Randstad N.V. is a public limited liability company incorporated and domiciled in the Netherlands and listed on Euronext Amsterdam. The registered office of the company is in Amsterdam. The address of the company is Diemermere 25, 1112 TC Diemen, The Netherlands.
The consolidated financial statements of Randstad N.V. include the company and its subsidiaries (together called the 'Group').
See note 28 for IFRS consolidation policies and an overview of selected subsidiaries.
Randstad specializes in solutions in the field of work and human resources services. Our services comprise temporary and permanent placements. In addition, we offer recruitment process outsourcing services (RPO), managed services programs (MSP), payroll services, outplacement services, and job posting and r\u00e9sum\u00e9 services on digital platforms.
The financial statements were signed and authorized for issue by the Executive Board and Supervisory Board on February 13, 2023. The adoption of the financial statements and the adoption of the dividend are reserved for the shareholders in the Annual General Meeting of Shareholders (AGM) on March 28, 2023.
The significant accounting policies applied in the preparation of these consolidated financial statements are set out separately below or explained in the respective notes to these financial statements. These policies have been consistently applied to the periods presented.
The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards and IFRS IC interpretations (IFRIC), as adopted by the European Union (hereinafter IFRS) and in accordance with the legal requirements of Part 9, Book 2 of the Dutch Civil Code.
New standards, amendments and/or interpretations to existing IFRS standards became effective in 2022. These new standards, amendments and interpretations, as far as they are relevant to the Group, have no impact on the valuation and classification of assets and liabilities of the Group, nor on its income statement or cash flows.
For the amendment to IAS 37 'Provisions Contingent Liabilities and Contingent Assets', which was issued in May 2020 and effective as of January 1, 2022, see note 6 (provisions).
New standards, amendments and/or interpretations to existing IFRS standards have been published that only need to be applied to accounting periods beginning on or after January 1, 2023. As far as these standards, amendments and interpretations are applicable to the Group, these are expected to have no effect on the valuation and classification of assets and liabilities. The Group has decided not to opt for early adoption.
The financial statements are prepared under the historical cost convention and on a going concern basis. See note 3.2.2 (liquidity risk) and note 3.3 (impact of global macroeconomic and geopolitical uncertainty) for further disclosures.
For both current assets and liabilities (expected to be recovered or settled within 1 year) and non-current assets and liabilities (expected to be recovered or settled/ extinguished after 1 year), the corresponding presentation is used on the face of the balance sheet.
The Group operates in countries with different currencies. All subsidiaries have as their functional currency the local currency of the country in which they operate. The Group and its parent company use the euro as their functional and presentation currency.
All amounts in tables are presented in millions of euros, unless explicitly stated otherwise.
Fair value estimations are mainly used with respect to financial assets and financial liabilities.
As no financial assets and liabilities of the Group are traded in active markets, the fair value of financial assets and liabilities is estimated by discounting the future contractual cash flows at current market interest rates that are available to the Group for similar financial assets and liabilities. The fair value is only calculated for disclosure purposes.
Because of this valuation method, which uses observable market data for the interest rates, the resulting fair value estimates reflect 'Level 2 Financial Instruments' for 2022 and 2021.
Randstad N.V.'s policy is to maintain a sound financial position through a leverage ratio (net debt/EBITDA) of below 2. We believe this is important in order to maintain the confidence of clients, talent, creditors, and investors, and to sustain the future development of our business.
Our financing policy aims to secure financing that matches the Group's mid- to long-term financing requirements.
Randstad's dividend policy is part of our capital allocation policy, and consists of two elements.
Firstly, we pay out an ordinary cash dividend. We aim for a flexible payout ratio of 40% to 50% of net profit adjusted for amortization and impairment of acquisition-related intangible assets and goodwill, integration costs, and one-offs. In addition, we have set a conditional ordinary cash floor dividend of \u20ac\u00a01.62 per share. This baseline dividend level will be maintained even when the 40-50% payout ratio is temporarily exceeded, barring (i) seriously adverse economic conditions, (ii) material strategic changes to the sector, and (iii) a material deterioration in our solvency and liquidity ratios.
Secondly, we have set discretionary additional returns to shareholders in the event of a leverage ratio below 1.0 (pre IFRS 16 'Leases') through either (i) a special cash dividend or (ii) share buybacks.
The Group is exposed to a variety of financial risks, including credit risk, liquidity risk, foreign currency exchange risk, and interest rate risk. One of the objectives of the Group's Risk & Control framework is to minimize potential adverse effects on the financial performance of the Group.
Our Risk & Control framework is in place to ensure that risks are detected, measured, and reported properly. Risk management procedures are carried out under policies that have been approved by the Executive Board.
Credit risk within the Group arises from the possibility that clients and other counterparties may not be able to settle their obligations towards the Group.
Credit control policies are included in a blueprint, which is a global document including prescribed work procedures and guidelines. To manage credit risk, credit checks are, in principle, performed upfront for new customers. For high-risk clients, credit limits are put in place based on internal and/or external ratings. Credit risk is monitored by the credit control departments of our operating companies on a daily basis.
An international credit committee is in place to share best practices and to share knowledge of developments in various industries.
The Group has no significant concentrations of credit risk, as the Group has many clients in a large number of industries and countries.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Trade receivables | 4,819 | 4,521 |
| Less: allowance for expected credit losses | 46 | 44 |
| Trade receivables, net of allowance for expected credit losses | 4,773 | 4,477 |
| Other receivables | 742 | 669 |
| Prepayments | 296 | 269 |
| Net plan assets defined benefit pension plan | 3 | 5 |
| Loans | 7 | 7 |
| Net investments in subleases | 7 | 5 |
| Total trade and other receivables | 5,828 | 5,432 |
The carrying amount of these receivables reflects the fair value.
The Group does not hold any collateral as security.
Trade and other receivables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method less allowance for expected credit losses.
Trade and other receivables are hold-to-collect contractual cash flows.
For net plan assets relating to the defined benefit pension plan, see note 24.2.
The allowance for expected credit losses (ECL) of trade receivables is based on individual assessments of expected non-recoverable receivables as well as on expected credit losses estimated using a provision matrix by reference to past default experiences on the portfolio of trade receivables of subsidiaries in relation to revenue streams, and various other (external) sources of actual and forecast economic information.
In our estimation, we have taken into account the impact due to changes in macroeconomic circumstances like the conflict in Ukraine, supply chain disruptions, increased cost of living and to a lesser extent COVID-19 on the expected credit risk in our portfolio. We did not see a major deterioration of our portfolio in 2022 compared to 2021.
Significant financial difficulties of the debtor, the probability that the debtor will enter into bankruptcy or financial reorganization, serious default or delinquency in payments, and significant overdues in payment are considered indicators that the trade receivable is in default and a credit loss is expected to occur. The amount of the allowance is equal to the difference between the carrying amount of the receivable and the present value of estimated future cash flows.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 44 | 52 |
| Charged to selling expenses | 11 | (2) |
| Receivables written off as uncollectable | (9) | (7) |
| Translation differences | - | 1 |
| Balance as at December 31 | 46 | 44 |
In the allowance for expected credit losses of trade receivables, an allowance is included for individually impaired trade receivables of \u20ac\u00a016 million (2021: \u20ac\u00a020 million). The remainder is related to other expected credit losses, which are measured at an amount equal to lifetime ECL, based on the approach described above.
The allowance for expected credit losses of trade receivables is excluding recoverable value-added taxes.
Net amounts charged to this allowance are generally written off when there is no expectation of recovering additional cash.
The table 'expected credit losses' below shows the rate of expected credit losses for various appropriate past due categories.
| \u00a0 | trade receivables - days past due | \u00a0 | ||||
|---|---|---|---|---|---|---|
| not past due | 0-4 weeks | 5-16 weeks | 17 weeks and over | doubtful debts | total | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| December 31, 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| ECL rate | 0.1% | 0.5% | 1.7% - 8.5% | 17.7% - 62% | 100% | \u00a0 |
| Estimated total gross carrying amount at default | 3,635 | 391 | 177 | 36 | 16 | 4,255 |
| Lifetime ECL | 2 | 2 | 6 | 20 | 16 | 46 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| December 31, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| ECL rate | 0.1% | 0.6% | 2.1% - 9.8% | 20% - 54% | 100% | \u00a0 |
| Estimated total gross carrying amount at default | 3,455 | 333 | 140 | 30 | 20 | 3,978 |
| Lifetime ECL | 3 | 2 | 6 | 13 | 20 | 44 |
| \u00a0 | 2022 | 2021 | ||
|---|---|---|---|---|
| amount | % | amount | % | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 0-4 weeks | 2,710 | 56.2 | 2,550 | 56.4 |
| 5-16 weeks | 1,979 | 41.1 | 1,860 | 41.1 |
| 17-26 weeks | 82 | 1.7 | 63 | 1.4 |
| Not impaired | 4,771 | 99.0 | 4,473 | 98.9 |
| Impaired | 48 | 1.0 | 48 | 1.1 |
| Total trade receivables | 4,819 | 100.0 | 4,521 | 100.0 |
The information with regard to aging categories is based on the invoice date, as the risk of non-payment starts from this date.
For other financial assets, which for the main part comprise receivables on governmental or semi-governmental bodies, see note 21.
Excess cash positions are invested with preferred financial partners, which are mostly considered to be high-quality financial institutions with sound credit ratings, or in highly rated liquidity funds. Policies are in place that limit the amount of credit exposure to any one financial institution.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations. The Group's approach to liquidity risk is to ensure, as far as possible, that it will always have sufficient funds available to meet its liabilities when due, under both normal and stressed conditions. This risk is managed by having sufficient availability of cash, as well as committed and uncommitted credit lines, both at Group and subsidiary level.
As at December 31, 2022, the Group had a \u20ac\u00a01,750 million (2021: \u20ac\u00a01,850 million) committed multi-currency syndicated revolving credit facility at its disposal, which matures in May 2027 (2021: July 2024). The term may potentially be extended to a maximum of seven years (i.e., maturing in May 2029) through the exercise of two extension options, which are at the banks' discretion. The facility agreement, which is a refinancing of the previous facility (\u20ac\u00a01,850 million), contains the same covenant with respect to the net debt to EBITDA ratio (leverage ratio), as well as a paragraph on material adverse changes. The net debt to EBITDA ratio has a limit of 3.5x and is calculated based on the results of the Group on a 12-month basis. In certain cases, Randstad is allowed to report a leverage ratio of 4.25x EBITDA for a limited period of time. This credit facility has an interest rate that is based each time on the term of the drawings, increased by a margin above the applicable Euribor or LIBOR rates. The margin is variable and depends on the 'net debt to EBITDA' ratio.
The facility agreement stipulates that the calculation of this ratio is based on the accounting policies as included in the annual report 2011, being the initial starting date of the current facility.
In 2022, the Group had two committed bilateral revolving credit facilities of \u20ac\u00a0200 million each (2021:\u00a0\u20ac\u00a0200\u00a0million), with a three-year tenor, maturing in December 2024, and a committed bilateral term loan of USD 300 million\u00a0 (2021:\u00a0USD 300\u00a0million), with a three-year tenor, maturing in December 2024. The revolving credit facilities have an interest rate that is each time based on the term of the drawing, increased with a fixed margin above the applicable Euribor rates. Covenants are fully aligned with the committed multi-currency syndicated revolving credit facility. The term loan has an interest rate that is each time based on the term of the drawing, increased by a margin above the applicable Libor rate. The margin is variable and depends on the leverage ratio. Covenants are fully aligned with the committed multi-currency syndicated revolving credit.
The actual leverage ratio (pre IFRS 16 'Leases') as at December 31, 2022 is 0.2 (December 31, 2021: \u22120.1), which is well below the limit.
Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost.
Any difference between the proceeds and the amount to be repaid is recognized in net finance costs during the term of the borrowings, using the effective interest method.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Non-current borrowings | 477 | 664 |
| Non-current borrowings | 477 | 664 |
| \u00a0 | \u00a0 | \u00a0 |
| Current borrowings | 69 | 16 |
| Borrowings, under current liabilities | 69 | 16 |
| Total borrowings | 546 | 680 |
Since the interest rates on the current borrowings and non-current borrowings fluctuate with the market, the effective interest rates are considered equal to the actual rates.
Negative pledges have been issued for purposes of bank overdraft facilities, and 'pari passu' clauses apply.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 664 | - |
| Drawings on non-current borrowings | 766 | 664 |
| Repayments of non-current borrowings | (970) | - |
| Amortization of transaction costs | 1 | - |
| Translation and currency differences | 16 | - |
| Balance as at December 31 | 477 | 664 |
Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 16 | 141 |
| Acquisition of subsidiary companies | 32 | 23 |
| Drawings / (repayments) | 26 | (148) |
| Net increase / (decrease) cash flow statement | 58 | (125) |
| Translation and currency differences | (5) | - |
| Balance as at December 31 | 69 | 16 |
| Bank overdrafts | 69 | 16 |
| Money market drawings | - | - |
| Balance as at December 31 | 69 | 16 |
Bank overdrafts are denominated in various currencies. As at December 31, 2022, the major bank overdraft denominated in foreign currencies is for an amount of \u20ac\u00a05 million in US dollars (December 31, 2021: \u20ac\u00a03 million).
Maturities of financial liabilities are expected to be:
| \u00a0 | carrying amount | 0 - 90 days | 91 - 365 days | 2 - 5 years | more than 5 years |
|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| December 31, 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Non-current borrowings1 | 477 | - | - | 477 | - |
| Lease liabilities (non-current and current)2 | 598 | 50 | 136 | 359 | 118 |
| Borrowings under current liabilities3 | 69 | 69 | - | - | - |
| Trade and other payables4 | 4,495 | 4,014 | 481 | - | - |
| Other liabilities5 | 7 | - | - | 7 | - |
| \u00a0 | 5,646 | 4,133 | 617 | 843 | 118 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| December 31, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Non-current borrowings | 664 | - | - | 664 | - |
| Lease liabilities (non-current and current)2 | 594 | 50 | 138 | 355 | 83 |
| Borrowings under current liabilities3 | 16 | 16 | - | - | - |
| Trade and other payables4 | 4,351 | 3,883 | 468 | - | - |
| Other liabilities5 | 4 | 2 | 2 | - | - |
| \u00a0 | 5,629 | 3,951 | 608 | 1,019 | 83 |
including interest payments
Cash and cash equivalents comprise cash on hand and at bank, as well as time deposits and other short-term highly liquid investments with original maturities of three months or less.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Time deposits | 16 | 130 |
| Cash on hand and at bank | 258 | 729 |
| Total cash and cash equivalents | 274 | 859 |
Time deposits fall due, on average, within a month. The average interest rate for time deposits is 9.1% (December 31, 2021: 0.2%).
An amount of \u20ac\u00a0241 million out of \u20ac\u00a0274 million (December 31, 2021: \u20ac\u00a0827 million out of \u20ac\u00a0859 million) is available upon demand.
The net debt includes the balance of cash, cash equivalents, and borrowings (both current and non-current), as well as lease liabilities (current and non-current).
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Non-current borrowings | (477) | (664) |
| Current borrowings | (69) | (16) |
| Total borrowings | (546) | (680) |
| Cash and cash equivalents | 274 | 859 |
| Net cash/(net debt), excluding lease liabilities | (272) | 179 |
| Lease liabilities | (598) | (594) |
| Net debt | (870) | (415) |
Transactions in currencies other than the functional currency of the related subsidiary are converted at the foreign exchange rate on the date of the transaction.
Monetary balance sheet items (such as cash and borrowings) in currencies other than the functional currency of the related subsidiary are converted at year-end exchange rates.
Exchange differences resulting from the settlement of transactions on cash, cash equivalents, and borrowings, as well as from the conversion of these monetary balance sheet items, are included in net finance costs. Exchange differences resulting from the settlement of other transactions and conversion of other monetary balance sheet items are included in operating expenses.
Non-monetary balance sheet items (such as property, plant and equipment) that are measured in terms of historical cost in currencies other than the functional currency of the related company are converted at the foreign exchange rates on the date of transaction.
The Group uses the euro as its reporting currency. Currencies other than the euro that are of primary importance to the Group are the Australian dollar, the Canadian dollar, the Japanese yen, the Swiss franc, the UK pound sterling, and the US dollar.
| \u00a0 | 2022 | 2021 | ||
|---|---|---|---|---|
| average | at year-end | average | at year-end | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australian dollar | 0.66 | 0.64 | 0.64 | 0.64 |
| Canadian dollar | 0.73 | 0.69 | 0.67 | 0.70 |
| Japanese yen | 0.0072 | 0.0071 | 0.0077 | 0.0076 |
| Swiss franc | 0.99 | 1.01 | 0.92 | 0.96 |
| UK pound sterling | 1.17 | 1.13 | 1.16 | 1.19 |
| US dollar | 0.95 | 0.93 | 0.85 | 0.88 |
averages on annual basis
The foreign currency exchange risk of the Group with respect to transactions is limited, because subsidiaries usually generate both revenues and expenses in the same local currency.
All other foreign exchange transactions, which mostly consist of intercompany financing (equity increases, dividends, intercompany loans, and interests), are accounted for, in principle, at the exchange rate at the transaction date. The Group has a policy to match, within certain preset boundaries, the currencies in the net debt positions with the currencies in the cash flow generation. The currency mix of the debt can easily be adjusted, as the \u20ac\u00a01,750 million syndicated revolving credit facility is a multi-currency facility. In principle, the use of derivatives is therefore unnecessary.
At year-ends 2022 and 2021, the Group had no outstanding interest rate or currency derivatives.
Currency fluctuations can, however, affect the consolidated results, due to the translation of local results into the Group's reporting currency.
Translation effects from consolidation may also impact shareholders' equity. The Group has a number of net investments in foreign subsidiaries whose assets and liabilities are exposed to currency translation risk that is accounted for, through total other comprehensive income, in equity. Currency exposures arising from the net assets of the Group's foreign operations are monitored and, when considered necessary, hedged against borrowings in the relevant currencies through a net investment hedge; translation differences on borrowings classified as such are included, through comprehensive income, in equity.
In the Group, two subsidiaries (based in Argentina and Turkey) are accounted for in accordance with IAS 29 'Financial reporting in hyperinflationary economies'. The application of this standard has no material effect on the consolidated financial statements. The general price indices published for Argentina and Turkey are used in restating the results of these subsidiaries. The CPIs for Argentina and Turkey as at 31 December 2022 were 1,135 and 1,128 (December 31, 2021: 582 and 687) respectively. The effect of the adjustment on the results of the Group designated as the result on net monetary position totaled \u20ac\u00a03 million during the current year (2021: \u20ac\u00a00.9 million) and is presented under net finance costs.
If the euro had weakened or strengthened 15% on average during 2022 against the currencies mentioned in the table 'main exchange rates to the euro', with all other variables held constant, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a03 million \u2212 \u20ac\u00a044 million per currency. If the euro had weakened or strengthened 10% on average against these currencies, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a02 million \u2212 \u20ac\u00a030 million per currency (2021: range of \u20ac\u00a01 million \u2212 \u20ac\u00a020 million per currency). The effect on shareholders' equity would have been the same (before tax effects).
| \u00a0 | 2022 | 2021 | |
|---|---|---|---|
| 15% change1 | 10% change | 10% change | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australian dollar | 3 | 2 | 2 |
| Canadian dollar | 6 | 4 | 4 |
| Japanese yen | 9 | 6 | 6 |
| Swiss franc | 3 | 2 | 1 |
| UK pound sterling | 3 | 2 | 1 |
| US dollar | 44 | 30 | 20 |
The foreign exchange risk exposure on the consolidated financial assets is limited and not material. The foreign exchange risk exposure on the consolidated financial liabilities is hedged and therefore foreign exchange risk is limited.
The general policy is to keep interest rates on net debt floating as much as possible. We believe this adds value for shareholders in the long term, as over time floating interest rates are on average significantly lower than fixed interest rates. We also believe that the staffing industry has a natural hedge to interest rate changes (EBITDA levels usually move up and down more or less in line with interest rate levels), and since the Group is cash-generating, we aim to maintain floating interest rates on net debt as much as possible.
If the interest rate had been 2 percentage points higher on average during 2022, with all other variables held constant, net interest expenses for the year would have increased by \u20ac\u00a07 million.
If the interest rate had been 1 percentage point higher on average during the year, with all other variables held constant, net interest expenses for the year would have increased by \u20ac\u00a03 million (2021: \u20ac\u00a00 million higher).
For the year 2023 we do not expect the financial structure to change significantly.
In 2022, we experienced a number of dynamic market circumstances, such as the conflict in Ukraine, supply chain disruptions, increased cost of living and, to a lesser extent, COVID-related challenges.
Although we remain cautious as visibility remains limited, Randstad is well positioned to respond quickly and effectively amidst a challenging macro environment, thanks to our diverse portfolio, our scale and data insights, and high operational adaptability and flexibility.
As the impact of the global outbreak of COVID-19 on our business in 2022 was limited, it was not considered to be a triggering event to test the impairment of goodwill and other assets.
We are continuing to monitor and address the impacts of the COVID-19 outbreak in the next year, although we currently expect limited impact on our business. However, we cannot predict with certainty what these impacts will be for 2023.
We closely follow the geopolitical developments in Eastern Europe. We recognize that, in addition to the human toll, rising inflation and resulting higher interest rates are signs indicating that this war is affecting the global economy.
In 2022, the impact on our business was fairly limited. Looking ahead, there continues to be a high degree of global macroeconomic and geopolitical uncertainty. We are continuously monitoring the situation, with the aim of responding as quickly and effectively as possible to changing circumstances.
In preparing the financial statements, management has to make certain judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue, and expenses. The actual outcome may differ from these judgments, estimates, and assumptions, and therefore could have a material effect on the carrying amount of the asset or liability involved. The timing of outflow of resources to settle provisions is subject to the same uncertain factors. Judgments, estimates, and assumptions are reviewed on an ongoing basis, and are based on historical experience and various other factors, including expectations about future events that are believed to be reasonable under the circumstances and for the item involved. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
The Group considers the following accounting policies, judgments, estimates, and assumptions as critical, which are described in the notes as indicated:
The carrying amounts of the Group's non-financial assets, with the exception of deferred tax assets and the plan assets in relation to defined benefit pension plans, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For goodwill, testing for impairment is performed at least annually.
If there are such indications, the recoverable amount of the asset is estimated. If this is not possible, the recoverable amount of the cash-generating unit to which the asset belongs is estimated. For purposes of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Goodwill is allocated to groups of cash-generating units, being operating segments, for purposes of impairment testing.
If the recoverable amount of an asset or a cash-generating unit (or operating segment) is estimated to be lower than its carrying amount, the related carrying amount is reduced to its recoverable amount.
The resulting impairment loss is immediately recognized in total operating expenses.
The recoverable amount is the higher of an asset's fair value less costs to dispose and its value in use.
The value in use is determined by using the present value of estimated cash flow projections. The discount rates are based on interest rates that align with the terms of the projections and the specific risks of the asset or business respectively.
In determining the fair value less costs to dispose, information such as recent market transactions is taken into account; if no such transactions (or comparable transactions) can be identified, an appropriate valuation model is used. This valuation model is supplemented by valuation multiples, quoted share prices, or other available fair-value indicators.
Impairment losses relating to a cash-generating unit (or operating segment) are first allocated to reduce the carrying amount of the goodwill of the related cash-generating unit (or operating segment) and then to reduce the carrying amount of the other assets of that cash-generating unit (or operating segment) on a pro rata basis.
An impairment loss with respect to goodwill is not reversed.
With respect to other assets, an impairment loss recognized in a prior period is assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
For the impairment testing method of property, plant and equipment, software, and acquisition-related intangible assets, see notes 18, 19 and 20 respectively.
| \u00a0 | \u00a0 | 2022 | 2021 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | \u00a0 | 4,024 | 3,847 |
| Accumulated impairment | \u00a0 | 977 | 940 |
| Balance as at January 1 | \u00a0 | 3,047 | 2,907 |
| Acquisition of subsidiaries | \u00a0 | 69 | 91 |
| Impairment | \u00a0 | - | (2) |
| Translation differences | \u00a0 | 20 | 51 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
| Cost | \u00a0 | 4,107 | 4,024 |
| Accumulated impairment | \u00a0 | 971 | 977 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
In 2022, the Group acquired 100% of the shares of Avanzo (Spain), of Side (France), and of the Finite Group (Australia & New Zealand). See note 11.1 for further information.
In 2021, the Group acquired 100% of the shares of Cella, Inc. (USA), and of Hudson Benelux (Belgium). See note 11.1 for further information.
In 2022, the Group disposed of certain subsidiaries/activities in Japan. See note 11.2 for further information.
In 2021, the Group disposed of certain subsidiaries/activities in Germany and Switzerland. See note 11.2 for further information.
Goodwill on acquisitions of subsidiaries is included in intangible assets; goodwill on acquisitions of associates is included in investments in associates. For the measurement of goodwill at initial recognition, see note 11.1.
Goodwill on acquisitions represents payments made by the Group in anticipation of future economic benefits from assets that cannot be identified individually and cannot be recognized separately. These relate, for example, to synergies expected from integrating the acquired companies and the workforces of the acquired companies.
Goodwill is stated at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity that is sold. Where goodwill has been allocated to an operating segment and part of the operation within that operating segment is disposed of, the goodwill related to that part is included in the carrying amount of the disposed operation when determining the gain or loss on disposal. Goodwill disposed is calculated based on the relative value of the disposed operation of the total value of the operating segment to which the disposed operation belongs. If disposal of an entity results in a loss, the goodwill part in the loss is presented in the statement of comprehensive income as an impairment of goodwill, up to a maximum amount of the loss on disposal.
Goodwill is allocated to operating segments for the purpose of impairment testing. The allocation is made to those operating segments that are expected to benefit from the business combination in which the goodwill arose.
In the case of triggering events and at least annually, the Group tests whether intangible assets, being goodwill and acquisition-related intangible assets, have suffered any impairment. The recoverable amounts of cash-generating units have been determined using, among other instruments, value-in-use calculations. These calculations require the use of estimates. Based on these impairment tests, impairment losses, if any, are identified.
The recoverable amount for all operating segments is based on the higher of the value in use and the fair value less cost to dispose. The value in use is determined by means of cash flow projections based on the actual operating results adjusted for non-cash items (mainly depreciation and amortization) and the expected future performance, which in turn is based on historical performance, management's estimates and assumptions of revenue growth, and on developments of operating margins, assessed using external data, covering a period of, in principle, nine years (2021: nine years). Cash flow projections after this period are extrapolated by means of a growth percentage of 0.5% (2021: 0.25%) throughout the Group. The nine-year period of the projections reflects an estimated full business cycle of our industry.
We performed our annual goodwill impairment test as of October 1, 2022. Key assumptions in the cash flow projections are:
The cash flow projections are prepared in local currencies, and discounted with pre-tax discount rates for each currency involved. The pre-tax discount rates vary from 9.8% to 35.4% (2021: 9.1% to 27.7%). The weighted average is 13.5% (2021: average 12.1%); Netherlands: 12.1% (2021: 10.6%); USA: 13.7% (2021: 12.2%); France: 14.2% (2021: 12.7%).
The assumptions are based on the current best estimate of future macroeconomic developments, which is mainly reflected in the pre-tax discount rates. These assumptions contain inherent judgment due to the continued high degree of uncertainty and therefore might change following global macroeconomic and geopolitical developments.
The annual impairment test performed by the Group for 2022 resulted in no impairments (2021: no impairments).
For 2022, the operating segments UK, Sourceright EMEA, Germany, Poland, Scandinavia, Eastern Europe and Australia are most sensitive to variations in assumptions (2021: Germany, UK, Australia, and Sourceright EMEA). The outcome of impairment testing is sensitive to variations in estimates and assumptions. Variations in estimates and assumptions have the following effect on the impairment test calculations.
| \u00a0 | revenue decrease1 | EBITA margin decrease2 | discount rate increase3 | |||
|---|---|---|---|---|---|---|
| -3% | -0.3% | -0.5% | -1% | -1.5% | 1.5% | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2022 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | - | 4 | - |
| Eastern Europe | - | - | - | - | 5 | - |
| Germany | - | - | - | - | 78 | - |
| Poland | - | - | - | - | 9 | - |
| Randstad Sourceright EMEA | - | 2 | 13 | 28 | 28 | - |
| Scandinavia | - | - | - | - | 8 | - |
| UK | - | - | 10 | 40 | 40 | - |
| Total | - | - | 23 | 68 | 172 | - |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2021 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | \u00a0 | 33 | - |
| Germania | - | - | - | \u00a0 | 29 | - |
| Randstad Sourceright EMEA | - | - | 2 | 24 | 26 | - |
| UK | - | - | - | 26 | 42 | - |
| Total | - | - | 2 | 50 | 130 | - |
The combined recoverable amount of these sensitive operating segments of \u20ac\u00a01,804 million (2021: \u20ac\u00a01,241 million) exceeds the carrying amount by \u20ac\u00a0656 million (2021: \u20ac\u00a0518 million). The carrying amount includes goodwill of \u20ac\u00a0594 million (2021: \u20ac\u00a0417 million).
The operating segments France, the Netherlands, Belgium & Luxembourg, Spain, Portugal, Italy, Switzerland, USA, Canada, Japan, Greater China, Singapore, Sourceright North America, Sourceright APAC and Latin America have substantial headroom available.
For the carrying amount of goodwill by reporting segment, see note 10.2.
| \u00a0 | restructuring | workers' compensation | other | total |
|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2022 | 22 | 49 | 70 | 141 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Movements in 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Disposal of subsidiaries | - | - | - | - |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Charged to income statement | 52 | 27 | 53 | 132 |
| Released to income statement | (3) | - | (14) | (17) |
| Withdrawals | (34) | (29) | (32) | (95) |
| Total amount in statement of cash flows | 15 | (2) | 7 | 20 |
| Interest due to passage of time | - | 2 | - | 2 |
| Translation differences | - | 2 | 1 | 3 |
| Balance as at December 31, 2022 | 37 | 51 | 78 | 166 |
| Non-current | 3 | 31 | 40 | 74 |
| Current | 34 | 20 | 38 | 92 |
| Balance as at December 31, 2022 | 37 | 51 | 78 | 166 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Non-current | 4 | 25 | 46 | 75 |
| Current | 32 | 19 | 40 | 91 |
| \u00a0 | 36 | 44 | 86 | 166 |
| Movements in 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Disposal of subsidiaries | (5) | - | - | (5) |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Charged to income statement | 30 | 27 | 12 | 69 |
| Released to income statement | (9) | - | (11) | (20) |
| Withdrawals | (31) | (27) | (17) | (75) |
| Total amount in statement of cash flows | (10) | - | (16) | (26) |
| Interest due to passage of time | - | 1 | - | 1 |
| Translation differences | 1 | 4 | - | 5 |
| Balance as at December 31, 2021 | 22 | 49 | 70 | 141 |
| Non-current | 6 | 29 | 35 | 70 |
| Current | 16 | 20 | 35 | 71 |
| Balance as at December 31, 2021 | 22 | 49 | 70 | 141 |
Provisions are recognized for legally enforceable or constructive obligations as a result of a past event for which the settlement is likely to require an outflow of resources and to the extent that these can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an interest rate that reflects the current market assessments of the time value of money and, where appropriate, the risks specific to the obligation.
Provisions for restructuring are recognized when a detailed and formal restructuring plan has been approved, and the restructuring has either commenced or has been announced publicly. These restructuring provisions mainly comprise severance payments for personnel.
Provisions for workers' compensation are based on claims for compensation and medical expenses (of both employees and candidates working) in relation to accidents during working hours for which the Group is liable under applicable local laws. These provisions relate to our activities in North America and in parts of Australia, where we are responsible for payment of workers' compensation claims up to a maximum amount per claim, beyond which the costs are insured. Independent actuaries calculate the amount of the provision.
The effective interest rate used in the calculation of the provision for workers' compensation is 3% (2021: 3%).
Other provisions mainly relate to:
The majority of the non-current part of these provisions is expected to be settled within three years of the balance sheet date.
The International Accounting Standards Board (IASB) developed amendments to IAS 37 to clarify that for the purpose of assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts.
The IASB issued the amendments in May 2020. The amendments are effective for contracts for which an entity has not yet fulfilled all its obligations on or after 1 January 2022. A review of the Group's situation regarding (potential) onerous contracts which existed at the date when the amendments are first applied was undertaken. The review did not result in any material adjustments to the Group's financial statements.
The provision for workers' compensation is sensitive to interest rate changes. Should the interest rate deviate by 1%- point, with all other variables held constant, the provision would deviate in the range of \u20ac\u00a00 million to \u20ac\u00a01 million (2021: range of \u20ac\u00a01 million to \u20ac\u00a02 million).
The Group is subject to corporate income taxes in numerous jurisdictions. Significant judgment is required in determining the worldwide deferred tax assets on, among other items, tax losses carried forward. There are many uncertain factors that affect the recognition of deferred tax assets with respect to the amount of tax losses carried forward. The Group recognizes deferred tax assets on tax losses carried forward based on its best estimates. The recoverability of deferred income tax assets is reviewed and assessed frequently, using forecasts that are based on actual and future (taxable) results. External data are used for reference if considered necessary. When the actual (taxable) results are different from the amounts that were initially estimated, such differences will impact the income tax in the income statement (effective tax rate), as well as the deferred tax assets and/or deferred tax liabilities in the period in which these deviations occur.
The Group has also identified a number of uncertain tax positions. The Group determines whether to consider each uncertain tax position separately or together with one or more other uncertain tax positions, and applies the approach considered most suitable to predict the resolution of the uncertainty. The Group applies significant judgment in identifying uncertainties over income tax treatments. As the Group operates in a complex multinational environment, it takes any potential uncertain tax position into consideration, mostly relating to transfer pricing policies. The tax returns of the companies in the Group are filed in different tax jurisdictions and include deductions related to transfer pricing (mainly holding, royalty and interest charges passed on by the Company). Tax authorities may challenge those deductions for tax purposes. Based on the Group's tax compliance, transfer pricing studies, and assessments based on the judgments of tax professionals within the Group, supplemented by external tax advice from case to case, the Group determines the probable outcome of the uncertainties. Provisions are recognized for those matters for which the tax determination is uncertain, but for which it is considered probable that the tax authorities will not accept the uncertain treatment. The provisions are based on either the most likely amounts or the expected value of the payable amount.
Using the balance sheet liability method, deferred tax assets and liabilities are recognized to provide for temporary differences between the value of the assets and liabilities for financial reporting purposes and for tax purposes. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities, and when the deferred income taxes relate to the same tax jurisdiction.
Deferred tax assets, including those resulting from tax losses carried forward, are recognized to the extent that it is probable that future taxable profits will be available as a consequence of which the temporary differences, including tax losses carried forward, can be realized.
Deferred tax assets and liabilities are valued at tax rates enacted or substantively enacted at year-end and which are expected to apply in the coming years when the assets and liabilities are expected to be realized or settled.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Assets/(liabilities) | \u00a0 | \u00a0 |
| Deferred income tax assets | 619 | 674 |
| Current income tax receivables | 77 | 98 |
| Deferred income tax liabilities | (18) | (31) |
| Current income tax liabilities | (63) | (65) |
| Balance as at January 1 | 615 | 676 |
| Movements during the year | \u00a0 | \u00a0 |
| Charged to income statement | (197) | (250) |
| Net payments | 261 | 204 |
| Acquisition of subsidiaries' current taxes | (3) | - |
| Acquisition of subsidiaries' deferred taxes | (43) | (11) |
| Recognized in other comprehensive income | (32) | (27) |
| Recognized in equity on share-based compensations | 4 | 1 |
| Translation differences | 14 | 22 |
| Total movements | 4 | (61) |
| Assets/(liabilities) | \u00a0 | \u00a0 |
| Deferred income tax assets | 633 | 619 |
| Current income tax receivables | 116 | 77 |
| Deferred income tax liabilities | (52) | (18) |
| Current income tax liabilities | (78) | (63) |
| Balance as at December 31 | 619 | 615 |
Deferred tax is recorded with respect to temporary differences arising from investments in subsidiaries and associates, except for deferred income tax liabilities arising from undistributed profits from investments where the entity is able to control the timing of the distribution and it is probable that such distribution will not occur in the foreseeable future.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Tax losses carry-forward | 368 | 335 |
| Unused tax credits | 202 | 180 |
| \u00a0 | \u00a0 | \u00a0 |
| Temporary differences: | \u00a0 | \u00a0 |
| Property, plant, equipment, intangible assets, and right-of-use assets/lease liabilities | 86 | 97 |
| Other receivables/other payables | 114 | 100 |
| Provisions | 78 | 85 |
| \u00a0 | 278 | 282 |
| \u00a0 | \u00a0 | \u00a0 |
| Deferred income tax assets (before netting) | 848 | 797 |
| Amount netted with deferred income tax liabilities | (215) | (178) |
| Deferred income tax assets (after netting) | 633 | 619 |
Deferred income tax assets in relation to tax losses carried forward comprise an amount of \u20ac\u00a011 million (2021: \u20ac\u00a010 million), originating from subsidiaries that generated tax losses in the current or preceding year. These deferred tax assets relate mainly to a number of subsidiaries in various countries that generated taxable profits in 2022 and are expected to continue making taxable profits in the near\u00a0future.
Certain deferred income tax assets, whose recoverability is considered not probable, are valued at nil. These concern deferred tax assets in relation to tax losses carried forward of \u20ac\u00a0211 million (December 31, 2021: \u20ac\u00a0130 million), as well as deferred tax assets relating to other temporary differences of \u20ac\u00a035 million (December 31, 2021: \u20ac\u00a08 million). Such carried forward tax losses mainly relate to our subsidiaries in Luxembourg and Monster subsidiaries in Europe. These carried forward losses have expiry dates in the range of five years to indefinitely.
Unused tax credits mainly relate to tax credits in the US, which will be realized after all tax losses carried forward have been recovered. The expiry term of these US unused tax credits is 20 years. Of these unused tax credits, an amount of \u20ac\u00a04 million is not valued as at December 31, 2022 (December 31, 2021: \u20ac\u00a09 million). During 2022, the US realized almost all federal tax losses carried forward and started making use of tax credits to offset current tax liabilities.
The part of deferred tax assets that is expected to be realized within one year is estimated at \u20ac\u00a095 million (2021: \u20ac\u00a092 million).
Deferred tax assets are only recognized to the extent that it is considered probable that future taxable profits are available, as a consequence of which these deferred tax assets can be realized. The scenarios used are in agreement with the estimates and assumptions used in the goodwill impairment testing (see note 5). The various scenarios yield potential outcomes that do not materially deviate from the carrying amount.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Acquisition-related intangible assets | 42 | 12 |
| Temporary differences relating to subsidiaries | 87 | 89 |
| Other temporary differences | 138 | 95 |
| Deferred income tax liabilities (before netting) | 267 | 196 |
| Amount netted with deferred income tax assets | (215) | (178) |
| Deferred income tax liabilities (after netting) | 52 | 18 |
The deferred tax liability for 'Temporary differences relating to subsidiaries' to the amount of \u20ac\u00a087 million (December 31, 2021: \u20ac\u00a089 million) relates to recapture obligations in our Luxembourg entities arising from the valuation for fiscal purposes of subsidiaries held by these entities.
The part of deferred income tax liabilities that is expected to be settled within one year is estimated at \u20ac\u00a012 million (December 31, 2021: \u20ac\u00a03 million).
In the table below, the balances of deferred income tax assets and deferred income tax liabilities have been included gross at the beginning and end of the year. The netting of deferred income tax assets and liabilities is shown in the tables above.
| \u00a0 | tax losses carry-forward | unused tax credits | temporary differences | total 2022 | total 2021 |
|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Deferred income tax assets | 335 | 180 | 282 | 797 | 837 |
| Deferred income tax liabilities | - | - | (196) | (196) | (194) |
| Balance as at January 1 | 335 | 180 | 86 | 601 | 643 |
| Movements during the year | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | - | - | (43) | (43) | (11) |
| Income statement | 20 | 24 | 2 | 46 | 46 |
| Other movements | 12 | (13) | (37) | (38) | (97) |
| Translation differences | 1 | 11 | 3 | 15 | 20 |
| Total movements | 33 | 22 | (75) | (20) | (42) |
| Deferred income tax assets | 368 | 202 | 278 | 848 | 797 |
| Deferred income tax liabilities | - | - | (267) | (267) | (196) |
| Balance as at December 31 | 368 | 202 | 11 | 581 | 601 |
Corporate taxes on income for the year comprise current taxes and deferred taxes. Income taxes are recognized in the income statement, except for taxes that relate to items recognized in other comprehensive income; these taxes are consequently also recognized in other comprehensive income.
Current taxes on income are the sum of taxes recorded on the results before taxes in the countries where those results were generated, based on local tax regulations and against tax rates of the applicable year. Income that is tax-exempt and expenses that are not tax-deductible are taken into account in calculating current taxes on income.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Current tax expense | 243 | 296 |
| Deferred tax income | (46) | (46) |
| Tax expense | 197 | 250 |
In 2022, the effective tax rate on income before taxes was 17.5 % (2021: 24.6%). The reconciliation between the applicable income tax rate of the company's country of domicile and the effective tax rate is as follows:
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Income tax rate of the company's country of domicile | 25.8% | 25.0% |
| Effect of income tax rates in other (non-domestic) jurisdictions | (1.7%) | (0.9%) |
| Weighted average applicable tax rate | 24.1% | 24.1% |
| Tax-exempt income/non-tax-deductible items | 0.9% | 1.1% |
| Changes in statutory applicable tax rates and effect of prior years | (0.8%) | (0.1%) |
| Change in valuation of deferred tax assets and other | (6.7%) | (0.5%) |
| Effective tax rate | 17.5% | 24.6% |
Tax-exempt income/non-tax deductible items had an effect of 0.9 % in 2022 (2021: 1.1%).
Changes in statutory applicable tax rates and effects of prior years had an effect of (0.8%)-points (2021: (0.1%)-points) on the effective tax rate.
Change in valuation of deferred tax assets and other had an effect of (6.7%)-points in 2022, compared to (0.5%)-points in 2021, and is the result of the re-assessment of the future recoverability of carried forward losses and deferred tax assets in various countries. The impact in 2022 was mainly caused by an increase of carry forward losses following rationalization of the group legal structure and the subsequent increase of the valuation in Luxembourg as a consequence of higher expected future taxable profits due to increased interest rates (and thus increased expected interest income) on the intercompany loans outstanding.
