit matters are those matters that, in our professional judgment, were of most significance in our free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that audit of the financial statements for 2020. These matters were addressed in the context of our audit of the includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate audit conducted in accordance with ISAs will always detect a material misstatement when it exists. opinion on these matters. For each matter below, our description of how our audit addressed the matter is Misstatements can arise from fraud or error and are considered material if, individually or in the provided in that context. aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the As part of an audit in accordance with law, regulations and generally accepted auditing principles in performance of procedures designed to respond to our assessment of the risks of material misstatement Norway, including ISAs, we exercise professional judgment and maintain professional scepticism of the financial statements. The results of our audit procedures, including the procedures performed to throughout the audit. We also address the matters below, provide the basis for our audit opinion on the financial statements. ► identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, Impairment of Goodwill design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from The Group has goodwill amounting to MNOK 1 284 in the balance sheet. No goodwill was written down in fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, the 2020 consolidated financial statements. misrepresentations, or the override of internal control; ► obtain an understanding of internal control relevant to the audit in order to design audit procedures that are The Group’s impairment tests require management to exercise judgment on estimates of future cash appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the flows and the determination of discount rates. Due to the significance of goodwill in the financial Company’s internal control; statements, historically weak earnings in part of the logistics business and the uncertainty related to ► evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and estimates of future cash flows, the Group’s impairment tests of goodwill have been a key audit matter. related disclosures made by management; We evaluated key assumptions in the impairment models, including growth, revenues and margins based ► conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on on prognoses approved by management. We considered the discount rate based on available information the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast

Independent auditor's report - Posten Norge AS

A member firm of Ernst & Young Global Limited A member firm of Ernst & Young Global Limited 3

significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern; ► evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation; ► obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

Opinion on the Board of Directors’ report and on the statements on corporate governance Based on our audit of the financial statements as described above, it is our opinion that the information presented in the Board of Directors’ report and in the statements on corporate governance concerning the financial statements, the going concern assumption, and proposal for the allocation of the result is consistent with the financial statements and complies with the law and regulations.

Opinion on registration and documentation Based on our audit of the financial statements as described above, and control procedures we have considered necessary in accordance with the International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information, it is our opinion that management has fulfilled its duty to ensure that the Company's accounting information is properly recorded and documented as required by law and bookkeeping standards and practices accepted in Norway.

Oslo, 25 March 2021 ERNST & YOUNG AS

Petter Larsen State Authorised Public Accountant (Norway)

(This translation from Norwegian has been made for information purposes only.)

Independent auditor's report - Posten Norge AS

A member firm of Ernst & Young Global Limited Postboks 1500 Sentrum, 0001 Oslo www.postennorge.no

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