In December 2021, the OECD published a draft legislative framework in relation to Global Anti-Base Erosion Rules. These concern the introduction of a 15% global minimum tax applicable to large multinational groups. In December 2022, EU Member States agreed to implement the minimum tax effective from 2024. As no legislation is yet (substantively) enacted, there remains uncertainty with respect to the impact of the minimum tax on the Group. On the basis of the information available, the Group is in the process of reviewing the possible financial impact. So far, the expected impact on the effective tax rate and the tax payments seems to be limited.
| \u00a0 | right-of-use buildings | right-of-use cars | right-of-use IT and other equipment | right-of-use assets | lease liabilities |
|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2022 | 421 | 83 | 3 | 507 | 594 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Movements in 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | 3 | - | - | 3 | 3 |
| Disposals of subsidiaries | - | - | - | \u00a0 | - |
| Additions | 84 | 51 | - | 135 | 135 |
| Remeasurements | 57 | 1 | 1 | 59 | 57 |
| Depreciation/impairment | (132) | (47) | (3) | (182) | \u00a0 |
| Interest due to passage of time | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 15 |
| Repayments | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (210) |
| Translation differences | 1 | - | 1 | 2 | 4 |
| Balance as at December 31, 2022 | 434 | 88 | 2 | 524 | 598 |
| Cost | 1,090 | 199 | 9 | 1,298 | \u00a0 |
| Accumulated depreciation and impairment | 656 | 111 | 7 | 774 | \u00a0 |
| Non-current part | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 412 |
| Current part | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 186 |
| Balance as at December 31, 2022 | 434 | 88 | 2 | 524 | 598 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | 1,037 | 183 | 10 | 1,230 | \u00a0 |
| Accumulated depreciation and impairment | 621 | 93 | 5 | 719 | \u00a0 |
| Non-current part | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 397 |
| Current part | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 191 |
| Balance as at December 31, 2021 | 416 | 90 | 5 | 511 | 588 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Movements in 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | 2 | 2 | - | 4 | 7 |
| Disposals of subsidiaries | - | - | - | - | (1) |
| Additions | 113 | 36 | - | 149 | 149 |
| Remeasurements | 30 | 1 | 1 | 32 | 26 |
| Depreciation/impairment | (144) | (45) | (3) | (192) | \u00a0 |
| Interest due to passage of time | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 11 |
| Repayments | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (196) |
| Translation differences | 4 | (1) | - | 3 | 10 |
| Balance as at December 31, 2021 | 421 | 83 | 3 | 507 | 594 |
| Cost | 1,062 | 183 | 10 | 1,255 | \u00a0 |
| Accumulated depreciation and impairment | 641 | 100 | 7 | 748 | \u00a0 |
| Non-current part | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 407 |
| Current part | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 187 |
| Balance as at December 31, 2021 | 421 | 83 | 3 | 507 | 594 |
Lease liabilities are payable as follows and are set out in the table below, showing the undiscounted lease payments to be paid after the balance sheet date.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Year 1 | 186 | 188 |
| Year 2-5 | 359 | 355 |
| More than 5 years | 118 | 83 |
| Undiscounted lease amounts to be paid | 663 | 626 |
| Interest | (65) | (32) |
| Total lease liabilities | 598 | 594 |
The Group has various lease arrangements for buildings (such as local head offices and branches), cars, and IT and other equipment. Lease terms are negotiated on an individual basis locally and subject to domestic rules and regulations. This results in a wide range of different terms and conditions. At the inception of a lease contract, the Group assesses whether the contract conveys the right to control the use of an identified asset for a certain period in exchange for a consideration, in which case it is identified as a lease. The Group then recognizes a right-of-use asset and a lease liability at the lease commencement date. Lease-related assets and liabilities are measured on a present value basis. Lease-related assets and liabilities are subject to remeasurement when terms are modified or when lease assumptions have changed. Such an event results in the lease liability being remeasured to reflect the measurement of the present value of the remaining lease payments, discounted using the discount rate at the moment of the change. The related right-of-use assets are adjusted to reflect the change in the remeasured liabilities. We have chosen not to apply any of the practical expedients as mentioned in IFRS 16 'Leases' (such as portfolio approach, exemption for low-value leases, and exemption for short-term leases), except for COVID-19-Related Rent Concessions, an amendment to IFRS 16 'Leases' issued in 2020 and the updated amendment to IFRS 16, 'Covid-19-Related Rent Concessions beyond June 2022'. See note 21.1.2 for net investment in subleases.
Right-of-use assets are measured at cost and at the inception of the lease may include the following components:
The right-of-use assets are depreciated on a straight-line basis over the duration of the contract. Depreciation of right-of-use assets is charged to operating expenses and/or cost of services. At the end of a lease contract when the asset is fully depreciated, the value at cost is reversed against accumulated depreciation. In the event of lease abandonment, the carrying amount of the related right-of-use asset is impaired to the recoverable amounts.
Lease liabilities include the net present value of the following components:
The lease payments are discounted using the interest rate implicit in the lease. If this rate cannot be determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. The discount rate that is used to calculate the present value reflects the interest rate applicable to the lease at inception of the contract. Lease contracts entered into in a currency different than the local functional currency are subject to periodically foreign currency revaluations, which are recognized in the income statement in net finance costs.
The lease liabilities are subsequently increased by the interest costs on the lease liabilities and decreased by lease payments made.
Revenue comprises the expected consideration for services rendered during the year to third parties and is recognized when control of the promised service is transferred to the third party (e.g., the client). A performance obligation is a promise in a contract to transfer a distinct service to the client. When the outcome of the contract cannot be measured reliably, revenue is recognized only to the extent that expenses incurred are eligible to be recovered. No revenue is recognized if it does not satisfy the \"highly probable criteria\".
Revenue from temporary placements is recognized over time and includes the amounts received or receivable for the services delivered by candidates placed, including their salary and salary-related employment costs (gross basis). These revenues are generally based on the number of hours worked by these candidates. The salary and salary-related employment costs of these candidates are reported under cost of services. Revenue from services rendered is recognized in the income statement in proportion to the progress in execution of the contract as of the balance sheet date. Progress in execution of the contract is measured on the basis of costs (mainly hours) incurred to date as a percentage of total estimated costs for each contract.
Revenue from permanent placements includes the fee received or receivable for the services provided. This fee is generally a percentage of the remuneration package of the candidate placed (net basis). The revenue of these permanent placements is recognized at a point in time on completion of the service when the performance obligations are fulfilled, being, in principle, the start date of the candidate placed. For 'retained assignments', revenue is recognized upon the completion of certain pre-agreed stages of the service, for which the fee is non-refundable. Allowances are established to estimate losses due to candidates placed who do not remain employed during the agreed guarantee period.
For the job posting and r\u00e9sum\u00e9 services of Monster Worldwide Inc., revenue is recognized over time based on (statistical) usage during the term of the contract, based on the specific underlying elements of the contract and service.
For outplacement services, revenue is recognized over time as we provide the outplacement service, and revenue is generally based on the progress in execution of the contract measured in terms of hours of service.
For our activities as managed services provider, revenue is recognized over time and mainly based on the underlying volume of the contingent workforce.
For our recruitment process outsourcing services, revenue is recognized either at a point in time if we have agreed a fee per placement or over time if we have agreed a fee for managing the recruitment process during a certain period.
In situations where the Group is the principal in a transaction and thus controls a promised service before transferring that service to the client, the transaction is recorded gross in the statement of comprehensive income (such as in the case of temporary placements). When the Group acts as an agent and thus only arranges for another party to provide a service to the client, revenue is reported on a net basis (such as in cases where the Group acts as a managed services provider). When it is initially not fully clear whether or not Randstad controls the service, we use the following indicators to determine whether we control the service:
Our service concepts are grouped into revenue categories, being 'Staffing', 'Inhouse', and 'Professionals' (conducted under the responsibility of a country manager on a country-by-country basis), and Global Businesses (conducted on a worldwide basis with separate global leadership). Within all Randstad's revenue categories and in all parts of the world, both temporary and permanent placements are in principle undertaken and executed by the same team of employees. For a more detailed description of Randstad's services, see the section 'our strong foundation'.
The disaggregation of revenues (excluding intersegment revenue) for the categories Staffing, Inhouse and Professionals is shown in the table below.
Revenue of permanent placements in the categories Staffing, Inhouse, and Professionals amounted to \u20ac\u00a0734 million (2021: \u20ac\u00a0542 million). Revenue of recruitment process outsourcing within Global Businesses amounted to \u20ac\u00a0453 million (2021: \u20ac\u00a0253 million).
| \u00a0 | staffing | inhouse | professionals | total | ||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 1,908 | 1,677 | 1,281 | 1,072 | 2,308 | 1,809 | 5,497 | 4,558 |
| France | 1,963 | 1,886 | 877 | 818 | 1,076 | 921 | 3,916 | 3,625 |
| Netherlands | 1,572 | 1,633 | 1,311 | 1,215 | 643 | 565 | 3,526 | 3,413 |
| Italy | 1,633 | 1,480 | 554 | 467 | 44 | 31 | 2,231 | 1,978 |
| Germany | 954 | 969 | 731 | 606 | 329 | 320 | 2,014 | 1,895 |
| Belgium & Luxembourg | 969 | 939 | 496 | 472 | 216 | 189 | 1,681 | 1,600 |
| Iberia | 1,204 | 1,123 | 351 | 318 | 66 | 61 | 1,621 | 1,502 |
| Other European countries | 808 | 809 | 907 | 774 | 800 | 742 | 2,515 | 2,325 |
| Rest of the world | 1,837 | 1,690 | 303 | 200 | 853 | 614 | 2,993 | 2,504 |
| \u00a0 | 12,848 | 12,206 | 6,811 | 5,942 | 6,335 | 5,252 | 25,994 | 23,400 |
| Global businesses | - | - | - | - | - | - | 1,574 | 1,235 |
| Third-party revenue | 12,848 | 12,206 | 6,811 | 5,942 | 6,335 | 5,252 | 27,568 | 24,635 |
Segments include 'geographical areas' and Global Businesses, and are reported in a manner consistent with internal management reporting provided to the Executive Board.
The Global Businesses segment consists of Monster, Randstad Sourceright, RiseSmart, and twago.
'Corporate' is also included in the disclosures on segments, and represents the unallocated part of assets and liabilities of holding activities, as well as the income and expenses of holding activities; the latter net after management and other charges to geographical areas and Global Businesses.
| \u00a0 | revenue 2022 | revenue 2021 | gross profit | operating profit | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| total | intersegment | third party | total | intersegment | third party | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 5,497 | - | 5,497 | 4,560 | (2) | 4,558 | 1,336 | 1,035 | 327 | 227 |
| France | 3,917 | (1) | 3,916 | 3,625 | - | 3,625 | 694 | 641 | 194 | 160 |
| Netherlands | 3,534 | (8) | 3,526 | 3,421 | (8) | 3,413 | 629 | 631 | 213 | 229 |
| Italy | 2,231 | - | 2,231 | 1,979 | (1) | 1,978 | 363 | 296 | 161 | 118 |
| Germany | 2,014 | - | 2,014 | 1,895 | - | 1,895 | 365 | 367 | 36 | 56 |
| Belgium & Luxembourg | 1,684 | (3) | 1,681 | 1,605 | (5) | 1,600 | 336 | 312 | 68 | 89 |
| Iberia | 1,625 | (4) | 1,621 | 1,504 | (2) | 1,502 | 251 | 214 | 93 | 83 |
| Other European countries | 2,536 | (21) | 2,515 | 2,345 | (20) | 2,325 | 431 | 381 | 83 | 67 |
| Rest of the world | 2,998 | (5) | 2,993 | 2,507 | (3) | 2,504 | 553 | 452 | 121 | 114 |
| Global Businesses | 1,588 | (14) | 1,574 | 1,248 | (13) | 1,235 | 801 | 575 | 13 | 17 |
| Corporate | - | - | - | - | - | - | - | - | (172) | (127) |
| Elimination | (56) | 56 | - | (54) | 54 | - | (8) | (8) | - | - |
| Total | 27,568 | - | 27,568 | 24,635 | - | 24,635 | 5,751 | 4,896 | 1,137 | 1,033 |
| \u00a0 | amortization and impairment of acquisition-related intangibles and goodwill | EBITA1 | depreciation/amortization and impairment of property, plant, equipment, and software | depreciation and impairment of right-of-use assets | EBITDA | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 11 | 3 | 338 | 230 | 18 | 20 | 23 | 23 | 379 | 273 |
| France | 4 | 36 | 198 | 196 | 19 | 14 | 33 | 34 | 250 | 244 |
| Netherlands | - | 4 | 213 | 233 | 9 | 9 | 23 | 24 | 245 | 266 |
| Italy | - | 1 | 161 | 119 | 6 | 8 | 9 | 9 | 176 | 136 |
| Germany | 1 | 1 | 37 | 57 | 3 | 11 | 21 | 21 | 61 | 89 |
| Belgium & Luxembourg | 4 | - | 72 | 89 | 3 | 3 | 20 | 17 | 95 | 109 |
| Iberia | - | - | 93 | 83 | 3 | 3 | 10 | 9 | 106 | 95 |
| Other European countries | - | 1 | 83 | 68 | 5 | 4 | 16 | 15 | 104 | 87 |
| Rest of the world | 7 | 5 | 128 | 119 | 7 | 14 | 24 | 23 | 159 | 156 |
| Global Businesses | - | 2 | 13 | 19 | 31 | 25 | 3 | 17 | 47 | 61 |
| Corporate | - | - | (172) | (127) | 17 | 23 | - | - | (155) | (104) |
| Total | 27 | 53 | 1,164 | 1,086 | 121 | 134 | 182 | 192 | 1,467 | 1,412 |
Assets by segment include total assets excluding deferred income tax assets, current income tax receivables, associates, equity investments, interest receivable, and cash and cash equivalents.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Total assets | 11,109 | 11,040 |
| \u00a0 | \u00a0 | \u00a0 |
| Less: | \u00a0 | \u00a0 |
| Deferred income tax assets | 633 | 619 |
| Associates | 3 | 2 |
| Equity investments | 38 | 51 |
| Interest receivable | 4 | 4 |
| Plan assets defined benefit pension plan | 3 | 5 |
| Current income tax receivables | 116 | 77 |
| Cash and cash equivalents | 274 | 859 |
| Assets by segment | 10,038 | 9,423 |
| \u00a0 | property, plant, equipment and software | right-of-use assets | goodwill | acquisition-related intangible assets | loans and receivables | operating working capital assets | total assets | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 43 | 44 | 56 | 57 | 687 | 651 | 32 | 40 | 2 | 2 | 874 | 896 | 1,694 | 1,690 |
| France | 29 | 33 | 112 | 111 | 538 | 515 | 15 | - | 139 | 138 | 787 | 718 | 1,620 | 1,515 |
| Netherlands | 37 | 33 | 50 | 48 | 855 | 855 | - | - | - | - | 553 | 529 | 1,495 | 1,465 |
| Italy | 10 | 10 | 44 | 25 | 59 | 59 | - | - | - | - | 505 | 472 | 618 | 566 |
| Germany | 11 | 10 | 63 | 71 | 290 | 290 | - | 1 | - | - | 414 | 409 | 778 | 781 |
| Belgium & Luxembourg | 7 | 8 | 69 | 70 | 169 | 181 | 12 | - | - | - | 317 | 334 | 574 | 593 |
| Iberia | 7 | 6 | 22 | 20 | 3 | 1 | 1 | - | - | - | 364 | 349 | 397 | 376 |
| Other European countries | 9 | 10 | 38 | 42 | 212 | 221 | - | - | - | - | 568 | 500 | 827 | 773 |
| Rest of the world | 22 | 20 | 63 | 55 | 193 | 148 | 84 | - | - | - | 480 | 414 | 842 | 637 |
| Global Businesses | 68 | 64 | 7 | 8 | 130 | 126 | - | - | 16 | 14 | 940 | 776 | 1,161 | 988 |
| Corporate | 27 | 25 | - | - | - | - | - | - | - | - | 143 | 170 | 170 | 195 |
| Eliminations | - | - | - | - | - | - | - | - | - | - | (138) | (156) | (138) | (156) |
| Total | 270 | 263 | 524 | 507 | 3,136 | 3,047 | 144 | 41 | 157 | 154 | 5,807 | 5,411 | 10,038 | 9,423 |
| \u00a0 | property, plant, equipment | software | right-of-use assets | acquisition-related intangible assets and goodwill | sum of additions | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 14 | 21 | 3 | 3 | 17 | 22 | - | 105 | 34 | 151 |
| France | 7 | 7 | 7 | 5 | 27 | 14 | 42 | - | 83 | 26 |
| Netherlands | 10 | 6 | 3 | - | 18 | 10 | - | - | 31 | 16 |
| Italy | 4 | 3 | 1 | 1 | 9 | 5 | - | - | 14 | 9 |
| Germany | 5 | 7 | - | 1 | 12 | 42 | - | - | 17 | 50 |
| Belgium & Luxembourg | 3 | 2 | - | - | 19 | 15 | 6 | 25 | 28 | 42 |
| Iberia | 4 | 3 | - | - | 6 | 2 | 3 | - | 13 | 5 |
| Other European countries | 3 | 3 | - | 1 | 12 | 14 | - | - | 15 | 18 |
| Rest of the world | 10 | 8 | - | 5 | 13 | 21 | 152 | - | 175 | 34 |
| Global Businesses | 2 | 4 | 35 | 29 | 2 | 4 | - | - | 39 | 37 |
| Corporate | - | 1 | 18 | 22 | - | - | - | - | 18 | 23 |
| Total | 62 | 65 | 67 | 67 | 135 | 149 | 203 | 130 | 467 | 411 |
During 2022 and 2021, the Group acquired 100% of the shares of the following companies:
| company | acquisition date |
|---|---|
| \u00a0 | \u00a0 |
| 2022 | \u00a0 |
| Avanzo Learning Process S.A.U. (Spain) | March 25, 2022 |
| Side (France) | May 12, 2022 |
| Finite Group (Australia) | September 2, 2022 |
| \u00a0 | \u00a0 |
| 2021 | \u00a0 |
| Cella, Inc. (USA) | September 30, 2021 |
| Hudson Benelux (Belgium) | December 9, 2021 |
In 2022, the Group acquired 100% of the shares of Avanzo, a company based in Spain, an expert in training and development solutions. The Group also acquired 100% of the shares of Side, a company based in France, a leading end-to-end digital staffing platform, as well as 100% of the shares of the Finite group, a group based in Australia and New Zealand, with main activities in HR consulting. The total amount of goodwill recorded for these acquisitions is not expected to be deductible for corporate tax purposes.
In 2021, the Group acquired 100% of the shares of Cella, Inc, a company based in the USA, with main activities in staffing, managed solutions and consulting, as well as 100% of the shares of Hudson Benelux, a group based in the Benelux countries, with main activities in technology recruitment, IT consulting and a broad array of IT & Digital professional services.
The acquisitions made in 2022 and 2021 are in line with Randstad's mid- to long-term strategy to grow in specialist activities and to strengthen our market position in certain markets and/or countries.
The fair value of the assets and liabilities arising from the above-mentioned acquisitions, based on (provisional) purchase price allocations, can be summarized as follows:
| \u00a0 | finite group | other | total 2022 | total 2021 |
|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Property, plant, equipment and software | - | - | - | 1 |
| Right of use assets | 3 | - | 3 | 4 |
| Acquisition-related intangible assets | 97 | 37 | 134 | 39 |
| Deferred tax assets | 1 | 2 | 3 | 1 |
| Total non-current assets | 101 | 39 | 140 | 45 |
| Working capital | 11 | (6) | 5 | (1) |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Lease liabilities | 3 | - | 3 | 7 |
| Provisions and employee benefit obligations | - | - | - | 6 |
| Deferred income tax liabilities | 36 | 10 | 46 | 12 |
| Total non-current liabilities | 39 | 10 | 49 | 25 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Net assets acquired | 73 | 23 | 96 | 19 |
| Goodwill | 55 | 14 | 69 | 91 |
| Total consideration | 128 | 37 | 165 | 110 |
| Net debt/ (cash) acquired included in working capital | 12 | (3) | 9 | 16 |
| Net debt/(cash) acquired | 12 | (3) | 9 | 16 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Consideration, adjusted for net debt/(cash) acquired | 140 | 34 | 174 | 126 |
| Deferred compensation on acquisitions | - | (9) | (9) | (2) |
| Consideration paid in respect of acquisitions in preceding years | - | 5 | 5 | 2 |
| Consideration paid | 140 | 30 | 170 | 126 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries, statement of cash flows | 140 | 30 | 170 | 126 |
In 2022, the Group finalized the purchase price allocation of the acquisition of Cella, Inc, with no adjustment to the provisional purchase price allocation performed in 2021.
In 2022, the Group also finalized the purchase price allocation of the acquisition of Hudson Benelux. The adjustment to the provisional purchase price allocation performed in 2021 resulted in a decrease of \u20ac\u00a011 million to the goodwill and an increase of \u20ac\u00a017 million to the acquisition-related intangibles.
In 2021, the Group finalized the purchase price allocation of the acquisition of the M\u00fchlenhoff + Partner Group, with no adjustment to the provisional purchase price allocation performed in 2020. The amount involved in the acquisition of the M\u00fchlenhoff + Partner Group in 2020 was neither considered material in relation to the total consideration nor in relation to the total goodwill, as it was acquired at a net cash outlay of zero, with net assets acquired amounting to \u20ac\u00a02 million, which was based on the provisional purchase price allocation.
The contribution of the acquired companies in 2022 to the Group's revenue was \u20ac\u00a0129 million and to the Group's EBITA \u20ac\u00a0(14) million. If these companies had been acquired on January 1, 2022, the estimated additional contribution to revenue and EBITA would have been \u20ac\u00a0331 million and \u20ac\u00a0(1) million respectively.
The contribution of the Finite group in 2022 to the Group's revenue was \u20ac\u00a0109 million and to the Group's EBITA \u20ac\u00a0(12) million. If Finite had been acquired on January 1, 2022, the estimated additional contribution to revenue and EBITA would have been \u20ac\u00a0302 million and \u20ac\u00a01 million respectively.
See note 5 for further information.
The Group uses the acquisition method to account for the acquisition of subsidiaries.
Goodwill at acquisition date is measured as:
When this difference is negative ('negative goodwill' or badwill), this amount is recognized directly in total operating expenses.
All considerations transferred to acquire a business are recorded at fair value as at the acquisition date; subsequent changes to the fair value of the contingent considerations classified as debt are recognized as expenses or income.
The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognized amounts of the acquiree's identifiable net assets.
All acquisition-related costs are expensed and included in other general and administrative expenses.
In 2022, the Group disposed of subsidiaries/activities in Japan.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Property, plant and equipment, right-of-use assets and software | - | 1 |
| Goodwill and acquisition-related intangible assets | - | - |
| Total non-current assets | - | 1 |
| Working capital | - | 7 |
| Lease liabilities | - | 1 |
| Provisions | - | 5 |
| Assets and liabilities in disposed subsidiaries/activities | - | 2 |
| Translation differences reclassified to income statement | - | - |
| Net assets disposed after reclassification of translation differences | - | 2 |
| Loss on disposal | (1) | (1) |
| Consideration (paid) / received | (1) | 1 |
| Net cash of disposed subsidiaries/activities, included in working capital | - | (6) |
| Disposal of subsidiaries/activities, statement of cash flows | (1) | (5) |
In 2021, the Group disposed of subsidiaries/activities in Germany and Switzerland.
Upon disposal of a subsidiary, the gain or loss upon disposal is included in other general and administrative expenses. See note 5 for further information.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Net income | 929 | 768 |
| Net income attributable to holders of ordinary shares | 921 | 760 |
| \u00a0 | \u00a0 | \u00a0 |
| Numbers of ordinary shares (in millions) | \u00a0 | \u00a0 |
| Weighted average number of ordinary shares outstanding | 182.8 | 183.8 |
| Dilutive effect of share-based compensation arrangements | 0.7 | 1.4 |
| Weighted average number of diluted ordinary shares outstanding | 183.5 | 185.2 |
| Earnings per ordinary share (in \u20ac) | \u00a0 | \u00a0 |
| Basic earnings per ordinary share | 5.04 | 4.13 |
| Diluted earnings per ordinary share | 5.02 | 4.10 |
Basic earnings per ordinary share are calculated by dividing net income attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. The issued number of ordinary shares is adjusted for ordinary shares purchased by Randstad N.V., which are held as treasury shares.
Diluted earnings per ordinary share are calculated by adjusting the weighted average number of ordinary shares outstanding, assuming conversion of all dilutive potential ordinary shares. The dilutive potential ordinary shares arise from various share-based compensation arrangements.
Cost of services comprises expenses directly attributable to revenue. These costs mainly include expenses related to people placed by Randstad, such as wages, salaries, and social charges.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Wages and salaries | 17,599 | 15,923 |
| Social security charges | 3,205 | 2,931 |
| Pension charges - defined contribution plans | 190 | 156 |
| Pension charges - defined benefit plans | 9 | 10 |
| Other post-employment benefit plans charges | 12 | 20 |
| Other long-term employee benefits | 3 | 3 |
| Wages, salaries, social security and pension charges | 21,018 | 19,043 |
| Depreciation of property, plant and equipment | 2 | 1 |
| Depreciation of right-of-use assets | 19 | 20 |
| Other cost of services | 778 | 675 |
| Total cost of services | 21,817 | 19,739 |
Other costs of services includes travel related costs of \u20ac\u00a0314 million (2021: \u20ac\u00a0276 million) and training related costs of \u20ac\u00a0147 million (2021: \u20ac\u00a0135 million).
Operating expenses are classified based on the functional model and are recognized in the year to which they relate. In 2021, the operating expenses include other income of \u20ac\u00a035 million relating to a gain on the sale of an associate see note 22.
Selling expenses comprise personnel and accommodation expenses in relation to operational activities at the outlets, advertising and marketing, and other selling expenses.
Selling expenses include an amount of \u20ac\u00a07 million (2021: \u20ac\u00a00 million) related to impairment losses on trade receivables, as well as debt collection costs.
General and administrative expenses comprise personnel and accommodation expenses of head offices, IT expenses, other general and administrative expenses, as well as the amortization and impairment of acquisition-related intangible assets and goodwill.
Other general and administrative expenses include:
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Wages and salaries | 2,689 | 2,186 |
| Social security charges | 449 | 388 |
| Pension charges - defined contribution plans | 51 | 43 |
| Pension charges - defined benefit plans | 13 | 9 |
| Other post-employment benefit plans charges | 1 | 1 |
| Other long-term employee benefits | 13 | 9 |
| Share-based compensations | 49 | 44 |
| Wages, salaries, social security and pension charges | 3,265 | 2,680 |
| Other personnel expenses | 200 | 155 |
| Personnel expenses | 3,465 | 2,835 |
| Depreciation and impairment of property, plant and equipment | 54 | 52 |
| Amortization and impairment of software | 65 | 81 |
| Depreciation and impairment of right-of-use assets | 163 | 172 |
| Advertising and marketing | 225 | 183 |
| Accommodation | 65 | 59 |
| Other | 550 | 463 |
| Other income | - | (35) |
| Operating expenses | 4,587 | 3,810 |
| Amortization and impairment of acquisition-related intangible assets and goodwill | 27 | 53 |
| Total operating expenses | 4,614 | 3,863 |
Included in wages and salaries are restructuring related expenses for \u20ac\u00a045 million (2021: \u20ac\u00a020 million). Included in Other are IT-related costs of \u20ac\u00a0353 million (2021: \u20ac\u00a0294 million). Other income of last year relates to the gain on disposal of associates. See note 22.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Depreciation of buildings | 1 | 1 |
| Depreciation of computer hardware | 21 | 20 |
| Depreciation of leasehold improvements and furniture and fixtures | 34 | 32 |
| Impairment of leasehold improvements | - | - |
| Depreciation and impairment of property, plant and equipment | 56 | 53 |
| Amortization of software | 50 | 55 |
| Impairment of software | 15 | 26 |
| Amortization and impairment of software | 65 | 81 |
| \u00a0 | \u00a0 | \u00a0 |
| Depreciation and impairment of property, plant, equipment and software | 121 | 134 |
| Depreciation of right-of-use buildings | 126 | 133 |
| Depreciation of right-of-use cars | 47 | 45 |
| Depreciation of right-of-use IT and other equipment | 3 | 3 |
| Impairment of right-of-use buildings | 6 | 11 |
| Depreciation and impairment of right-of-use assets | 182 | 192 |
| \u00a0 | \u00a0 | \u00a0 |
| Depreciation and impairment of property, plant, equipment, software and right-of-use assets | 303 | 326 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Included in: | \u00a0 | \u00a0 |
| Cost of services | 2 | 1 |
| Selling expenses | 19 | 20 |
| General and administrative expenses | 100 | 113 |
| \u00a0 | 121 | 134 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Included in: | \u00a0 | \u00a0 |
| Cost of services | 19 | 20 |
| Selling expenses | 134 | 136 |
| General and administrative expenses | 29 | 36 |
| \u00a0 | 182 | 192 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Included in: | \u00a0 | \u00a0 |
| Cost of services | 21 | 21 |
| Selling expenses | 153 | 156 |
| General and administrative expenses | 129 | 149 |
| \u00a0 | 303 | 326 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Amortization of acquisition-related intangible assets | 27 | 51 |
| Impairment of goodwill and acquisition-related intangible assets | - | 2 |
| \u00a0 | 27 | 53 |
For impairment of goodwill, see note 5.
Grants are recognized when there is reasonable assurance that they will be received and that the Group will comply with the conditions attached to them.
Grants that compensate for expenses incurred are credited to operating expenses and/or cost of services on a systematic basis in the same period in which the expenses are incurred.
Grants included in operating profit amount to \u20ac\u00a042 million (2021: \u20ac\u00a038 million), of which \u20ac\u00a037 million (2021: \u20ac\u00a034 million) is reported under cost of services. These grants mainly relate to the compensation (in whole or in part) of talent training costs and costs related to employing selected talent categories.
Wages, salaries, social security charges, pension charges and other are included in cost of services when they relate to candidates placed and in personnel expenses when they relate to corporate employees.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Wages and salaries | 20,288 | 18,109 |
| Social security charges | 3,654 | 3,319 |
| Pension charges - defined contribution plans | 241 | 199 |
| Pension charges - defined benefit plans | 22 | 19 |
| Other post-employment benefit plans charges | 13 | 21 |
| Other long-term employee benefits | 16 | 12 |
| Share-based compensations | 49 | 44 |
| \u00a0 | 24,283 | 21,723 |
Net finance costs comprise interest expenses and interest income, as well as items similar to interest and exchange differences on cash, cash equivalents, and borrowings. Interest expenses and income are recognized in the income statement on a time-proportion basis, using the effective interest method. Interest due to the passage of time of loans and receivables (including net investments in subleases), deferred considerations and lease liabilities, as well as interest due to passage of time in relation to the valuation of certain provisions and employee benefit obligations, are also included in net finance costs. Changes in the value of deferred considerations and differences upon settlement of these deferred considerations (see note 25), as well as dividend paid to non-controlling interests classified as other liabilities, are also reported under net finance costs.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Finance income | \u00a0 | \u00a0 |
| Interest and similar income | 9 | 6 |
| Changes in value of other liabilities1 | - | - |
| Interest due to passage of time1 | 4 | 4 |
| Interest due to passege to time for net investments in subleases1 | - | - |
| Foreign exchange gains, net1 | 17 | 2 |
| \u00a0 | 30 | 12 |
| Finance expenses | \u00a0 | \u00a0 |
| Interest and similar expenses | 10 | 11 |
| Interest and commitment fees on non-current borrowings | 10 | 4 |
| Amortization of transaction cost non-current borrowings1 | 1 | - |
| Result on net monetary position1 | 3 | 1 |
| Interest due to passage of time1 | 3 | 1 |
| Interest due to passage of time for lease liabilities1 | 15 | 11 |
| Foreign exchange losses, net1 | - | - |
| \u00a0 | 42 | 28 |
| \u00a0 | \u00a0 | \u00a0 |
| Net finance costs | 12 | 16 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Finance income | 30 | 12 |
| Deduct: non-cash items | 21 | 6 |
| Cash items | 9 | 6 |
| Change in interest receivable | - | - |
| Finance income, cash | 9 | 6 |
| Finance expenses | 42 | 28 |
| Deduct: non-cash items | 22 | 13 |
| Cash items | 20 | 15 |
| Change in interest payable | 4 | (2) |
| Finance expenses, cash | 24 | 13 |
| \u00a0 | \u00a0 | \u00a0 |
| Net finance costs paid, statement of cash flows | 15 | 7 |
Net income includes foreign exchange gains of \u20ac\u00a018 million (2021: \u20ac\u00a01 million). For other items included in net income, see note 13.2.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Translation differences | 28 | 100 |
| Tax on translation differences | (21) | (27) |
| Translation differences, net of taxes | 7 | 73 |
| Items that subsequently may be reclassified to the income statement | 7 | 73 |
| Fair value adjustments of equity investments | (9) | 8 |
| Tax on fair value adjustment of equity investments | - | (1) |
| Remeasurements of post-employment benefits | 47 | (3) |
| Tax on remeasurements of post-employment benefits | (11) | 1 |
| Items that will never be reclassified to the income statement | 27 | 5 |
| \u00a0 | \u00a0 | \u00a0 |
| Total other comprehensive income, net of taxes | 34 | 78 |
| \u00a0 | buildings and land | computer hardware | leasehold improvements, furniture and fixtures | total |
|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2022 | 14 | 45 | 92 | 151 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Movements in 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Additions | - | 16 | 46 | 62 |
| Disposals | (3) | (2) | (2) | (7) |
| Depreciation/impairment | (1) | (21) | (34) | (56) |
| Translation differences | 1 | 2 | - | 3 |
| Balance as at December 31, 2022 | 11 | 40 | 102 | 153 |
| Cost | 38 | 178 | 420 | 636 |
| Accumulated depreciation and impairment | 27 | 138 | 318 | 483 |
| Balance as at December 31, 2022 | 11 | 40 | 102 | 153 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | 42 | 225 | 417 | 684 |
| Accumulated depreciation and impairment | 27 | 183 | 335 | 545 |
| \u00a0 | 15 | 42 | 82 | 139 |
| Movements in 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | - | - | 1 | 1 |
| Disposal of subsidiaries | - | - | (1) | (1) |
| Additions | - | 23 | 42 | 65 |
| Disposals | - | (2) | (2) | (4) |
| Depreciation/impairment | (1) | (20) | (32) | (53) |
| Translation differences | - | 2 | 2 | 4 |
| Balance as at December 31, 2021 | 14 | 45 | 92 | 151 |
| Cost | 42 | 218 | 419 | 679 |
| Accumulated depreciation and impairment | 28 | 173 | 327 | 528 |
| Balance as at December 31, 2021 | 14 | 45 | 92 | 151 |
Based on appraisals made by independent and expert appraisers, the estimated fair value of buildings and land is approximately \u20ac\u00a022 million higher than the carrying amount (2021: \u20ac\u00a020 million higher based on appraisal performed in 2020). The fair value represents the market value, taking into account that the property is in a rented status.
Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditures that are directly attributable to the acquisition of the assets.
Land is not depreciated. Depreciation on other property, plant and equipment is charged to operating expenses and/or cost of services on a straight-line basis over their estimated useful lives, from the date they are available for use.
The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate.
Gains and losses arising on disposal are included in the income statement under other general and administrative expenses.
| \u00a0 | term |
|---|---|
| \u00a0 | \u00a0 |
| Buildings | 33 years |
| Computer hardware | 4 years |
| Leasehold improvements | 5 years |
| Furniture and fixtures | 4-5 years |
on average
Leasehold improvements are depreciated over the term of the initial lease, in the event that this term is shorter than five years.
Impairments, if any, are mainly caused by the discontinuation of outlets. The net book value of leasehold improvements and other furniture and fixtures is impaired to the recoverable amount, based on each individual case. The recoverable amount tends to be zero.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Cost | 505 | 496 |
| Accumulated amortization and impairment | 393 | 374 |
| Balance as at January 1 | 112 | 122 |
| Additions | 67 | 67 |
| Amortization and impairment | (65) | (81) |
| Translation differences | 3 | 4 |
| Balance as at December 31 | 117 | 112 |
| Cost | 528 | 505 |
| Accumulated amortization and impairment | 411 | 393 |
| Balance as at December 31 | 117 | 112 |
Acquired software (licenses) and developed software are stated at cost less accumulated amortization and impairment losses.
Expenditures in relation to the development of on premise, identifiable and unique software (or significant enhancements to existing on premise software) used by the Group, of which the intellectual property is owned by the Group, for which it is probable that these will generate economic benefits exceeding costs beyond one year, are recognized as developed software and amortized over their estimated useful lives. Capitalized costs include employee costs of software development and third-party expenses.
Expenditures associated with small enhancements or maintenance of software are recognized as an expense when incurred.
Amortization of software applications is charged to operating expenses and/or cost of services on a straight-line basis over the estimated useful lives, from the date they are available for use.
In 2022, we impaired \u20ac\u00a015 million (2021: \u20ac\u00a026 million).
The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate.
Internally developed software and purchased software are amortized on a straight-line basis over the useful lives of 3 to 5 years or, in the case of licenses, if the license period is shorter than 3 years, over this shorter period.
Impairments, if any, are mainly caused by the discontinuation of software applications. The net book value of software is impaired to its recoverable amount, which tends to be zero, based on each individual case.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Additions | \u00a0 | \u00a0 |
| Property, plant and equipment | (62) | (65) |
| Software | (67) | (67) |
| \u00a0 | (129) | (132) |
| Disposals | \u00a0 | \u00a0 |
| Proceeds property, plant and equipment | 6 | 3 |
| Loss | 1 | 1 |
| \u00a0 | 7 | 4 |
| Statement of cash flows | (122) | (128) |
| \u00a0 | client relationships | brand names | talent profiles | technology | total |
|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2022 | 28 | 10 | 3 | - | 41 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Movements in 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | 83 | 38 | 2 | 11 | 134 |
| Amortization and impairment | (15) | (6) | (3) | (3) | (27) |
| Translation differences | (4) | (1) | 1 | - | (4) |
| Balance as at December 31, 2022 | 92 | 41 | 3 | 8 | 144 |
| Cost | 117 | 47 | 6 | 11 | 181 |
| Accumulated amortization and impairment | 25 | 6 | 3 | 3 | 37 |
| Balance as at December 31, 2022 | 92 | 41 | 3 | 8 | 144 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | 269 | 15 | 1 | 14 | 299 |
| Accumulated amortization and impairment | 222 | 12 | - | 12 | 246 |
| \u00a0 | 47 | 3 | 1 | 2 | 53 |
| Movements in 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | 25 | 10 | 4 | - | 39 |
| Amortization and impairment | (45) | (3) | (1) | (2) | (51) |
| Translation differences | 1 | - | (1) | - | - |
| Balance as at December 31, 2021 | 28 | 10 | 3 | - | 41 |
| Cost | 37 | 10 | 4 | - | 51 |
| Accumulated amortization and impairment | 9 | - | 1 | - | 10 |
| Balance as at December 31, 2021 | 28 | 10 | 3 | - | 41 |
Acquisition-related intangible assets (client relationships (including franchise agreements), brand names, talent profiles and developed technology) that are acquired by the Group are stated at cost less accumulated amortization and impairment losses.
When an intangible asset is acquired in a business combination, its cost is the fair value at the date of its acquisition. This cost is determined on a basis that reflects an amount that the entity would have paid for the asset in an arm's length transaction between knowledgeable and willing parties, based on the best information available. If the fair value cannot be measured reliably, the asset is not recognized as a separate intangible asset, but is included in goodwill.
Amortization of acquisition-related intangible assets is charged to total operating expenses on a straight-line basis over their estimated useful lives, from the date they are available for use. If the asset is fully amortized, the at cost value is reversed against accumulated amortization.
The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate.
The estimated useful life of client relationships is 4 to 8 years, of brand names 1 to 10 years, of talent profiles 2 to 3 years, and of technology 5 to 6 years.
Technology relates to the software platforms acquired in acquisitions and in use as an integral part of our business activities.
Impairments, if any, can be the result of either the evidence that the assumptions for determining the estimated useful lives are incorrect or the annual impairment test of the cash-generating unit (or operating segment) to which the acquisition-related intangible assets are related.
Investments in financial assets are divided into various categories. Classification of these investments depends on the purposes for which the investments have been acquired. Management determines the classification at the time of the purchase and re-evaluates such designation at each subsequent balance sheet date.
Purchase and sale of financial assets are recognized on the settlement date, which is the date an asset is delivered to or by the Group. The cost of financial assets includes transaction costs.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Loans and receivables | 143 | 142 |
| Equity investments | 38 | 51 |
| Financial assets | 181 | 193 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Loans | 132 | 131 |
| Net investments in subleases | 11 | 11 |
| Loans and receivables | 143 | 142 |
Loans and receivables are initially recognized at fair value and subsequently measured at amortized cost, using the effective interest method.
Loans and receivables are neither past due nor impaired.
Loans have counterparties such as governmental or semi-governmental bodies and relate to our French subsidiaries.
Net investments in subleases comprise receivables originating from sublease contracts in respect of right-of-use buildings in which the Group is an intermediate lessor. These sublease contracts qualify as finance lease under IFRS 16.
The Group does not hold any collateral as security.
Loans and receivables are hold-to-collect contractual cash flows. In determining expected credit losses (ECL) and in estimating the probability of default of these loans and receivables over a 12-month ECL period, the Group has taken into account factors such as historical default experiences, the counterparties involved, and various other (external) sources of actual and forecast economic information. The Group did not observe any major change in risk compared to the prior year. No allowance for expected credit losses has been included for these loans and receivables, as the default risk is estimated to be zero.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 138 | 135 |
| Additions at fair value | 5 | 8 |
| Redemptions | (8) | (9) |
| Interest due to passage of time | 4 | 4 |
| Balance as at December 31 | 139 | 138 |
| Non-current part | 132 | 131 |
| Current part | 7 | 7 |
| Balance as at December 31 | 139 | 138 |
Loans represent loans that are granted by the Group's subsidiaries in France each year to French public housing agencies in relation to legal arrangements for payment of certain social security charges. These annual loans are interest-free and have a repayment term of 20 years each. These investments have an average remaining term of 11 years (2021: 11 years) and an effective interest rate of 2.6% (2021: 2.8%). The nominal value of these loans amounts to \u20ac\u00a0171 million (2021: \u20ac\u00a0168 million) and best represents the maximum exposure to credit risk. As at December 31, 2022, the fair value was approximately \u20ac\u00a07 million lower than the carrying amount (2021: \u20ac\u00a033 million higher).
The difference between additions at nominal value of \u20ac\u00a010 million (2021: \u20ac\u00a09 million) and at fair value is recognized in cost of services, and amounts to \u20ac\u00a05 million (2021: \u20ac\u00a01 million).
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 16 | 17 |
| Additions at fair value | 6 | 3 |
| Redemptions | (6) | (5) |
| Translation differences | 2 | 1 |
| Balance as at December 31 | 18 | 16 |
| Non-current part | 11 | 11 |
| Current part | 7 | 5 |
| Balance as at December 31 | 18 | 16 |
The Group subleases some of its right-of-use assets. In these instances, the Group is an intermediate lessor. Most of the Group's sublease arrangements are classified as finance leases under IFRS 16. The classification of finance sublease is satisfied when substantially all the risk and rewards incidental to the underlying right-of-use assets arising from the head lease have been transferred. Sublease contracts with the classification of financial leases are recognized as a net investment in sublease, which is presented as a financial asset. The carrying amount of the underlying right-of-use asset is derecognized. The net investments in subleases are measured at the present value of the (future) lease receipts, discounted using our incremental borrowing rate at commencement date of the sublease. Sublease contracts with the classification of operating leases result in sublease income being recognized periodically during the sub-rental period. Operating subleases have no impact on the right-of-use asset measurement.
The maturity of net investments in subleases is set out in the table below, showing the undiscounted lease amounts to be received after the balance sheet date.
The nominal value of the net investments in subleases amounts to \u20ac\u00a019 million (2021: \u20ac\u00a017 million), which best represents the maximum exposure to credit risk. As at December 31, 2022 and 2021, the carrying amount equaled the fair value.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| year 1 | 8 | 5 |
| year 2 -5 | 11 | 12 |
| Undiscounted lease amounts to be received | 19 | 17 |
| Unearned finance income | (1) | (1) |
| Present value of lease amounts to be received | 18 | 16 |
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at December 31 | 18 | 16 |
The carrying amounts of loans and receivables are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount is impaired. If objective evidence exists that a financial asset or group of financial assets is impaired, the amount of the impairment loss is calculated as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows, discounted at the original effective interest rate (i.e., the effective interest rate computed at initial recognition of these financial assets). The resulting impairment loss is immediately recognized in net finance costs.
An impairment loss on financial assets is reversed if, in a subsequent period, the amount of the impairment loss decreases and this decrease can be related objectively to an event occurring after the impairment loss was recognized. Such reversal is immediately recognized in net finance costs.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 51 | 37 |
| Fair value adjustments | (9) | 8 |
| Additions | 1 | 7 |
| Disposals | (5) | (1) |
| Balance as at December 31 | 38 | 51 |
Equity investments are minority participations in early-stage to expansion-stage companies that are considered strategically relevant to Randstad. The typical investment amounts range between \u20ac\u00a02 million and \u20ac\u00a05 million. The Group has no significant influence over these investments. These investments are qualified as 'fair-value through other comprehensive income' investments, and if no reliable fair-value measurements are available, valued at cost. All investments are in principle considered non-current.
The fair value of the investments have decreased by \u20ac\u00a09 million (2021: increased by \u20ac\u00a08 million). This was based on share transactions and other market information. During the year 2022, the Group divested some of its minority participations. These divestments had a carrying amount of \u20ac\u00a05 million (2021: \u20ac\u00a01 million).
As at December 31, 2022, the Group had investments in associates of \u20ac\u00a03 million (2021: \u20ac\u00a02 million). The total assets and liabilities of associates amounted to approximately \u20ac\u00a08 million and \u20ac\u00a04 million respectively as at December 31, 2022 (2021: \u20ac\u00a09 million and \u20ac\u00a04 million respectively). Total revenue in 2022 amounted to \u20ac\u00a046 million (2021: \u20ac\u00a044 million).
Our share in profit was \u20ac\u00a01 million (2021: \u20ac\u00a01 million).
In 2021, the Group disposed of its 16.66% shareholding in Alma Career OY, Finland at a consideration of \u20ac\u00a058 million, resulting in a gain of \u20ac\u00a035 million (the gain is reported under other income in the operating expenses), based on a net asset value of this associate at the moment of disposal to the amount of \u20ac\u00a023 million.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 2 | 25 |
| Share in profit | 1 | 1 |
| Disposals | - | (23) |
| Dividend | (1) | - |
| Translation differences | 1 | (1) |
| Balance as at December 31 | 3 | 2 |
Associates are companies over which the Group has significant influence, but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity method and are initially recognized at cost. The Group's investment in associates includes goodwill on acquisition, net of any accumulated impairment losses.
The Group's share of the post-acquisition profits and losses of the associates is recognized as share in results of associates, and its share of post-acquisition movements in other comprehensive income of the associates is recognized in other comprehensive income, with a corresponding effect on the carrying amount of the associate.
Authorized capital is \u20ac\u00a0106 million (2021: \u20ac\u00a0106 million) and consists of 350,000,000 (2021: 350,000,000) ordinary shares with a nominal value of \u20ac\u00a00.10, a further 106,000 (2021: 106,000) type-A preference shares with a nominal value of \u20ac\u00a0500, 30,000,000 (2021: 30,000,000) type-B preference shares with a nominal value of \u20ac\u00a00.10, and 150,000,000 (2021: 150,000,000) type-C preference shares with a nominal value of \u20ac\u00a00.10.
At year-end, issued share capital consists of 183,959,312 ordinary shares (2021: 183,959.312), 25,200,000 type-B preference shares (2021: 25,200,000), and 50,130,352 (2021: 50,130,352) type-C preference shares.
For information regarding the rights, preferences and restrictions on each type of share, see 'voting rights' under corporate governance .
The current conditions of the preference shares are such that the holders of these shares receive a dividend at the company's discretion, which dividend is preferred and cumulative, and that the voting rights are one vote per 7 type-B preference shares, and one vote for each \u20ac\u00a025 capital payment for type-C preference shares, resulting in 0.1117 vote per share on average.
The dividend on preference shares type-B and type-C is reviewed every seven years. In November 2019, the dividend on type-B and type-C was reset. The dividend for preference shares type-B was set at 2% of the capital contribution. The dividend on type-C preference shares was set at 3.5% of the capital contribution. The next review of the dividend will take place in November 2026. Only the Executive Board can propose to the Annual General Meeting of Shareholders to decide that preference shares be repaid.
| \u00a0 | 2022 | 2021 | ||
|---|---|---|---|---|
| ordinary shares | preference shares | ordinary shares | preference shares | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| January 1 | 183,959 | 75,330 | 183,304 | 75,330 |
| From share-based compensation arrangements | - | - | 655 | - |
| December 31 | 183,959 | 75,330 | 183,959 | 75,330 |
(x 1,000)
Ordinary and preference shares are classified as equity. The distribution of the dividend on ordinary and preference shares is recognized as a liability in the period in which these dividends are adopted by the company's shareholders.
On the issue of new shares or on the extension of the term of preference shares outstanding, the proceeds less directly attributable costs are recognized in shareholders' equity within issued capital and, if applicable, within share premium.
On the purchase of ordinary shares that are included in shareholders' equity, the consideration paid, including directly attributable costs, is recorded as a change in shareholders' equity. Purchased ordinary shares are classified as treasury shares and presented as a deduction from shareholders' equity under reserves.
On the sale (or re-issue) of treasury shares, the proceeds less directly attributable costs are recognized under treasury shares for the original consideration paid; the remainder is recognized as a change in retained earnings.
As at December 31, 2022, the company held 1,294,504 treasury shares (December 31, 2021: 907,523).
At year-end, share premium consists of \u20ac\u00a02,032 million share premium on ordinary shares (2021: \u20ac\u00a02,025 million) and \u20ac\u00a0298 million share premium on preference shares (2021: \u20ac\u00a0298 million).
Stichting Randstad Optiefonds, in its capacity of shareholder of the company, has delivered 144,630 Randstad shares to the company by way of share contribution amounting to \u20ac\u00a07,3 million. These shares were subsequently delivered to the employees of the company as part of the share purchase plan (see note 29.2).
The translation reserve comprises all translation differences arising from the translation of the net investment in activities in currencies other than the euro, as well as translation differences of financial liabilities designated as hedges of such investments, to the extent that the hedge is effective. Such translation differences are recognized initially in other comprehensive income and presented in this separate component of shareholders' equity. If the net investment is disposed of, these translation differences are recognized in the statement of comprehensive income. The translation reserve also includes the tax effect on translation differences.
The share-based compensations reserve comprises the value of vested rights in respect of share-based compensation arrangements as far as stock options have not been exercised or performance shares have not been allocated.
The company has various share-based compensation arrangements. Additional information about these arrangements is given in note 29. The income statement includes an amount of \u20ac\u00a049 million (2021: \u20ac\u00a044 million) for share-based compensations.
At year-end 2022, 1.8 million performance shares (2021: 1.9 million performance shares) are outstanding. Upon exercise of stock options or allocation of performance shares, this will lead to the issuance of the same number of new ordinary shares or the re-issue of treasury shares.
The employee benefits reserve comprises the cumulative remeasurements of post-employment benefit obligations. The amounts are net of corporate taxes.
See note 8 to the company financial statements for the restrictions on the distribution of dividends and the repayment of capital.
Additional information about shareholders' equity is included in the consolidated statement of changes in equity.
| \u00a0 | dividend related to | ||
|---|---|---|---|
| 2022 | 2021 | 2020 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Ordinary shares | \u00a0 | \u00a0 | \u00a0 |
| Dividend paid during 2021 | \u00a0 | \u00a0 | 596 |
| Dividend paid during 2022 | \u00a0 | 914 | \u00a0 |
| Dividend 2022 proposed | 521 | \u00a0 | \u00a0 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Preference shares | \u00a0 | \u00a0 | \u00a0 |
| Dividend paid during 2021 | \u00a0 | \u00a0 | 8 |
| Dividend paid during 2022 | \u00a0 | 8 | \u00a0 |
| Dividend 2022 proposed | 8 | \u00a0 | \u00a0 |
| Statement of cash flows | \u00a0 | 922 | 604 |
At the Annual General Meeting of Shareholders, to be held on March 28, 2023, the Executive Board, with the approval of the Supervisory Board, will propose, in line with our dividend policy, that regular cash dividend of \u20ac\u00a02.85 per ordinary share be paid for the year 2022; which represents a payout of 50 % of adjusted net income. For preference shares B and C, it will be proposed by the Executive Board, with the approval of the Supervisory Board, that a dividend of \u20ac\u00a03.3 million and \u20ac\u00a04.9 million be paid respectively. The difference of \u20ac\u00a0408 million between the dividend proposed (\u20ac\u00a0521 million) and net income for the year (\u20ac\u00a0929 million) will be added to retained earnings.
The Executive Board with the approval of the Supervisory Board will propose a share buyback of around \u20ac\u00a0400 million at the annual general meeting of shareholders.
In 2022 and 2021, no transactions took place with non-controlling interests without a change of control.
Non-controlling interests represent the net assets not held by the Group and are presented within total equity in the consolidated balance sheet as a separate category. Profit or loss and each component of other comprehensive income are attributed to the equity holders and to the non-controlling interests.
The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For acquisitions of non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of the net assets is recorded in equity. Gains or losses on disposals of non-controlling interests are also recorded in equity as long as control of the subsidiary is maintained.
Additional information about non-controlling interests is included in the consolidated statement of changes in equity.
Employee benefit obligations comprise obligations from defined benefit pension plans, other post-employment benefits, and other long-term employee benefits.
| \u00a0 | defined benefit pension plans | other post-employment benefits | other long-term employee benefits | total | ||
|---|---|---|---|---|---|---|
| obligation | plan assets | net | ||||
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2022 | 470 | (352) | 118 | 24 | 65 | 207 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Movements in 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | - | - | - | - | - | - |
| Current service costs, total | 33 | - | 33 | 13 | 16 | 62 |
| Past service costs, total | (1) | - | (1) | - | - | (1) |
| Contributions, employees | - | (10) | (10) | - | - | (10) |
| Contributions, employers | - | (19) | (19) | - | - | (19) |
| Withdrawals/benefits paid | (35) | 33 | (2) | (14) | (8) | (24) |
| Total amount in statement of cash flows | (3) | 4 | 1 | (1) | 8 | 8 |
| Remeasurement results | (112) | 65 | (47) | - | - | (47) |
| Interest due to passage of time, net | 4 | (3) | 1 | - | - | 1 |
| Translation differences | 5 | (5) | \u00a0 | (1) | - | (1) |
| Balance as at December 31, 2022 | 364 | (291) | 73 | 22 | 73 | 168 |
| Reclassification of net pension plan assets | (84) | 87 | 3 | - | - | 3 |
| Balance as at December 31, 2022, after reclass | 280 | (204) | 76 | 22 | 73 | 171 |
| Non-current | 280 | (204) | 76 | 13 | 56 | 145 |
| Current | \u00a0 | \u00a0 | \u00a0 | 9 | 17 | 26 |
| Balance as at December 31, 2022 | 280 | (204) | 76 | 22 | 73 | 171 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Non-current | 445 | (334) | 111 | 13 | 44 | 168 |
| Current | - | - | - | 9 | 11 | 20 |
| \u00a0 | 445 | (334) | 111 | 22 | 55 | 188 |
| Movements in 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | - | - | - | - | 6 | 6 |
| Current service costs, total | 29 | - | 29 | 21 | 12 | 62 |
| Contributions, employees | - | (10) | (10) | - | - | (10) |
| Contributions, employers | - | (15) | (15) | - | - | (15) |
| Withdrawals/benefits paid | (21) | 20 | (1) | (20) | (9) | (30) |
| Total amount in statement of cash flows | 8 | (5) | 3 | 1 | 3 | 7 |
| Remeasurement results | 10 | (7) | 3 | - | - | 3 |
| Interest due to passage of time, net | 2 | (2) | - | - | - | - |
| Translation differences | 5 | (4) | 1 | (1) | (1) | 3 |
| Balance as at December 31, 2021 | 470 | (352) | 118 | 24 | 65 | 207 |
| Reclassification of net pension plan assets | (130) | 135 | 5 | - | - | 5 |
| Balance as at December 31, 2021 after reclass | 340 | (217) | 123 | 24 | 65 | 212 |
| Non-current | 340 | (217) | 123 | 14 | 49 | 186 |
| Current | - | - | - | 10 | 16 | 26 |
| Balance as at December 31, 2021 | 340 | (217) | 123 | 24 | 65 | 212 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Current service cost, total | 62 | 62 |
| Contributions, employees | (10) | (10) |
| Current service cost net, charged to operating profit | 52 | 52 |
| Interest expense due to passage of time | 4 | 2 |
| Interest income due to passage of time | (3) | (2) |
| Charged to net finance costs | 1 | - |
| Net remeasurement gains charged to other comprehensive income | (47) | 3 |
| Charged to comprehensive income | 6 | 55 |
The discount rates used to calculate employee benefit obligations are in the following ranges:
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Defined benefit pension plans | 1.2% - 4.1% | 0.3% - 1.1% |
| Other post-employment benefits | 3.3% - 6.9% | 0.5% - 5.2% |
| Other long-term employee benefits | 1.5% - 2% | (0.3%) - 2% |
The obligations regarding other post-employment benefits and other long-term employee benefits are unfunded.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Defined benefit plan, corporate employees in Belgium | 39 | 68 |
| Defined benefit plan, corporate employees in France | 28 | 38 |
| Defined benefit plan, corporate employees in Germany | 5 | 10 |
| Defined benefit plan, staffing and corporate employees in Switzerland | 1 | 3 |
| Defined benefit plans, corporate employees in other countries | 3 | 4 |
| Total | 76 | 123 |
The Group has various pension schemes, in accordance with local conditions and practices in the countries in which it operates. In some countries, such pension schemes are operated through a company pension fund. Most of the pension schemes are defined contribution plans, which are funded through payments to independent entities. For these schemes, the Group's obligation is limited to the payment of these annual contributions. The contributions constitute net periodic costs for the year in which they are due and are included in personnel expenses and/or cost of services.
A few pension schemes are defined benefit plans. The liability recognized in the balance sheet is the present value of the defined benefit obligation less the fair value of plan assets. Independent actuaries calculate the defined benefit obligations based on factors such as age, years of service, and compensation (based upon the projected unit credit method).
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds denominated in the currency in which the benefits will be paid, and with terms to maturity that approximate the term when the related pension liability is due.
Current service costs are recognized in personnel expenses and/or cost of services and reflect the increase in the defined benefit obligation resulting from employee service in the current year.
Past service costs are recognized immediately in personnel expenses and/or cost of services.
Withdrawals/benefits paid also include the net transfer of participants' vested benefits.
Remeasurement gains and losses of the net defined benefit obligation arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income.
The net interest expense on the net defined benefit liability is determined by applying the discount rate used to measure the defined benefit obligation at the beginning of the year to the then net defined benefit liability. Net interest expense is recognized in net finance costs.
In the Netherlands and Belgium, two pension schemes are operated through separate and independent company pension funds.
For the Netherlands, this is 'Stichting Pensioenfonds Flexsecurity' for staffing employees employed by Dutch Group companies; the fund operates a defined contribution pension plan. In 2022, the transactions with 'Stichting Pensioenfonds Flexsecurity' amounted to \u20ac\u00a062 million (2021: \u20ac\u00a053 million); the balance as at December 31, 2022 amounted to \u20ac\u00a05 million (December 31, 2021: \u20ac\u00a04 million) payable.
For Belgium, the pension fund is 'Pensioenfonds Belgische werkmaatschappijen van Randstad OFP' for corporate employees employed by Belgian Group companies. The plan is organized through a fund that is legally separated from the company. The Board of this pension fund is required to act in the interest of the fund and of all relevant stakeholders in the scheme; the investment policy with regard to the assets of the fund is also the responsibility of the Board. The fund operates a defined benefit pension plan, which is a final-salary pension plan, providing benefits to (former) employees in the form of a guaranteed level of pension payable for life upon retirement. The pension entitlement of corporate employees is based on the average pensionable salary in the last three years before retirement. The employer's contribution is capped at a maximum of 5% of salaries. In 2021, transactions with this fund amounted to \u20ac\u00a05 million (2021: \u20ac\u00a05 million). The balance as at December 31, 2022 amounted to \u20ac\u00a01 million and zero in 2021.
In the Netherlands, a second pension scheme is in origin a defined benefit pension plan. This pension plan is a closed plan (operated through an insurance company) and the net asset/liability is basically the difference between the expected future surplus interest sharing that will flow to the Group and a yearly guarantee payment based on the pension obligation towards employees. The net pension asset is fully recoverable and has been presented under (current) assets in the statement of financial position.
In France, the defined benefit pension plan is a final-salary pension plan, which provides benefits to (former) employees in the form of a guaranteed level of pension payable as a lump sum upon retirement. The plan is in addition to state plans. The company is legally required to pay lump sums to employees upon retirement. The amounts are based on the number of years of service in the company and on the base salary according to the collective bargaining agreement in force. The scheme covers all corporate employees employed by French Group companies.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Present value of funded obligations | 280 | 340 |
| Present value of unfunded obligations | - | - |
| Total present value of obligations | 280 | 340 |
| Fair value of plan assets | (204) | (217) |
| Liability in the balance sheet | 76 | 123 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Cash | 3% | 3% |
| Bonds | 26% | 26% |
| Equity instruments | 42% | 45% |
| Real estate | 10% | 6% |
| Other | 19% | 20% |
| \u00a0 | 100% | 100% |
as a % of fair value of total plan assets
The actual return on plan assets was \u20ac\u00a063 million negative (2021: \u20ac\u00a09 million positive), as a result of negative developments in the value of equity investments and higher interest rates having a negative impact on bonds valuations.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Discount rate | 1.2% - 4.1% | 0.3% - 1.1% |
| Expected salary increases | 0% - 3.7% | 0.0% - 3.45% |
| Expected pension increases | 0% - 1.8% | 0.0% - 2% |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Male | 20.7 - 22.5 | 20.5-22.5 |
| Female | 23.6 - 26.9 | 23.6-26.9 |
in years
The assumptions regarding future mortality are based on published statistics and mortality tables in each territory.
The Group expects the 2022 contributions to be paid for defined benefit plans to be approximately \u20ac\u00a019 million, excluding the impact of acquisitions and disposals.
The most significant risks related to defined benefit plans are related to:
With respect to the provision for pensions, a change in the interest rate of 1%-point, with all other variables held constant, would result in a deviation in the range of \u20ac\u00a05 to \u20ac\u00a06 million (2021: \u20ac\u00a09 to \u20ac\u00a011 million).
Other post-employment benefit plans are defined benefit plans and follow the same accounting treatment as defined benefit pension plans. Independent actuaries calculate the defined benefit obligations based on factors such as age, years of service, and compensation (based upon the projected unit credit method). These plans mainly consist of state-driven plans in Italy and India, post-employment health benefits in the US, and transition fee payments related to temporary workers in the Netherlands, based on the Dutch 'Wet Arbeidsmarkt in Balans' (WAB).
Remeasurements of the obligation \u2212 comprising gains and losses arising from experience adjustments and changes in actuarial assumptions \u2212 are recognized in other comprehensive income.
In accordance with applicable legal requirements, the Group recognizes liabilities for several other long-term employee benefit plans, such as schemes related to sickness and long-term disability and long-service leave plans. These liabilities are based on calculations made by independent actuaries based on factors such as age, years of service, expected sickness duration, and compensation (based on the 'projected unit credit method').
Remeasurement gains and losses related to these plans are recognized in personnel expenses and/or cost of services in the year in which they occur.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 4 | 4 |
| Changes in value | - | - |
| Deferred compensations from acquired subsidiaries/activities | 9 | 2 |
| Considerations paid in respect of acquisitions in preceding years | (5) | (2) |
| Interest due to passage of time | - | - |
| Translation differences | (1) | - |
| Balance as at December 31 | 7 | 4 |
| Non-current part | 7 | - |
| Current part | - | 4 |
| Balance as at December 31 | 7 | 4 |
As at December 31, 2022 and December 31, 2021, other liabilities only comprise deferred payments (including earn-out arrangements) from business combinations in prior years. The initial amount of the earn-out liability is calculated based on the provisional purchase price allocation at the moment of acquisition. Any changes in the earn-out liability are included as adjustments to goodwill at the moment of the final purchase price allocation, performed at 1 year after acquisition. In case earn-out arrangements have a longer term than 1 year after the acquisition date , differences upon settlement between the actual cash outflow and the expected cash outflow, are accounted for in net finance costs .
Trade and other payables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Trade payables | 874 | 806 |
| Other taxes and social insurance charges | 1,189 | 1,210 |
| Pension contributions | 23 | 18 |
| Wages, salaries and other personnel costs | 1,728 | 1,697 |
| Other accruals | 681 | 620 |
| Deferred income | 81 | 75 |
| \u00a0 | 4,576 | 4,426 |
The statement of cash flows has been prepared applying the indirect method.
Cash flows in foreign currencies have been translated, in principle, at average exchange rates; certain material (mainly financing) transactions are translated at the exchange rate at the day of translation. Exchange differences concerning cash items are shown separately in the statement of cash flows. Income taxes paid/received are included in the cash flow from operating activities. Finance income received, finance expenses paid, and dividends paid are included in the cash flow from financing activities.
The purchase price of acquisitions paid, as well as the selling price of disposed subsidiaries received, is included in cash flow from investing activities. This purchase price paid, as well as the selling price received, are included in the statement of cash flows net of debt and cash acquired or disposed. Changes in assets and liabilities resulting from the acquisition and disposal of subsidiaries are taken into account in the calculation of the consolidated cash flows.
The majority of the items in the consolidated statement of cash flows are individually cross-referenced to the relevant notes to the consolidated statement of comprehensive income and the consolidated statement of financial position. For the remainder of the material items, the reconciliation between amounts as included in the consolidated statement of cash flows and related amounts in the consolidated statement of comprehensive income and the consolidated statement of financial position is shown in this note.
Operating working capital includes current assets, excluding cash and cash equivalents, current income tax receivables, current part of loans and receivables, current part of net investments in subleases, and the net plan assets defined benefit pension plan; minus current liabilities, excluding current borrowings, current income tax liabilities, and the current part of provisions, of employee benefit obligations, of other liabilities and of lease liabilities. Interest receivable and payable are also excluded in order to align the presentation of the movements in these items, which are presented under net cash flow from financing activities.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Current assets | 6,218 | 6,368 |
| Current liabilities | (5,027) | (4,793) |
| Working capital | 1,191 | 1,575 |
| \u00a0 | \u00a0 | \u00a0 |
| Current assets | 6,218 | 6,368 |
| Adjusted for: | \u00a0 | \u00a0 |
| Cash and cash equivalents | (274) | (859) |
| Current income tax receivables | (116) | (77) |
| Trade and other receivables | 5,828 | 5,432 |
| Adjusted for: | \u00a0 | \u00a0 |
| Current part of loans and receivables | (7) | (7) |
| Current part of net investments in sublease | (7) | (5) |
| Interest receivable | (4) | (4) |
| Net plan assets defined benefit pension plan | (3) | (5) |
| Operating working capital assets | 5,807 | 5,411 |
| \u00a0 | \u00a0 | \u00a0 |
| Current liabilities | (5,027) | (4,793) |
| Adjusted for: | \u00a0 | \u00a0 |
| Current borrowings | 69 | 16 |
| Current part of lease liabilities | 186 | 187 |
| Current income tax liabilities | 78 | 63 |
| Current part of provisions | 92 | 71 |
| Current part of employee benefit obligations | 26 | 26 |
| Current other liabilities | - | 4 |
| Trade and other payables | (4,576) | (4,426) |
| Adjusted for: | \u00a0 | \u00a0 |
| Interest payable | 8 | 12 |
| Operating working capital liabilities | (4,568) | (4,414) |
| Operating working capital assets | 5,807 | 5,411 |
| Operating working capital liabilities | (4,568) | (4,414) |
| Operating working capital | 1,239 | 997 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Trade and other receivables as at January 1 | 5,432 | 4,407 |
| Adjusted for: | \u00a0 | \u00a0 |
| Current part of loans and receivables, and net plan assets | (17) | (20) |
| Interest receivable | (4) | (3) |
| Operating working capital assets as at January 1 | 5,411 | 4,384 |
| Acquisition of subsidiaries | 56 | 32 |
| Disposal of subsidiaries | - | (3) |
| Translation gains/(losses) | 16 | 92 |
| Statement of cash flows | 324 | 906 |
| Operating working capital assets as at December 31 | 5,807 | 5,411 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Trade and other payables as at January 1 | 4,426 | 3,735 |
| Adjusted for: | \u00a0 | \u00a0 |
| Interest payable | (12) | (9) |
| Operating working capital liabilities as at January 1 | 4,414 | 3,726 |
| Acquisition of subsidiaries | 39 | 17 |
| Disposal of subsidiaries | - | (2) |
| Translation losses/(gains) | 4 | 57 |
| Statement of cash flows | 111 | 616 |
| Operating working capital liabilities as at December 31 | 4,568 | 4,414 |
The CICE receivable as an asset arose from tax credits under the French Competitive Employment Act (CICE). This act was aimed at improving the competitiveness of the French economy and at reducing unemployment. It was discontinued as of January 1, 2019.
In 2021, an amount of \u20ac\u00a08 million was received on the remaining CICE receivable outstanding as at December 31, 2020.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Loans | 5 | 1 |
| Net result of net investments in subleases | (6) | (3) |
| Net result of remeasurements of right-of-use assets and lease liabilities | (2) | (6) |
| Non-cash | (3) | (8) |
| \u00a0 | \u00a0 | \u00a0 |
| Collections of net investments in subleases | 6 | 5 |
| Cash | 6 | 5 |
| \u00a0 | \u00a0 | \u00a0 |
| Statement of cash flows | 3 | (3) |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| North America | 28 | 10 |
| France | 44 | 34 |
| Netherlands/Corporate | 501 | 55 |
| Italy | 36 | 14 |
| Germany | - | 13 |
| Belgium & Luxembourg | 19 | 42 |
| Iberia | 14 | 10 |
| Other European countries | 27 | 13 |
| Rest of the world | 43 | 13 |
| Global Businesses | - | - |
| Total | 261 | 204 |
The increase in corporate income taxes paid in North America can be explained by increased tax payments in the US. In the US,\u00a0the Group made use of almost all federal tax loss carry forward positions, which is why the Group started paying taxes. The increase in France was mainly caused by higher taxable profits in 2022. Germany's 2021 figures include payments related to prior years. 2022 resulted in zero net payments due to refunds related to the prior year offsetting the current-year payments. The decrease in payments in Belgium can be explained by lower taxable profits in 2022. The increase in Italy was mainly caused by higher taxable profits in 2022 and a payment related to 2021.
The increase in payments in the 'Rest of the world' region is mainly caused by higher taxable profits in Australia and Japan compared to 2021. In addition, the 2021 figures include significant refunds in India related to prior years.
Free cash flow comprises net cash from operating and investing activities, excluding the cash flows from the acquisition and disposal of subsidiaries/activities, of equity investments, and of associates, as well as the dividends from associates. Repayment of lease liabilities is also deducted in order to arrive at free cash flow.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Net cash flow from operating activities | 1,073 | 914 |
| Net cash flow from investing activities | (290) | (207) |
| \u00a0 | 783 | 707 |
| Acquisition of subsidiaries, equity investments and associates | 171 | 133 |
| Disposal of subsidiaries, equity investments and associates | (4) | (54) |
| Dividends from associates | (1) | - |
| \u00a0 | 949 | 786 |
| Repayment of lease liabilities | (210) | (196) |
| Free cash flow | 739 | 590 |
Subsidiaries are companies controlled by Randstad N.V. Control exists when Randstad is exposed to or has rights to variable returns from its involvement with subsidiary companies and has the ability to influence those returns through its power over the subsidiary, generally accompanying a shareholding of more than 50% of the voting rights. Subsidiaries are consolidated from the date that such control commences until the date that it ceases.
Intragroup balances and intragroup transactions are eliminated, as well as any unrealized gains from these transactions. Unrealized losses from intragroup transactions are also eliminated, unless there is evidence of impairment of the assets transferred. Intragroup transactions take place on an arm's length basis.
Upon translation of foreign activities, the assets and liabilities of operations in currencies other than the euro, including goodwill and fair-value adjustments arising on consolidation, are translated into euros at the foreign exchange rates at the balance sheet date. The income statements of these operations in currencies other than the euro are translated into euros at average exchange rates.
Upon the acquisition of a subsidiary that has a currency other than the euro, balance sheet items are translated into euros at the foreign exchange rates at the acquisition date.
The net investment in subsidiaries that have a currency other than the euro includes the participation in the net assets of these subsidiaries, and, if applicable, loans to these subsidiaries, settlement of which is neither planned nor expected to occur in the foreseeable future.
Translation differences that occur upon consolidation, relating to the translation of the net investment in subsidiaries that have a currency other than the euro, are recognized in other comprehensive income and presented in the (foreign currency) translation reserve, a separate component within equity, as are translation differences of financial liabilities designated as hedges of such investments (net investment hedge), to the extent that the hedge is effective. The gain or loss relating to the ineffective part is recognized immediately in net finance costs.
If the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation differences is allocated to the non-controlling interests.
Whenever a foreign operation is disposed of, these translation differences are released or charged to the statement of comprehensive income as part of the gain or loss on disposal.
north america
france
the netherlands
germany
belgium & luxembourg
italy
| iberia
other european countries
rest of the world
other subsidiaries
|
A list of all subsidiaries has been filed at the Chamber of Commerce in Amsterdam ('Kamer van Koophandel', Amsterdam; Chamber of Commerce number 33216172; Legal Entity Identification number 7245009EAAUUQJ0U4T57). Randstad N.V. has, directly or indirectly, a 100% interest in all subsidiaries, unless stated otherwise.
The company has various share-based compensation arrangements that are settled in ordinary shares. The fair value of these share-based compensations, calculated on grant date, is based on valuation models, taking into account relevant market conditions and non-market vesting conditions. The fair value is included in personnel expenses in the vesting period during which the expected employee services are received. The same amount is credited to shareholders' equity.
At each balance sheet date, the company reassesses its estimates of the non-market vesting conditions under these share-based compensation arrangements. The impact of the revision on original estimates with respect to the past vesting period, if any, is recognized in personnel expenses immediately, with a corresponding adjustment to shareholders' equity.
Within the Group, a number of share-based compensation arrangements are in effect: performance share plans for Executive Board members and senior management, a share matching plan for Executive Board members, and a share purchase plan for all corporate employees.
The actual annual grant of performance shares will, in principle, not exceed 1% of the ordinary issued capital. However, depending on the realization of related performance targets and the company's actual share price, the number of shares to be issued in relation to vesting of the performance shares might in a certain year exceed the 1% limit.
Conditional performance shares have been granted annually to the members of the Executive Board. The plan has a term of three years. The number of shares to vest depends on the company's TSR performance compared to a peer group of 18 companies (2021: 18 peers) measured over a three-year period starting on January 1 of the year of grant. The number of shares to vest also depends on achieving certain non financial performance targets.
All performance share plans are equity-settled. The fair value is determined as at the date of each grant, based on a Monte Carlo simulation model.
Volatility of the shares of the peer companies, as well as the pair-wise correlation between all peer shares, is estimated on the basis of historical daily prices over three years. Estimated dividends of the peer companies are based on historical dividends.
The fair value is charged to the income statement during the vesting period, based on the on-target awards of the TSR part of each plan and on the expected outcome of the non-financial performance targets.
At each balance sheet date, the non-market conditions (attrition and non-financial performance) are reassessed; any adjustment is charged to the income statement.
The shares yet to be vested of a Board member who resigns from the Group within the three-year vesting period will, in principle, be forfeited.
Terms and conditions of the senior management performance share plan are identical to those of the Executive Board.
The performance shares 2019 of the Executive Board and senior management vested on December 31, 2021, based on relative TSR performance and reaching certain non-financial targets of the company, resulting in 893,287 shares being allocated in February 2022 (share price at allocation date: \u20ac\u00a064.54), compared to an on-target award of 620,030 shares.
The performance shares 2020 of the Executive Board and senior management vested on December 31, 2022, based on relative TSR performance and reaching certain non-financial targets of the company, resulting in 939.570 shares to be allocated in February 2023, compared to an on-target award of 587.307 shares.
The expenses charged to the 2022 income statement amount to \u20ac\u00a029.9 million (2021: \u20ac\u00a034.1 million).
In 2017, conditional performance shares were granted to certain senior management as part of a retention plan. These shares vested based on performance during the vesting periods 2017\u20132019, 2017\u20132020, and 2017\u20132021. The performance conditions are non-market conditions; possible adjustments due to the yearly assessment of conditional performance are charged to the income statement.
The third and last tranche vested in December 2021. Performance targets resulted in an allocation of 12,997 shares being allocated in April 2022 (share price at allocation date \u20ac\u00a055,04) compared to an the on-target award of 10,316 shares.
The final measurement of the performance conditions resulted in a release to the 2022 income statement of \u20ac\u00a00.2 million (2021: charge of \u20ac\u00a00.3 million).
These share plans are implemented to reward the participants for specific contributions. The shares granted are conditional, and vesting depends on performance on non-market-based conditions and/or the rendering of employee services during the vesting periods. The vesting periods on the remaining shares to vest vary from 1 to 2 years.
The expenses charged to the 2022 income statement amount to \u20ac\u00a00.4 million (2021: \u20ac\u00a00.4 million).
In 2022, after vesting in June, 25,557 shares were allocated at on-target awards (share price at allocation date: \u20ac\u00a050.90).
| \u00a0 | 2022 | 2021 | 2020 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Average share price at grant date | \u20ac\u00a064.54 | \u20ac\u00a056.20 | \u20ac\u00a053.18 |
| Expected volatility, based on historical prices over the three-year period to the valuation date | 33.0% | 33.0% | 22.0% |
| Expected dividends | 8.0% | 6.0% | 7.6% |
| Risk-free interest rate (yield on Dutch government bonds) | 0.0% | (0.5%) | (0.4%) |
| year of grant | number of shares (x 1,000) on target | average fair value at grant date per share (in \u20ac) | ||||
|---|---|---|---|---|---|---|
| january 1, 2022 | granted | forfeitures | allocated in 2022 | december 31, 2022 | ||
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2017 | 8 | \u00a0 | \u00a0 | (8) | - | 50.44 |
| 2018 | 2 | \u00a0 | \u00a0 | (2) | - | 53.87 |
| 2019 | 648 | \u00a0 | \u00a0 | (648) | - | 39.37 |
| 2020 | 632 | \u00a0 | (30) | (2) | 600 | 42.59 |
| 2021 | 642 | \u00a0 | (64) | \u00a0 | 578 | 45.89 |
| 2022 | \u00a0 | 685 | (75) | \u00a0 | 610 | 52.32 |
| Total | 1,932 | 685 | (169) | (660) | 1,788 | \u00a0 |
Under the share purchase plan, participating corporate employees may purchase shares through Stichting Randstad Optiefonds twice a year. The maximum amount to be spent within the plan is set annually at 5% of the participant's annual salary. Employees receive a number of bonus shares equal to 50% of the number of shares purchased; these bonus shares vest over a period of six months, only if employees hold on to the purchased shares for the same period of six months. For shares purchased as of May 1, 2022, the employees receive an additional bonus of 50% of bonus shares if they hold the purchased shares for 12 months. All bonus shares will vest under the condition that employees are employed by the Group during the vesting periods.
The bonus shares are expensed by the company over the vesting period (2022: \u20ac\u00a018.4 million; 2021: \u20ac\u00a08.8 million). In 2022, a total of 226,297 (2021: 166,619) bonus shares were allocated to employees.
In line with the company's remuneration policy, 25% of the net annual bonus of the Executive Board is paid out in Randstad shares. After three years, these shares will be matched 1:1 subject to a sustainable performance of the Company and at the discretion of the Supervisory Board. Executive Board members are allowed to voluntarily convert an additional 25% of the net annual bonus with the same matching principles. The expenses recorded for the matching of shares amount to \u20ac\u00a00.3 million in 2022 (2021: \u20ac\u00a00.2 million).
As a result of the 2018 annual bonus, 4,176 shares were matched 1:1. These shares were allocated in February 2022 at a share price of \u20ac\u00a064.54.
| in millions of \u20ac | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Performance share plans | 29.9 | 34.1 |
| Retention performance share plan | -0.2 | 0.3 |
| Other share plans | 0.4 | 0.4 |
| Share purchase plan | 18.4 | 8.8 |
| Share matching plan | 0.3 | 0.2 |
| Total share-based compensations | 48.8 | 43.8 |
Related party transactions are transfers of resources, services or obligations between the reporting entity and a related party. Related party transactions are conducted at arms length.
The members of the Executive Board and Supervisory Board are considered the key management of the Group. Details of the remuneration of the members of the Executive Board and Supervisory Board are included in the governance section of the annual report, under remuneration report .
The totals of the remuneration of the members of the Executive Board are included in the income statement.
The expenses for performance shares refer to the fair value of share-based payments charged to the income statement for the years 2022 and 2021 respectively.
The estimated costs on benefits pursuant to Article 32bb of the Dutch wage tax act amount to \u20ac\u00a04 million in 2022 and are included in social\u00a0charges and taxes (2021: \u20ac\u00a00).
The Group has not issued any loans, commitments to provide loans, or guarantees to Executive Board members. Pension expenses related to Dutch-based Board members include compensation for the limitation of accrual of pension rights in 2022 and 2021.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Fixed compensation | \u00a0 | \u00a0 |
| Base salary | 5,207 | 4,548 |
| Compensation for departure | 2,000 | - |
| Fringe benefits | 86 | 68 |
| \u00a0 | 7,293 | 4,616 |
| Variable compensation | \u00a0 | \u00a0 |
| Short-term bonus | 3,733 | 4,245 |
| Share-based compensations | 5,007 | 6,017 |
| \u00a0 | 8,740 | 10,262 |
| \u00a0 | \u00a0 | \u00a0 |
| Pension expenses | 1,406 | 1,226 |
| Social charges and taxes | 4,457 | 146 |
| Total | 21,896 | 16,250 |
x \u20ac\u00a01,000
| \u00a0 | january 1, 2022 | new shares on target 20221 | transfer | forfeitures | performance adjustment at allocation 2022 | allocated in february 2022 | december 31, 2022 |
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Total performance shares outstanding of Executive Board members | 331,444 | 111,613 | (48,120) | (45,688) | 51,027 | (166,808) | 233,468 |
| Total matching shares outstanding of Executive Board members | 17,071 | 12,805 | (3,023) | (4,415) | - | (4,176) | 18,262 |
| Total shares outstanding of Executive Board members | 348,515 | 124,418 | (51,143) | (50,103) | 51,027 | (170,984) | 251,730 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Total shares outstanding of former Executive Board members | \u00a0 | \u00a0 | 51,143 | \u00a0 | \u00a0 | \u00a0 | 51,143 |
The performance shares 2019 were allocated in February 2022. The allocation amounted to 144% of the on-target award (share price at allocation date: \u20ac\u00a064.54).
The performance shares 2020 vested on December 31, 2022, based on relative TSR performance of the company and the achievement of certain non-financial targets over the period January 1, 2020 \u2212 December 31, 2022, resulting in an overall vesting of 160% of the on-target award of 111.460 shares.
Allocation after vesting of conditional shares awarded in 2020, 2021 and 2022 will take place in February 2023, 2024 and 2025 respectively.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Unrestricted ordinary shares | 51,337 | 60,744 |
| Locked-up ordinary shares | 133,452 | 106,390 |
| Total | 184,789 | 167,134 |
as at december 31
For the conditions and criteria governing the granting and vesting of performance shares, see note 29.1.
Remuneration of the members of the Supervisory Board is included in the income statement. The remuneration is fixed and includes gross expense allowances. In 2022, the total remuneration amounted to \u20ac\u00a0628,500 (2021: \u20ac\u00a0656,800).
Total remuneration of former Supervisory Board members amounted to \u20ac\u00a00 (2021 \u20ac\u00a024,000).
The Group has not issued any loans, commitments to provide loans, or guarantees to members of the Supervisory Board.
The founder of the Randstad Group has an interest in a legal entity, which, based on the 'Wet financieel toezicht' (Act on Financial Supervision), is registered as a shareholder of Randstad N.V. in the 30% \u2212 40% category.
Stichting Randstad Optiefonds, in its capacity as shareholder of the company, delivered 144,630 Randstad shares in 2022 to the Group by way of share contribution amounting to \u20ac\u00a07.3 million. These shares were subsequently delivered to the employees of the company as part of the share purchase plan (see note 29.2).
The rental expenses of the ship Clipper Stad Amsterdam for promotional activities were \u20ac\u00a03 million (2021: \u20ac\u00a02 million).
For transactions with company pension funds through which certain pension schemes are operated, see note 24.2 under 'Employee benefit obligations'.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Candidates working | 662,600 | 653,300 |
| Corporate employees | 46,190 | 39,530 |
| \u00a0 | Candidates working | Corporate employees | ||
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 91,100 | 92,900 | 7,100 | 6,530 |
| France | 87,300 | 84,200 | 4,830 | 4,460 |
| Netherlands | 68,900 | 72,000 | 4,140 | 3,890 |
| Italy | 59,500 | 53,800 | 2,980 | 2,490 |
| Germany | 38,500 | 38,300 | 2,920 | 2,860 |
| Belgium & Luxembourg | 44,000 | 44,200 | 2,410 | 2,080 |
| Iberia | 61,800 | 60,400 | 2,610 | 2,160 |
| Other European countries | 60,200 | 63,400 | 4,020 | 3,670 |
| Rest of the world | 142,300 | 134,600 | 6,470 | 5,530 |
| Global Businesses | 9,000 | 9,500 | 8,290 | 5,540 |
| Corporate | - | - | 420 | 320 |
| Total | 662,600 | 653,300 | 46,190 | 39,530 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Commitments less than 1 year | 199 | 138 |
| Commitments more than 1 year, less than 5 years | 335 | 192 |
| Commitments more than 5 years | 45 | 14 |
| \u00a0 | 579 | 344 |
Commitments relate mainly to service contracts. The increase in commitments as at December 31, 2022 compared to prior year is due to global IT contracts.
No guarantees have been issued other than those relating to commitments regarding rent and leases, and those relating to liabilities that are included in the balance sheet.
The following auditors' fees were expensed in the income statement in the reporting period:
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Audit of the financial statements1 | 5.6 | 5.0 |
| Audit of the financial statements of subsidiaries by other audit firms | 0.8 | 0.8 |
| Subtotal for audit of the financial statements2 | 6.4 | 5.8 |
| Other audit procedures3 | 0.5 | 0.4 |
| Total | 6.9 | 6.2 |
In January 2023, the Group secured a committed bilateral term loan of \u20ac\u00a077 million with a five-year tenor, maturing in January 2028. This loan is subject to a floating interest rate.
", "dimensions": { "concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-380": { "value": "1 general information Randstad N.V. is a public limited liability company incorporated and domiciled in the Netherlands and listed on Euronext Amsterdam. The registered office of the company is in Amsterdam. The address of the company is Diemermere 25, 1112 TC Diemen, The Netherlands. The consolidated financial statements of Randstad N.V. include the company and its subsidiaries (together called the 'Group'). See note 28 for IFRS consolidation policies and an overview of selected subsidiaries. 1.1 activities Randstad specializes in solutions in the field of work and human resources services. Our services comprise temporary and permanent placements. In addition, we offer recruitment process outsourcing services (RPO), managed services programs (MSP), payroll services, outplacement services, and job posting and r\u00e9sum\u00e9 services on digital platforms. 1.2 date of authorization of issue The financial statements were signed and authorized for issue by the Executive Board and Supervisory Board on February 13, 2023. The adoption of the financial statements and the adoption of the dividend are reserved for the shareholders in the Annual General Meeting of Shareholders (AGM) on March 28, 2023. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-0": { "value": "Randstad N.V.", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-2": { "value": "public limited liability company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-3": { "value": "Netherlands", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-1": { "value": "Amsterdam", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-4": { "value": "Diemermere 25", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-5": { "value": "Diemen", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-7": { "value": "Randstad N.V.", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-6": { "value": "human resources services", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-381": { "value": "The financial statements were signed and authorized for issue by the Executive Board and Supervisory Board on February 13, 2023. The adoption of the financial statements and the adoption of the dividend are reserved for the shareholders in the Annual General Meeting of Shareholders (AGM) on March 28, 2023. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-382": { "value": " 2.1 basis of preparation The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards and IFRS IC interpretations (IFRIC), as adopted by the European Union (hereinafter IFRS) and in accordance with the legal requirements of Part 9, Book 2 of the Dutch Civil Code. New standards, amendments and/or interpretations to existing IFRS standards became effective in 2022. These new standards, amendments and interpretations, as far as they are relevant to the Group, have no impact on the valuation and classification of assets and liabilities of the Group, nor on its income statement or cash flows. For the amendment to IAS 37 'Provisions Contingent Liabilities and Contingent Assets', which was issued in May 2020 and effective as of January 1, 2022, see note 6 (provisions). New standards, amendments and/or interpretations to existing IFRS standards have been published that only need to be applied to accounting periods beginning on or after January 1, 2023. As far as these standards, amendments and interpretations are applicable to the Group, these are expected to have no effect on the valuation and classification of assets and liabilities. The Group has decided not to opt for early adoption. The financial statements are prepared under the historical cost convention and on a going concern basis. See note 3.2.2 (liquidity risk) and note 3.3 (impact of global macroeconomic and geopolitical uncertainty) for further disclosures. For both current assets and liabilities (expected to be recovered or settled within 1 year) and non-current assets and liabilities (expected to be recovered or settled/ extinguished after 1 year), the corresponding presentation is used on the face of the balance sheet. The Group operates in countries with different currencies. All subsidiaries have as their functional currency the local currency of the country in which they operate. The Group and its parent company use the euro as their functional and presentation currency. All amounts in tables are presented in millions of euros, unless explicitly stated otherwise. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-383": { "value": " 2.1 basis of preparation The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards and IFRS IC interpretations (IFRIC), as adopted by the European Union (hereinafter IFRS) and in accordance with the legal requirements of Part 9, Book 2 of the Dutch Civil Code. New standards, amendments and/or interpretations to existing IFRS standards became effective in 2022. These new standards, amendments and interpretations, as far as they are relevant to the Group, have no impact on the valuation and classification of assets and liabilities of the Group, nor on its income statement or cash flows. For the amendment to IAS 37 'Provisions Contingent Liabilities and Contingent Assets', which was issued in May 2020 and effective as of January 1, 2022, see note 6 (provisions). New standards, amendments and/or interpretations to existing IFRS standards have been published that only need to be applied to accounting periods beginning on or after January 1, 2023. As far as these standards, amendments and interpretations are applicable to the Group, these are expected to have no effect on the valuation and classification of assets and liabilities. The Group has decided not to opt for early adoption. The financial statements are prepared under the historical cost convention and on a going concern basis. See note 3.2.2 (liquidity risk) and note 3.3 (impact of global macroeconomic and geopolitical uncertainty) for further disclosures. For both current assets and liabilities (expected to be recovered or settled within 1 year) and non-current assets and liabilities (expected to be recovered or settled/ extinguished after 1 year), the corresponding presentation is used on the face of the balance sheet. The Group operates in countries with different currencies. All subsidiaries have as their functional currency the local currency of the country in which they operate. The Group and its parent company use the euro as their functional and presentation currency. All amounts in tables are presented in millions of euros, unless explicitly stated otherwise. 3.2.2 liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations. The Group's approach to liquidity risk is to ensure, as far as possible, that it will always have sufficient funds available to meet its liabilities when due, under both normal and stressed conditions. This risk is managed by having sufficient availability of cash, as well as committed and uncommitted credit lines, both at Group and subsidiary level. credit facilities As at December 31, 2022, the Group had a \u20ac\u00a01,750 million (2021: \u20ac\u00a01,850 million) committed multi-currency syndicated revolving credit facility at its disposal, which matures in May 2027 (2021: July 2024). The term may potentially be extended to a maximum of seven years (i.e., maturing in May 2029) through the exercise of two extension options, which are at the banks' discretion. The facility agreement, which is a refinancing of the previous facility (\u20ac\u00a01,850 million), contains the same covenant with respect to the net debt to EBITDA ratio (leverage ratio), as well as a paragraph on material adverse changes. The net debt to EBITDA ratio has a limit of 3.5x and is calculated based on the results of the Group on a 12-month basis. In certain cases, Randstad is allowed to report a leverage ratio of 4.25x EBITDA for a limited period of time. This credit facility has an interest rate that is based each time on the term of the drawings, increased by a margin above the applicable Euribor or LIBOR rates. The margin is variable and depends on the 'net debt to EBITDA' ratio. The facility agreement stipulates that the calculation of this ratio is based on the accounting policies as included in the annual report 2011, being the initial starting date of the current facility. In 2022, the Group had two committed bilateral revolving credit facilities of \u20ac\u00a0200 million each (2021:\u00a0\u20ac\u00a0200\u00a0million), with a three-year tenor, maturing in December 2024, and a committed bilateral term loan of USD 300 million\u00a0 (2021:\u00a0USD 300\u00a0million), with a three-year tenor, maturing in December 2024. The revolving credit facilities have an interest rate that is each time based on the term of the drawing, increased with a fixed margin above the applicable Euribor rates. Covenants are fully aligned with the committed multi-currency syndicated revolving credit facility. The term loan has an interest rate that is each time based on the term of the drawing, increased by a margin above the applicable Libor rate. The margin is variable and depends on the leverage ratio. Covenants are fully aligned with the committed multi-currency syndicated revolving credit. The actual leverage ratio (pre IFRS 16 'Leases') as at December 31, 2022 is 0.2 (December 31, 2021: \u22120.1), which is well below the limit. borrowings Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost. Any difference between the proceeds and the amount to be repaid is recognized in net finance costs during the term of the borrowings, using the effective interest method. total borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Non-current borrowings 477 664 Non-current borrowings 477 664 \u00a0\u00a0\u00a0Current borrowings 69 16 Borrowings, under current liabilities 69 16 Total borrowings 546 680 Since the interest rates on the current borrowings and non-current borrowings fluctuate with the market, the effective interest rates are considered equal to the actual rates. Negative pledges have been issued for purposes of bank overdraft facilities, and 'pari passu' clauses apply. movements in non-current borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 664 - Drawings on non-current borrowings 766 664 Repayments of non-current borrowings (970) - Amortization of transaction costs 1 - Translation and currency differences 16 - Balance as at December 31 477 664 Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective. current borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 16 141 Acquisition of subsidiary companies 32 23 Drawings / (repayments) 26 (148) Net increase / (decrease) cash flow statement 58 (125) Translation and currency differences (5) - Balance as at December 31 69 16 Bank overdrafts 69 16 Money market drawings - - Balance as at December 31 69 16 Bank overdrafts are denominated in various currencies. As at December 31, 2022, the major bank overdraft denominated in foreign currencies is for an amount of \u20ac\u00a05 million in US dollars (December 31, 2021: \u20ac\u00a03 million). Maturities of financial liabilities are expected to be: expected maturities of financial liabilities \u00a0carrying amount 0 - 90 days 91 - 365 days 2 - 5 years more than 5 years \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0Non-current borrowings1 477 - - 477 - Lease liabilities (non-current and current)2 598 50 136 359 118 Borrowings under current liabilities3 69 69 - - - Trade and other payables4 4,495 4,014 481 - - Other liabilities5 7 - - 7 - \u00a05,646 4,133 617 843 118 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Non-current borrowings 664 - - 664 - Lease liabilities (non-current and current)2 594 50 138 355 83 Borrowings under current liabilities3 16 16 - - - Trade and other payables4 4,351 3,883 468 - - Other liabilities5 4 2 2 - - \u00a05,629 3,951 608 1,019 83 Drawings on the revolving credit facilities and the term loan mature in 2024. All amounts are undiscounted. Lease liabilities: carrying amount is discounted, whereas lease repayments in the maturity buckets are undiscounted. Bank overdrafts include no interest, as these are repayable upon demand; other drawings include interest. All amounts in the maturity buckets are undiscounted. Excluding deferred income. All amounts are undiscounted. Other liabilities are based on the expected contractual dates. Carrying amount is discounted, whereas amounts in the maturity buckets are undiscounted. including interest payments cash and cash equivalents Cash and cash equivalents comprise cash on hand and at bank, as well as time deposits and other short-term highly liquid investments with original maturities of three months or less. cash and cash equivalents \u00a02022 2021 \u00a0\u00a0\u00a0Time deposits 16 130 Cash on hand and at bank 258 729 Total cash and cash equivalents 274 859 Time deposits fall due, on average, within a month. The average interest rate for time deposits is 9.1% (December 31, 2021: 0.2%). An amount of \u20ac\u00a0241 million out of \u20ac\u00a0274 million (December 31, 2021: \u20ac\u00a0827 million out of \u20ac\u00a0859 million) is available upon demand. net debt The net debt includes the balance of cash, cash equivalents, and borrowings (both current and non-current), as well as lease liabilities (current and non-current). net debt \u00a02022 2021 \u00a0\u00a0\u00a0Non-current borrowings (477) (664) Current borrowings (69) (16) Total borrowings (546) (680) Cash and cash equivalents 274 859 Net cash/(net debt), excluding lease liabilities (272) 179 Lease liabilities (598) (594) Net debt (870) (415) ", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-494": { "value": " 2.1 basis of preparation The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards and IFRS IC interpretations (IFRIC), as adopted by the European Union (hereinafter IFRS) and in accordance with the legal requirements of Part 9, Book 2 of the Dutch Civil Code. New standards, amendments and/or interpretations to existing IFRS standards became effective in 2022. These new standards, amendments and interpretations, as far as they are relevant to the Group, have no impact on the valuation and classification of assets and liabilities of the Group, nor on its income statement or cash flows. For the amendment to IAS 37 'Provisions Contingent Liabilities and Contingent Assets', which was issued in May 2020 and effective as of January 1, 2022, see note 6 (provisions). New standards, amendments and/or interpretations to existing IFRS standards have been published that only need to be applied to accounting periods beginning on or after January 1, 2023. As far as these standards, amendments and interpretations are applicable to the Group, these are expected to have no effect on the valuation and classification of assets and liabilities. The Group has decided not to opt for early adoption. The financial statements are prepared under the historical cost convention and on a going concern basis. See note 3.2.2 (liquidity risk) and note 3.3 (impact of global macroeconomic and geopolitical uncertainty) for further disclosures. For both current assets and liabilities (expected to be recovered or settled within 1 year) and non-current assets and liabilities (expected to be recovered or settled/ extinguished after 1 year), the corresponding presentation is used on the face of the balance sheet. The Group operates in countries with different currencies. All subsidiaries have as their functional currency the local currency of the country in which they operate. The Group and its parent company use the euro as their functional and presentation currency. All amounts in tables are presented in millions of euros, unless explicitly stated otherwise. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-384": { "value": " 2.1 basis of preparation The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards and IFRS IC interpretations (IFRIC), as adopted by the European Union (hereinafter IFRS) and in accordance with the legal requirements of Part 9, Book 2 of the Dutch Civil Code. New standards, amendments and/or interpretations to existing IFRS standards became effective in 2022. These new standards, amendments and interpretations, as far as they are relevant to the Group, have no impact on the valuation and classification of assets and liabilities of the Group, nor on its income statement or cash flows. For the amendment to IAS 37 'Provisions Contingent Liabilities and Contingent Assets', which was issued in May 2020 and effective as of January 1, 2022, see note 6 (provisions). New standards, amendments and/or interpretations to existing IFRS standards have been published that only need to be applied to accounting periods beginning on or after January 1, 2023. As far as these standards, amendments and interpretations are applicable to the Group, these are expected to have no effect on the valuation and classification of assets and liabilities. The Group has decided not to opt for early adoption. The financial statements are prepared under the historical cost convention and on a going concern basis. See note 3.2.2 (liquidity risk) and note 3.3 (impact of global macroeconomic and geopolitical uncertainty) for further disclosures. For both current assets and liabilities (expected to be recovered or settled within 1 year) and non-current assets and liabilities (expected to be recovered or settled/ extinguished after 1 year), the corresponding presentation is used on the face of the balance sheet. The Group operates in countries with different currencies. All subsidiaries have as their functional currency the local currency of the country in which they operate. The Group and its parent company use the euro as their functional and presentation currency. All amounts in tables are presented in millions of euros, unless explicitly stated otherwise. ", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-495": { "value": " 2.1 basis of preparation The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards and IFRS IC interpretations (IFRIC), as adopted by the European Union (hereinafter IFRS) and in accordance with the legal requirements of Part 9, Book 2 of the Dutch Civil Code. New standards, amendments and/or interpretations to existing IFRS standards became effective in 2022. These new standards, amendments and interpretations, as far as they are relevant to the Group, have no impact on the valuation and classification of assets and liabilities of the Group, nor on its income statement or cash flows. For the amendment to IAS 37 'Provisions Contingent Liabilities and Contingent Assets', which was issued in May 2020 and effective as of January 1, 2022, see note 6 (provisions). New standards, amendments and/or interpretations to existing IFRS standards have been published that only need to be applied to accounting periods beginning on or after January 1, 2023. As far as these standards, amendments and interpretations are applicable to the Group, these are expected to have no effect on the valuation and classification of assets and liabilities. The Group has decided not to opt for early adoption. The financial statements are prepared under the historical cost convention and on a going concern basis. See note 3.2.2 (liquidity risk) and note 3.3 (impact of global macroeconomic and geopolitical uncertainty) for further disclosures. For both current assets and liabilities (expected to be recovered or settled within 1 year) and non-current assets and liabilities (expected to be recovered or settled/ extinguished after 1 year), the corresponding presentation is used on the face of the balance sheet. The Group operates in countries with different currencies. All subsidiaries have as their functional currency the local currency of the country in which they operate. The Group and its parent company use the euro as their functional and presentation currency. All amounts in tables are presented in millions of euros, unless explicitly stated otherwise. 2.2 fair value estimation Fair value estimations are mainly used with respect to financial assets and financial liabilities. As no financial assets and liabilities of the Group are traded in active markets, the fair value of financial assets and liabilities is estimated by discounting the future contractual cash flows at current market interest rates that are available to the Group for similar financial assets and liabilities. The fair value is only calculated for disclosure purposes. Because of this valuation method, which uses observable market data for the interest rates, the resulting fair value estimates reflect 'Level 2 Financial Instruments' for 2022 and 2021. ", "dimensions": { "concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-496": { "value": " 2.2 fair value estimation Fair value estimations are mainly used with respect to financial assets and financial liabilities. As no financial assets and liabilities of the Group are traded in active markets, the fair value of financial assets and liabilities is estimated by discounting the future contractual cash flows at current market interest rates that are available to the Group for similar financial assets and liabilities. The fair value is only calculated for disclosure purposes. Because of this valuation method, which uses observable market data for the interest rates, the resulting fair value estimates reflect 'Level 2 Financial Instruments' for 2022 and 2021. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-497": { "value": " 2.2 fair value estimation Fair value estimations are mainly used with respect to financial assets and financial liabilities. As no financial assets and liabilities of the Group are traded in active markets, the fair value of financial assets and liabilities is estimated by discounting the future contractual cash flows at current market interest rates that are available to the Group for similar financial assets and liabilities. The fair value is only calculated for disclosure purposes. Because of this valuation method, which uses observable market data for the interest rates, the resulting fair value estimates reflect 'Level 2 Financial Instruments' for 2022 and 2021. Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-499": { "value": " 2.2 fair value estimation Fair value estimations are mainly used with respect to financial assets and financial liabilities. As no financial assets and liabilities of the Group are traded in active markets, the fair value of financial assets and liabilities is estimated by discounting the future contractual cash flows at current market interest rates that are available to the Group for similar financial assets and liabilities. The fair value is only calculated for disclosure purposes. Because of this valuation method, which uses observable market data for the interest rates, the resulting fair value estimates reflect 'Level 2 Financial Instruments' for 2022 and 2021. ", "dimensions": { "concept": "ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-385": { "value": "3.1 capital management Randstad N.V.'s policy is to maintain a sound financial position through a leverage ratio (net debt/EBITDA) of below 2. We believe this is important in order to maintain the confidence of clients, talent, creditors, and investors, and to sustain the future development of our business. Our financing policy aims to secure financing that matches the Group's mid- to long-term financing requirements. 3.1.1 dividend policy Randstad's dividend policy is part of our capital allocation policy, and consists of two elements. Firstly, we pay out an ordinary cash dividend. We aim for a flexible payout ratio of 40% to 50% of net profit adjusted for amortization and impairment of acquisition-related intangible assets and goodwill, integration costs, and one-offs. In addition, we have set a conditional ordinary cash floor dividend of \u20ac\u00a01.62 per share. This baseline dividend level will be maintained even when the 40-50% payout ratio is temporarily exceeded, barring (i) seriously adverse economic conditions, (ii) material strategic changes to the sector, and (iii) a material deterioration in our solvency and liquidity ratios. Secondly, we have set discretionary additional returns to shareholders in the event of a leverage ratio below 1.0 (pre IFRS 16 'Leases') through either (i) a special cash dividend or (ii) share buybacks. ", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-500": { "value": " 3.1.1 dividend policy Randstad's dividend policy is part of our capital allocation policy, and consists of two elements. Firstly, we pay out an ordinary cash dividend. We aim for a flexible payout ratio of 40% to 50% of net profit adjusted for amortization and impairment of acquisition-related intangible assets and goodwill, integration costs, and one-offs. In addition, we have set a conditional ordinary cash floor dividend of \u20ac\u00a01.62 per share. This baseline dividend level will be maintained even when the 40-50% payout ratio is temporarily exceeded, barring (i) seriously adverse economic conditions, (ii) material strategic changes to the sector, and (iii) a material deterioration in our solvency and liquidity ratios. Secondly, we have set discretionary additional returns to shareholders in the event of a leverage ratio below 1.0 (pre IFRS 16 'Leases') through either (i) a special cash dividend or (ii) share buybacks. 23.2.1 proposed profit appropriation At the Annual General Meeting of Shareholders, to be held on March 28, 2023, the Executive Board, with the approval of the Supervisory Board, will propose, in line with our dividend policy, that regular cash dividend of \u20ac\u00a02.85 per ordinary share be paid for the year 2022; which represents a payout of 50 % of adjusted net income. For preference shares B and C, it will be proposed by the Executive Board, with the approval of the Supervisory Board, that a dividend of \u20ac\u00a03.3 million and \u20ac\u00a04.9 million be paid respectively. The difference of \u20ac\u00a0408 million between the dividend proposed (\u20ac\u00a0521 million) and net income for the year (\u20ac\u00a0929 million) will be added to retained earnings. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-386": { "value": "The Group is exposed to a variety of financial risks, including credit risk, liquidity risk, foreign currency exchange risk, and interest rate risk. One of the objectives of the Group's Risk & Control framework is to minimize potential adverse effects on the financial performance of the Group.
Our Risk & Control framework is in place to ensure that risks are detected, measured, and reported properly. Risk management procedures are carried out under policies that have been approved by the Executive Board.
Credit risk within the Group arises from the possibility that clients and other counterparties may not be able to settle their obligations towards the Group.
Credit control policies are included in a blueprint, which is a global document including prescribed work procedures and guidelines. To manage credit risk, credit checks are, in principle, performed upfront for new customers. For high-risk clients, credit limits are put in place based on internal and/or external ratings. Credit risk is monitored by the credit control departments of our operating companies on a daily basis.
An international credit committee is in place to share best practices and to share knowledge of developments in various industries.
The Group has no significant concentrations of credit risk, as the Group has many clients in a large number of industries and countries.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Trade receivables | 4,819 | 4,521 |
| Less: allowance for expected credit losses | 46 | 44 |
| Trade receivables, net of allowance for expected credit losses | 4,773 | 4,477 |
| Other receivables | 742 | 669 |
| Prepayments | 296 | 269 |
| Net plan assets defined benefit pension plan | 3 | 5 |
| Loans | 7 | 7 |
| Net investments in subleases | 7 | 5 |
| Total trade and other receivables | 5,828 | 5,432 |
The carrying amount of these receivables reflects the fair value.
The Group does not hold any collateral as security.
Trade and other receivables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method less allowance for expected credit losses.
Trade and other receivables are hold-to-collect contractual cash flows.
For net plan assets relating to the defined benefit pension plan, see note 24.2.
The allowance for expected credit losses (ECL) of trade receivables is based on individual assessments of expected non-recoverable receivables as well as on expected credit losses estimated using a provision matrix by reference to past default experiences on the portfolio of trade receivables of subsidiaries in relation to revenue streams, and various other (external) sources of actual and forecast economic information.
In our estimation, we have taken into account the impact due to changes in macroeconomic circumstances like the conflict in Ukraine, supply chain disruptions, increased cost of living and to a lesser extent COVID-19 on the expected credit risk in our portfolio. We did not see a major deterioration of our portfolio in 2022 compared to 2021.
Significant financial difficulties of the debtor, the probability that the debtor will enter into bankruptcy or financial reorganization, serious default or delinquency in payments, and significant overdues in payment are considered indicators that the trade receivable is in default and a credit loss is expected to occur. The amount of the allowance is equal to the difference between the carrying amount of the receivable and the present value of estimated future cash flows.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 44 | 52 |
| Charged to selling expenses | 11 | (2) |
| Receivables written off as uncollectable | (9) | (7) |
| Translation differences | - | 1 |
| Balance as at December 31 | 46 | 44 |
In the allowance for expected credit losses of trade receivables, an allowance is included for individually impaired trade receivables of \u20ac\u00a016 million (2021: \u20ac\u00a020 million). The remainder is related to other expected credit losses, which are measured at an amount equal to lifetime ECL, based on the approach described above.
The allowance for expected credit losses of trade receivables is excluding recoverable value-added taxes.
Net amounts charged to this allowance are generally written off when there is no expectation of recovering additional cash.
The table 'expected credit losses' below shows the rate of expected credit losses for various appropriate past due categories.
| \u00a0 | trade receivables - days past due | \u00a0 | ||||
|---|---|---|---|---|---|---|
| not past due | 0-4 weeks | 5-16 weeks | 17 weeks and over | doubtful debts | total | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| December 31, 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| ECL rate | 0.1% | 0.5% | 1.7% - 8.5% | 17.7% - 62% | 100% | \u00a0 |
| Estimated total gross carrying amount at default | 3,635 | 391 | 177 | 36 | 16 | 4,255 |
| Lifetime ECL | 2 | 2 | 6 | 20 | 16 | 46 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| December 31, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| ECL rate | 0.1% | 0.6% | 2.1% - 9.8% | 20% - 54% | 100% | \u00a0 |
| Estimated total gross carrying amount at default | 3,455 | 333 | 140 | 30 | 20 | 3,978 |
| Lifetime ECL | 3 | 2 | 6 | 13 | 20 | 44 |
| \u00a0 | 2022 | 2021 | ||
|---|---|---|---|---|
| amount | % | amount | % | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 0-4 weeks | 2,710 | 56.2 | 2,550 | 56.4 |
| 5-16 weeks | 1,979 | 41.1 | 1,860 | 41.1 |
| 17-26 weeks | 82 | 1.7 | 63 | 1.4 |
| Not impaired | 4,771 | 99.0 | 4,473 | 98.9 |
| Impaired | 48 | 1.0 | 48 | 1.1 |
| Total trade receivables | 4,819 | 100.0 | 4,521 | 100.0 |
The information with regard to aging categories is based on the invoice date, as the risk of non-payment starts from this date.
For other financial assets, which for the main part comprise receivables on governmental or semi-governmental bodies, see note 21.
Excess cash positions are invested with preferred financial partners, which are mostly considered to be high-quality financial institutions with sound credit ratings, or in highly rated liquidity funds. Policies are in place that limit the amount of credit exposure to any one financial institution.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations. The Group's approach to liquidity risk is to ensure, as far as possible, that it will always have sufficient funds available to meet its liabilities when due, under both normal and stressed conditions. This risk is managed by having sufficient availability of cash, as well as committed and uncommitted credit lines, both at Group and subsidiary level.
As at December 31, 2022, the Group had a \u20ac\u00a01,750 million (2021: \u20ac\u00a01,850 million) committed multi-currency syndicated revolving credit facility at its disposal, which matures in May 2027 (2021: July 2024). The term may potentially be extended to a maximum of seven years (i.e., maturing in May 2029) through the exercise of two extension options, which are at the banks' discretion. The facility agreement, which is a refinancing of the previous facility (\u20ac\u00a01,850 million), contains the same covenant with respect to the net debt to EBITDA ratio (leverage ratio), as well as a paragraph on material adverse changes. The net debt to EBITDA ratio has a limit of 3.5x and is calculated based on the results of the Group on a 12-month basis. In certain cases, Randstad is allowed to report a leverage ratio of 4.25x EBITDA for a limited period of time. This credit facility has an interest rate that is based each time on the term of the drawings, increased by a margin above the applicable Euribor or LIBOR rates. The margin is variable and depends on the 'net debt to EBITDA' ratio.
The facility agreement stipulates that the calculation of this ratio is based on the accounting policies as included in the annual report 2011, being the initial starting date of the current facility.
In 2022, the Group had two committed bilateral revolving credit facilities of \u20ac\u00a0200 million each (2021:\u00a0\u20ac\u00a0200\u00a0million), with a three-year tenor, maturing in December 2024, and a committed bilateral term loan of USD 300 million\u00a0 (2021:\u00a0USD 300\u00a0million), with a three-year tenor, maturing in December 2024. The revolving credit facilities have an interest rate that is each time based on the term of the drawing, increased with a fixed margin above the applicable Euribor rates. Covenants are fully aligned with the committed multi-currency syndicated revolving credit facility. The term loan has an interest rate that is each time based on the term of the drawing, increased by a margin above the applicable Libor rate. The margin is variable and depends on the leverage ratio. Covenants are fully aligned with the committed multi-currency syndicated revolving credit.
The actual leverage ratio (pre IFRS 16 'Leases') as at December 31, 2022 is 0.2 (December 31, 2021: \u22120.1), which is well below the limit.
Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost.
Any difference between the proceeds and the amount to be repaid is recognized in net finance costs during the term of the borrowings, using the effective interest method.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Non-current borrowings | 477 | 664 |
| Non-current borrowings | 477 | 664 |
| \u00a0 | \u00a0 | \u00a0 |
| Current borrowings | 69 | 16 |
| Borrowings, under current liabilities | 69 | 16 |
| Total borrowings | 546 | 680 |
Since the interest rates on the current borrowings and non-current borrowings fluctuate with the market, the effective interest rates are considered equal to the actual rates.
Negative pledges have been issued for purposes of bank overdraft facilities, and 'pari passu' clauses apply.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 664 | - |
| Drawings on non-current borrowings | 766 | 664 |
| Repayments of non-current borrowings | (970) | - |
| Amortization of transaction costs | 1 | - |
| Translation and currency differences | 16 | - |
| Balance as at December 31 | 477 | 664 |
Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 16 | 141 |
| Acquisition of subsidiary companies | 32 | 23 |
| Drawings / (repayments) | 26 | (148) |
| Net increase / (decrease) cash flow statement | 58 | (125) |
| Translation and currency differences | (5) | - |
| Balance as at December 31 | 69 | 16 |
| Bank overdrafts | 69 | 16 |
| Money market drawings | - | - |
| Balance as at December 31 | 69 | 16 |
Bank overdrafts are denominated in various currencies. As at December 31, 2022, the major bank overdraft denominated in foreign currencies is for an amount of \u20ac\u00a05 million in US dollars (December 31, 2021: \u20ac\u00a03 million).
Maturities of financial liabilities are expected to be:
| \u00a0 | carrying amount | 0 - 90 days | 91 - 365 days | 2 - 5 years | more than 5 years |
|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| December 31, 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Non-current borrowings1 | 477 | - | - | 477 | - |
| Lease liabilities (non-current and current)2 | 598 | 50 | 136 | 359 | 118 |
| Borrowings under current liabilities3 | 69 | 69 | - | - | - |
| Trade and other payables4 | 4,495 | 4,014 | 481 | - | - |
| Other liabilities5 | 7 | - | - | 7 | - |
| \u00a0 | 5,646 | 4,133 | 617 | 843 | 118 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| December 31, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Non-current borrowings | 664 | - | - | 664 | - |
| Lease liabilities (non-current and current)2 | 594 | 50 | 138 | 355 | 83 |
| Borrowings under current liabilities3 | 16 | 16 | - | - | - |
| Trade and other payables4 | 4,351 | 3,883 | 468 | - | - |
| Other liabilities5 | 4 | 2 | 2 | - | - |
| \u00a0 | 5,629 | 3,951 | 608 | 1,019 | 83 |
including interest payments
Cash and cash equivalents comprise cash on hand and at bank, as well as time deposits and other short-term highly liquid investments with original maturities of three months or less.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Time deposits | 16 | 130 |
| Cash on hand and at bank | 258 | 729 |
| Total cash and cash equivalents | 274 | 859 |
Time deposits fall due, on average, within a month. The average interest rate for time deposits is 9.1% (December 31, 2021: 0.2%).
An amount of \u20ac\u00a0241 million out of \u20ac\u00a0274 million (December 31, 2021: \u20ac\u00a0827 million out of \u20ac\u00a0859 million) is available upon demand.
The net debt includes the balance of cash, cash equivalents, and borrowings (both current and non-current), as well as lease liabilities (current and non-current).
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Non-current borrowings | (477) | (664) |
| Current borrowings | (69) | (16) |
| Total borrowings | (546) | (680) |
| Cash and cash equivalents | 274 | 859 |
| Net cash/(net debt), excluding lease liabilities | (272) | 179 |
| Lease liabilities | (598) | (594) |
| Net debt | (870) | (415) |
Transactions in currencies other than the functional currency of the related subsidiary are converted at the foreign exchange rate on the date of the transaction.
Monetary balance sheet items (such as cash and borrowings) in currencies other than the functional currency of the related subsidiary are converted at year-end exchange rates.
Exchange differences resulting from the settlement of transactions on cash, cash equivalents, and borrowings, as well as from the conversion of these monetary balance sheet items, are included in net finance costs. Exchange differences resulting from the settlement of other transactions and conversion of other monetary balance sheet items are included in operating expenses.
Non-monetary balance sheet items (such as property, plant and equipment) that are measured in terms of historical cost in currencies other than the functional currency of the related company are converted at the foreign exchange rates on the date of transaction.
The Group uses the euro as its reporting currency. Currencies other than the euro that are of primary importance to the Group are the Australian dollar, the Canadian dollar, the Japanese yen, the Swiss franc, the UK pound sterling, and the US dollar.
| \u00a0 | 2022 | 2021 | ||
|---|---|---|---|---|
| average | at year-end | average | at year-end | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australian dollar | 0.66 | 0.64 | 0.64 | 0.64 |
| Canadian dollar | 0.73 | 0.69 | 0.67 | 0.70 |
| Japanese yen | 0.0072 | 0.0071 | 0.0077 | 0.0076 |
| Swiss franc | 0.99 | 1.01 | 0.92 | 0.96 |
| UK pound sterling | 1.17 | 1.13 | 1.16 | 1.19 |
| US dollar | 0.95 | 0.93 | 0.85 | 0.88 |
averages on annual basis
The foreign currency exchange risk of the Group with respect to transactions is limited, because subsidiaries usually generate both revenues and expenses in the same local currency.
All other foreign exchange transactions, which mostly consist of intercompany financing (equity increases, dividends, intercompany loans, and interests), are accounted for, in principle, at the exchange rate at the transaction date. The Group has a policy to match, within certain preset boundaries, the currencies in the net debt positions with the currencies in the cash flow generation. The currency mix of the debt can easily be adjusted, as the \u20ac\u00a01,750 million syndicated revolving credit facility is a multi-currency facility. In principle, the use of derivatives is therefore unnecessary.
At year-ends 2022 and 2021, the Group had no outstanding interest rate or currency derivatives.
Currency fluctuations can, however, affect the consolidated results, due to the translation of local results into the Group's reporting currency.
Translation effects from consolidation may also impact shareholders' equity. The Group has a number of net investments in foreign subsidiaries whose assets and liabilities are exposed to currency translation risk that is accounted for, through total other comprehensive income, in equity. Currency exposures arising from the net assets of the Group's foreign operations are monitored and, when considered necessary, hedged against borrowings in the relevant currencies through a net investment hedge; translation differences on borrowings classified as such are included, through comprehensive income, in equity.
In the Group, two subsidiaries (based in Argentina and Turkey) are accounted for in accordance with IAS 29 'Financial reporting in hyperinflationary economies'. The application of this standard has no material effect on the consolidated financial statements. The general price indices published for Argentina and Turkey are used in restating the results of these subsidiaries. The CPIs for Argentina and Turkey as at 31 December 2022 were 1,135 and 1,128 (December 31, 2021: 582 and 687) respectively. The effect of the adjustment on the results of the Group designated as the result on net monetary position totaled \u20ac\u00a03 million during the current year (2021: \u20ac\u00a00.9 million) and is presented under net finance costs.
If the euro had weakened or strengthened 15% on average during 2022 against the currencies mentioned in the table 'main exchange rates to the euro', with all other variables held constant, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a03 million \u2212 \u20ac\u00a044 million per currency. If the euro had weakened or strengthened 10% on average against these currencies, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a02 million \u2212 \u20ac\u00a030 million per currency (2021: range of \u20ac\u00a01 million \u2212 \u20ac\u00a020 million per currency). The effect on shareholders' equity would have been the same (before tax effects).
| \u00a0 | 2022 | 2021 | |
|---|---|---|---|
| 15% change1 | 10% change | 10% change | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australian dollar | 3 | 2 | 2 |
| Canadian dollar | 6 | 4 | 4 |
| Japanese yen | 9 | 6 | 6 |
| Swiss franc | 3 | 2 | 1 |
| UK pound sterling | 3 | 2 | 1 |
| US dollar | 44 | 30 | 20 |
The foreign exchange risk exposure on the consolidated financial assets is limited and not material. The foreign exchange risk exposure on the consolidated financial liabilities is hedged and therefore foreign exchange risk is limited.
The general policy is to keep interest rates on net debt floating as much as possible. We believe this adds value for shareholders in the long term, as over time floating interest rates are on average significantly lower than fixed interest rates. We also believe that the staffing industry has a natural hedge to interest rate changes (EBITDA levels usually move up and down more or less in line with interest rate levels), and since the Group is cash-generating, we aim to maintain floating interest rates on net debt as much as possible.
If the interest rate had been 2 percentage points higher on average during 2022, with all other variables held constant, net interest expenses for the year would have increased by \u20ac\u00a07 million.
If the interest rate had been 1 percentage point higher on average during the year, with all other variables held constant, net interest expenses for the year would have increased by \u20ac\u00a03 million (2021: \u20ac\u00a00 million higher).
For the year 2023 we do not expect the financial structure to change significantly.
In 2022, we experienced a number of dynamic market circumstances, such as the conflict in Ukraine, supply chain disruptions, increased cost of living and, to a lesser extent, COVID-related challenges.
Although we remain cautious as visibility remains limited, Randstad is well positioned to respond quickly and effectively amidst a challenging macro environment, thanks to our diverse portfolio, our scale and data insights, and high operational adaptability and flexibility.
As the impact of the global outbreak of COVID-19 on our business in 2022 was limited, it was not considered to be a triggering event to test the impairment of goodwill and other assets.
We are continuing to monitor and address the impacts of the COVID-19 outbreak in the next year, although we currently expect limited impact on our business. However, we cannot predict with certainty what these impacts will be for 2023.
We closely follow the geopolitical developments in Eastern Europe. We recognize that, in addition to the human toll, rising inflation and resulting higher interest rates are signs indicating that this war is affecting the global economy.
In 2022, the impact on our business was fairly limited. Looking ahead, there continues to be a high degree of global macroeconomic and geopolitical uncertainty. We are continuously monitoring the situation, with the aim of responding as quickly and effectively as possible to changing circumstances.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-387": { "value": " 3.2.1 credit risk Credit risk within the Group arises from the possibility that clients and other counterparties may not be able to settle their obligations towards the Group. Credit control policies are included in a blueprint, which is a global document including prescribed work procedures and guidelines. To manage credit risk, credit checks are, in principle, performed upfront for new customers. For high-risk clients, credit limits are put in place based on internal and/or external ratings. Credit risk is monitored by the credit control departments of our operating companies on a daily basis. An international credit committee is in place to share best practices and to share knowledge of developments in various industries. The Group has no significant concentrations of credit risk, as the Group has many clients in a large number of industries and countries. trade and other receivables \u00a02022 2021 \u00a0\u00a0\u00a0Trade receivables 4,819 4,521 Less: allowance for expected credit losses 46 44 Trade receivables, net of allowance for expected credit losses 4,773 4,477 Other receivables 742 669 Prepayments 296 269 Net plan assets defined benefit pension plan 3 5 Loans 7 7 Net investments in subleases 7 5 Total trade and other receivables 5,828 5,432 The carrying amount of these receivables reflects the fair value. The Group does not hold any collateral as security. Trade and other receivables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method less allowance for expected credit losses. Trade and other receivables are hold-to-collect contractual cash flows. For net plan assets relating to the defined benefit pension plan, see note 24.2. accounting policy The allowance for expected credit losses (ECL) of trade receivables is based on individual assessments of expected non-recoverable receivables as well as on expected credit losses estimated using a provision matrix by reference to past default experiences on the portfolio of trade receivables of subsidiaries in relation to revenue streams, and various other (external) sources of actual and forecast economic information. In our estimation, we have taken into account the impact due to changes in macroeconomic circumstances like the conflict in Ukraine, supply chain disruptions, increased cost of living and to a lesser extent COVID-19 on the expected credit risk in our portfolio. We did not see a major deterioration of our portfolio in 2022 compared to 2021. Significant financial difficulties of the debtor, the probability that the debtor will enter into bankruptcy or financial reorganization, serious default or delinquency in payments, and significant overdues in payment are considered indicators that the trade receivable is in default and a credit loss is expected to occur. The amount of the allowance is equal to the difference between the carrying amount of the receivable and the present value of estimated future cash flows. movements in the allowance for expected credit losses of trade receivables \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 44 52 Charged to selling expenses 11 (2) Receivables written off as uncollectable (9) (7) Translation differences - 1 Balance as at December 31 46 44 In the allowance for expected credit losses of trade receivables, an allowance is included for individually impaired trade receivables of \u20ac\u00a016 million (2021: \u20ac\u00a020 million). The remainder is related to other expected credit losses, which are measured at an amount equal to lifetime ECL, based on the approach described above. The allowance for expected credit losses of trade receivables is excluding recoverable value-added taxes. Net amounts charged to this allowance are generally written off when there is no expectation of recovering additional cash. The table 'expected credit losses' below shows the rate of expected credit losses for various appropriate past due categories. expected credit losses \u00a0trade receivables - days past due \u00a0not past due 0-4 weeks 5-16 weeks 17 weeks and over doubtful debts total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.5% 1.7% - 8.5% 17.7% - 62% 100% \u00a0Estimated total gross carrying amount at default 3,635 391 177 36 16 4,255 Lifetime ECL 2 2 6 20 16 46 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.6% 2.1% - 9.8% 20% - 54% 100% \u00a0Estimated total gross carrying amount at default 3,455 333 140 30 20 3,978 Lifetime ECL 3 2 6 13 20 44 aging of trade receivables, based on invoice date \u00a02022 2021 amount % amount % \u00a0\u00a0\u00a0\u00a0\u00a00-4 weeks 2,710 56.2 2,550 56.4 5-16 weeks 1,979 41.1 1,860 41.1 17-26 weeks 82 1.7 63 1.4 Not impaired 4,771 99.0 4,473 98.9 Impaired 48 1.0 48 1.1 Total trade receivables 4,819 100.0 4,521 100.0 The information with regard to aging categories is based on the invoice date, as the risk of non-payment starts from this date. For other financial assets, which for the main part comprise receivables on governmental or semi-governmental bodies, see note 21. Excess cash positions are invested with preferred financial partners, which are mostly considered to be high-quality financial institutions with sound credit ratings, or in highly rated liquidity funds. Policies are in place that limit the amount of credit exposure to any one financial institution. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-388": { "value": " 3.2.1 credit risk Credit risk within the Group arises from the possibility that clients and other counterparties may not be able to settle their obligations towards the Group. Credit control policies are included in a blueprint, which is a global document including prescribed work procedures and guidelines. To manage credit risk, credit checks are, in principle, performed upfront for new customers. For high-risk clients, credit limits are put in place based on internal and/or external ratings. Credit risk is monitored by the credit control departments of our operating companies on a daily basis. An international credit committee is in place to share best practices and to share knowledge of developments in various industries. The Group has no significant concentrations of credit risk, as the Group has many clients in a large number of industries and countries. trade and other receivables \u00a02022 2021 \u00a0\u00a0\u00a0Trade receivables 4,819 4,521 Less: allowance for expected credit losses 46 44 Trade receivables, net of allowance for expected credit losses 4,773 4,477 Other receivables 742 669 Prepayments 296 269 Net plan assets defined benefit pension plan 3 5 Loans 7 7 Net investments in subleases 7 5 Total trade and other receivables 5,828 5,432 The carrying amount of these receivables reflects the fair value. The Group does not hold any collateral as security. Trade and other receivables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method less allowance for expected credit losses. Trade and other receivables are hold-to-collect contractual cash flows. For net plan assets relating to the defined benefit pension plan, see note 24.2. accounting policy The allowance for expected credit losses (ECL) of trade receivables is based on individual assessments of expected non-recoverable receivables as well as on expected credit losses estimated using a provision matrix by reference to past default experiences on the portfolio of trade receivables of subsidiaries in relation to revenue streams, and various other (external) sources of actual and forecast economic information. In our estimation, we have taken into account the impact due to changes in macroeconomic circumstances like the conflict in Ukraine, supply chain disruptions, increased cost of living and to a lesser extent COVID-19 on the expected credit risk in our portfolio. We did not see a major deterioration of our portfolio in 2022 compared to 2021. Significant financial difficulties of the debtor, the probability that the debtor will enter into bankruptcy or financial reorganization, serious default or delinquency in payments, and significant overdues in payment are considered indicators that the trade receivable is in default and a credit loss is expected to occur. The amount of the allowance is equal to the difference between the carrying amount of the receivable and the present value of estimated future cash flows. movements in the allowance for expected credit losses of trade receivables \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 44 52 Charged to selling expenses 11 (2) Receivables written off as uncollectable (9) (7) Translation differences - 1 Balance as at December 31 46 44 In the allowance for expected credit losses of trade receivables, an allowance is included for individually impaired trade receivables of \u20ac\u00a016 million (2021: \u20ac\u00a020 million). The remainder is related to other expected credit losses, which are measured at an amount equal to lifetime ECL, based on the approach described above. The allowance for expected credit losses of trade receivables is excluding recoverable value-added taxes. Net amounts charged to this allowance are generally written off when there is no expectation of recovering additional cash. The table 'expected credit losses' below shows the rate of expected credit losses for various appropriate past due categories. expected credit losses \u00a0trade receivables - days past due \u00a0not past due 0-4 weeks 5-16 weeks 17 weeks and over doubtful debts total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.5% 1.7% - 8.5% 17.7% - 62% 100% \u00a0Estimated total gross carrying amount at default 3,635 391 177 36 16 4,255 Lifetime ECL 2 2 6 20 16 46 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.6% 2.1% - 9.8% 20% - 54% 100% \u00a0Estimated total gross carrying amount at default 3,455 333 140 30 20 3,978 Lifetime ECL 3 2 6 13 20 44 aging of trade receivables, based on invoice date \u00a02022 2021 amount % amount % \u00a0\u00a0\u00a0\u00a0\u00a00-4 weeks 2,710 56.2 2,550 56.4 5-16 weeks 1,979 41.1 1,860 41.1 17-26 weeks 82 1.7 63 1.4 Not impaired 4,771 99.0 4,473 98.9 Impaired 48 1.0 48 1.1 Total trade receivables 4,819 100.0 4,521 100.0 The information with regard to aging categories is based on the invoice date, as the risk of non-payment starts from this date. For other financial assets, which for the main part comprise receivables on governmental or semi-governmental bodies, see note 21. Excess cash positions are invested with preferred financial partners, which are mostly considered to be high-quality financial institutions with sound credit ratings, or in highly rated liquidity funds. Policies are in place that limit the amount of credit exposure to any one financial institution. 3.2.2 liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations. The Group's approach to liquidity risk is to ensure, as far as possible, that it will always have sufficient funds available to meet its liabilities when due, under both normal and stressed conditions. This risk is managed by having sufficient availability of cash, as well as committed and uncommitted credit lines, both at Group and subsidiary level. credit facilities As at December 31, 2022, the Group had a \u20ac\u00a01,750 million (2021: \u20ac\u00a01,850 million) committed multi-currency syndicated revolving credit facility at its disposal, which matures in May 2027 (2021: July 2024). The term may potentially be extended to a maximum of seven years (i.e., maturing in May 2029) through the exercise of two extension options, which are at the banks' discretion. The facility agreement, which is a refinancing of the previous facility (\u20ac\u00a01,850 million), contains the same covenant with respect to the net debt to EBITDA ratio (leverage ratio), as well as a paragraph on material adverse changes. The net debt to EBITDA ratio has a limit of 3.5x and is calculated based on the results of the Group on a 12-month basis. In certain cases, Randstad is allowed to report a leverage ratio of 4.25x EBITDA for a limited period of time. This credit facility has an interest rate that is based each time on the term of the drawings, increased by a margin above the applicable Euribor or LIBOR rates. The margin is variable and depends on the 'net debt to EBITDA' ratio. The facility agreement stipulates that the calculation of this ratio is based on the accounting policies as included in the annual report 2011, being the initial starting date of the current facility. In 2022, the Group had two committed bilateral revolving credit facilities of \u20ac\u00a0200 million each (2021:\u00a0\u20ac\u00a0200\u00a0million), with a three-year tenor, maturing in December 2024, and a committed bilateral term loan of USD 300 million\u00a0 (2021:\u00a0USD 300\u00a0million), with a three-year tenor, maturing in December 2024. The revolving credit facilities have an interest rate that is each time based on the term of the drawing, increased with a fixed margin above the applicable Euribor rates. Covenants are fully aligned with the committed multi-currency syndicated revolving credit facility. The term loan has an interest rate that is each time based on the term of the drawing, increased by a margin above the applicable Libor rate. The margin is variable and depends on the leverage ratio. Covenants are fully aligned with the committed multi-currency syndicated revolving credit. The actual leverage ratio (pre IFRS 16 'Leases') as at December 31, 2022 is 0.2 (December 31, 2021: \u22120.1), which is well below the limit. borrowings Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost. Any difference between the proceeds and the amount to be repaid is recognized in net finance costs during the term of the borrowings, using the effective interest method. total borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Non-current borrowings 477 664 Non-current borrowings 477 664 \u00a0\u00a0\u00a0Current borrowings 69 16 Borrowings, under current liabilities 69 16 Total borrowings 546 680 Since the interest rates on the current borrowings and non-current borrowings fluctuate with the market, the effective interest rates are considered equal to the actual rates. Negative pledges have been issued for purposes of bank overdraft facilities, and 'pari passu' clauses apply. movements in non-current borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 664 - Drawings on non-current borrowings 766 664 Repayments of non-current borrowings (970) - Amortization of transaction costs 1 - Translation and currency differences 16 - Balance as at December 31 477 664 Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective. current borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 16 141 Acquisition of subsidiary companies 32 23 Drawings / (repayments) 26 (148) Net increase / (decrease) cash flow statement 58 (125) Translation and currency differences (5) - Balance as at December 31 69 16 Bank overdrafts 69 16 Money market drawings - - Balance as at December 31 69 16 Bank overdrafts are denominated in various currencies. As at December 31, 2022, the major bank overdraft denominated in foreign currencies is for an amount of \u20ac\u00a05 million in US dollars (December 31, 2021: \u20ac\u00a03 million). Maturities of financial liabilities are expected to be: expected maturities of financial liabilities \u00a0carrying amount 0 - 90 days 91 - 365 days 2 - 5 years more than 5 years \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0Non-current borrowings1 477 - - 477 - Lease liabilities (non-current and current)2 598 50 136 359 118 Borrowings under current liabilities3 69 69 - - - Trade and other payables4 4,495 4,014 481 - - Other liabilities5 7 - - 7 - \u00a05,646 4,133 617 843 118 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Non-current borrowings 664 - - 664 - Lease liabilities (non-current and current)2 594 50 138 355 83 Borrowings under current liabilities3 16 16 - - - Trade and other payables4 4,351 3,883 468 - - Other liabilities5 4 2 2 - - \u00a05,629 3,951 608 1,019 83 Drawings on the revolving credit facilities and the term loan mature in 2024. All amounts are undiscounted. Lease liabilities: carrying amount is discounted, whereas lease repayments in the maturity buckets are undiscounted. Bank overdrafts include no interest, as these are repayable upon demand; other drawings include interest. All amounts in the maturity buckets are undiscounted. Excluding deferred income. All amounts are undiscounted. Other liabilities are based on the expected contractual dates. Carrying amount is discounted, whereas amounts in the maturity buckets are undiscounted. including interest payments cash and cash equivalents Cash and cash equivalents comprise cash on hand and at bank, as well as time deposits and other short-term highly liquid investments with original maturities of three months or less. cash and cash equivalents \u00a02022 2021 \u00a0\u00a0\u00a0Time deposits 16 130 Cash on hand and at bank 258 729 Total cash and cash equivalents 274 859 Time deposits fall due, on average, within a month. The average interest rate for time deposits is 9.1% (December 31, 2021: 0.2%). An amount of \u20ac\u00a0241 million out of \u20ac\u00a0274 million (December 31, 2021: \u20ac\u00a0827 million out of \u20ac\u00a0859 million) is available upon demand. net debt The net debt includes the balance of cash, cash equivalents, and borrowings (both current and non-current), as well as lease liabilities (current and non-current). net debt \u00a02022 2021 \u00a0\u00a0\u00a0Non-current borrowings (477) (664) Current borrowings (69) (16) Total borrowings (546) (680) Cash and cash equivalents 274 859 Net cash/(net debt), excluding lease liabilities (272) 179 Lease liabilities (598) (594) Net debt (870) (415) 3.2.3 foreign currency exchange risk transactions and balances in currencies other than the functional currency Transactions in currencies other than the functional currency of the related subsidiary are converted at the foreign exchange rate on the date of the transaction. Monetary balance sheet items (such as cash and borrowings) in currencies other than the functional currency of the related subsidiary are converted at year-end exchange rates. Exchange differences resulting from the settlement of transactions on cash, cash equivalents, and borrowings, as well as from the conversion of these monetary balance sheet items, are included in net finance costs. Exchange differences resulting from the settlement of other transactions and conversion of other monetary balance sheet items are included in operating expenses. Non-monetary balance sheet items (such as property, plant and equipment) that are measured in terms of historical cost in currencies other than the functional currency of the related company are converted at the foreign exchange rates on the date of transaction. exposures to foreign currency exchange risk The Group uses the euro as its reporting currency. Currencies other than the euro that are of primary importance to the Group are the Australian dollar, the Canadian dollar, the Japanese yen, the Swiss franc, the UK pound sterling, and the US dollar. main exchange rates to the euro \u00a02022 2021 average at year-end average at year-end \u00a0\u00a0\u00a0\u00a0\u00a0Australian dollar 0.66 0.64 0.64 0.64 Canadian dollar 0.73 0.69 0.67 0.70 Japanese yen 0.0072 0.0071 0.0077 0.0076 Swiss franc 0.99 1.01 0.92 0.96 UK pound sterling 1.17 1.13 1.16 1.19 US dollar 0.95 0.93 0.85 0.88 averages on annual basis The foreign currency exchange risk of the Group with respect to transactions is limited, because subsidiaries usually generate both revenues and expenses in the same local currency. All other foreign exchange transactions, which mostly consist of intercompany financing (equity increases, dividends, intercompany loans, and interests), are accounted for, in principle, at the exchange rate at the transaction date. The Group has a policy to match, within certain preset boundaries, the currencies in the net debt positions with the currencies in the cash flow generation. The currency mix of the debt can easily be adjusted, as the \u20ac\u00a01,750 million syndicated revolving credit facility is a multi-currency facility. In principle, the use of derivatives is therefore unnecessary. At year-ends 2022 and 2021, the Group had no outstanding interest rate or currency derivatives. Currency fluctuations can, however, affect the consolidated results, due to the translation of local results into the Group's reporting currency. Translation effects from consolidation may also impact shareholders' equity. The Group has a number of net investments in foreign subsidiaries whose assets and liabilities are exposed to currency translation risk that is accounted for, through total other comprehensive income, in equity. Currency exposures arising from the net assets of the Group's foreign operations are monitored and, when considered necessary, hedged against borrowings in the relevant currencies through a net investment hedge; translation differences on borrowings classified as such are included, through comprehensive income, in equity. In the Group, two subsidiaries (based in Argentina and Turkey) are accounted for in accordance with IAS 29 'Financial reporting in hyperinflationary economies'. The application of this standard has no material effect on the consolidated financial statements. The general price indices published for Argentina and Turkey are used in restating the results of these subsidiaries. The CPIs for Argentina and Turkey as at 31 December 2022 were 1,135 and 1,128 (December 31, 2021: 582 and 687) respectively. The effect of the adjustment on the results of the Group designated as the result on net monetary position totaled \u20ac\u00a03 million during the current year (2021: \u20ac\u00a00.9 million) and is presented under net finance costs. sensitivity If the euro had weakened or strengthened 15% on average during 2022 against the currencies mentioned in the table 'main exchange rates to the euro', with all other variables held constant, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a03 million \u2212 \u20ac\u00a044 million per currency. If the euro had weakened or strengthened 10% on average against these currencies, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a02 million \u2212 \u20ac\u00a030 million per currency (2021: range of \u20ac\u00a01 million \u2212 \u20ac\u00a020 million per currency). The effect on shareholders' equity would have been the same (before tax effects). foreign currency sensitivity against euro \u00a02022 2021 15% change1 10% change 10% change \u00a0\u00a0\u00a0\u00a0Australian dollar 3 2 2 Canadian dollar 6 4 4 Japanese yen 9 6 6 Swiss franc 3 2 1 UK pound sterling 3 2 1 US dollar 44 30 20 The increased range used for the year 2022 is a response to the recent dynamic market circumstances and represents reasonably possible changes. foreign currency sensitivity on financial instruments The foreign exchange risk exposure on the consolidated financial assets is limited and not material. The foreign exchange risk exposure on the consolidated financial liabilities is hedged and therefore foreign exchange risk is limited. 3.2.4 interest rate risk The general policy is to keep interest rates on net debt floating as much as possible. We believe this adds value for shareholders in the long term, as over time floating interest rates are on average significantly lower than fixed interest rates. We also believe that the staffing industry has a natural hedge to interest rate changes (EBITDA levels usually move up and down more or less in line with interest rate levels), and since the Group is cash-generating, we aim to maintain floating interest rates on net debt as much as possible. sensitivity If the interest rate had been 2 percentage points higher on average during 2022, with all other variables held constant, net interest expenses for the year would have increased by \u20ac\u00a07 million. If the interest rate had been 1 percentage point higher on average during the year, with all other variables held constant, net interest expenses for the year would have increased by \u20ac\u00a03 million (2021: \u20ac\u00a00 million higher). For the year 2023 we do not expect the financial structure to change significantly. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-389": { "value": " 3.2.1 credit risk Credit risk within the Group arises from the possibility that clients and other counterparties may not be able to settle their obligations towards the Group. Credit control policies are included in a blueprint, which is a global document including prescribed work procedures and guidelines. To manage credit risk, credit checks are, in principle, performed upfront for new customers. For high-risk clients, credit limits are put in place based on internal and/or external ratings. Credit risk is monitored by the credit control departments of our operating companies on a daily basis. An international credit committee is in place to share best practices and to share knowledge of developments in various industries. The Group has no significant concentrations of credit risk, as the Group has many clients in a large number of industries and countries. trade and other receivables \u00a02022 2021 \u00a0\u00a0\u00a0Trade receivables 4,819 4,521 Less: allowance for expected credit losses 46 44 Trade receivables, net of allowance for expected credit losses 4,773 4,477 Other receivables 742 669 Prepayments 296 269 Net plan assets defined benefit pension plan 3 5 Loans 7 7 Net investments in subleases 7 5 Total trade and other receivables 5,828 5,432 The carrying amount of these receivables reflects the fair value. The Group does not hold any collateral as security. Trade and other receivables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method less allowance for expected credit losses. Trade and other receivables are hold-to-collect contractual cash flows. For net plan assets relating to the defined benefit pension plan, see note 24.2. accounting policy The allowance for expected credit losses (ECL) of trade receivables is based on individual assessments of expected non-recoverable receivables as well as on expected credit losses estimated using a provision matrix by reference to past default experiences on the portfolio of trade receivables of subsidiaries in relation to revenue streams, and various other (external) sources of actual and forecast economic information. In our estimation, we have taken into account the impact due to changes in macroeconomic circumstances like the conflict in Ukraine, supply chain disruptions, increased cost of living and to a lesser extent COVID-19 on the expected credit risk in our portfolio. We did not see a major deterioration of our portfolio in 2022 compared to 2021. Significant financial difficulties of the debtor, the probability that the debtor will enter into bankruptcy or financial reorganization, serious default or delinquency in payments, and significant overdues in payment are considered indicators that the trade receivable is in default and a credit loss is expected to occur. The amount of the allowance is equal to the difference between the carrying amount of the receivable and the present value of estimated future cash flows. movements in the allowance for expected credit losses of trade receivables \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 44 52 Charged to selling expenses 11 (2) Receivables written off as uncollectable (9) (7) Translation differences - 1 Balance as at December 31 46 44 In the allowance for expected credit losses of trade receivables, an allowance is included for individually impaired trade receivables of \u20ac\u00a016 million (2021: \u20ac\u00a020 million). The remainder is related to other expected credit losses, which are measured at an amount equal to lifetime ECL, based on the approach described above. The allowance for expected credit losses of trade receivables is excluding recoverable value-added taxes. Net amounts charged to this allowance are generally written off when there is no expectation of recovering additional cash. The table 'expected credit losses' below shows the rate of expected credit losses for various appropriate past due categories. expected credit losses \u00a0trade receivables - days past due \u00a0not past due 0-4 weeks 5-16 weeks 17 weeks and over doubtful debts total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.5% 1.7% - 8.5% 17.7% - 62% 100% \u00a0Estimated total gross carrying amount at default 3,635 391 177 36 16 4,255 Lifetime ECL 2 2 6 20 16 46 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.6% 2.1% - 9.8% 20% - 54% 100% \u00a0Estimated total gross carrying amount at default 3,455 333 140 30 20 3,978 Lifetime ECL 3 2 6 13 20 44 aging of trade receivables, based on invoice date \u00a02022 2021 amount % amount % \u00a0\u00a0\u00a0\u00a0\u00a00-4 weeks 2,710 56.2 2,550 56.4 5-16 weeks 1,979 41.1 1,860 41.1 17-26 weeks 82 1.7 63 1.4 Not impaired 4,771 99.0 4,473 98.9 Impaired 48 1.0 48 1.1 Total trade receivables 4,819 100.0 4,521 100.0 The information with regard to aging categories is based on the invoice date, as the risk of non-payment starts from this date. For other financial assets, which for the main part comprise receivables on governmental or semi-governmental bodies, see note 21. Excess cash positions are invested with preferred financial partners, which are mostly considered to be high-quality financial institutions with sound credit ratings, or in highly rated liquidity funds. Policies are in place that limit the amount of credit exposure to any one financial institution. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-390": { "value": " 3.2.1 credit risk Credit risk within the Group arises from the possibility that clients and other counterparties may not be able to settle their obligations towards the Group. Credit control policies are included in a blueprint, which is a global document including prescribed work procedures and guidelines. To manage credit risk, credit checks are, in principle, performed upfront for new customers. For high-risk clients, credit limits are put in place based on internal and/or external ratings. Credit risk is monitored by the credit control departments of our operating companies on a daily basis. An international credit committee is in place to share best practices and to share knowledge of developments in various industries. The Group has no significant concentrations of credit risk, as the Group has many clients in a large number of industries and countries. trade and other receivables \u00a02022 2021 \u00a0\u00a0\u00a0Trade receivables 4,819 4,521 Less: allowance for expected credit losses 46 44 Trade receivables, net of allowance for expected credit losses 4,773 4,477 Other receivables 742 669 Prepayments 296 269 Net plan assets defined benefit pension plan 3 5 Loans 7 7 Net investments in subleases 7 5 Total trade and other receivables 5,828 5,432 The carrying amount of these receivables reflects the fair value. The Group does not hold any collateral as security. Trade and other receivables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method less allowance for expected credit losses. Trade and other receivables are hold-to-collect contractual cash flows. For net plan assets relating to the defined benefit pension plan, see note 24.2. accounting policy The allowance for expected credit losses (ECL) of trade receivables is based on individual assessments of expected non-recoverable receivables as well as on expected credit losses estimated using a provision matrix by reference to past default experiences on the portfolio of trade receivables of subsidiaries in relation to revenue streams, and various other (external) sources of actual and forecast economic information. In our estimation, we have taken into account the impact due to changes in macroeconomic circumstances like the conflict in Ukraine, supply chain disruptions, increased cost of living and to a lesser extent COVID-19 on the expected credit risk in our portfolio. We did not see a major deterioration of our portfolio in 2022 compared to 2021. Significant financial difficulties of the debtor, the probability that the debtor will enter into bankruptcy or financial reorganization, serious default or delinquency in payments, and significant overdues in payment are considered indicators that the trade receivable is in default and a credit loss is expected to occur. The amount of the allowance is equal to the difference between the carrying amount of the receivable and the present value of estimated future cash flows. movements in the allowance for expected credit losses of trade receivables \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 44 52 Charged to selling expenses 11 (2) Receivables written off as uncollectable (9) (7) Translation differences - 1 Balance as at December 31 46 44 In the allowance for expected credit losses of trade receivables, an allowance is included for individually impaired trade receivables of \u20ac\u00a016 million (2021: \u20ac\u00a020 million). The remainder is related to other expected credit losses, which are measured at an amount equal to lifetime ECL, based on the approach described above. The allowance for expected credit losses of trade receivables is excluding recoverable value-added taxes. Net amounts charged to this allowance are generally written off when there is no expectation of recovering additional cash. The table 'expected credit losses' below shows the rate of expected credit losses for various appropriate past due categories. expected credit losses \u00a0trade receivables - days past due \u00a0not past due 0-4 weeks 5-16 weeks 17 weeks and over doubtful debts total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.5% 1.7% - 8.5% 17.7% - 62% 100% \u00a0Estimated total gross carrying amount at default 3,635 391 177 36 16 4,255 Lifetime ECL 2 2 6 20 16 46 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.6% 2.1% - 9.8% 20% - 54% 100% \u00a0Estimated total gross carrying amount at default 3,455 333 140 30 20 3,978 Lifetime ECL 3 2 6 13 20 44 aging of trade receivables, based on invoice date \u00a02022 2021 amount % amount % \u00a0\u00a0\u00a0\u00a0\u00a00-4 weeks 2,710 56.2 2,550 56.4 5-16 weeks 1,979 41.1 1,860 41.1 17-26 weeks 82 1.7 63 1.4 Not impaired 4,771 99.0 4,473 98.9 Impaired 48 1.0 48 1.1 Total trade receivables 4,819 100.0 4,521 100.0 The information with regard to aging categories is based on the invoice date, as the risk of non-payment starts from this date. For other financial assets, which for the main part comprise receivables on governmental or semi-governmental bodies, see note 21. Excess cash positions are invested with preferred financial partners, which are mostly considered to be high-quality financial institutions with sound credit ratings, or in highly rated liquidity funds. Policies are in place that limit the amount of credit exposure to any one financial institution. ", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-391": { "value": " 3.2.1 credit risk Credit risk within the Group arises from the possibility that clients and other counterparties may not be able to settle their obligations towards the Group. Credit control policies are included in a blueprint, which is a global document including prescribed work procedures and guidelines. To manage credit risk, credit checks are, in principle, performed upfront for new customers. For high-risk clients, credit limits are put in place based on internal and/or external ratings. Credit risk is monitored by the credit control departments of our operating companies on a daily basis. An international credit committee is in place to share best practices and to share knowledge of developments in various industries. The Group has no significant concentrations of credit risk, as the Group has many clients in a large number of industries and countries. trade and other receivables \u00a02022 2021 \u00a0\u00a0\u00a0Trade receivables 4,819 4,521 Less: allowance for expected credit losses 46 44 Trade receivables, net of allowance for expected credit losses 4,773 4,477 Other receivables 742 669 Prepayments 296 269 Net plan assets defined benefit pension plan 3 5 Loans 7 7 Net investments in subleases 7 5 Total trade and other receivables 5,828 5,432 The carrying amount of these receivables reflects the fair value. The Group does not hold any collateral as security. Trade and other receivables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method less allowance for expected credit losses. Trade and other receivables are hold-to-collect contractual cash flows. For net plan assets relating to the defined benefit pension plan, see note 24.2. accounting policy The allowance for expected credit losses (ECL) of trade receivables is based on individual assessments of expected non-recoverable receivables as well as on expected credit losses estimated using a provision matrix by reference to past default experiences on the portfolio of trade receivables of subsidiaries in relation to revenue streams, and various other (external) sources of actual and forecast economic information. In our estimation, we have taken into account the impact due to changes in macroeconomic circumstances like the conflict in Ukraine, supply chain disruptions, increased cost of living and to a lesser extent COVID-19 on the expected credit risk in our portfolio. We did not see a major deterioration of our portfolio in 2022 compared to 2021. Significant financial difficulties of the debtor, the probability that the debtor will enter into bankruptcy or financial reorganization, serious default or delinquency in payments, and significant overdues in payment are considered indicators that the trade receivable is in default and a credit loss is expected to occur. The amount of the allowance is equal to the difference between the carrying amount of the receivable and the present value of estimated future cash flows. movements in the allowance for expected credit losses of trade receivables \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 44 52 Charged to selling expenses 11 (2) Receivables written off as uncollectable (9) (7) Translation differences - 1 Balance as at December 31 46 44 In the allowance for expected credit losses of trade receivables, an allowance is included for individually impaired trade receivables of \u20ac\u00a016 million (2021: \u20ac\u00a020 million). The remainder is related to other expected credit losses, which are measured at an amount equal to lifetime ECL, based on the approach described above. The allowance for expected credit losses of trade receivables is excluding recoverable value-added taxes. Net amounts charged to this allowance are generally written off when there is no expectation of recovering additional cash. The table 'expected credit losses' below shows the rate of expected credit losses for various appropriate past due categories. expected credit losses \u00a0trade receivables - days past due \u00a0not past due 0-4 weeks 5-16 weeks 17 weeks and over doubtful debts total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.5% 1.7% - 8.5% 17.7% - 62% 100% \u00a0Estimated total gross carrying amount at default 3,635 391 177 36 16 4,255 Lifetime ECL 2 2 6 20 16 46 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.6% 2.1% - 9.8% 20% - 54% 100% \u00a0Estimated total gross carrying amount at default 3,455 333 140 30 20 3,978 Lifetime ECL 3 2 6 13 20 44 aging of trade receivables, based on invoice date \u00a02022 2021 amount % amount % \u00a0\u00a0\u00a0\u00a0\u00a00-4 weeks 2,710 56.2 2,550 56.4 5-16 weeks 1,979 41.1 1,860 41.1 17-26 weeks 82 1.7 63 1.4 Not impaired 4,771 99.0 4,473 98.9 Impaired 48 1.0 48 1.1 Total trade receivables 4,819 100.0 4,521 100.0 The information with regard to aging categories is based on the invoice date, as the risk of non-payment starts from this date. For other financial assets, which for the main part comprise receivables on governmental or semi-governmental bodies, see note 21. Excess cash positions are invested with preferred financial partners, which are mostly considered to be high-quality financial institutions with sound credit ratings, or in highly rated liquidity funds. Policies are in place that limit the amount of credit exposure to any one financial institution. ", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-392": { "value": " 3.2.1 credit risk Credit risk within the Group arises from the possibility that clients and other counterparties may not be able to settle their obligations towards the Group. Credit control policies are included in a blueprint, which is a global document including prescribed work procedures and guidelines. To manage credit risk, credit checks are, in principle, performed upfront for new customers. For high-risk clients, credit limits are put in place based on internal and/or external ratings. Credit risk is monitored by the credit control departments of our operating companies on a daily basis. An international credit committee is in place to share best practices and to share knowledge of developments in various industries. The Group has no significant concentrations of credit risk, as the Group has many clients in a large number of industries and countries. trade and other receivables \u00a02022 2021 \u00a0\u00a0\u00a0Trade receivables 4,819 4,521 Less: allowance for expected credit losses 46 44 Trade receivables, net of allowance for expected credit losses 4,773 4,477 Other receivables 742 669 Prepayments 296 269 Net plan assets defined benefit pension plan 3 5 Loans 7 7 Net investments in subleases 7 5 Total trade and other receivables 5,828 5,432 The carrying amount of these receivables reflects the fair value. The Group does not hold any collateral as security. Trade and other receivables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method less allowance for expected credit losses. Trade and other receivables are hold-to-collect contractual cash flows. For net plan assets relating to the defined benefit pension plan, see note 24.2. accounting policy The allowance for expected credit losses (ECL) of trade receivables is based on individual assessments of expected non-recoverable receivables as well as on expected credit losses estimated using a provision matrix by reference to past default experiences on the portfolio of trade receivables of subsidiaries in relation to revenue streams, and various other (external) sources of actual and forecast economic information. In our estimation, we have taken into account the impact due to changes in macroeconomic circumstances like the conflict in Ukraine, supply chain disruptions, increased cost of living and to a lesser extent COVID-19 on the expected credit risk in our portfolio. We did not see a major deterioration of our portfolio in 2022 compared to 2021. Significant financial difficulties of the debtor, the probability that the debtor will enter into bankruptcy or financial reorganization, serious default or delinquency in payments, and significant overdues in payment are considered indicators that the trade receivable is in default and a credit loss is expected to occur. The amount of the allowance is equal to the difference between the carrying amount of the receivable and the present value of estimated future cash flows. movements in the allowance for expected credit losses of trade receivables \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 44 52 Charged to selling expenses 11 (2) Receivables written off as uncollectable (9) (7) Translation differences - 1 Balance as at December 31 46 44 In the allowance for expected credit losses of trade receivables, an allowance is included for individually impaired trade receivables of \u20ac\u00a016 million (2021: \u20ac\u00a020 million). The remainder is related to other expected credit losses, which are measured at an amount equal to lifetime ECL, based on the approach described above. The allowance for expected credit losses of trade receivables is excluding recoverable value-added taxes. Net amounts charged to this allowance are generally written off when there is no expectation of recovering additional cash. The table 'expected credit losses' below shows the rate of expected credit losses for various appropriate past due categories. expected credit losses \u00a0trade receivables - days past due \u00a0not past due 0-4 weeks 5-16 weeks 17 weeks and over doubtful debts total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.5% 1.7% - 8.5% 17.7% - 62% 100% \u00a0Estimated total gross carrying amount at default 3,635 391 177 36 16 4,255 Lifetime ECL 2 2 6 20 16 46 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.6% 2.1% - 9.8% 20% - 54% 100% \u00a0Estimated total gross carrying amount at default 3,455 333 140 30 20 3,978 Lifetime ECL 3 2 6 13 20 44 aging of trade receivables, based on invoice date \u00a02022 2021 amount % amount % \u00a0\u00a0\u00a0\u00a0\u00a00-4 weeks 2,710 56.2 2,550 56.4 5-16 weeks 1,979 41.1 1,860 41.1 17-26 weeks 82 1.7 63 1.4 Not impaired 4,771 99.0 4,473 98.9 Impaired 48 1.0 48 1.1 Total trade receivables 4,819 100.0 4,521 100.0 The information with regard to aging categories is based on the invoice date, as the risk of non-payment starts from this date. For other financial assets, which for the main part comprise receivables on governmental or semi-governmental bodies, see note 21. Excess cash positions are invested with preferred financial partners, which are mostly considered to be high-quality financial institutions with sound credit ratings, or in highly rated liquidity funds. Policies are in place that limit the amount of credit exposure to any one financial institution. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-393": { "value": " 3.2.1 credit risk Credit risk within the Group arises from the possibility that clients and other counterparties may not be able to settle their obligations towards the Group. Credit control policies are included in a blueprint, which is a global document including prescribed work procedures and guidelines. To manage credit risk, credit checks are, in principle, performed upfront for new customers. For high-risk clients, credit limits are put in place based on internal and/or external ratings. Credit risk is monitored by the credit control departments of our operating companies on a daily basis. An international credit committee is in place to share best practices and to share knowledge of developments in various industries. The Group has no significant concentrations of credit risk, as the Group has many clients in a large number of industries and countries. trade and other receivables \u00a02022 2021 \u00a0\u00a0\u00a0Trade receivables 4,819 4,521 Less: allowance for expected credit losses 46 44 Trade receivables, net of allowance for expected credit losses 4,773 4,477 Other receivables 742 669 Prepayments 296 269 Net plan assets defined benefit pension plan 3 5 Loans 7 7 Net investments in subleases 7 5 Total trade and other receivables 5,828 5,432 The carrying amount of these receivables reflects the fair value. The Group does not hold any collateral as security. Trade and other receivables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method less allowance for expected credit losses. Trade and other receivables are hold-to-collect contractual cash flows. For net plan assets relating to the defined benefit pension plan, see note 24.2. accounting policy The allowance for expected credit losses (ECL) of trade receivables is based on individual assessments of expected non-recoverable receivables as well as on expected credit losses estimated using a provision matrix by reference to past default experiences on the portfolio of trade receivables of subsidiaries in relation to revenue streams, and various other (external) sources of actual and forecast economic information. In our estimation, we have taken into account the impact due to changes in macroeconomic circumstances like the conflict in Ukraine, supply chain disruptions, increased cost of living and to a lesser extent COVID-19 on the expected credit risk in our portfolio. We did not see a major deterioration of our portfolio in 2022 compared to 2021. Significant financial difficulties of the debtor, the probability that the debtor will enter into bankruptcy or financial reorganization, serious default or delinquency in payments, and significant overdues in payment are considered indicators that the trade receivable is in default and a credit loss is expected to occur. The amount of the allowance is equal to the difference between the carrying amount of the receivable and the present value of estimated future cash flows. movements in the allowance for expected credit losses of trade receivables \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 44 52 Charged to selling expenses 11 (2) Receivables written off as uncollectable (9) (7) Translation differences - 1 Balance as at December 31 46 44 In the allowance for expected credit losses of trade receivables, an allowance is included for individually impaired trade receivables of \u20ac\u00a016 million (2021: \u20ac\u00a020 million). The remainder is related to other expected credit losses, which are measured at an amount equal to lifetime ECL, based on the approach described above. The allowance for expected credit losses of trade receivables is excluding recoverable value-added taxes. Net amounts charged to this allowance are generally written off when there is no expectation of recovering additional cash. The table 'expected credit losses' below shows the rate of expected credit losses for various appropriate past due categories. expected credit losses \u00a0trade receivables - days past due \u00a0not past due 0-4 weeks 5-16 weeks 17 weeks and over doubtful debts total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.5% 1.7% - 8.5% 17.7% - 62% 100% \u00a0Estimated total gross carrying amount at default 3,635 391 177 36 16 4,255 Lifetime ECL 2 2 6 20 16 46 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0ECL rate 0.1% 0.6% 2.1% - 9.8% 20% - 54% 100% \u00a0Estimated total gross carrying amount at default 3,455 333 140 30 20 3,978 Lifetime ECL 3 2 6 13 20 44 aging of trade receivables, based on invoice date \u00a02022 2021 amount % amount % \u00a0\u00a0\u00a0\u00a0\u00a00-4 weeks 2,710 56.2 2,550 56.4 5-16 weeks 1,979 41.1 1,860 41.1 17-26 weeks 82 1.7 63 1.4 Not impaired 4,771 99.0 4,473 98.9 Impaired 48 1.0 48 1.1 Total trade receivables 4,819 100.0 4,521 100.0 The information with regard to aging categories is based on the invoice date, as the risk of non-payment starts from this date. For other financial assets, which for the main part comprise receivables on governmental or semi-governmental bodies, see note 21. Excess cash positions are invested with preferred financial partners, which are mostly considered to be high-quality financial institutions with sound credit ratings, or in highly rated liquidity funds. Policies are in place that limit the amount of credit exposure to any one financial institution. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-501": { "value": "Trade and other receivables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method less allowance for expected credit losses. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-394": { "value": "3.2.2 liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations. The Group's approach to liquidity risk is to ensure, as far as possible, that it will always have sufficient funds available to meet its liabilities when due, under both normal and stressed conditions. This risk is managed by having sufficient availability of cash, as well as committed and uncommitted credit lines, both at Group and subsidiary level. credit facilities As at December 31, 2022, the Group had a \u20ac\u00a01,750 million (2021: \u20ac\u00a01,850 million) committed multi-currency syndicated revolving credit facility at its disposal, which matures in May 2027 (2021: July 2024). The term may potentially be extended to a maximum of seven years (i.e., maturing in May 2029) through the exercise of two extension options, which are at the banks' discretion. The facility agreement, which is a refinancing of the previous facility (\u20ac\u00a01,850 million), contains the same covenant with respect to the net debt to EBITDA ratio (leverage ratio), as well as a paragraph on material adverse changes. The net debt to EBITDA ratio has a limit of 3.5x and is calculated based on the results of the Group on a 12-month basis. In certain cases, Randstad is allowed to report a leverage ratio of 4.25x EBITDA for a limited period of time. This credit facility has an interest rate that is based each time on the term of the drawings, increased by a margin above the applicable Euribor or LIBOR rates. The margin is variable and depends on the 'net debt to EBITDA' ratio. The facility agreement stipulates that the calculation of this ratio is based on the accounting policies as included in the annual report 2011, being the initial starting date of the current facility. In 2022, the Group had two committed bilateral revolving credit facilities of \u20ac\u00a0200 million each (2021:\u00a0\u20ac\u00a0200\u00a0million), with a three-year tenor, maturing in December 2024, and a committed bilateral term loan of USD 300 million\u00a0 (2021:\u00a0USD 300\u00a0million), with a three-year tenor, maturing in December 2024. The revolving credit facilities have an interest rate that is each time based on the term of the drawing, increased with a fixed margin above the applicable Euribor rates. Covenants are fully aligned with the committed multi-currency syndicated revolving credit facility. The term loan has an interest rate that is each time based on the term of the drawing, increased by a margin above the applicable Libor rate. The margin is variable and depends on the leverage ratio. Covenants are fully aligned with the committed multi-currency syndicated revolving credit. The actual leverage ratio (pre IFRS 16 'Leases') as at December 31, 2022 is 0.2 (December 31, 2021: \u22120.1), which is well below the limit. borrowings Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost. Any difference between the proceeds and the amount to be repaid is recognized in net finance costs during the term of the borrowings, using the effective interest method. total borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Non-current borrowings 477 664 Non-current borrowings 477 664 \u00a0\u00a0\u00a0Current borrowings 69 16 Borrowings, under current liabilities 69 16 Total borrowings 546 680 Since the interest rates on the current borrowings and non-current borrowings fluctuate with the market, the effective interest rates are considered equal to the actual rates. Negative pledges have been issued for purposes of bank overdraft facilities, and 'pari passu' clauses apply. movements in non-current borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 664 - Drawings on non-current borrowings 766 664 Repayments of non-current borrowings (970) - Amortization of transaction costs 1 - Translation and currency differences 16 - Balance as at December 31 477 664 Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective. current borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 16 141 Acquisition of subsidiary companies 32 23 Drawings / (repayments) 26 (148) Net increase / (decrease) cash flow statement 58 (125) Translation and currency differences (5) - Balance as at December 31 69 16 Bank overdrafts 69 16 Money market drawings - - Balance as at December 31 69 16 Bank overdrafts are denominated in various currencies. As at December 31, 2022, the major bank overdraft denominated in foreign currencies is for an amount of \u20ac\u00a05 million in US dollars (December 31, 2021: \u20ac\u00a03 million). Maturities of financial liabilities are expected to be: expected maturities of financial liabilities \u00a0carrying amount 0 - 90 days 91 - 365 days 2 - 5 years more than 5 years \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0Non-current borrowings1 477 - - 477 - Lease liabilities (non-current and current)2 598 50 136 359 118 Borrowings under current liabilities3 69 69 - - - Trade and other payables4 4,495 4,014 481 - - Other liabilities5 7 - - 7 - \u00a05,646 4,133 617 843 118 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Non-current borrowings 664 - - 664 - Lease liabilities (non-current and current)2 594 50 138 355 83 Borrowings under current liabilities3 16 16 - - - Trade and other payables4 4,351 3,883 468 - - Other liabilities5 4 2 2 - - \u00a05,629 3,951 608 1,019 83 Drawings on the revolving credit facilities and the term loan mature in 2024. All amounts are undiscounted. Lease liabilities: carrying amount is discounted, whereas lease repayments in the maturity buckets are undiscounted. Bank overdrafts include no interest, as these are repayable upon demand; other drawings include interest. All amounts in the maturity buckets are undiscounted. Excluding deferred income. All amounts are undiscounted. Other liabilities are based on the expected contractual dates. Carrying amount is discounted, whereas amounts in the maturity buckets are undiscounted. including interest payments cash and cash equivalents Cash and cash equivalents comprise cash on hand and at bank, as well as time deposits and other short-term highly liquid investments with original maturities of three months or less. cash and cash equivalents \u00a02022 2021 \u00a0\u00a0\u00a0Time deposits 16 130 Cash on hand and at bank 258 729 Total cash and cash equivalents 274 859 Time deposits fall due, on average, within a month. The average interest rate for time deposits is 9.1% (December 31, 2021: 0.2%). An amount of \u20ac\u00a0241 million out of \u20ac\u00a0274 million (December 31, 2021: \u20ac\u00a0827 million out of \u20ac\u00a0859 million) is available upon demand. net debt The net debt includes the balance of cash, cash equivalents, and borrowings (both current and non-current), as well as lease liabilities (current and non-current). net debt \u00a02022 2021 \u00a0\u00a0\u00a0Non-current borrowings (477) (664) Current borrowings (69) (16) Total borrowings (546) (680) Cash and cash equivalents 274 859 Net cash/(net debt), excluding lease liabilities (272) 179 Lease liabilities (598) (594) Net debt (870) (415) ", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-396": { "value": "3.2.2 liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations. The Group's approach to liquidity risk is to ensure, as far as possible, that it will always have sufficient funds available to meet its liabilities when due, under both normal and stressed conditions. This risk is managed by having sufficient availability of cash, as well as committed and uncommitted credit lines, both at Group and subsidiary level. credit facilities As at December 31, 2022, the Group had a \u20ac\u00a01,750 million (2021: \u20ac\u00a01,850 million) committed multi-currency syndicated revolving credit facility at its disposal, which matures in May 2027 (2021: July 2024). The term may potentially be extended to a maximum of seven years (i.e., maturing in May 2029) through the exercise of two extension options, which are at the banks' discretion. The facility agreement, which is a refinancing of the previous facility (\u20ac\u00a01,850 million), contains the same covenant with respect to the net debt to EBITDA ratio (leverage ratio), as well as a paragraph on material adverse changes. The net debt to EBITDA ratio has a limit of 3.5x and is calculated based on the results of the Group on a 12-month basis. In certain cases, Randstad is allowed to report a leverage ratio of 4.25x EBITDA for a limited period of time. This credit facility has an interest rate that is based each time on the term of the drawings, increased by a margin above the applicable Euribor or LIBOR rates. The margin is variable and depends on the 'net debt to EBITDA' ratio. The facility agreement stipulates that the calculation of this ratio is based on the accounting policies as included in the annual report 2011, being the initial starting date of the current facility. In 2022, the Group had two committed bilateral revolving credit facilities of \u20ac\u00a0200 million each (2021:\u00a0\u20ac\u00a0200\u00a0million), with a three-year tenor, maturing in December 2024, and a committed bilateral term loan of USD 300 million\u00a0 (2021:\u00a0USD 300\u00a0million), with a three-year tenor, maturing in December 2024. The revolving credit facilities have an interest rate that is each time based on the term of the drawing, increased with a fixed margin above the applicable Euribor rates. Covenants are fully aligned with the committed multi-currency syndicated revolving credit facility. The term loan has an interest rate that is each time based on the term of the drawing, increased by a margin above the applicable Libor rate. The margin is variable and depends on the leverage ratio. Covenants are fully aligned with the committed multi-currency syndicated revolving credit. The actual leverage ratio (pre IFRS 16 'Leases') as at December 31, 2022 is 0.2 (December 31, 2021: \u22120.1), which is well below the limit. borrowings Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost. Any difference between the proceeds and the amount to be repaid is recognized in net finance costs during the term of the borrowings, using the effective interest method. total borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Non-current borrowings 477 664 Non-current borrowings 477 664 \u00a0\u00a0\u00a0Current borrowings 69 16 Borrowings, under current liabilities 69 16 Total borrowings 546 680 Since the interest rates on the current borrowings and non-current borrowings fluctuate with the market, the effective interest rates are considered equal to the actual rates. Negative pledges have been issued for purposes of bank overdraft facilities, and 'pari passu' clauses apply. movements in non-current borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 664 - Drawings on non-current borrowings 766 664 Repayments of non-current borrowings (970) - Amortization of transaction costs 1 - Translation and currency differences 16 - Balance as at December 31 477 664 Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective. current borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 16 141 Acquisition of subsidiary companies 32 23 Drawings / (repayments) 26 (148) Net increase / (decrease) cash flow statement 58 (125) Translation and currency differences (5) - Balance as at December 31 69 16 Bank overdrafts 69 16 Money market drawings - - Balance as at December 31 69 16 Bank overdrafts are denominated in various currencies. As at December 31, 2022, the major bank overdraft denominated in foreign currencies is for an amount of \u20ac\u00a05 million in US dollars (December 31, 2021: \u20ac\u00a03 million). Maturities of financial liabilities are expected to be: expected maturities of financial liabilities \u00a0carrying amount 0 - 90 days 91 - 365 days 2 - 5 years more than 5 years \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0Non-current borrowings1 477 - - 477 - Lease liabilities (non-current and current)2 598 50 136 359 118 Borrowings under current liabilities3 69 69 - - - Trade and other payables4 4,495 4,014 481 - - Other liabilities5 7 - - 7 - \u00a05,646 4,133 617 843 118 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Non-current borrowings 664 - - 664 - Lease liabilities (non-current and current)2 594 50 138 355 83 Borrowings under current liabilities3 16 16 - - - Trade and other payables4 4,351 3,883 468 - - Other liabilities5 4 2 2 - - \u00a05,629 3,951 608 1,019 83 Drawings on the revolving credit facilities and the term loan mature in 2024. All amounts are undiscounted. Lease liabilities: carrying amount is discounted, whereas lease repayments in the maturity buckets are undiscounted. Bank overdrafts include no interest, as these are repayable upon demand; other drawings include interest. All amounts in the maturity buckets are undiscounted. Excluding deferred income. All amounts are undiscounted. Other liabilities are based on the expected contractual dates. Carrying amount is discounted, whereas amounts in the maturity buckets are undiscounted. including interest payments cash and cash equivalents Cash and cash equivalents comprise cash on hand and at bank, as well as time deposits and other short-term highly liquid investments with original maturities of three months or less. cash and cash equivalents \u00a02022 2021 \u00a0\u00a0\u00a0Time deposits 16 130 Cash on hand and at bank 258 729 Total cash and cash equivalents 274 859 Time deposits fall due, on average, within a month. The average interest rate for time deposits is 9.1% (December 31, 2021: 0.2%). An amount of \u20ac\u00a0241 million out of \u20ac\u00a0274 million (December 31, 2021: \u20ac\u00a0827 million out of \u20ac\u00a0859 million) is available upon demand. net debt The net debt includes the balance of cash, cash equivalents, and borrowings (both current and non-current), as well as lease liabilities (current and non-current). net debt \u00a02022 2021 \u00a0\u00a0\u00a0Non-current borrowings (477) (664) Current borrowings (69) (16) Total borrowings (546) (680) Cash and cash equivalents 274 859 Net cash/(net debt), excluding lease liabilities (272) 179 Lease liabilities (598) (594) Net debt (870) (415) ", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-398": { "value": "3.2.2 liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations. The Group's approach to liquidity risk is to ensure, as far as possible, that it will always have sufficient funds available to meet its liabilities when due, under both normal and stressed conditions. This risk is managed by having sufficient availability of cash, as well as committed and uncommitted credit lines, both at Group and subsidiary level. credit facilities As at December 31, 2022, the Group had a \u20ac\u00a01,750 million (2021: \u20ac\u00a01,850 million) committed multi-currency syndicated revolving credit facility at its disposal, which matures in May 2027 (2021: July 2024). The term may potentially be extended to a maximum of seven years (i.e., maturing in May 2029) through the exercise of two extension options, which are at the banks' discretion. The facility agreement, which is a refinancing of the previous facility (\u20ac\u00a01,850 million), contains the same covenant with respect to the net debt to EBITDA ratio (leverage ratio), as well as a paragraph on material adverse changes. The net debt to EBITDA ratio has a limit of 3.5x and is calculated based on the results of the Group on a 12-month basis. In certain cases, Randstad is allowed to report a leverage ratio of 4.25x EBITDA for a limited period of time. This credit facility has an interest rate that is based each time on the term of the drawings, increased by a margin above the applicable Euribor or LIBOR rates. The margin is variable and depends on the 'net debt to EBITDA' ratio. The facility agreement stipulates that the calculation of this ratio is based on the accounting policies as included in the annual report 2011, being the initial starting date of the current facility. In 2022, the Group had two committed bilateral revolving credit facilities of \u20ac\u00a0200 million each (2021:\u00a0\u20ac\u00a0200\u00a0million), with a three-year tenor, maturing in December 2024, and a committed bilateral term loan of USD 300 million\u00a0 (2021:\u00a0USD 300\u00a0million), with a three-year tenor, maturing in December 2024. The revolving credit facilities have an interest rate that is each time based on the term of the drawing, increased with a fixed margin above the applicable Euribor rates. Covenants are fully aligned with the committed multi-currency syndicated revolving credit facility. The term loan has an interest rate that is each time based on the term of the drawing, increased by a margin above the applicable Libor rate. The margin is variable and depends on the leverage ratio. Covenants are fully aligned with the committed multi-currency syndicated revolving credit. The actual leverage ratio (pre IFRS 16 'Leases') as at December 31, 2022 is 0.2 (December 31, 2021: \u22120.1), which is well below the limit. borrowings Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost. Any difference between the proceeds and the amount to be repaid is recognized in net finance costs during the term of the borrowings, using the effective interest method. total borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Non-current borrowings 477 664 Non-current borrowings 477 664 \u00a0\u00a0\u00a0Current borrowings 69 16 Borrowings, under current liabilities 69 16 Total borrowings 546 680 Since the interest rates on the current borrowings and non-current borrowings fluctuate with the market, the effective interest rates are considered equal to the actual rates. Negative pledges have been issued for purposes of bank overdraft facilities, and 'pari passu' clauses apply. movements in non-current borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 664 - Drawings on non-current borrowings 766 664 Repayments of non-current borrowings (970) - Amortization of transaction costs 1 - Translation and currency differences 16 - Balance as at December 31 477 664 Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective. current borrowings \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 16 141 Acquisition of subsidiary companies 32 23 Drawings / (repayments) 26 (148) Net increase / (decrease) cash flow statement 58 (125) Translation and currency differences (5) - Balance as at December 31 69 16 Bank overdrafts 69 16 Money market drawings - - Balance as at December 31 69 16 Bank overdrafts are denominated in various currencies. As at December 31, 2022, the major bank overdraft denominated in foreign currencies is for an amount of \u20ac\u00a05 million in US dollars (December 31, 2021: \u20ac\u00a03 million). Maturities of financial liabilities are expected to be: expected maturities of financial liabilities \u00a0carrying amount 0 - 90 days 91 - 365 days 2 - 5 years more than 5 years \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0Non-current borrowings1 477 - - 477 - Lease liabilities (non-current and current)2 598 50 136 359 118 Borrowings under current liabilities3 69 69 - - - Trade and other payables4 4,495 4,014 481 - - Other liabilities5 7 - - 7 - \u00a05,646 4,133 617 843 118 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0December 31, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Non-current borrowings 664 - - 664 - Lease liabilities (non-current and current)2 594 50 138 355 83 Borrowings under current liabilities3 16 16 - - - Trade and other payables4 4,351 3,883 468 - - Other liabilities5 4 2 2 - - \u00a05,629 3,951 608 1,019 83 Drawings on the revolving credit facilities and the term loan mature in 2024. All amounts are undiscounted. Lease liabilities: carrying amount is discounted, whereas lease repayments in the maturity buckets are undiscounted. Bank overdrafts include no interest, as these are repayable upon demand; other drawings include interest. All amounts in the maturity buckets are undiscounted. Excluding deferred income. All amounts are undiscounted. Other liabilities are based on the expected contractual dates. Carrying amount is discounted, whereas amounts in the maturity buckets are undiscounted. including interest payments cash and cash equivalents Cash and cash equivalents comprise cash on hand and at bank, as well as time deposits and other short-term highly liquid investments with original maturities of three months or less. cash and cash equivalents \u00a02022 2021 \u00a0\u00a0\u00a0Time deposits 16 130 Cash on hand and at bank 258 729 Total cash and cash equivalents 274 859 Time deposits fall due, on average, within a month. The average interest rate for time deposits is 9.1% (December 31, 2021: 0.2%). An amount of \u20ac\u00a0241 million out of \u20ac\u00a0274 million (December 31, 2021: \u20ac\u00a0827 million out of \u20ac\u00a0859 million) is available upon demand. net debt The net debt includes the balance of cash, cash equivalents, and borrowings (both current and non-current), as well as lease liabilities (current and non-current). net debt \u00a02022 2021 \u00a0\u00a0\u00a0Non-current borrowings (477) (664) Current borrowings (69) (16) Total borrowings (546) (680) Cash and cash equivalents 274 859 Net cash/(net debt), excluding lease liabilities (272) 179 Lease liabilities (598) (594) Net debt (870) (415) ", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-502": { "value": "Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost. Any difference between the proceeds and the amount to be repaid is recognized in net finance costs during the term of the borrowings, using the effective interest method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-503": { "value": "Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost. Any difference between the proceeds and the amount to be repaid is recognized in net finance costs during the term of the borrowings, using the effective interest method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-399": { "value": "Borrowings are initially recognized at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortized cost. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-507": { "value": "Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective. 3.2.3 foreign currency exchange risk transactions and balances in currencies other than the functional currency Transactions in currencies other than the functional currency of the related subsidiary are converted at the foreign exchange rate on the date of the transaction. Monetary balance sheet items (such as cash and borrowings) in currencies other than the functional currency of the related subsidiary are converted at year-end exchange rates. Exchange differences resulting from the settlement of transactions on cash, cash equivalents, and borrowings, as well as from the conversion of these monetary balance sheet items, are included in net finance costs. Exchange differences resulting from the settlement of other transactions and conversion of other monetary balance sheet items are included in operating expenses. Non-monetary balance sheet items (such as property, plant and equipment) that are measured in terms of historical cost in currencies other than the functional currency of the related company are converted at the foreign exchange rates on the date of transaction. exposures to foreign currency exchange risk The Group uses the euro as its reporting currency. Currencies other than the euro that are of primary importance to the Group are the Australian dollar, the Canadian dollar, the Japanese yen, the Swiss franc, the UK pound sterling, and the US dollar. main exchange rates to the euro \u00a02022 2021 average at year-end average at year-end \u00a0\u00a0\u00a0\u00a0\u00a0Australian dollar 0.66 0.64 0.64 0.64 Canadian dollar 0.73 0.69 0.67 0.70 Japanese yen 0.0072 0.0071 0.0077 0.0076 Swiss franc 0.99 1.01 0.92 0.96 UK pound sterling 1.17 1.13 1.16 1.19 US dollar 0.95 0.93 0.85 0.88 averages on annual basis The foreign currency exchange risk of the Group with respect to transactions is limited, because subsidiaries usually generate both revenues and expenses in the same local currency. All other foreign exchange transactions, which mostly consist of intercompany financing (equity increases, dividends, intercompany loans, and interests), are accounted for, in principle, at the exchange rate at the transaction date. The Group has a policy to match, within certain preset boundaries, the currencies in the net debt positions with the currencies in the cash flow generation. The currency mix of the debt can easily be adjusted, as the \u20ac\u00a01,750 million syndicated revolving credit facility is a multi-currency facility. In principle, the use of derivatives is therefore unnecessary. At year-ends 2022 and 2021, the Group had no outstanding interest rate or currency derivatives. Currency fluctuations can, however, affect the consolidated results, due to the translation of local results into the Group's reporting currency. Translation effects from consolidation may also impact shareholders' equity. The Group has a number of net investments in foreign subsidiaries whose assets and liabilities are exposed to currency translation risk that is accounted for, through total other comprehensive income, in equity. Currency exposures arising from the net assets of the Group's foreign operations are monitored and, when considered necessary, hedged against borrowings in the relevant currencies through a net investment hedge; translation differences on borrowings classified as such are included, through comprehensive income, in equity. In the Group, two subsidiaries (based in Argentina and Turkey) are accounted for in accordance with IAS 29 'Financial reporting in hyperinflationary economies'. The application of this standard has no material effect on the consolidated financial statements. The general price indices published for Argentina and Turkey are used in restating the results of these subsidiaries. The CPIs for Argentina and Turkey as at 31 December 2022 were 1,135 and 1,128 (December 31, 2021: 582 and 687) respectively. The effect of the adjustment on the results of the Group designated as the result on net monetary position totaled \u20ac\u00a03 million during the current year (2021: \u20ac\u00a00.9 million) and is presented under net finance costs. sensitivity If the euro had weakened or strengthened 15% on average during 2022 against the currencies mentioned in the table 'main exchange rates to the euro', with all other variables held constant, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a03 million \u2212 \u20ac\u00a044 million per currency. If the euro had weakened or strengthened 10% on average against these currencies, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a02 million \u2212 \u20ac\u00a030 million per currency (2021: range of \u20ac\u00a01 million \u2212 \u20ac\u00a020 million per currency). The effect on shareholders' equity would have been the same (before tax effects). foreign currency sensitivity against euro \u00a02022 2021 15% change1 10% change 10% change \u00a0\u00a0\u00a0\u00a0Australian dollar 3 2 2 Canadian dollar 6 4 4 Japanese yen 9 6 6 Swiss franc 3 2 1 UK pound sterling 3 2 1 US dollar 44 30 20 The increased range used for the year 2022 is a response to the recent dynamic market circumstances and represents reasonably possible changes. foreign currency sensitivity on financial instruments The foreign exchange risk exposure on the consolidated financial assets is limited and not material. The foreign exchange risk exposure on the consolidated financial liabilities is hedged and therefore foreign exchange risk is limited. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-508": { "value": "Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective. Translation effects from consolidation may also impact shareholders' equity. The Group has a number of net investments in foreign subsidiaries whose assets and liabilities are exposed to currency translation risk that is accounted for, through total other comprehensive income, in equity. Currency exposures arising from the net assets of the Group's foreign operations are monitored and, when considered necessary, hedged against borrowings in the relevant currencies through a net investment hedge; translation differences on borrowings classified as such are included, through comprehensive income, in equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-509": { "value": "Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective. Translation effects from consolidation may also impact shareholders' equity. The Group has a number of net investments in foreign subsidiaries whose assets and liabilities are exposed to currency translation risk that is accounted for, through total other comprehensive income, in equity. Currency exposures arising from the net assets of the Group's foreign operations are monitored and, when considered necessary, hedged against borrowings in the relevant currencies through a net investment hedge; translation differences on borrowings classified as such are included, through comprehensive income, in equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-400": { "value": "Amounts of non-current borrowings which are denominated in US dollars were designated as hedges of the net investment in subsidiaries in the US (during 2022 and 2021). These net-investment hedges were all considered effective. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-401": { "value": "Cash and cash equivalents comprise cash on hand and at bank, as well as time deposits and other short-term highly liquid investments with original maturities of three months or less. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-510": { "value": "Cash and cash equivalents comprise cash on hand and at bank, as well as time deposits and other short-term highly liquid investments with original maturities of three months or less. Time deposits fall due, on average, within a month. The average interest rate for time deposits is 9.1% (December 31, 2021: 0.2%). ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-511": { "value": "Cash and cash equivalents comprise cash on hand and at bank, as well as time deposits and other short-term highly liquid investments with original maturities of three months or less. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-402": { "value": "Time deposits fall due, on average, within a month. The average interest rate for time deposits is 9.1% (December 31, 2021: 0.2%). ", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-403": { "value": " 3.2.3 foreign currency exchange risk transactions and balances in currencies other than the functional currency Transactions in currencies other than the functional currency of the related subsidiary are converted at the foreign exchange rate on the date of the transaction. Monetary balance sheet items (such as cash and borrowings) in currencies other than the functional currency of the related subsidiary are converted at year-end exchange rates. Exchange differences resulting from the settlement of transactions on cash, cash equivalents, and borrowings, as well as from the conversion of these monetary balance sheet items, are included in net finance costs. Exchange differences resulting from the settlement of other transactions and conversion of other monetary balance sheet items are included in operating expenses. Non-monetary balance sheet items (such as property, plant and equipment) that are measured in terms of historical cost in currencies other than the functional currency of the related company are converted at the foreign exchange rates on the date of transaction. exposures to foreign currency exchange risk The Group uses the euro as its reporting currency. Currencies other than the euro that are of primary importance to the Group are the Australian dollar, the Canadian dollar, the Japanese yen, the Swiss franc, the UK pound sterling, and the US dollar. main exchange rates to the euro \u00a02022 2021 average at year-end average at year-end \u00a0\u00a0\u00a0\u00a0\u00a0Australian dollar 0.66 0.64 0.64 0.64 Canadian dollar 0.73 0.69 0.67 0.70 Japanese yen 0.0072 0.0071 0.0077 0.0076 Swiss franc 0.99 1.01 0.92 0.96 UK pound sterling 1.17 1.13 1.16 1.19 US dollar 0.95 0.93 0.85 0.88 averages on annual basis The foreign currency exchange risk of the Group with respect to transactions is limited, because subsidiaries usually generate both revenues and expenses in the same local currency. All other foreign exchange transactions, which mostly consist of intercompany financing (equity increases, dividends, intercompany loans, and interests), are accounted for, in principle, at the exchange rate at the transaction date. The Group has a policy to match, within certain preset boundaries, the currencies in the net debt positions with the currencies in the cash flow generation. The currency mix of the debt can easily be adjusted, as the \u20ac\u00a01,750 million syndicated revolving credit facility is a multi-currency facility. In principle, the use of derivatives is therefore unnecessary. At year-ends 2022 and 2021, the Group had no outstanding interest rate or currency derivatives. Currency fluctuations can, however, affect the consolidated results, due to the translation of local results into the Group's reporting currency. Translation effects from consolidation may also impact shareholders' equity. The Group has a number of net investments in foreign subsidiaries whose assets and liabilities are exposed to currency translation risk that is accounted for, through total other comprehensive income, in equity. Currency exposures arising from the net assets of the Group's foreign operations are monitored and, when considered necessary, hedged against borrowings in the relevant currencies through a net investment hedge; translation differences on borrowings classified as such are included, through comprehensive income, in equity. In the Group, two subsidiaries (based in Argentina and Turkey) are accounted for in accordance with IAS 29 'Financial reporting in hyperinflationary economies'. The application of this standard has no material effect on the consolidated financial statements. The general price indices published for Argentina and Turkey are used in restating the results of these subsidiaries. The CPIs for Argentina and Turkey as at 31 December 2022 were 1,135 and 1,128 (December 31, 2021: 582 and 687) respectively. The effect of the adjustment on the results of the Group designated as the result on net monetary position totaled \u20ac\u00a03 million during the current year (2021: \u20ac\u00a00.9 million) and is presented under net finance costs. sensitivity If the euro had weakened or strengthened 15% on average during 2022 against the currencies mentioned in the table 'main exchange rates to the euro', with all other variables held constant, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a03 million \u2212 \u20ac\u00a044 million per currency. If the euro had weakened or strengthened 10% on average against these currencies, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a02 million \u2212 \u20ac\u00a030 million per currency (2021: range of \u20ac\u00a01 million \u2212 \u20ac\u00a020 million per currency). The effect on shareholders' equity would have been the same (before tax effects). foreign currency sensitivity against euro \u00a02022 2021 15% change1 10% change 10% change \u00a0\u00a0\u00a0\u00a0Australian dollar 3 2 2 Canadian dollar 6 4 4 Japanese yen 9 6 6 Swiss franc 3 2 1 UK pound sterling 3 2 1 US dollar 44 30 20 The increased range used for the year 2022 is a response to the recent dynamic market circumstances and represents reasonably possible changes. foreign currency sensitivity on financial instruments The foreign exchange risk exposure on the consolidated financial assets is limited and not material. The foreign exchange risk exposure on the consolidated financial liabilities is hedged and therefore foreign exchange risk is limited. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-405": { "value": " 3.2.3 foreign currency exchange risk transactions and balances in currencies other than the functional currency Transactions in currencies other than the functional currency of the related subsidiary are converted at the foreign exchange rate on the date of the transaction. Monetary balance sheet items (such as cash and borrowings) in currencies other than the functional currency of the related subsidiary are converted at year-end exchange rates. Exchange differences resulting from the settlement of transactions on cash, cash equivalents, and borrowings, as well as from the conversion of these monetary balance sheet items, are included in net finance costs. Exchange differences resulting from the settlement of other transactions and conversion of other monetary balance sheet items are included in operating expenses. Non-monetary balance sheet items (such as property, plant and equipment) that are measured in terms of historical cost in currencies other than the functional currency of the related company are converted at the foreign exchange rates on the date of transaction. exposures to foreign currency exchange risk The Group uses the euro as its reporting currency. Currencies other than the euro that are of primary importance to the Group are the Australian dollar, the Canadian dollar, the Japanese yen, the Swiss franc, the UK pound sterling, and the US dollar. main exchange rates to the euro \u00a02022 2021 average at year-end average at year-end \u00a0\u00a0\u00a0\u00a0\u00a0Australian dollar 0.66 0.64 0.64 0.64 Canadian dollar 0.73 0.69 0.67 0.70 Japanese yen 0.0072 0.0071 0.0077 0.0076 Swiss franc 0.99 1.01 0.92 0.96 UK pound sterling 1.17 1.13 1.16 1.19 US dollar 0.95 0.93 0.85 0.88 averages on annual basis The foreign currency exchange risk of the Group with respect to transactions is limited, because subsidiaries usually generate both revenues and expenses in the same local currency. All other foreign exchange transactions, which mostly consist of intercompany financing (equity increases, dividends, intercompany loans, and interests), are accounted for, in principle, at the exchange rate at the transaction date. The Group has a policy to match, within certain preset boundaries, the currencies in the net debt positions with the currencies in the cash flow generation. The currency mix of the debt can easily be adjusted, as the \u20ac\u00a01,750 million syndicated revolving credit facility is a multi-currency facility. In principle, the use of derivatives is therefore unnecessary. At year-ends 2022 and 2021, the Group had no outstanding interest rate or currency derivatives. Currency fluctuations can, however, affect the consolidated results, due to the translation of local results into the Group's reporting currency. Translation effects from consolidation may also impact shareholders' equity. The Group has a number of net investments in foreign subsidiaries whose assets and liabilities are exposed to currency translation risk that is accounted for, through total other comprehensive income, in equity. Currency exposures arising from the net assets of the Group's foreign operations are monitored and, when considered necessary, hedged against borrowings in the relevant currencies through a net investment hedge; translation differences on borrowings classified as such are included, through comprehensive income, in equity. In the Group, two subsidiaries (based in Argentina and Turkey) are accounted for in accordance with IAS 29 'Financial reporting in hyperinflationary economies'. The application of this standard has no material effect on the consolidated financial statements. The general price indices published for Argentina and Turkey are used in restating the results of these subsidiaries. The CPIs for Argentina and Turkey as at 31 December 2022 were 1,135 and 1,128 (December 31, 2021: 582 and 687) respectively. The effect of the adjustment on the results of the Group designated as the result on net monetary position totaled \u20ac\u00a03 million during the current year (2021: \u20ac\u00a00.9 million) and is presented under net finance costs. sensitivity If the euro had weakened or strengthened 15% on average during 2022 against the currencies mentioned in the table 'main exchange rates to the euro', with all other variables held constant, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a03 million \u2212 \u20ac\u00a044 million per currency. If the euro had weakened or strengthened 10% on average against these currencies, EBITA for the year 2022 would have been higher or lower respectively in the range of \u20ac\u00a02 million \u2212 \u20ac\u00a030 million per currency (2021: range of \u20ac\u00a01 million \u2212 \u20ac\u00a020 million per currency). The effect on shareholders' equity would have been the same (before tax effects). foreign currency sensitivity against euro \u00a02022 2021 15% change1 10% change 10% change \u00a0\u00a0\u00a0\u00a0Australian dollar 3 2 2 Canadian dollar 6 4 4 Japanese yen 9 6 6 Swiss franc 3 2 1 UK pound sterling 3 2 1 US dollar 44 30 20 The increased range used for the year 2022 is a response to the recent dynamic market circumstances and represents reasonably possible changes. foreign currency sensitivity on financial instruments The foreign exchange risk exposure on the consolidated financial assets is limited and not material. The foreign exchange risk exposure on the consolidated financial liabilities is hedged and therefore foreign exchange risk is limited. ", "dimensions": { "concept": "ifrs-full:DisclosureOfHyperinflationaryReportingExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-408": { "value": " 4 critical accounting policies, judgments, estimates, and assumptions In preparing the financial statements, management has to make certain judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue, and expenses. The actual outcome may differ from these judgments, estimates, and assumptions, and therefore could have a material effect on the carrying amount of the asset or liability involved. The timing of outflow of resources to settle provisions is subject to the same uncertain factors. Judgments, estimates, and assumptions are reviewed on an ongoing basis, and are based on historical experience and various other factors, including expectations about future events that are believed to be reasonable under the circumstances and for the item involved. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The Group considers the following accounting policies, judgments, estimates, and assumptions as critical, which are described in the notes as indicated: Impairment of non-financial assets in general and impairment of goodwill specifically (estimates and assumptions in respect of recoverable amounts) (note 5); Provisions (estimates for the likelihood as well as timing of (possible) cash outflows) (note 6) Corporate taxes (judgments in determination of worldwide deferred tax assets) (note 7); Leases (assumptions for options (such as renewal and early-termination) in lease contracts) (note 8); Revenue recognition (judgments in determination of the timing of satisfaction of performance obligation and of acting as principal versus agent) (note 9). ", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-409": { "value": " 4 critical accounting policies, judgments, estimates, and assumptions In preparing the financial statements, management has to make certain judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue, and expenses. The actual outcome may differ from these judgments, estimates, and assumptions, and therefore could have a material effect on the carrying amount of the asset or liability involved. The timing of outflow of resources to settle provisions is subject to the same uncertain factors. Judgments, estimates, and assumptions are reviewed on an ongoing basis, and are based on historical experience and various other factors, including expectations about future events that are believed to be reasonable under the circumstances and for the item involved. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The Group considers the following accounting policies, judgments, estimates, and assumptions as critical, which are described in the notes as indicated: Impairment of non-financial assets in general and impairment of goodwill specifically (estimates and assumptions in respect of recoverable amounts) (note 5); Provisions (estimates for the likelihood as well as timing of (possible) cash outflows) (note 6) Corporate taxes (judgments in determination of worldwide deferred tax assets) (note 7); Leases (assumptions for options (such as renewal and early-termination) in lease contracts) (note 8); Revenue recognition (judgments in determination of the timing of satisfaction of performance obligation and of acting as principal versus agent) (note 9). ", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-410": { "value": " 4 critical accounting policies, judgments, estimates, and assumptions In preparing the financial statements, management has to make certain judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue, and expenses. The actual outcome may differ from these judgments, estimates, and assumptions, and therefore could have a material effect on the carrying amount of the asset or liability involved. The timing of outflow of resources to settle provisions is subject to the same uncertain factors. Judgments, estimates, and assumptions are reviewed on an ongoing basis, and are based on historical experience and various other factors, including expectations about future events that are believed to be reasonable under the circumstances and for the item involved. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The Group considers the following accounting policies, judgments, estimates, and assumptions as critical, which are described in the notes as indicated: Impairment of non-financial assets in general and impairment of goodwill specifically (estimates and assumptions in respect of recoverable amounts) (note 5); Provisions (estimates for the likelihood as well as timing of (possible) cash outflows) (note 6) Corporate taxes (judgments in determination of worldwide deferred tax assets) (note 7); Leases (assumptions for options (such as renewal and early-termination) in lease contracts) (note 8); Revenue recognition (judgments in determination of the timing of satisfaction of performance obligation and of acting as principal versus agent) (note 9). ", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-516": { "value": "5.1 impairment of non-financial assets The carrying amounts of the Group's non-financial assets, with the exception of deferred tax assets and the plan assets in relation to defined benefit pension plans, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For goodwill, testing for impairment is performed at least annually. If there are such indications, the recoverable amount of the asset is estimated. If this is not possible, the recoverable amount of the cash-generating unit to which the asset belongs is estimated. For purposes of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Goodwill is allocated to groups of cash-generating units, being operating segments, for purposes of impairment testing. If the recoverable amount of an asset or a cash-generating unit (or operating segment) is estimated to be lower than its carrying amount, the related carrying amount is reduced to its recoverable amount. The resulting impairment loss is immediately recognized in total operating expenses. The recoverable amount is the higher of an asset's fair value less costs to dispose and its value in use. The value in use is determined by using the present value of estimated cash flow projections. The discount rates are based on interest rates that align with the terms of the projections and the specific risks of the asset or business respectively. In determining the fair value less costs to dispose, information such as recent market transactions is taken into account; if no such transactions (or comparable transactions) can be identified, an appropriate valuation model is used. This valuation model is supplemented by valuation multiples, quoted share prices, or other available fair-value indicators. Impairment losses relating to a cash-generating unit (or operating segment) are first allocated to reduce the carrying amount of the goodwill of the related cash-generating unit (or operating segment) and then to reduce the carrying amount of the other assets of that cash-generating unit (or operating segment) on a pro rata basis. An impairment loss with respect to goodwill is not reversed. With respect to other assets, an impairment loss recognized in a prior period is assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. For the impairment testing method of property, plant and equipment, software, and acquisition-related intangible assets, see notes 18, 19 and 20 respectively. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-411": { "value": "5.1 impairment of non-financial assets The carrying amounts of the Group's non-financial assets, with the exception of deferred tax assets and the plan assets in relation to defined benefit pension plans, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For goodwill, testing for impairment is performed at least annually. If there are such indications, the recoverable amount of the asset is estimated. If this is not possible, the recoverable amount of the cash-generating unit to which the asset belongs is estimated. For purposes of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Goodwill is allocated to groups of cash-generating units, being operating segments, for purposes of impairment testing. If the recoverable amount of an asset or a cash-generating unit (or operating segment) is estimated to be lower than its carrying amount, the related carrying amount is reduced to its recoverable amount. The resulting impairment loss is immediately recognized in total operating expenses. The recoverable amount is the higher of an asset's fair value less costs to dispose and its value in use. The value in use is determined by using the present value of estimated cash flow projections. The discount rates are based on interest rates that align with the terms of the projections and the specific risks of the asset or business respectively. In determining the fair value less costs to dispose, information such as recent market transactions is taken into account; if no such transactions (or comparable transactions) can be identified, an appropriate valuation model is used. This valuation model is supplemented by valuation multiples, quoted share prices, or other available fair-value indicators. Impairment losses relating to a cash-generating unit (or operating segment) are first allocated to reduce the carrying amount of the goodwill of the related cash-generating unit (or operating segment) and then to reduce the carrying amount of the other assets of that cash-generating unit (or operating segment) on a pro rata basis. An impairment loss with respect to goodwill is not reversed. With respect to other assets, an impairment loss recognized in a prior period is assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. For the impairment testing method of property, plant and equipment, software, and acquisition-related intangible assets, see notes 18, 19 and 20 respectively. ", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-517": { "value": "5.1 impairment of non-financial assets The carrying amounts of the Group's non-financial assets, with the exception of deferred tax assets and the plan assets in relation to defined benefit pension plans, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For goodwill, testing for impairment is performed at least annually. If there are such indications, the recoverable amount of the asset is estimated. If this is not possible, the recoverable amount of the cash-generating unit to which the asset belongs is estimated. For purposes of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Goodwill is allocated to groups of cash-generating units, being operating segments, for purposes of impairment testing. If the recoverable amount of an asset or a cash-generating unit (or operating segment) is estimated to be lower than its carrying amount, the related carrying amount is reduced to its recoverable amount. The resulting impairment loss is immediately recognized in total operating expenses. The recoverable amount is the higher of an asset's fair value less costs to dispose and its value in use. The value in use is determined by using the present value of estimated cash flow projections. The discount rates are based on interest rates that align with the terms of the projections and the specific risks of the asset or business respectively. In determining the fair value less costs to dispose, information such as recent market transactions is taken into account; if no such transactions (or comparable transactions) can be identified, an appropriate valuation model is used. This valuation model is supplemented by valuation multiples, quoted share prices, or other available fair-value indicators. Impairment losses relating to a cash-generating unit (or operating segment) are first allocated to reduce the carrying amount of the goodwill of the related cash-generating unit (or operating segment) and then to reduce the carrying amount of the other assets of that cash-generating unit (or operating segment) on a pro rata basis. An impairment loss with respect to goodwill is not reversed. With respect to other assets, an impairment loss recognized in a prior period is assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. For the impairment testing method of property, plant and equipment, software, and acquisition-related intangible assets, see notes 18, 19 and 20 respectively. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-518": { "value": "| \u00a0 | \u00a0 | 2022 | 2021 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | \u00a0 | 4,024 | 3,847 |
| Accumulated impairment | \u00a0 | 977 | 940 |
| Balance as at January 1 | \u00a0 | 3,047 | 2,907 |
| Acquisition of subsidiaries | \u00a0 | 69 | 91 |
| Impairment | \u00a0 | - | (2) |
| Translation differences | \u00a0 | 20 | 51 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
| Cost | \u00a0 | 4,107 | 4,024 |
| Accumulated impairment | \u00a0 | 971 | 977 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
In 2022, the Group acquired 100% of the shares of Avanzo (Spain), of Side (France), and of the Finite Group (Australia & New Zealand). See note 11.1 for further information.
In 2021, the Group acquired 100% of the shares of Cella, Inc. (USA), and of Hudson Benelux (Belgium). See note 11.1 for further information.
In 2022, the Group disposed of certain subsidiaries/activities in Japan. See note 11.2 for further information.
In 2021, the Group disposed of certain subsidiaries/activities in Germany and Switzerland. See note 11.2 for further information.
Goodwill on acquisitions of subsidiaries is included in intangible assets; goodwill on acquisitions of associates is included in investments in associates. For the measurement of goodwill at initial recognition, see note 11.1.
Goodwill on acquisitions represents payments made by the Group in anticipation of future economic benefits from assets that cannot be identified individually and cannot be recognized separately. These relate, for example, to synergies expected from integrating the acquired companies and the workforces of the acquired companies.
Goodwill is stated at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity that is sold. Where goodwill has been allocated to an operating segment and part of the operation within that operating segment is disposed of, the goodwill related to that part is included in the carrying amount of the disposed operation when determining the gain or loss on disposal. Goodwill disposed is calculated based on the relative value of the disposed operation of the total value of the operating segment to which the disposed operation belongs. If disposal of an entity results in a loss, the goodwill part in the loss is presented in the statement of comprehensive income as an impairment of goodwill, up to a maximum amount of the loss on disposal.
Goodwill is allocated to operating segments for the purpose of impairment testing. The allocation is made to those operating segments that are expected to benefit from the business combination in which the goodwill arose.
In the case of triggering events and at least annually, the Group tests whether intangible assets, being goodwill and acquisition-related intangible assets, have suffered any impairment. The recoverable amounts of cash-generating units have been determined using, among other instruments, value-in-use calculations. These calculations require the use of estimates. Based on these impairment tests, impairment losses, if any, are identified.
The recoverable amount for all operating segments is based on the higher of the value in use and the fair value less cost to dispose. The value in use is determined by means of cash flow projections based on the actual operating results adjusted for non-cash items (mainly depreciation and amortization) and the expected future performance, which in turn is based on historical performance, management's estimates and assumptions of revenue growth, and on developments of operating margins, assessed using external data, covering a period of, in principle, nine years (2021: nine years). Cash flow projections after this period are extrapolated by means of a growth percentage of 0.5% (2021: 0.25%) throughout the Group. The nine-year period of the projections reflects an estimated full business cycle of our industry.
We performed our annual goodwill impairment test as of October 1, 2022. Key assumptions in the cash flow projections are:
The cash flow projections are prepared in local currencies, and discounted with pre-tax discount rates for each currency involved. The pre-tax discount rates vary from 9.8% to 35.4% (2021: 9.1% to 27.7%). The weighted average is 13.5% (2021: average 12.1%); Netherlands: 12.1% (2021: 10.6%); USA: 13.7% (2021: 12.2%); France: 14.2% (2021: 12.7%).
The assumptions are based on the current best estimate of future macroeconomic developments, which is mainly reflected in the pre-tax discount rates. These assumptions contain inherent judgment due to the continued high degree of uncertainty and therefore might change following global macroeconomic and geopolitical developments.
The annual impairment test performed by the Group for 2022 resulted in no impairments (2021: no impairments).
For 2022, the operating segments UK, Sourceright EMEA, Germany, Poland, Scandinavia, Eastern Europe and Australia are most sensitive to variations in assumptions (2021: Germany, UK, Australia, and Sourceright EMEA). The outcome of impairment testing is sensitive to variations in estimates and assumptions. Variations in estimates and assumptions have the following effect on the impairment test calculations.
| \u00a0 | revenue decrease1 | EBITA margin decrease2 | discount rate increase3 | |||
|---|---|---|---|---|---|---|
| -3% | -0.3% | -0.5% | -1% | -1.5% | 1.5% | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2022 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | - | 4 | - |
| Eastern Europe | - | - | - | - | 5 | - |
| Germany | - | - | - | - | 78 | - |
| Poland | - | - | - | - | 9 | - |
| Randstad Sourceright EMEA | - | 2 | 13 | 28 | 28 | - |
| Scandinavia | - | - | - | - | 8 | - |
| UK | - | - | 10 | 40 | 40 | - |
| Total | - | - | 23 | 68 | 172 | - |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2021 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | \u00a0 | 33 | - |
| Germania | - | - | - | \u00a0 | 29 | - |
| Randstad Sourceright EMEA | - | - | 2 | 24 | 26 | - |
| UK | - | - | - | 26 | 42 | - |
| Total | - | - | 2 | 50 | 130 | - |
The combined recoverable amount of these sensitive operating segments of \u20ac\u00a01,804 million (2021: \u20ac\u00a01,241 million) exceeds the carrying amount by \u20ac\u00a0656 million (2021: \u20ac\u00a0518 million). The carrying amount includes goodwill of \u20ac\u00a0594 million (2021: \u20ac\u00a0417 million).
The operating segments France, the Netherlands, Belgium & Luxembourg, Spain, Portugal, Italy, Switzerland, USA, Canada, Japan, Greater China, Singapore, Sourceright North America, Sourceright APAC and Latin America have substantial headroom available.
For the carrying amount of goodwill by reporting segment, see note 10.2.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-412": { "value": "| \u00a0 | \u00a0 | 2022 | 2021 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | \u00a0 | 4,024 | 3,847 |
| Accumulated impairment | \u00a0 | 977 | 940 |
| Balance as at January 1 | \u00a0 | 3,047 | 2,907 |
| Acquisition of subsidiaries | \u00a0 | 69 | 91 |
| Impairment | \u00a0 | - | (2) |
| Translation differences | \u00a0 | 20 | 51 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
| Cost | \u00a0 | 4,107 | 4,024 |
| Accumulated impairment | \u00a0 | 971 | 977 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
In 2022, the Group acquired 100% of the shares of Avanzo (Spain), of Side (France), and of the Finite Group (Australia & New Zealand). See note 11.1 for further information.
In 2021, the Group acquired 100% of the shares of Cella, Inc. (USA), and of Hudson Benelux (Belgium). See note 11.1 for further information.
In 2022, the Group disposed of certain subsidiaries/activities in Japan. See note 11.2 for further information.
In 2021, the Group disposed of certain subsidiaries/activities in Germany and Switzerland. See note 11.2 for further information.
Goodwill on acquisitions of subsidiaries is included in intangible assets; goodwill on acquisitions of associates is included in investments in associates. For the measurement of goodwill at initial recognition, see note 11.1.
Goodwill on acquisitions represents payments made by the Group in anticipation of future economic benefits from assets that cannot be identified individually and cannot be recognized separately. These relate, for example, to synergies expected from integrating the acquired companies and the workforces of the acquired companies.
Goodwill is stated at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity that is sold. Where goodwill has been allocated to an operating segment and part of the operation within that operating segment is disposed of, the goodwill related to that part is included in the carrying amount of the disposed operation when determining the gain or loss on disposal. Goodwill disposed is calculated based on the relative value of the disposed operation of the total value of the operating segment to which the disposed operation belongs. If disposal of an entity results in a loss, the goodwill part in the loss is presented in the statement of comprehensive income as an impairment of goodwill, up to a maximum amount of the loss on disposal.
Goodwill is allocated to operating segments for the purpose of impairment testing. The allocation is made to those operating segments that are expected to benefit from the business combination in which the goodwill arose.
In the case of triggering events and at least annually, the Group tests whether intangible assets, being goodwill and acquisition-related intangible assets, have suffered any impairment. The recoverable amounts of cash-generating units have been determined using, among other instruments, value-in-use calculations. These calculations require the use of estimates. Based on these impairment tests, impairment losses, if any, are identified.
The recoverable amount for all operating segments is based on the higher of the value in use and the fair value less cost to dispose. The value in use is determined by means of cash flow projections based on the actual operating results adjusted for non-cash items (mainly depreciation and amortization) and the expected future performance, which in turn is based on historical performance, management's estimates and assumptions of revenue growth, and on developments of operating margins, assessed using external data, covering a period of, in principle, nine years (2021: nine years). Cash flow projections after this period are extrapolated by means of a growth percentage of 0.5% (2021: 0.25%) throughout the Group. The nine-year period of the projections reflects an estimated full business cycle of our industry.
We performed our annual goodwill impairment test as of October 1, 2022. Key assumptions in the cash flow projections are:
The cash flow projections are prepared in local currencies, and discounted with pre-tax discount rates for each currency involved. The pre-tax discount rates vary from 9.8% to 35.4% (2021: 9.1% to 27.7%). The weighted average is 13.5% (2021: average 12.1%); Netherlands: 12.1% (2021: 10.6%); USA: 13.7% (2021: 12.2%); France: 14.2% (2021: 12.7%).
The assumptions are based on the current best estimate of future macroeconomic developments, which is mainly reflected in the pre-tax discount rates. These assumptions contain inherent judgment due to the continued high degree of uncertainty and therefore might change following global macroeconomic and geopolitical developments.
The annual impairment test performed by the Group for 2022 resulted in no impairments (2021: no impairments).
For 2022, the operating segments UK, Sourceright EMEA, Germany, Poland, Scandinavia, Eastern Europe and Australia are most sensitive to variations in assumptions (2021: Germany, UK, Australia, and Sourceright EMEA). The outcome of impairment testing is sensitive to variations in estimates and assumptions. Variations in estimates and assumptions have the following effect on the impairment test calculations.
| \u00a0 | revenue decrease1 | EBITA margin decrease2 | discount rate increase3 | |||
|---|---|---|---|---|---|---|
| -3% | -0.3% | -0.5% | -1% | -1.5% | 1.5% | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2022 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | - | 4 | - |
| Eastern Europe | - | - | - | - | 5 | - |
| Germany | - | - | - | - | 78 | - |
| Poland | - | - | - | - | 9 | - |
| Randstad Sourceright EMEA | - | 2 | 13 | 28 | 28 | - |
| Scandinavia | - | - | - | - | 8 | - |
| UK | - | - | 10 | 40 | 40 | - |
| Total | - | - | 23 | 68 | 172 | - |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2021 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | \u00a0 | 33 | - |
| Germania | - | - | - | \u00a0 | 29 | - |
| Randstad Sourceright EMEA | - | - | 2 | 24 | 26 | - |
| UK | - | - | - | 26 | 42 | - |
| Total | - | - | 2 | 50 | 130 | - |
The combined recoverable amount of these sensitive operating segments of \u20ac\u00a01,804 million (2021: \u20ac\u00a01,241 million) exceeds the carrying amount by \u20ac\u00a0656 million (2021: \u20ac\u00a0518 million). The carrying amount includes goodwill of \u20ac\u00a0594 million (2021: \u20ac\u00a0417 million).
The operating segments France, the Netherlands, Belgium & Luxembourg, Spain, Portugal, Italy, Switzerland, USA, Canada, Japan, Greater China, Singapore, Sourceright North America, Sourceright APAC and Latin America have substantial headroom available.
For the carrying amount of goodwill by reporting segment, see note 10.2.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-413": { "value": "| \u00a0 | \u00a0 | 2022 | 2021 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | \u00a0 | 4,024 | 3,847 |
| Accumulated impairment | \u00a0 | 977 | 940 |
| Balance as at January 1 | \u00a0 | 3,047 | 2,907 |
| Acquisition of subsidiaries | \u00a0 | 69 | 91 |
| Impairment | \u00a0 | - | (2) |
| Translation differences | \u00a0 | 20 | 51 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
| Cost | \u00a0 | 4,107 | 4,024 |
| Accumulated impairment | \u00a0 | 971 | 977 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
In 2022, the Group acquired 100% of the shares of Avanzo (Spain), of Side (France), and of the Finite Group (Australia & New Zealand). See note 11.1 for further information.
In 2021, the Group acquired 100% of the shares of Cella, Inc. (USA), and of Hudson Benelux (Belgium). See note 11.1 for further information.
In 2022, the Group disposed of certain subsidiaries/activities in Japan. See note 11.2 for further information.
In 2021, the Group disposed of certain subsidiaries/activities in Germany and Switzerland. See note 11.2 for further information.
Goodwill on acquisitions of subsidiaries is included in intangible assets; goodwill on acquisitions of associates is included in investments in associates. For the measurement of goodwill at initial recognition, see note 11.1.
Goodwill on acquisitions represents payments made by the Group in anticipation of future economic benefits from assets that cannot be identified individually and cannot be recognized separately. These relate, for example, to synergies expected from integrating the acquired companies and the workforces of the acquired companies.
Goodwill is stated at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity that is sold. Where goodwill has been allocated to an operating segment and part of the operation within that operating segment is disposed of, the goodwill related to that part is included in the carrying amount of the disposed operation when determining the gain or loss on disposal. Goodwill disposed is calculated based on the relative value of the disposed operation of the total value of the operating segment to which the disposed operation belongs. If disposal of an entity results in a loss, the goodwill part in the loss is presented in the statement of comprehensive income as an impairment of goodwill, up to a maximum amount of the loss on disposal.
Goodwill is allocated to operating segments for the purpose of impairment testing. The allocation is made to those operating segments that are expected to benefit from the business combination in which the goodwill arose.
In the case of triggering events and at least annually, the Group tests whether intangible assets, being goodwill and acquisition-related intangible assets, have suffered any impairment. The recoverable amounts of cash-generating units have been determined using, among other instruments, value-in-use calculations. These calculations require the use of estimates. Based on these impairment tests, impairment losses, if any, are identified.
The recoverable amount for all operating segments is based on the higher of the value in use and the fair value less cost to dispose. The value in use is determined by means of cash flow projections based on the actual operating results adjusted for non-cash items (mainly depreciation and amortization) and the expected future performance, which in turn is based on historical performance, management's estimates and assumptions of revenue growth, and on developments of operating margins, assessed using external data, covering a period of, in principle, nine years (2021: nine years). Cash flow projections after this period are extrapolated by means of a growth percentage of 0.5% (2021: 0.25%) throughout the Group. The nine-year period of the projections reflects an estimated full business cycle of our industry.
We performed our annual goodwill impairment test as of October 1, 2022. Key assumptions in the cash flow projections are:
The cash flow projections are prepared in local currencies, and discounted with pre-tax discount rates for each currency involved. The pre-tax discount rates vary from 9.8% to 35.4% (2021: 9.1% to 27.7%). The weighted average is 13.5% (2021: average 12.1%); Netherlands: 12.1% (2021: 10.6%); USA: 13.7% (2021: 12.2%); France: 14.2% (2021: 12.7%).
The assumptions are based on the current best estimate of future macroeconomic developments, which is mainly reflected in the pre-tax discount rates. These assumptions contain inherent judgment due to the continued high degree of uncertainty and therefore might change following global macroeconomic and geopolitical developments.
The annual impairment test performed by the Group for 2022 resulted in no impairments (2021: no impairments).
For 2022, the operating segments UK, Sourceright EMEA, Germany, Poland, Scandinavia, Eastern Europe and Australia are most sensitive to variations in assumptions (2021: Germany, UK, Australia, and Sourceright EMEA). The outcome of impairment testing is sensitive to variations in estimates and assumptions. Variations in estimates and assumptions have the following effect on the impairment test calculations.
| \u00a0 | revenue decrease1 | EBITA margin decrease2 | discount rate increase3 | |||
|---|---|---|---|---|---|---|
| -3% | -0.3% | -0.5% | -1% | -1.5% | 1.5% | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2022 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | - | 4 | - |
| Eastern Europe | - | - | - | - | 5 | - |
| Germany | - | - | - | - | 78 | - |
| Poland | - | - | - | - | 9 | - |
| Randstad Sourceright EMEA | - | 2 | 13 | 28 | 28 | - |
| Scandinavia | - | - | - | - | 8 | - |
| UK | - | - | 10 | 40 | 40 | - |
| Total | - | - | 23 | 68 | 172 | - |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2021 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | \u00a0 | 33 | - |
| Germania | - | - | - | \u00a0 | 29 | - |
| Randstad Sourceright EMEA | - | - | 2 | 24 | 26 | - |
| UK | - | - | - | 26 | 42 | - |
| Total | - | - | 2 | 50 | 130 | - |
The combined recoverable amount of these sensitive operating segments of \u20ac\u00a01,804 million (2021: \u20ac\u00a01,241 million) exceeds the carrying amount by \u20ac\u00a0656 million (2021: \u20ac\u00a0518 million). The carrying amount includes goodwill of \u20ac\u00a0594 million (2021: \u20ac\u00a0417 million).
The operating segments France, the Netherlands, Belgium & Luxembourg, Spain, Portugal, Italy, Switzerland, USA, Canada, Japan, Greater China, Singapore, Sourceright North America, Sourceright APAC and Latin America have substantial headroom available.
For the carrying amount of goodwill by reporting segment, see note 10.2.
| \u00a0 | client relationships | brand names | talent profiles | technology | total |
|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2022 | 28 | 10 | 3 | - | 41 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Movements in 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | 83 | 38 | 2 | 11 | 134 |
| Amortization and impairment | (15) | (6) | (3) | (3) | (27) |
| Translation differences | (4) | (1) | 1 | - | (4) |
| Balance as at December 31, 2022 | 92 | 41 | 3 | 8 | 144 |
| Cost | 117 | 47 | 6 | 11 | 181 |
| Accumulated amortization and impairment | 25 | 6 | 3 | 3 | 37 |
| Balance as at December 31, 2022 | 92 | 41 | 3 | 8 | 144 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | 269 | 15 | 1 | 14 | 299 |
| Accumulated amortization and impairment | 222 | 12 | - | 12 | 246 |
| \u00a0 | 47 | 3 | 1 | 2 | 53 |
| Movements in 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | 25 | 10 | 4 | - | 39 |
| Amortization and impairment | (45) | (3) | (1) | (2) | (51) |
| Translation differences | 1 | - | (1) | - | - |
| Balance as at December 31, 2021 | 28 | 10 | 3 | - | 41 |
| Cost | 37 | 10 | 4 | - | 51 |
| Accumulated amortization and impairment | 9 | - | 1 | - | 10 |
| Balance as at December 31, 2021 | 28 | 10 | 3 | - | 41 |
Acquisition-related intangible assets (client relationships (including franchise agreements), brand names, talent profiles and developed technology) that are acquired by the Group are stated at cost less accumulated amortization and impairment losses.
When an intangible asset is acquired in a business combination, its cost is the fair value at the date of its acquisition. This cost is determined on a basis that reflects an amount that the entity would have paid for the asset in an arm's length transaction between knowledgeable and willing parties, based on the best information available. If the fair value cannot be measured reliably, the asset is not recognized as a separate intangible asset, but is included in goodwill.
Amortization of acquisition-related intangible assets is charged to total operating expenses on a straight-line basis over their estimated useful lives, from the date they are available for use. If the asset is fully amortized, the at cost value is reversed against accumulated amortization.
The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate.
The estimated useful life of client relationships is 4 to 8 years, of brand names 1 to 10 years, of talent profiles 2 to 3 years, and of technology 5 to 6 years.
Technology relates to the software platforms acquired in acquisitions and in use as an integral part of our business activities.
Impairments, if any, can be the result of either the evidence that the assumptions for determining the estimated useful lives are incorrect or the annual impairment test of the cash-generating unit (or operating segment) to which the acquisition-related intangible assets are related.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-519": { "value": "| \u00a0 | \u00a0 | 2022 | 2021 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | \u00a0 | 4,024 | 3,847 |
| Accumulated impairment | \u00a0 | 977 | 940 |
| Balance as at January 1 | \u00a0 | 3,047 | 2,907 |
| Acquisition of subsidiaries | \u00a0 | 69 | 91 |
| Impairment | \u00a0 | - | (2) |
| Translation differences | \u00a0 | 20 | 51 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
| Cost | \u00a0 | 4,107 | 4,024 |
| Accumulated impairment | \u00a0 | 971 | 977 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
In 2022, the Group acquired 100% of the shares of Avanzo (Spain), of Side (France), and of the Finite Group (Australia & New Zealand). See note 11.1 for further information.
In 2021, the Group acquired 100% of the shares of Cella, Inc. (USA), and of Hudson Benelux (Belgium). See note 11.1 for further information.
In 2022, the Group disposed of certain subsidiaries/activities in Japan. See note 11.2 for further information.
In 2021, the Group disposed of certain subsidiaries/activities in Germany and Switzerland. See note 11.2 for further information.
Goodwill on acquisitions of subsidiaries is included in intangible assets; goodwill on acquisitions of associates is included in investments in associates. For the measurement of goodwill at initial recognition, see note 11.1.
Goodwill on acquisitions represents payments made by the Group in anticipation of future economic benefits from assets that cannot be identified individually and cannot be recognized separately. These relate, for example, to synergies expected from integrating the acquired companies and the workforces of the acquired companies.
Goodwill is stated at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity that is sold. Where goodwill has been allocated to an operating segment and part of the operation within that operating segment is disposed of, the goodwill related to that part is included in the carrying amount of the disposed operation when determining the gain or loss on disposal. Goodwill disposed is calculated based on the relative value of the disposed operation of the total value of the operating segment to which the disposed operation belongs. If disposal of an entity results in a loss, the goodwill part in the loss is presented in the statement of comprehensive income as an impairment of goodwill, up to a maximum amount of the loss on disposal.
Goodwill is allocated to operating segments for the purpose of impairment testing. The allocation is made to those operating segments that are expected to benefit from the business combination in which the goodwill arose.
In the case of triggering events and at least annually, the Group tests whether intangible assets, being goodwill and acquisition-related intangible assets, have suffered any impairment. The recoverable amounts of cash-generating units have been determined using, among other instruments, value-in-use calculations. These calculations require the use of estimates. Based on these impairment tests, impairment losses, if any, are identified.
The recoverable amount for all operating segments is based on the higher of the value in use and the fair value less cost to dispose. The value in use is determined by means of cash flow projections based on the actual operating results adjusted for non-cash items (mainly depreciation and amortization) and the expected future performance, which in turn is based on historical performance, management's estimates and assumptions of revenue growth, and on developments of operating margins, assessed using external data, covering a period of, in principle, nine years (2021: nine years). Cash flow projections after this period are extrapolated by means of a growth percentage of 0.5% (2021: 0.25%) throughout the Group. The nine-year period of the projections reflects an estimated full business cycle of our industry.
We performed our annual goodwill impairment test as of October 1, 2022. Key assumptions in the cash flow projections are:
The cash flow projections are prepared in local currencies, and discounted with pre-tax discount rates for each currency involved. The pre-tax discount rates vary from 9.8% to 35.4% (2021: 9.1% to 27.7%). The weighted average is 13.5% (2021: average 12.1%); Netherlands: 12.1% (2021: 10.6%); USA: 13.7% (2021: 12.2%); France: 14.2% (2021: 12.7%).
The assumptions are based on the current best estimate of future macroeconomic developments, which is mainly reflected in the pre-tax discount rates. These assumptions contain inherent judgment due to the continued high degree of uncertainty and therefore might change following global macroeconomic and geopolitical developments.
The annual impairment test performed by the Group for 2022 resulted in no impairments (2021: no impairments).
For 2022, the operating segments UK, Sourceright EMEA, Germany, Poland, Scandinavia, Eastern Europe and Australia are most sensitive to variations in assumptions (2021: Germany, UK, Australia, and Sourceright EMEA). The outcome of impairment testing is sensitive to variations in estimates and assumptions. Variations in estimates and assumptions have the following effect on the impairment test calculations.
| \u00a0 | revenue decrease1 | EBITA margin decrease2 | discount rate increase3 | |||
|---|---|---|---|---|---|---|
| -3% | -0.3% | -0.5% | -1% | -1.5% | 1.5% | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2022 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | - | 4 | - |
| Eastern Europe | - | - | - | - | 5 | - |
| Germany | - | - | - | - | 78 | - |
| Poland | - | - | - | - | 9 | - |
| Randstad Sourceright EMEA | - | 2 | 13 | 28 | 28 | - |
| Scandinavia | - | - | - | - | 8 | - |
| UK | - | - | 10 | 40 | 40 | - |
| Total | - | - | 23 | 68 | 172 | - |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2021 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | \u00a0 | 33 | - |
| Germania | - | - | - | \u00a0 | 29 | - |
| Randstad Sourceright EMEA | - | - | 2 | 24 | 26 | - |
| UK | - | - | - | 26 | 42 | - |
| Total | - | - | 2 | 50 | 130 | - |
The combined recoverable amount of these sensitive operating segments of \u20ac\u00a01,804 million (2021: \u20ac\u00a01,241 million) exceeds the carrying amount by \u20ac\u00a0656 million (2021: \u20ac\u00a0518 million). The carrying amount includes goodwill of \u20ac\u00a0594 million (2021: \u20ac\u00a0417 million).
The operating segments France, the Netherlands, Belgium & Luxembourg, Spain, Portugal, Italy, Switzerland, USA, Canada, Japan, Greater China, Singapore, Sourceright North America, Sourceright APAC and Latin America have substantial headroom available.
For the carrying amount of goodwill by reporting segment, see note 10.2.
| \u00a0 | client relationships | brand names | talent profiles | technology | total |
|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2022 | 28 | 10 | 3 | - | 41 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Movements in 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | 83 | 38 | 2 | 11 | 134 |
| Amortization and impairment | (15) | (6) | (3) | (3) | (27) |
| Translation differences | (4) | (1) | 1 | - | (4) |
| Balance as at December 31, 2022 | 92 | 41 | 3 | 8 | 144 |
| Cost | 117 | 47 | 6 | 11 | 181 |
| Accumulated amortization and impairment | 25 | 6 | 3 | 3 | 37 |
| Balance as at December 31, 2022 | 92 | 41 | 3 | 8 | 144 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1, 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | 269 | 15 | 1 | 14 | 299 |
| Accumulated amortization and impairment | 222 | 12 | - | 12 | 246 |
| \u00a0 | 47 | 3 | 1 | 2 | 53 |
| Movements in 2021 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries | 25 | 10 | 4 | - | 39 |
| Amortization and impairment | (45) | (3) | (1) | (2) | (51) |
| Translation differences | 1 | - | (1) | - | - |
| Balance as at December 31, 2021 | 28 | 10 | 3 | - | 41 |
| Cost | 37 | 10 | 4 | - | 51 |
| Accumulated amortization and impairment | 9 | - | 1 | - | 10 |
| Balance as at December 31, 2021 | 28 | 10 | 3 | - | 41 |
Acquisition-related intangible assets (client relationships (including franchise agreements), brand names, talent profiles and developed technology) that are acquired by the Group are stated at cost less accumulated amortization and impairment losses.
When an intangible asset is acquired in a business combination, its cost is the fair value at the date of its acquisition. This cost is determined on a basis that reflects an amount that the entity would have paid for the asset in an arm's length transaction between knowledgeable and willing parties, based on the best information available. If the fair value cannot be measured reliably, the asset is not recognized as a separate intangible asset, but is included in goodwill.
Amortization of acquisition-related intangible assets is charged to total operating expenses on a straight-line basis over their estimated useful lives, from the date they are available for use. If the asset is fully amortized, the at cost value is reversed against accumulated amortization.
The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate.
The estimated useful life of client relationships is 4 to 8 years, of brand names 1 to 10 years, of talent profiles 2 to 3 years, and of technology 5 to 6 years.
Technology relates to the software platforms acquired in acquisitions and in use as an integral part of our business activities.
Impairments, if any, can be the result of either the evidence that the assumptions for determining the estimated useful lives are incorrect or the annual impairment test of the cash-generating unit (or operating segment) to which the acquisition-related intangible assets are related.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-520": { "value": "| \u00a0 | \u00a0 | 2022 | 2021 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Cost | \u00a0 | 4,024 | 3,847 |
| Accumulated impairment | \u00a0 | 977 | 940 |
| Balance as at January 1 | \u00a0 | 3,047 | 2,907 |
| Acquisition of subsidiaries | \u00a0 | 69 | 91 |
| Impairment | \u00a0 | - | (2) |
| Translation differences | \u00a0 | 20 | 51 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
| Cost | \u00a0 | 4,107 | 4,024 |
| Accumulated impairment | \u00a0 | 971 | 977 |
| Balance as at December 31 | \u00a0 | 3,136 | 3,047 |
In 2022, the Group acquired 100% of the shares of Avanzo (Spain), of Side (France), and of the Finite Group (Australia & New Zealand). See note 11.1 for further information.
In 2021, the Group acquired 100% of the shares of Cella, Inc. (USA), and of Hudson Benelux (Belgium). See note 11.1 for further information.
In 2022, the Group disposed of certain subsidiaries/activities in Japan. See note 11.2 for further information.
In 2021, the Group disposed of certain subsidiaries/activities in Germany and Switzerland. See note 11.2 for further information.
Goodwill on acquisitions of subsidiaries is included in intangible assets; goodwill on acquisitions of associates is included in investments in associates. For the measurement of goodwill at initial recognition, see note 11.1.
Goodwill on acquisitions represents payments made by the Group in anticipation of future economic benefits from assets that cannot be identified individually and cannot be recognized separately. These relate, for example, to synergies expected from integrating the acquired companies and the workforces of the acquired companies.
Goodwill is stated at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity that is sold. Where goodwill has been allocated to an operating segment and part of the operation within that operating segment is disposed of, the goodwill related to that part is included in the carrying amount of the disposed operation when determining the gain or loss on disposal. Goodwill disposed is calculated based on the relative value of the disposed operation of the total value of the operating segment to which the disposed operation belongs. If disposal of an entity results in a loss, the goodwill part in the loss is presented in the statement of comprehensive income as an impairment of goodwill, up to a maximum amount of the loss on disposal.
Goodwill is allocated to operating segments for the purpose of impairment testing. The allocation is made to those operating segments that are expected to benefit from the business combination in which the goodwill arose.
In the case of triggering events and at least annually, the Group tests whether intangible assets, being goodwill and acquisition-related intangible assets, have suffered any impairment. The recoverable amounts of cash-generating units have been determined using, among other instruments, value-in-use calculations. These calculations require the use of estimates. Based on these impairment tests, impairment losses, if any, are identified.
The recoverable amount for all operating segments is based on the higher of the value in use and the fair value less cost to dispose. The value in use is determined by means of cash flow projections based on the actual operating results adjusted for non-cash items (mainly depreciation and amortization) and the expected future performance, which in turn is based on historical performance, management's estimates and assumptions of revenue growth, and on developments of operating margins, assessed using external data, covering a period of, in principle, nine years (2021: nine years). Cash flow projections after this period are extrapolated by means of a growth percentage of 0.5% (2021: 0.25%) throughout the Group. The nine-year period of the projections reflects an estimated full business cycle of our industry.
We performed our annual goodwill impairment test as of October 1, 2022. Key assumptions in the cash flow projections are:
The cash flow projections are prepared in local currencies, and discounted with pre-tax discount rates for each currency involved. The pre-tax discount rates vary from 9.8% to 35.4% (2021: 9.1% to 27.7%). The weighted average is 13.5% (2021: average 12.1%); Netherlands: 12.1% (2021: 10.6%); USA: 13.7% (2021: 12.2%); France: 14.2% (2021: 12.7%).
The assumptions are based on the current best estimate of future macroeconomic developments, which is mainly reflected in the pre-tax discount rates. These assumptions contain inherent judgment due to the continued high degree of uncertainty and therefore might change following global macroeconomic and geopolitical developments.
The annual impairment test performed by the Group for 2022 resulted in no impairments (2021: no impairments).
For 2022, the operating segments UK, Sourceright EMEA, Germany, Poland, Scandinavia, Eastern Europe and Australia are most sensitive to variations in assumptions (2021: Germany, UK, Australia, and Sourceright EMEA). The outcome of impairment testing is sensitive to variations in estimates and assumptions. Variations in estimates and assumptions have the following effect on the impairment test calculations.
| \u00a0 | revenue decrease1 | EBITA margin decrease2 | discount rate increase3 | |||
|---|---|---|---|---|---|---|
| -3% | -0.3% | -0.5% | -1% | -1.5% | 1.5% | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2022 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | - | 4 | - |
| Eastern Europe | - | - | - | - | 5 | - |
| Germany | - | - | - | - | 78 | - |
| Poland | - | - | - | - | 9 | - |
| Randstad Sourceright EMEA | - | 2 | 13 | 28 | 28 | - |
| Scandinavia | - | - | - | - | 8 | - |
| UK | - | - | 10 | 40 | 40 | - |
| Total | - | - | 23 | 68 | 172 | - |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 2021 - CGU | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Australia | - | - | - | \u00a0 | 33 | - |
| Germania | - | - | - | \u00a0 | 29 | - |
| Randstad Sourceright EMEA | - | - | 2 | 24 | 26 | - |
| UK | - | - | - | 26 | 42 | - |
| Total | - | - | 2 | 50 | 130 | - |
The combined recoverable amount of these sensitive operating segments of \u20ac\u00a01,804 million (2021: \u20ac\u00a01,241 million) exceeds the carrying amount by \u20ac\u00a0656 million (2021: \u20ac\u00a0518 million). The carrying amount includes goodwill of \u20ac\u00a0594 million (2021: \u20ac\u00a0417 million).
The operating segments France, the Netherlands, Belgium & Luxembourg, Spain, Portugal, Italy, Switzerland, USA, Canada, Japan, Greater China, Singapore, Sourceright North America, Sourceright APAC and Latin America have substantial headroom available.
For the carrying amount of goodwill by reporting segment, see note 10.2.
During 2022 and 2021, the Group acquired 100% of the shares of the following companies:
| company | acquisition date |
|---|---|
| \u00a0 | \u00a0 |
| 2022 | \u00a0 |
| Avanzo Learning Process S.A.U. (Spain) | March 25, 2022 |
| Side (France) | May 12, 2022 |
| Finite Group (Australia) | September 2, 2022 |
| \u00a0 | \u00a0 |
| 2021 | \u00a0 |
| Cella, Inc. (USA) | September 30, 2021 |
| Hudson Benelux (Belgium) | December 9, 2021 |
In 2022, the Group acquired 100% of the shares of Avanzo, a company based in Spain, an expert in training and development solutions. The Group also acquired 100% of the shares of Side, a company based in France, a leading end-to-end digital staffing platform, as well as 100% of the shares of the Finite group, a group based in Australia and New Zealand, with main activities in HR consulting. The total amount of goodwill recorded for these acquisitions is not expected to be deductible for corporate tax purposes.
In 2021, the Group acquired 100% of the shares of Cella, Inc, a company based in the USA, with main activities in staffing, managed solutions and consulting, as well as 100% of the shares of Hudson Benelux, a group based in the Benelux countries, with main activities in technology recruitment, IT consulting and a broad array of IT & Digital professional services.
The acquisitions made in 2022 and 2021 are in line with Randstad's mid- to long-term strategy to grow in specialist activities and to strengthen our market position in certain markets and/or countries.
The fair value of the assets and liabilities arising from the above-mentioned acquisitions, based on (provisional) purchase price allocations, can be summarized as follows:
| \u00a0 | finite group | other | total 2022 | total 2021 |
|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Property, plant, equipment and software | - | - | - | 1 |
| Right of use assets | 3 | - | 3 | 4 |
| Acquisition-related intangible assets | 97 | 37 | 134 | 39 |
| Deferred tax assets | 1 | 2 | 3 | 1 |
| Total non-current assets | 101 | 39 | 140 | 45 |
| Working capital | 11 | (6) | 5 | (1) |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Lease liabilities | 3 | - | 3 | 7 |
| Provisions and employee benefit obligations | - | - | - | 6 |
| Deferred income tax liabilities | 36 | 10 | 46 | 12 |
| Total non-current liabilities | 39 | 10 | 49 | 25 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Net assets acquired | 73 | 23 | 96 | 19 |
| Goodwill | 55 | 14 | 69 | 91 |
| Total consideration | 128 | 37 | 165 | 110 |
| Net debt/ (cash) acquired included in working capital | 12 | (3) | 9 | 16 |
| Net debt/(cash) acquired | 12 | (3) | 9 | 16 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Consideration, adjusted for net debt/(cash) acquired | 140 | 34 | 174 | 126 |
| Deferred compensation on acquisitions | - | (9) | (9) | (2) |
| Consideration paid in respect of acquisitions in preceding years | - | 5 | 5 | 2 |
| Consideration paid | 140 | 30 | 170 | 126 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries, statement of cash flows | 140 | 30 | 170 | 126 |
In 2022, the Group finalized the purchase price allocation of the acquisition of Cella, Inc, with no adjustment to the provisional purchase price allocation performed in 2021.
In 2022, the Group also finalized the purchase price allocation of the acquisition of Hudson Benelux. The adjustment to the provisional purchase price allocation performed in 2021 resulted in a decrease of \u20ac\u00a011 million to the goodwill and an increase of \u20ac\u00a017 million to the acquisition-related intangibles.
In 2021, the Group finalized the purchase price allocation of the acquisition of the M\u00fchlenhoff + Partner Group, with no adjustment to the provisional purchase price allocation performed in 2020. The amount involved in the acquisition of the M\u00fchlenhoff + Partner Group in 2020 was neither considered material in relation to the total consideration nor in relation to the total goodwill, as it was acquired at a net cash outlay of zero, with net assets acquired amounting to \u20ac\u00a02 million, which was based on the provisional purchase price allocation.
The contribution of the acquired companies in 2022 to the Group's revenue was \u20ac\u00a0129 million and to the Group's EBITA \u20ac\u00a0(14) million. If these companies had been acquired on January 1, 2022, the estimated additional contribution to revenue and EBITA would have been \u20ac\u00a0331 million and \u20ac\u00a0(1) million respectively.
The contribution of the Finite group in 2022 to the Group's revenue was \u20ac\u00a0109 million and to the Group's EBITA \u20ac\u00a0(12) million. If Finite had been acquired on January 1, 2022, the estimated additional contribution to revenue and EBITA would have been \u20ac\u00a0302 million and \u20ac\u00a01 million respectively.
See note 5 for further information.
The Group uses the acquisition method to account for the acquisition of subsidiaries.
Goodwill at acquisition date is measured as:
When this difference is negative ('negative goodwill' or badwill), this amount is recognized directly in total operating expenses.
All considerations transferred to acquire a business are recorded at fair value as at the acquisition date; subsequent changes to the fair value of the contingent considerations classified as debt are recognized as expenses or income.
The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognized amounts of the acquiree's identifiable net assets.
All acquisition-related costs are expensed and included in other general and administrative expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-521": { "value": " 6 provisions \u00a0restructuring workers' compensation other total \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 22 49 70 141 \u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0Disposal of subsidiaries - - - - \u00a0\u00a0\u00a0\u00a0\u00a0Charged to income statement 52 27 53 132 Released to income statement (3) - (14) (17) Withdrawals (34) (29) (32) (95) Total amount in statement of cash flows 15 (2) 7 20 Interest due to passage of time - 2 - 2 Translation differences - 2 1 3 Balance as at December 31, 2022 37 51 78 166 Non-current 3 31 40 74 Current 34 20 38 92 Balance as at December 31, 2022 37 51 78 166 \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0Non-current 4 25 46 75 Current 32 19 40 91 \u00a036 44 86 166 Movements in 2021 \u00a0\u00a0\u00a0\u00a0Disposal of subsidiaries (5) - - (5) \u00a0\u00a0\u00a0\u00a0\u00a0Charged to income statement 30 27 12 69 Released to income statement (9) - (11) (20) Withdrawals (31) (27) (17) (75) Total amount in statement of cash flows (10) - (16) (26) Interest due to passage of time - 1 - 1 Translation differences 1 4 - 5 Balance as at December 31, 2021 22 49 70 141 Non-current 6 29 35 70 Current 16 20 35 71 Balance as at December 31, 2021 22 49 70 141 Provisions are recognized for legally enforceable or constructive obligations as a result of a past event for which the settlement is likely to require an outflow of resources and to the extent that these can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an interest rate that reflects the current market assessments of the time value of money and, where appropriate, the risks specific to the obligation. Provisions for restructuring are recognized when a detailed and formal restructuring plan has been approved, and the restructuring has either commenced or has been announced publicly. These restructuring provisions mainly comprise severance payments for personnel. Provisions for workers' compensation are based on claims for compensation and medical expenses (of both employees and candidates working) in relation to accidents during working hours for which the Group is liable under applicable local laws. These provisions relate to our activities in North America and in parts of Australia, where we are responsible for payment of workers' compensation claims up to a maximum amount per claim, beyond which the costs are insured. Independent actuaries calculate the amount of the provision. The effective interest rate used in the calculation of the provision for workers' compensation is 3% (2021: 3%). Other provisions mainly relate to: Onerous contracts, where the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract; and Claims from third parties. In the ordinary course of business, the company is involved in various legal proceedings in which claims are asserted by clients, candidates placed and vendors, as well as in investigations by local tax and regulatory authorities that have led to or might lead to claims. These claims are provided for at the lowest amount at which the Group expects the claim to be reasonably settled. Due to the highly uncertain timing of the expected future cash outflow, amounts provided for claims from third parties are categorized to be settled within one year of the balance sheet date, unless these are explicitly expected to be settled later. The majority of the non-current part of these provisions is expected to be settled within three years of the balance sheet date. The International Accounting Standards Board (IASB) developed amendments to IAS 37 to clarify that for the purpose of assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The IASB issued the amendments in May 2020. The amendments are effective for contracts for which an entity has not yet fulfilled all its obligations on or after 1 January 2022. A review of the Group's situation regarding (potential) onerous contracts which existed at the date when the amendments are first applied was undertaken. The review did not result in any material adjustments to the Group's financial statements. sensitivity The provision for workers' compensation is sensitive to interest rate changes. Should the interest rate deviate by 1%- point, with all other variables held constant, the provision would deviate in the range of \u20ac\u00a00 million to \u20ac\u00a01 million (2021: range of \u20ac\u00a01 million to \u20ac\u00a02 million). ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-414": { "value": " 6 provisions \u00a0restructuring workers' compensation other total \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 22 49 70 141 \u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0Disposal of subsidiaries - - - - \u00a0\u00a0\u00a0\u00a0\u00a0Charged to income statement 52 27 53 132 Released to income statement (3) - (14) (17) Withdrawals (34) (29) (32) (95) Total amount in statement of cash flows 15 (2) 7 20 Interest due to passage of time - 2 - 2 Translation differences - 2 1 3 Balance as at December 31, 2022 37 51 78 166 Non-current 3 31 40 74 Current 34 20 38 92 Balance as at December 31, 2022 37 51 78 166 \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0Non-current 4 25 46 75 Current 32 19 40 91 \u00a036 44 86 166 Movements in 2021 \u00a0\u00a0\u00a0\u00a0Disposal of subsidiaries (5) - - (5) \u00a0\u00a0\u00a0\u00a0\u00a0Charged to income statement 30 27 12 69 Released to income statement (9) - (11) (20) Withdrawals (31) (27) (17) (75) Total amount in statement of cash flows (10) - (16) (26) Interest due to passage of time - 1 - 1 Translation differences 1 4 - 5 Balance as at December 31, 2021 22 49 70 141 Non-current 6 29 35 70 Current 16 20 35 71 Balance as at December 31, 2021 22 49 70 141 Provisions are recognized for legally enforceable or constructive obligations as a result of a past event for which the settlement is likely to require an outflow of resources and to the extent that these can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an interest rate that reflects the current market assessments of the time value of money and, where appropriate, the risks specific to the obligation. Provisions for restructuring are recognized when a detailed and formal restructuring plan has been approved, and the restructuring has either commenced or has been announced publicly. These restructuring provisions mainly comprise severance payments for personnel. Provisions for workers' compensation are based on claims for compensation and medical expenses (of both employees and candidates working) in relation to accidents during working hours for which the Group is liable under applicable local laws. These provisions relate to our activities in North America and in parts of Australia, where we are responsible for payment of workers' compensation claims up to a maximum amount per claim, beyond which the costs are insured. Independent actuaries calculate the amount of the provision. The effective interest rate used in the calculation of the provision for workers' compensation is 3% (2021: 3%). Other provisions mainly relate to: Onerous contracts, where the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract; and Claims from third parties. In the ordinary course of business, the company is involved in various legal proceedings in which claims are asserted by clients, candidates placed and vendors, as well as in investigations by local tax and regulatory authorities that have led to or might lead to claims. These claims are provided for at the lowest amount at which the Group expects the claim to be reasonably settled. Due to the highly uncertain timing of the expected future cash outflow, amounts provided for claims from third parties are categorized to be settled within one year of the balance sheet date, unless these are explicitly expected to be settled later. The majority of the non-current part of these provisions is expected to be settled within three years of the balance sheet date. The International Accounting Standards Board (IASB) developed amendments to IAS 37 to clarify that for the purpose of assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The IASB issued the amendments in May 2020. The amendments are effective for contracts for which an entity has not yet fulfilled all its obligations on or after 1 January 2022. A review of the Group's situation regarding (potential) onerous contracts which existed at the date when the amendments are first applied was undertaken. The review did not result in any material adjustments to the Group's financial statements. sensitivity The provision for workers' compensation is sensitive to interest rate changes. Should the interest rate deviate by 1%- point, with all other variables held constant, the provision would deviate in the range of \u20ac\u00a00 million to \u20ac\u00a01 million (2021: range of \u20ac\u00a01 million to \u20ac\u00a02 million). ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-522": { "value": " 6 provisions \u00a0restructuring workers' compensation other total \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 22 49 70 141 \u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0Disposal of subsidiaries - - - - \u00a0\u00a0\u00a0\u00a0\u00a0Charged to income statement 52 27 53 132 Released to income statement (3) - (14) (17) Withdrawals (34) (29) (32) (95) Total amount in statement of cash flows 15 (2) 7 20 Interest due to passage of time - 2 - 2 Translation differences - 2 1 3 Balance as at December 31, 2022 37 51 78 166 Non-current 3 31 40 74 Current 34 20 38 92 Balance as at December 31, 2022 37 51 78 166 \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0Non-current 4 25 46 75 Current 32 19 40 91 \u00a036 44 86 166 Movements in 2021 \u00a0\u00a0\u00a0\u00a0Disposal of subsidiaries (5) - - (5) \u00a0\u00a0\u00a0\u00a0\u00a0Charged to income statement 30 27 12 69 Released to income statement (9) - (11) (20) Withdrawals (31) (27) (17) (75) Total amount in statement of cash flows (10) - (16) (26) Interest due to passage of time - 1 - 1 Translation differences 1 4 - 5 Balance as at December 31, 2021 22 49 70 141 Non-current 6 29 35 70 Current 16 20 35 71 Balance as at December 31, 2021 22 49 70 141 Provisions are recognized for legally enforceable or constructive obligations as a result of a past event for which the settlement is likely to require an outflow of resources and to the extent that these can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an interest rate that reflects the current market assessments of the time value of money and, where appropriate, the risks specific to the obligation. Provisions for restructuring are recognized when a detailed and formal restructuring plan has been approved, and the restructuring has either commenced or has been announced publicly. These restructuring provisions mainly comprise severance payments for personnel. Provisions for workers' compensation are based on claims for compensation and medical expenses (of both employees and candidates working) in relation to accidents during working hours for which the Group is liable under applicable local laws. These provisions relate to our activities in North America and in parts of Australia, where we are responsible for payment of workers' compensation claims up to a maximum amount per claim, beyond which the costs are insured. Independent actuaries calculate the amount of the provision. The effective interest rate used in the calculation of the provision for workers' compensation is 3% (2021: 3%). Other provisions mainly relate to: Onerous contracts, where the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract; and Claims from third parties. In the ordinary course of business, the company is involved in various legal proceedings in which claims are asserted by clients, candidates placed and vendors, as well as in investigations by local tax and regulatory authorities that have led to or might lead to claims. These claims are provided for at the lowest amount at which the Group expects the claim to be reasonably settled. Due to the highly uncertain timing of the expected future cash outflow, amounts provided for claims from third parties are categorized to be settled within one year of the balance sheet date, unless these are explicitly expected to be settled later. The majority of the non-current part of these provisions is expected to be settled within three years of the balance sheet date. The International Accounting Standards Board (IASB) developed amendments to IAS 37 to clarify that for the purpose of assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The IASB issued the amendments in May 2020. The amendments are effective for contracts for which an entity has not yet fulfilled all its obligations on or after 1 January 2022. A review of the Group's situation regarding (potential) onerous contracts which existed at the date when the amendments are first applied was undertaken. The review did not result in any material adjustments to the Group's financial statements. sensitivity The provision for workers' compensation is sensitive to interest rate changes. Should the interest rate deviate by 1%- point, with all other variables held constant, the provision would deviate in the range of \u20ac\u00a00 million to \u20ac\u00a01 million (2021: range of \u20ac\u00a01 million to \u20ac\u00a02 million). 24.3 other post-employment benefits Other post-employment benefit plans are defined benefit plans and follow the same accounting treatment as defined benefit pension plans. Independent actuaries calculate the defined benefit obligations based on factors such as age, years of service, and compensation (based upon the projected unit credit method). These plans mainly consist of state-driven plans in Italy and India, post-employment health benefits in the US, and transition fee payments related to temporary workers in the Netherlands, based on the Dutch 'Wet Arbeidsmarkt in Balans' (WAB). Remeasurements of the obligation \u2212 comprising gains and losses arising from experience adjustments and changes in actuarial assumptions \u2212 are recognized in other comprehensive income. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-415": { "value": " 6 provisions \u00a0restructuring workers' compensation other total \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 22 49 70 141 \u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0Disposal of subsidiaries - - - - \u00a0\u00a0\u00a0\u00a0\u00a0Charged to income statement 52 27 53 132 Released to income statement (3) - (14) (17) Withdrawals (34) (29) (32) (95) Total amount in statement of cash flows 15 (2) 7 20 Interest due to passage of time - 2 - 2 Translation differences - 2 1 3 Balance as at December 31, 2022 37 51 78 166 Non-current 3 31 40 74 Current 34 20 38 92 Balance as at December 31, 2022 37 51 78 166 \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0Non-current 4 25 46 75 Current 32 19 40 91 \u00a036 44 86 166 Movements in 2021 \u00a0\u00a0\u00a0\u00a0Disposal of subsidiaries (5) - - (5) \u00a0\u00a0\u00a0\u00a0\u00a0Charged to income statement 30 27 12 69 Released to income statement (9) - (11) (20) Withdrawals (31) (27) (17) (75) Total amount in statement of cash flows (10) - (16) (26) Interest due to passage of time - 1 - 1 Translation differences 1 4 - 5 Balance as at December 31, 2021 22 49 70 141 Non-current 6 29 35 70 Current 16 20 35 71 Balance as at December 31, 2021 22 49 70 141 Provisions are recognized for legally enforceable or constructive obligations as a result of a past event for which the settlement is likely to require an outflow of resources and to the extent that these can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an interest rate that reflects the current market assessments of the time value of money and, where appropriate, the risks specific to the obligation. Provisions for restructuring are recognized when a detailed and formal restructuring plan has been approved, and the restructuring has either commenced or has been announced publicly. These restructuring provisions mainly comprise severance payments for personnel. Provisions for workers' compensation are based on claims for compensation and medical expenses (of both employees and candidates working) in relation to accidents during working hours for which the Group is liable under applicable local laws. These provisions relate to our activities in North America and in parts of Australia, where we are responsible for payment of workers' compensation claims up to a maximum amount per claim, beyond which the costs are insured. Independent actuaries calculate the amount of the provision. The effective interest rate used in the calculation of the provision for workers' compensation is 3% (2021: 3%). Other provisions mainly relate to: Onerous contracts, where the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract; and Claims from third parties. In the ordinary course of business, the company is involved in various legal proceedings in which claims are asserted by clients, candidates placed and vendors, as well as in investigations by local tax and regulatory authorities that have led to or might lead to claims. These claims are provided for at the lowest amount at which the Group expects the claim to be reasonably settled. Due to the highly uncertain timing of the expected future cash outflow, amounts provided for claims from third parties are categorized to be settled within one year of the balance sheet date, unless these are explicitly expected to be settled later. The majority of the non-current part of these provisions is expected to be settled within three years of the balance sheet date. The International Accounting Standards Board (IASB) developed amendments to IAS 37 to clarify that for the purpose of assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The IASB issued the amendments in May 2020. The amendments are effective for contracts for which an entity has not yet fulfilled all its obligations on or after 1 January 2022. A review of the Group's situation regarding (potential) onerous contracts which existed at the date when the amendments are first applied was undertaken. The review did not result in any material adjustments to the Group's financial statements. sensitivity The provision for workers' compensation is sensitive to interest rate changes. Should the interest rate deviate by 1%- point, with all other variables held constant, the provision would deviate in the range of \u20ac\u00a00 million to \u20ac\u00a01 million (2021: range of \u20ac\u00a01 million to \u20ac\u00a02 million). ", "dimensions": { "concept": "ifrs-full:DisclosureOfClaimsAndBenefitsPaidExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-416": { "value": " 6 provisions \u00a0restructuring workers' compensation other total \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 22 49 70 141 \u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0Disposal of subsidiaries - - - - \u00a0\u00a0\u00a0\u00a0\u00a0Charged to income statement 52 27 53 132 Released to income statement (3) - (14) (17) Withdrawals (34) (29) (32) (95) Total amount in statement of cash flows 15 (2) 7 20 Interest due to passage of time - 2 - 2 Translation differences - 2 1 3 Balance as at December 31, 2022 37 51 78 166 Non-current 3 31 40 74 Current 34 20 38 92 Balance as at December 31, 2022 37 51 78 166 \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0Non-current 4 25 46 75 Current 32 19 40 91 \u00a036 44 86 166 Movements in 2021 \u00a0\u00a0\u00a0\u00a0Disposal of subsidiaries (5) - - (5) \u00a0\u00a0\u00a0\u00a0\u00a0Charged to income statement 30 27 12 69 Released to income statement (9) - (11) (20) Withdrawals (31) (27) (17) (75) Total amount in statement of cash flows (10) - (16) (26) Interest due to passage of time - 1 - 1 Translation differences 1 4 - 5 Balance as at December 31, 2021 22 49 70 141 Non-current 6 29 35 70 Current 16 20 35 71 Balance as at December 31, 2021 22 49 70 141 Provisions are recognized for legally enforceable or constructive obligations as a result of a past event for which the settlement is likely to require an outflow of resources and to the extent that these can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an interest rate that reflects the current market assessments of the time value of money and, where appropriate, the risks specific to the obligation. Provisions for restructuring are recognized when a detailed and formal restructuring plan has been approved, and the restructuring has either commenced or has been announced publicly. These restructuring provisions mainly comprise severance payments for personnel. Provisions for workers' compensation are based on claims for compensation and medical expenses (of both employees and candidates working) in relation to accidents during working hours for which the Group is liable under applicable local laws. These provisions relate to our activities in North America and in parts of Australia, where we are responsible for payment of workers' compensation claims up to a maximum amount per claim, beyond which the costs are insured. Independent actuaries calculate the amount of the provision. The effective interest rate used in the calculation of the provision for workers' compensation is 3% (2021: 3%). Other provisions mainly relate to: Onerous contracts, where the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract; and Claims from third parties. In the ordinary course of business, the company is involved in various legal proceedings in which claims are asserted by clients, candidates placed and vendors, as well as in investigations by local tax and regulatory authorities that have led to or might lead to claims. These claims are provided for at the lowest amount at which the Group expects the claim to be reasonably settled. Due to the highly uncertain timing of the expected future cash outflow, amounts provided for claims from third parties are categorized to be settled within one year of the balance sheet date, unless these are explicitly expected to be settled later. The majority of the non-current part of these provisions is expected to be settled within three years of the balance sheet date. The International Accounting Standards Board (IASB) developed amendments to IAS 37 to clarify that for the purpose of assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The IASB issued the amendments in May 2020. The amendments are effective for contracts for which an entity has not yet fulfilled all its obligations on or after 1 January 2022. A review of the Group's situation regarding (potential) onerous contracts which existed at the date when the amendments are first applied was undertaken. The review did not result in any material adjustments to the Group's financial statements. sensitivity The provision for workers' compensation is sensitive to interest rate changes. Should the interest rate deviate by 1%- point, with all other variables held constant, the provision would deviate in the range of \u20ac\u00a00 million to \u20ac\u00a01 million (2021: range of \u20ac\u00a01 million to \u20ac\u00a02 million). ", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-523": { "value": " 7 corporate taxes The Group is subject to corporate income taxes in numerous jurisdictions. Significant judgment is required in determining the worldwide deferred tax assets on, among other items, tax losses carried forward. There are many uncertain factors that affect the recognition of deferred tax assets with respect to the amount of tax losses carried forward. The Group recognizes deferred tax assets on tax losses carried forward based on its best estimates. The recoverability of deferred income tax assets is reviewed and assessed frequently, using forecasts that are based on actual and future (taxable) results. External data are used for reference if considered necessary. When the actual (taxable) results are different from the amounts that were initially estimated, such differences will impact the income tax in the income statement (effective tax rate), as well as the deferred tax assets and/or deferred tax liabilities in the period in which these deviations occur. The Group has also identified a number of uncertain tax positions. The Group determines whether to consider each uncertain tax position separately or together with one or more other uncertain tax positions, and applies the approach considered most suitable to predict the resolution of the uncertainty. The Group applies significant judgment in identifying uncertainties over income tax treatments. As the Group operates in a complex multinational environment, it takes any potential uncertain tax position into consideration, mostly relating to transfer pricing policies. The tax returns of the companies in the Group are filed in different tax jurisdictions and include deductions related to transfer pricing (mainly holding, royalty and interest charges passed on by the Company). Tax authorities may challenge those deductions for tax purposes. Based on the Group's tax compliance, transfer pricing studies, and assessments based on the judgments of tax professionals within the Group, supplemented by external tax advice from case to case, the Group determines the probable outcome of the uncertainties. Provisions are recognized for those matters for which the tax determination is uncertain, but for which it is considered probable that the tax authorities will not accept the uncertain treatment. The provisions are based on either the most likely amounts or the expected value of the payable amount. 7.1 deferred and current income taxes Using the balance sheet liability method, deferred tax assets and liabilities are recognized to provide for temporary differences between the value of the assets and liabilities for financial reporting purposes and for tax purposes. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities, and when the deferred income taxes relate to the same tax jurisdiction. Deferred tax assets, including those resulting from tax losses carried forward, are recognized to the extent that it is probable that future taxable profits will be available as a consequence of which the temporary differences, including tax losses carried forward, can be realized. Deferred tax assets and liabilities are valued at tax rates enacted or substantively enacted at year-end and which are expected to apply in the coming years when the assets and liabilities are expected to be realized or settled. movements in total position of corporate taxes \u00a02022 2021 \u00a0\u00a0\u00a0Assets/(liabilities) \u00a0\u00a0Deferred income tax assets 619 674 Current income tax receivables 77 98 Deferred income tax liabilities (18) (31) Current income tax liabilities (63) (65) Balance as at January 1 615 676 Movements during the year \u00a0\u00a0Charged to income statement (197) (250) Net payments 261 204 Acquisition of subsidiaries' current taxes (3) - Acquisition of subsidiaries' deferred taxes (43) (11) Recognized in other comprehensive income (32) (27) Recognized in equity on share-based compensations 4 1 Translation differences 14 22 Total movements 4 (61) Assets/(liabilities) \u00a0\u00a0Deferred income tax assets 633 619 Current income tax receivables 116 77 Deferred income tax liabilities (52) (18) Current income tax liabilities (78) (63) Balance as at December 31 619 615 Deferred tax is recorded with respect to temporary differences arising from investments in subsidiaries and associates, except for deferred income tax liabilities arising from undistributed profits from investments where the entity is able to control the timing of the distribution and it is probable that such distribution will not occur in the foreseeable future. deferred income tax assets composition of deferred income tax assets \u00a02022 2021 \u00a0\u00a0\u00a0Tax losses carry-forward 368 335 Unused tax credits 202 180 \u00a0\u00a0\u00a0Temporary differences: \u00a0\u00a0Property, plant, equipment, intangible assets, and right-of-use assets/lease liabilities 86 97 Other receivables/other payables 114 100 Provisions 78 85 \u00a0278 282 \u00a0\u00a0\u00a0Deferred income tax assets (before netting) 848 797 Amount netted with deferred income tax liabilities (215) (178) Deferred income tax assets (after netting) 633 619 Deferred income tax assets in relation to tax losses carried forward comprise an amount of \u20ac\u00a011 million (2021: \u20ac\u00a010 million), originating from subsidiaries that generated tax losses in the current or preceding year. These deferred tax assets relate mainly to a number of subsidiaries in various countries that generated taxable profits in 2022 and are expected to continue making taxable profits in the near\u00a0future. Certain deferred income tax assets, whose recoverability is considered not probable, are valued at nil. These concern deferred tax assets in relation to tax losses carried forward of \u20ac\u00a0211 million (December 31, 2021: \u20ac\u00a0130 million), as well as deferred tax assets relating to other temporary differences of \u20ac\u00a035 million (December 31, 2021: \u20ac\u00a08 million). Such carried forward tax losses mainly relate to our subsidiaries in Luxembourg and Monster subsidiaries in Europe. These carried forward losses have expiry dates in the range of five years to indefinitely. Unused tax credits mainly relate to tax credits in the US, which will be realized after all tax losses carried forward have been recovered. The expiry term of these US unused tax credits is 20 years. Of these unused tax credits, an amount of \u20ac\u00a04 million is not valued as at December 31, 2022 (December 31, 2021: \u20ac\u00a09 million). During 2022, the US realized almost all federal tax losses carried forward and started making use of tax credits to offset current tax liabilities. The part of deferred tax assets that is expected to be realized within one year is estimated at \u20ac\u00a095 million (2021: \u20ac\u00a092 million). sensitivity Deferred tax assets are only recognized to the extent that it is considered probable that future taxable profits are available, as a consequence of which these deferred tax assets can be realized. The scenarios used are in agreement with the estimates and assumptions used in the goodwill impairment testing (see note 5). The various scenarios yield potential outcomes that do not materially deviate from the carrying amount. deferred income tax liabilities composition of deferred income tax liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Acquisition-related intangible assets 42 12 Temporary differences relating to subsidiaries 87 89 Other temporary differences 138 95 Deferred income tax liabilities (before netting) 267 196 Amount netted with deferred income tax assets (215) (178) Deferred income tax liabilities (after netting) 52 18 The deferred tax liability for 'Temporary differences relating to subsidiaries' to the amount of \u20ac\u00a087 million (December 31, 2021: \u20ac\u00a089 million) relates to recapture obligations in our Luxembourg entities arising from the valuation for fiscal purposes of subsidiaries held by these entities. The part of deferred income tax liabilities that is expected to be settled within one year is estimated at \u20ac\u00a012 million (December 31, 2021: \u20ac\u00a03 million). movements in deferred income taxes In the table below, the balances of deferred income tax assets and deferred income tax liabilities have been included gross at the beginning and end of the year. The netting of deferred income tax assets and liabilities is shown in the tables above. movements in deferred income taxes \u00a0tax losses carry-forward unused tax credits temporary differences total 2022 total 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Deferred income tax assets 335 180 282 797 837 Deferred income tax liabilities - - (196) (196) (194) Balance as at January 1 335 180 86 601 643 Movements during the year \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries - - (43) (43) (11) Income statement 20 24 2 46 46 Other movements 12 (13) (37) (38) (97) Translation differences 1 11 3 15 20 Total movements 33 22 (75) (20) (42) Deferred income tax assets 368 202 278 848 797 Deferred income tax liabilities - - (267) (267) (196) Balance as at December 31 368 202 11 581 601 7.2 corporate taxes on income Corporate taxes on income for the year comprise current taxes and deferred taxes. Income taxes are recognized in the income statement, except for taxes that relate to items recognized in other comprehensive income; these taxes are consequently also recognized in other comprehensive income. Current taxes on income are the sum of taxes recorded on the results before taxes in the countries where those results were generated, based on local tax regulations and against tax rates of the applicable year. Income that is tax-exempt and expenses that are not tax-deductible are taken into account in calculating current taxes on income. details of corporate taxes on income \u00a02022 2021 \u00a0\u00a0\u00a0Current tax expense 243 296 Deferred tax income (46) (46) Tax expense 197 250 In 2022, the effective tax rate on income before taxes was 17.5 % (2021: 24.6%). The reconciliation between the applicable income tax rate of the company's country of domicile and the effective tax rate is as follows: reconciliation from applicable to effective tax rate \u00a02022 2021 \u00a0\u00a0\u00a0Income tax rate of the company's country of domicile 25.8% 25.0% Effect of income tax rates in other (non-domestic) jurisdictions (1.7%) (0.9%) Weighted average applicable tax rate 24.1% 24.1% Tax-exempt income/non-tax-deductible items 0.9% 1.1% Changes in statutory applicable tax rates and effect of prior years (0.8%) (0.1%) Change in valuation of deferred tax assets and other (6.7%) (0.5%) Effective tax rate 17.5% 24.6% Tax-exempt income/non-tax deductible items had an effect of 0.9 % in 2022 (2021: 1.1%). Changes in statutory applicable tax rates and effects of prior years had an effect of (0.8%)-points (2021: (0.1%)-points) on the effective tax rate. Change in valuation of deferred tax assets and other had an effect of (6.7%)-points in 2022, compared to (0.5%)-points in 2021, and is the result of the re-assessment of the future recoverability of carried forward losses and deferred tax assets in various countries. The impact in 2022 was mainly caused by an increase of carry forward losses following rationalization of the group legal structure and the subsequent increase of the valuation in Luxembourg as a consequence of higher expected future taxable profits due to increased interest rates (and thus increased expected interest income) on the intercompany loans outstanding. proposed OECD global anti-base erosion rules In December 2021, the OECD published a draft legislative framework in relation to Global Anti-Base Erosion Rules. These concern the introduction of a 15% global minimum tax applicable to large multinational groups. In December 2022, EU Member States agreed to implement the minimum tax effective from 2024. As no legislation is yet (substantively) enacted, there remains uncertainty with respect to the impact of the minimum tax on the Group. On the basis of the information available, the Group is in the process of reviewing the possible financial impact. So far, the expected impact on the effective tax rate and the tax payments seems to be limited. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-524": { "value": " 7.1 deferred and current income taxes Using the balance sheet liability method, deferred tax assets and liabilities are recognized to provide for temporary differences between the value of the assets and liabilities for financial reporting purposes and for tax purposes. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities, and when the deferred income taxes relate to the same tax jurisdiction. Deferred tax assets, including those resulting from tax losses carried forward, are recognized to the extent that it is probable that future taxable profits will be available as a consequence of which the temporary differences, including tax losses carried forward, can be realized. Deferred tax assets and liabilities are valued at tax rates enacted or substantively enacted at year-end and which are expected to apply in the coming years when the assets and liabilities are expected to be realized or settled. movements in total position of corporate taxes \u00a02022 2021 \u00a0\u00a0\u00a0Assets/(liabilities) \u00a0\u00a0Deferred income tax assets 619 674 Current income tax receivables 77 98 Deferred income tax liabilities (18) (31) Current income tax liabilities (63) (65) Balance as at January 1 615 676 Movements during the year \u00a0\u00a0Charged to income statement (197) (250) Net payments 261 204 Acquisition of subsidiaries' current taxes (3) - Acquisition of subsidiaries' deferred taxes (43) (11) Recognized in other comprehensive income (32) (27) Recognized in equity on share-based compensations 4 1 Translation differences 14 22 Total movements 4 (61) Assets/(liabilities) \u00a0\u00a0Deferred income tax assets 633 619 Current income tax receivables 116 77 Deferred income tax liabilities (52) (18) Current income tax liabilities (78) (63) Balance as at December 31 619 615 Deferred tax is recorded with respect to temporary differences arising from investments in subsidiaries and associates, except for deferred income tax liabilities arising from undistributed profits from investments where the entity is able to control the timing of the distribution and it is probable that such distribution will not occur in the foreseeable future. deferred income tax assets composition of deferred income tax assets \u00a02022 2021 \u00a0\u00a0\u00a0Tax losses carry-forward 368 335 Unused tax credits 202 180 \u00a0\u00a0\u00a0Temporary differences: \u00a0\u00a0Property, plant, equipment, intangible assets, and right-of-use assets/lease liabilities 86 97 Other receivables/other payables 114 100 Provisions 78 85 \u00a0278 282 \u00a0\u00a0\u00a0Deferred income tax assets (before netting) 848 797 Amount netted with deferred income tax liabilities (215) (178) Deferred income tax assets (after netting) 633 619 Deferred income tax assets in relation to tax losses carried forward comprise an amount of \u20ac\u00a011 million (2021: \u20ac\u00a010 million), originating from subsidiaries that generated tax losses in the current or preceding year. These deferred tax assets relate mainly to a number of subsidiaries in various countries that generated taxable profits in 2022 and are expected to continue making taxable profits in the near\u00a0future. Certain deferred income tax assets, whose recoverability is considered not probable, are valued at nil. These concern deferred tax assets in relation to tax losses carried forward of \u20ac\u00a0211 million (December 31, 2021: \u20ac\u00a0130 million), as well as deferred tax assets relating to other temporary differences of \u20ac\u00a035 million (December 31, 2021: \u20ac\u00a08 million). Such carried forward tax losses mainly relate to our subsidiaries in Luxembourg and Monster subsidiaries in Europe. These carried forward losses have expiry dates in the range of five years to indefinitely. Unused tax credits mainly relate to tax credits in the US, which will be realized after all tax losses carried forward have been recovered. The expiry term of these US unused tax credits is 20 years. Of these unused tax credits, an amount of \u20ac\u00a04 million is not valued as at December 31, 2022 (December 31, 2021: \u20ac\u00a09 million). During 2022, the US realized almost all federal tax losses carried forward and started making use of tax credits to offset current tax liabilities. The part of deferred tax assets that is expected to be realized within one year is estimated at \u20ac\u00a095 million (2021: \u20ac\u00a092 million). sensitivity Deferred tax assets are only recognized to the extent that it is considered probable that future taxable profits are available, as a consequence of which these deferred tax assets can be realized. The scenarios used are in agreement with the estimates and assumptions used in the goodwill impairment testing (see note 5). The various scenarios yield potential outcomes that do not materially deviate from the carrying amount. deferred income tax liabilities composition of deferred income tax liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Acquisition-related intangible assets 42 12 Temporary differences relating to subsidiaries 87 89 Other temporary differences 138 95 Deferred income tax liabilities (before netting) 267 196 Amount netted with deferred income tax assets (215) (178) Deferred income tax liabilities (after netting) 52 18 The deferred tax liability for 'Temporary differences relating to subsidiaries' to the amount of \u20ac\u00a087 million (December 31, 2021: \u20ac\u00a089 million) relates to recapture obligations in our Luxembourg entities arising from the valuation for fiscal purposes of subsidiaries held by these entities. The part of deferred income tax liabilities that is expected to be settled within one year is estimated at \u20ac\u00a012 million (December 31, 2021: \u20ac\u00a03 million). movements in deferred income taxes In the table below, the balances of deferred income tax assets and deferred income tax liabilities have been included gross at the beginning and end of the year. The netting of deferred income tax assets and liabilities is shown in the tables above. movements in deferred income taxes \u00a0tax losses carry-forward unused tax credits temporary differences total 2022 total 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Deferred income tax assets 335 180 282 797 837 Deferred income tax liabilities - - (196) (196) (194) Balance as at January 1 335 180 86 601 643 Movements during the year \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries - - (43) (43) (11) Income statement 20 24 2 46 46 Other movements 12 (13) (37) (38) (97) Translation differences 1 11 3 15 20 Total movements 33 22 (75) (20) (42) Deferred income tax assets 368 202 278 848 797 Deferred income tax liabilities - - (267) (267) (196) Balance as at December 31 368 202 11 581 601 ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-417": { "value": " 7.1 deferred and current income taxes Using the balance sheet liability method, deferred tax assets and liabilities are recognized to provide for temporary differences between the value of the assets and liabilities for financial reporting purposes and for tax purposes. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities, and when the deferred income taxes relate to the same tax jurisdiction. Deferred tax assets, including those resulting from tax losses carried forward, are recognized to the extent that it is probable that future taxable profits will be available as a consequence of which the temporary differences, including tax losses carried forward, can be realized. Deferred tax assets and liabilities are valued at tax rates enacted or substantively enacted at year-end and which are expected to apply in the coming years when the assets and liabilities are expected to be realized or settled. movements in total position of corporate taxes \u00a02022 2021 \u00a0\u00a0\u00a0Assets/(liabilities) \u00a0\u00a0Deferred income tax assets 619 674 Current income tax receivables 77 98 Deferred income tax liabilities (18) (31) Current income tax liabilities (63) (65) Balance as at January 1 615 676 Movements during the year \u00a0\u00a0Charged to income statement (197) (250) Net payments 261 204 Acquisition of subsidiaries' current taxes (3) - Acquisition of subsidiaries' deferred taxes (43) (11) Recognized in other comprehensive income (32) (27) Recognized in equity on share-based compensations 4 1 Translation differences 14 22 Total movements 4 (61) Assets/(liabilities) \u00a0\u00a0Deferred income tax assets 633 619 Current income tax receivables 116 77 Deferred income tax liabilities (52) (18) Current income tax liabilities (78) (63) Balance as at December 31 619 615 Deferred tax is recorded with respect to temporary differences arising from investments in subsidiaries and associates, except for deferred income tax liabilities arising from undistributed profits from investments where the entity is able to control the timing of the distribution and it is probable that such distribution will not occur in the foreseeable future. deferred income tax assets composition of deferred income tax assets \u00a02022 2021 \u00a0\u00a0\u00a0Tax losses carry-forward 368 335 Unused tax credits 202 180 \u00a0\u00a0\u00a0Temporary differences: \u00a0\u00a0Property, plant, equipment, intangible assets, and right-of-use assets/lease liabilities 86 97 Other receivables/other payables 114 100 Provisions 78 85 \u00a0278 282 \u00a0\u00a0\u00a0Deferred income tax assets (before netting) 848 797 Amount netted with deferred income tax liabilities (215) (178) Deferred income tax assets (after netting) 633 619 Deferred income tax assets in relation to tax losses carried forward comprise an amount of \u20ac\u00a011 million (2021: \u20ac\u00a010 million), originating from subsidiaries that generated tax losses in the current or preceding year. These deferred tax assets relate mainly to a number of subsidiaries in various countries that generated taxable profits in 2022 and are expected to continue making taxable profits in the near\u00a0future. Certain deferred income tax assets, whose recoverability is considered not probable, are valued at nil. These concern deferred tax assets in relation to tax losses carried forward of \u20ac\u00a0211 million (December 31, 2021: \u20ac\u00a0130 million), as well as deferred tax assets relating to other temporary differences of \u20ac\u00a035 million (December 31, 2021: \u20ac\u00a08 million). Such carried forward tax losses mainly relate to our subsidiaries in Luxembourg and Monster subsidiaries in Europe. These carried forward losses have expiry dates in the range of five years to indefinitely. Unused tax credits mainly relate to tax credits in the US, which will be realized after all tax losses carried forward have been recovered. The expiry term of these US unused tax credits is 20 years. Of these unused tax credits, an amount of \u20ac\u00a04 million is not valued as at December 31, 2022 (December 31, 2021: \u20ac\u00a09 million). During 2022, the US realized almost all federal tax losses carried forward and started making use of tax credits to offset current tax liabilities. The part of deferred tax assets that is expected to be realized within one year is estimated at \u20ac\u00a095 million (2021: \u20ac\u00a092 million). sensitivity Deferred tax assets are only recognized to the extent that it is considered probable that future taxable profits are available, as a consequence of which these deferred tax assets can be realized. The scenarios used are in agreement with the estimates and assumptions used in the goodwill impairment testing (see note 5). The various scenarios yield potential outcomes that do not materially deviate from the carrying amount. deferred income tax liabilities composition of deferred income tax liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Acquisition-related intangible assets 42 12 Temporary differences relating to subsidiaries 87 89 Other temporary differences 138 95 Deferred income tax liabilities (before netting) 267 196 Amount netted with deferred income tax assets (215) (178) Deferred income tax liabilities (after netting) 52 18 The deferred tax liability for 'Temporary differences relating to subsidiaries' to the amount of \u20ac\u00a087 million (December 31, 2021: \u20ac\u00a089 million) relates to recapture obligations in our Luxembourg entities arising from the valuation for fiscal purposes of subsidiaries held by these entities. The part of deferred income tax liabilities that is expected to be settled within one year is estimated at \u20ac\u00a012 million (December 31, 2021: \u20ac\u00a03 million). movements in deferred income taxes In the table below, the balances of deferred income tax assets and deferred income tax liabilities have been included gross at the beginning and end of the year. The netting of deferred income tax assets and liabilities is shown in the tables above. movements in deferred income taxes \u00a0tax losses carry-forward unused tax credits temporary differences total 2022 total 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Deferred income tax assets 335 180 282 797 837 Deferred income tax liabilities - - (196) (196) (194) Balance as at January 1 335 180 86 601 643 Movements during the year \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries - - (43) (43) (11) Income statement 20 24 2 46 46 Other movements 12 (13) (37) (38) (97) Translation differences 1 11 3 15 20 Total movements 33 22 (75) (20) (42) Deferred income tax assets 368 202 278 848 797 Deferred income tax liabilities - - (267) (267) (196) Balance as at December 31 368 202 11 581 601 7.2 corporate taxes on income Corporate taxes on income for the year comprise current taxes and deferred taxes. Income taxes are recognized in the income statement, except for taxes that relate to items recognized in other comprehensive income; these taxes are consequently also recognized in other comprehensive income. Current taxes on income are the sum of taxes recorded on the results before taxes in the countries where those results were generated, based on local tax regulations and against tax rates of the applicable year. Income that is tax-exempt and expenses that are not tax-deductible are taken into account in calculating current taxes on income. details of corporate taxes on income \u00a02022 2021 \u00a0\u00a0\u00a0Current tax expense 243 296 Deferred tax income (46) (46) Tax expense 197 250 In 2022, the effective tax rate on income before taxes was 17.5 % (2021: 24.6%). The reconciliation between the applicable income tax rate of the company's country of domicile and the effective tax rate is as follows: reconciliation from applicable to effective tax rate \u00a02022 2021 \u00a0\u00a0\u00a0Income tax rate of the company's country of domicile 25.8% 25.0% Effect of income tax rates in other (non-domestic) jurisdictions (1.7%) (0.9%) Weighted average applicable tax rate 24.1% 24.1% Tax-exempt income/non-tax-deductible items 0.9% 1.1% Changes in statutory applicable tax rates and effect of prior years (0.8%) (0.1%) Change in valuation of deferred tax assets and other (6.7%) (0.5%) Effective tax rate 17.5% 24.6% Tax-exempt income/non-tax deductible items had an effect of 0.9 % in 2022 (2021: 1.1%). Changes in statutory applicable tax rates and effects of prior years had an effect of (0.8%)-points (2021: (0.1%)-points) on the effective tax rate. Change in valuation of deferred tax assets and other had an effect of (6.7%)-points in 2022, compared to (0.5%)-points in 2021, and is the result of the re-assessment of the future recoverability of carried forward losses and deferred tax assets in various countries. The impact in 2022 was mainly caused by an increase of carry forward losses following rationalization of the group legal structure and the subsequent increase of the valuation in Luxembourg as a consequence of higher expected future taxable profits due to increased interest rates (and thus increased expected interest income) on the intercompany loans outstanding. proposed OECD global anti-base erosion rules In December 2021, the OECD published a draft legislative framework in relation to Global Anti-Base Erosion Rules. These concern the introduction of a 15% global minimum tax applicable to large multinational groups. In December 2022, EU Member States agreed to implement the minimum tax effective from 2024. As no legislation is yet (substantively) enacted, there remains uncertainty with respect to the impact of the minimum tax on the Group. On the basis of the information available, the Group is in the process of reviewing the possible financial impact. So far, the expected impact on the effective tax rate and the tax payments seems to be limited. ", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-418": { "value": " 7.1 deferred and current income taxes Using the balance sheet liability method, deferred tax assets and liabilities are recognized to provide for temporary differences between the value of the assets and liabilities for financial reporting purposes and for tax purposes. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities, and when the deferred income taxes relate to the same tax jurisdiction. Deferred tax assets, including those resulting from tax losses carried forward, are recognized to the extent that it is probable that future taxable profits will be available as a consequence of which the temporary differences, including tax losses carried forward, can be realized. Deferred tax assets and liabilities are valued at tax rates enacted or substantively enacted at year-end and which are expected to apply in the coming years when the assets and liabilities are expected to be realized or settled. movements in total position of corporate taxes \u00a02022 2021 \u00a0\u00a0\u00a0Assets/(liabilities) \u00a0\u00a0Deferred income tax assets 619 674 Current income tax receivables 77 98 Deferred income tax liabilities (18) (31) Current income tax liabilities (63) (65) Balance as at January 1 615 676 Movements during the year \u00a0\u00a0Charged to income statement (197) (250) Net payments 261 204 Acquisition of subsidiaries' current taxes (3) - Acquisition of subsidiaries' deferred taxes (43) (11) Recognized in other comprehensive income (32) (27) Recognized in equity on share-based compensations 4 1 Translation differences 14 22 Total movements 4 (61) Assets/(liabilities) \u00a0\u00a0Deferred income tax assets 633 619 Current income tax receivables 116 77 Deferred income tax liabilities (52) (18) Current income tax liabilities (78) (63) Balance as at December 31 619 615 Deferred tax is recorded with respect to temporary differences arising from investments in subsidiaries and associates, except for deferred income tax liabilities arising from undistributed profits from investments where the entity is able to control the timing of the distribution and it is probable that such distribution will not occur in the foreseeable future. deferred income tax assets composition of deferred income tax assets \u00a02022 2021 \u00a0\u00a0\u00a0Tax losses carry-forward 368 335 Unused tax credits 202 180 \u00a0\u00a0\u00a0Temporary differences: \u00a0\u00a0Property, plant, equipment, intangible assets, and right-of-use assets/lease liabilities 86 97 Other receivables/other payables 114 100 Provisions 78 85 \u00a0278 282 \u00a0\u00a0\u00a0Deferred income tax assets (before netting) 848 797 Amount netted with deferred income tax liabilities (215) (178) Deferred income tax assets (after netting) 633 619 Deferred income tax assets in relation to tax losses carried forward comprise an amount of \u20ac\u00a011 million (2021: \u20ac\u00a010 million), originating from subsidiaries that generated tax losses in the current or preceding year. These deferred tax assets relate mainly to a number of subsidiaries in various countries that generated taxable profits in 2022 and are expected to continue making taxable profits in the near\u00a0future. Certain deferred income tax assets, whose recoverability is considered not probable, are valued at nil. These concern deferred tax assets in relation to tax losses carried forward of \u20ac\u00a0211 million (December 31, 2021: \u20ac\u00a0130 million), as well as deferred tax assets relating to other temporary differences of \u20ac\u00a035 million (December 31, 2021: \u20ac\u00a08 million). Such carried forward tax losses mainly relate to our subsidiaries in Luxembourg and Monster subsidiaries in Europe. These carried forward losses have expiry dates in the range of five years to indefinitely. Unused tax credits mainly relate to tax credits in the US, which will be realized after all tax losses carried forward have been recovered. The expiry term of these US unused tax credits is 20 years. Of these unused tax credits, an amount of \u20ac\u00a04 million is not valued as at December 31, 2022 (December 31, 2021: \u20ac\u00a09 million). During 2022, the US realized almost all federal tax losses carried forward and started making use of tax credits to offset current tax liabilities. The part of deferred tax assets that is expected to be realized within one year is estimated at \u20ac\u00a095 million (2021: \u20ac\u00a092 million). sensitivity Deferred tax assets are only recognized to the extent that it is considered probable that future taxable profits are available, as a consequence of which these deferred tax assets can be realized. The scenarios used are in agreement with the estimates and assumptions used in the goodwill impairment testing (see note 5). The various scenarios yield potential outcomes that do not materially deviate from the carrying amount. deferred income tax liabilities composition of deferred income tax liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Acquisition-related intangible assets 42 12 Temporary differences relating to subsidiaries 87 89 Other temporary differences 138 95 Deferred income tax liabilities (before netting) 267 196 Amount netted with deferred income tax assets (215) (178) Deferred income tax liabilities (after netting) 52 18 The deferred tax liability for 'Temporary differences relating to subsidiaries' to the amount of \u20ac\u00a087 million (December 31, 2021: \u20ac\u00a089 million) relates to recapture obligations in our Luxembourg entities arising from the valuation for fiscal purposes of subsidiaries held by these entities. The part of deferred income tax liabilities that is expected to be settled within one year is estimated at \u20ac\u00a012 million (December 31, 2021: \u20ac\u00a03 million). movements in deferred income taxes In the table below, the balances of deferred income tax assets and deferred income tax liabilities have been included gross at the beginning and end of the year. The netting of deferred income tax assets and liabilities is shown in the tables above. movements in deferred income taxes \u00a0tax losses carry-forward unused tax credits temporary differences total 2022 total 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Deferred income tax assets 335 180 282 797 837 Deferred income tax liabilities - - (196) (196) (194) Balance as at January 1 335 180 86 601 643 Movements during the year \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries - - (43) (43) (11) Income statement 20 24 2 46 46 Other movements 12 (13) (37) (38) (97) Translation differences 1 11 3 15 20 Total movements 33 22 (75) (20) (42) Deferred income tax assets 368 202 278 848 797 Deferred income tax liabilities - - (267) (267) (196) Balance as at December 31 368 202 11 581 601 ", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-419": { "value": " 7.1 deferred and current income taxes Using the balance sheet liability method, deferred tax assets and liabilities are recognized to provide for temporary differences between the value of the assets and liabilities for financial reporting purposes and for tax purposes. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities, and when the deferred income taxes relate to the same tax jurisdiction. Deferred tax assets, including those resulting from tax losses carried forward, are recognized to the extent that it is probable that future taxable profits will be available as a consequence of which the temporary differences, including tax losses carried forward, can be realized. Deferred tax assets and liabilities are valued at tax rates enacted or substantively enacted at year-end and which are expected to apply in the coming years when the assets and liabilities are expected to be realized or settled. movements in total position of corporate taxes \u00a02022 2021 \u00a0\u00a0\u00a0Assets/(liabilities) \u00a0\u00a0Deferred income tax assets 619 674 Current income tax receivables 77 98 Deferred income tax liabilities (18) (31) Current income tax liabilities (63) (65) Balance as at January 1 615 676 Movements during the year \u00a0\u00a0Charged to income statement (197) (250) Net payments 261 204 Acquisition of subsidiaries' current taxes (3) - Acquisition of subsidiaries' deferred taxes (43) (11) Recognized in other comprehensive income (32) (27) Recognized in equity on share-based compensations 4 1 Translation differences 14 22 Total movements 4 (61) Assets/(liabilities) \u00a0\u00a0Deferred income tax assets 633 619 Current income tax receivables 116 77 Deferred income tax liabilities (52) (18) Current income tax liabilities (78) (63) Balance as at December 31 619 615 Deferred tax is recorded with respect to temporary differences arising from investments in subsidiaries and associates, except for deferred income tax liabilities arising from undistributed profits from investments where the entity is able to control the timing of the distribution and it is probable that such distribution will not occur in the foreseeable future. deferred income tax assets composition of deferred income tax assets \u00a02022 2021 \u00a0\u00a0\u00a0Tax losses carry-forward 368 335 Unused tax credits 202 180 \u00a0\u00a0\u00a0Temporary differences: \u00a0\u00a0Property, plant, equipment, intangible assets, and right-of-use assets/lease liabilities 86 97 Other receivables/other payables 114 100 Provisions 78 85 \u00a0278 282 \u00a0\u00a0\u00a0Deferred income tax assets (before netting) 848 797 Amount netted with deferred income tax liabilities (215) (178) Deferred income tax assets (after netting) 633 619 Deferred income tax assets in relation to tax losses carried forward comprise an amount of \u20ac\u00a011 million (2021: \u20ac\u00a010 million), originating from subsidiaries that generated tax losses in the current or preceding year. These deferred tax assets relate mainly to a number of subsidiaries in various countries that generated taxable profits in 2022 and are expected to continue making taxable profits in the near\u00a0future. Certain deferred income tax assets, whose recoverability is considered not probable, are valued at nil. These concern deferred tax assets in relation to tax losses carried forward of \u20ac\u00a0211 million (December 31, 2021: \u20ac\u00a0130 million), as well as deferred tax assets relating to other temporary differences of \u20ac\u00a035 million (December 31, 2021: \u20ac\u00a08 million). Such carried forward tax losses mainly relate to our subsidiaries in Luxembourg and Monster subsidiaries in Europe. These carried forward losses have expiry dates in the range of five years to indefinitely. Unused tax credits mainly relate to tax credits in the US, which will be realized after all tax losses carried forward have been recovered. The expiry term of these US unused tax credits is 20 years. Of these unused tax credits, an amount of \u20ac\u00a04 million is not valued as at December 31, 2022 (December 31, 2021: \u20ac\u00a09 million). During 2022, the US realized almost all federal tax losses carried forward and started making use of tax credits to offset current tax liabilities. The part of deferred tax assets that is expected to be realized within one year is estimated at \u20ac\u00a095 million (2021: \u20ac\u00a092 million). sensitivity Deferred tax assets are only recognized to the extent that it is considered probable that future taxable profits are available, as a consequence of which these deferred tax assets can be realized. The scenarios used are in agreement with the estimates and assumptions used in the goodwill impairment testing (see note 5). The various scenarios yield potential outcomes that do not materially deviate from the carrying amount. deferred income tax liabilities composition of deferred income tax liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Acquisition-related intangible assets 42 12 Temporary differences relating to subsidiaries 87 89 Other temporary differences 138 95 Deferred income tax liabilities (before netting) 267 196 Amount netted with deferred income tax assets (215) (178) Deferred income tax liabilities (after netting) 52 18 The deferred tax liability for 'Temporary differences relating to subsidiaries' to the amount of \u20ac\u00a087 million (December 31, 2021: \u20ac\u00a089 million) relates to recapture obligations in our Luxembourg entities arising from the valuation for fiscal purposes of subsidiaries held by these entities. The part of deferred income tax liabilities that is expected to be settled within one year is estimated at \u20ac\u00a012 million (December 31, 2021: \u20ac\u00a03 million). movements in deferred income taxes In the table below, the balances of deferred income tax assets and deferred income tax liabilities have been included gross at the beginning and end of the year. The netting of deferred income tax assets and liabilities is shown in the tables above. movements in deferred income taxes \u00a0tax losses carry-forward unused tax credits temporary differences total 2022 total 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Deferred income tax assets 335 180 282 797 837 Deferred income tax liabilities - - (196) (196) (194) Balance as at January 1 335 180 86 601 643 Movements during the year \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries - - (43) (43) (11) Income statement 20 24 2 46 46 Other movements 12 (13) (37) (38) (97) Translation differences 1 11 3 15 20 Total movements 33 22 (75) (20) (42) Deferred income tax assets 368 202 278 848 797 Deferred income tax liabilities - - (267) (267) (196) Balance as at December 31 368 202 11 581 601 ", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-421": { "value": "8.1 right-of-use assets and lease liabilities \u00a0right-of-use buildings right-of-use cars right-of-use IT and other equipment right-of-use assets lease liabilities \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 421 83 3 507 594 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries 3 - - 3 3 Disposals of subsidiaries - - - \u00a0- Additions 84 51 - 135 135 Remeasurements 57 1 1 59 57 Depreciation/impairment (132) (47) (3) (182) \u00a0Interest due to passage of time \u00a0\u00a0\u00a0\u00a015 Repayments \u00a0\u00a0\u00a0\u00a0(210) Translation differences 1 - 1 2 4 Balance as at December 31, 2022 434 88 2 524 598 Cost 1,090 199 9 1,298 \u00a0Accumulated depreciation and impairment 656 111 7 774 \u00a0Non-current part \u00a0\u00a0\u00a0\u00a0412 Current part \u00a0\u00a0\u00a0\u00a0186 Balance as at December 31, 2022 434 88 2 524 598 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Cost 1,037 183 10 1,230 \u00a0Accumulated depreciation and impairment 621 93 5 719 \u00a0Non-current part \u00a0\u00a0\u00a0\u00a0397 Current part \u00a0\u00a0\u00a0\u00a0191 Balance as at December 31, 2021 416 90 5 511 588 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries 2 2 - 4 7 Disposals of subsidiaries - - - - (1) Additions 113 36 - 149 149 Remeasurements 30 1 1 32 26 Depreciation/impairment (144) (45) (3) (192) \u00a0Interest due to passage of time \u00a0\u00a0\u00a0\u00a011 Repayments \u00a0\u00a0\u00a0\u00a0(196) Translation differences 4 (1) - 3 10 Balance as at December 31, 2021 421 83 3 507 594 Cost 1,062 183 10 1,255 \u00a0Accumulated depreciation and impairment 641 100 7 748 \u00a0Non-current part \u00a0\u00a0\u00a0\u00a0407 Current part \u00a0\u00a0\u00a0\u00a0187 Balance as at December 31, 2021 421 83 3 507 594 Lease liabilities are payable as follows and are set out in the table below, showing the undiscounted lease payments to be paid after the balance sheet date. maturity of lease liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Year 1 186 188 Year 2-5 359 355 More than 5 years 118 83 Undiscounted lease amounts to be paid 663 626 Interest (65) (32) Total lease liabilities 598 594 accounting policy for leases The Group has various lease arrangements for buildings (such as local head offices and branches), cars, and IT and other equipment. Lease terms are negotiated on an individual basis locally and subject to domestic rules and regulations. This results in a wide range of different terms and conditions. At the inception of a lease contract, the Group assesses whether the contract conveys the right to control the use of an identified asset for a certain period in exchange for a consideration, in which case it is identified as a lease. The Group then recognizes a right-of-use asset and a lease liability at the lease commencement date. Lease-related assets and liabilities are measured on a present value basis. Lease-related assets and liabilities are subject to remeasurement when terms are modified or when lease assumptions have changed. Such an event results in the lease liability being remeasured to reflect the measurement of the present value of the remaining lease payments, discounted using the discount rate at the moment of the change. The related right-of-use assets are adjusted to reflect the change in the remeasured liabilities. We have chosen not to apply any of the practical expedients as mentioned in IFRS 16 'Leases' (such as portfolio approach, exemption for low-value leases, and exemption for short-term leases), except for COVID-19-Related Rent Concessions, an amendment to IFRS 16 'Leases' issued in 2020 and the updated amendment to IFRS 16, 'Covid-19-Related Rent Concessions beyond June 2022'. See note 21.1.2 for net investment in subleases. right-of-use assets Right-of-use assets are measured at cost and at the inception of the lease may include the following components: the initial measurement of the lease liability; lease payments made before the commencement date of the lease less any lease incentives received; initial direct costs; costs to restore. The right-of-use assets are depreciated on a straight-line basis over the duration of the contract. Depreciation of right-of-use assets is charged to operating expenses and/or cost of services. At the end of a lease contract when the asset is fully depreciated, the value at cost is reversed against accumulated depreciation. In the event of lease abandonment, the carrying amount of the related right-of-use asset is impaired to the recoverable amounts. lease liabilities Lease liabilities include the net present value of the following components: fixed payments excluding lease incentive received; future contractually agreed fixed increases; payments related to renewals or early termination, in case options to renew or for early termination are reasonably certain to be exercised. The lease payments are discounted using the interest rate implicit in the lease. If this rate cannot be determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. The discount rate that is used to calculate the present value reflects the interest rate applicable to the lease at inception of the contract. Lease contracts entered into in a currency different than the local functional currency are subject to periodically foreign currency revaluations, which are recognized in the income statement in net finance costs. The lease liabilities are subsequently increased by the interest costs on the lease liabilities and decreased by lease payments made. ", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-525": { "value": "8.1 right-of-use assets and lease liabilities \u00a0right-of-use buildings right-of-use cars right-of-use IT and other equipment right-of-use assets lease liabilities \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 421 83 3 507 594 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries 3 - - 3 3 Disposals of subsidiaries - - - \u00a0- Additions 84 51 - 135 135 Remeasurements 57 1 1 59 57 Depreciation/impairment (132) (47) (3) (182) \u00a0Interest due to passage of time \u00a0\u00a0\u00a0\u00a015 Repayments \u00a0\u00a0\u00a0\u00a0(210) Translation differences 1 - 1 2 4 Balance as at December 31, 2022 434 88 2 524 598 Cost 1,090 199 9 1,298 \u00a0Accumulated depreciation and impairment 656 111 7 774 \u00a0Non-current part \u00a0\u00a0\u00a0\u00a0412 Current part \u00a0\u00a0\u00a0\u00a0186 Balance as at December 31, 2022 434 88 2 524 598 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Cost 1,037 183 10 1,230 \u00a0Accumulated depreciation and impairment 621 93 5 719 \u00a0Non-current part \u00a0\u00a0\u00a0\u00a0397 Current part \u00a0\u00a0\u00a0\u00a0191 Balance as at December 31, 2021 416 90 5 511 588 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries 2 2 - 4 7 Disposals of subsidiaries - - - - (1) Additions 113 36 - 149 149 Remeasurements 30 1 1 32 26 Depreciation/impairment (144) (45) (3) (192) \u00a0Interest due to passage of time \u00a0\u00a0\u00a0\u00a011 Repayments \u00a0\u00a0\u00a0\u00a0(196) Translation differences 4 (1) - 3 10 Balance as at December 31, 2021 421 83 3 507 594 Cost 1,062 183 10 1,255 \u00a0Accumulated depreciation and impairment 641 100 7 748 \u00a0Non-current part \u00a0\u00a0\u00a0\u00a0407 Current part \u00a0\u00a0\u00a0\u00a0187 Balance as at December 31, 2021 421 83 3 507 594 Lease liabilities are payable as follows and are set out in the table below, showing the undiscounted lease payments to be paid after the balance sheet date. maturity of lease liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Year 1 186 188 Year 2-5 359 355 More than 5 years 118 83 Undiscounted lease amounts to be paid 663 626 Interest (65) (32) Total lease liabilities 598 594 accounting policy for leases The Group has various lease arrangements for buildings (such as local head offices and branches), cars, and IT and other equipment. Lease terms are negotiated on an individual basis locally and subject to domestic rules and regulations. This results in a wide range of different terms and conditions. At the inception of a lease contract, the Group assesses whether the contract conveys the right to control the use of an identified asset for a certain period in exchange for a consideration, in which case it is identified as a lease. The Group then recognizes a right-of-use asset and a lease liability at the lease commencement date. Lease-related assets and liabilities are measured on a present value basis. Lease-related assets and liabilities are subject to remeasurement when terms are modified or when lease assumptions have changed. Such an event results in the lease liability being remeasured to reflect the measurement of the present value of the remaining lease payments, discounted using the discount rate at the moment of the change. The related right-of-use assets are adjusted to reflect the change in the remeasured liabilities. We have chosen not to apply any of the practical expedients as mentioned in IFRS 16 'Leases' (such as portfolio approach, exemption for low-value leases, and exemption for short-term leases), except for COVID-19-Related Rent Concessions, an amendment to IFRS 16 'Leases' issued in 2020 and the updated amendment to IFRS 16, 'Covid-19-Related Rent Concessions beyond June 2022'. See note 21.1.2 for net investment in subleases. right-of-use assets Right-of-use assets are measured at cost and at the inception of the lease may include the following components: the initial measurement of the lease liability; lease payments made before the commencement date of the lease less any lease incentives received; initial direct costs; costs to restore. The right-of-use assets are depreciated on a straight-line basis over the duration of the contract. Depreciation of right-of-use assets is charged to operating expenses and/or cost of services. At the end of a lease contract when the asset is fully depreciated, the value at cost is reversed against accumulated depreciation. In the event of lease abandonment, the carrying amount of the related right-of-use asset is impaired to the recoverable amounts. lease liabilities Lease liabilities include the net present value of the following components: fixed payments excluding lease incentive received; future contractually agreed fixed increases; payments related to renewals or early termination, in case options to renew or for early termination are reasonably certain to be exercised. The lease payments are discounted using the interest rate implicit in the lease. If this rate cannot be determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. The discount rate that is used to calculate the present value reflects the interest rate applicable to the lease at inception of the contract. Lease contracts entered into in a currency different than the local functional currency are subject to periodically foreign currency revaluations, which are recognized in the income statement in net finance costs. The lease liabilities are subsequently increased by the interest costs on the lease liabilities and decreased by lease payments made. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-526": { "value": "Revenue comprises the expected consideration for services rendered during the year to third parties and is recognized when control of the promised service is transferred to the third party (e.g., the client). A performance obligation is a promise in a contract to transfer a distinct service to the client. When the outcome of the contract cannot be measured reliably, revenue is recognized only to the extent that expenses incurred are eligible to be recovered. No revenue is recognized if it does not satisfy the \"highly probable criteria\".
Revenue from temporary placements is recognized over time and includes the amounts received or receivable for the services delivered by candidates placed, including their salary and salary-related employment costs (gross basis). These revenues are generally based on the number of hours worked by these candidates. The salary and salary-related employment costs of these candidates are reported under cost of services. Revenue from services rendered is recognized in the income statement in proportion to the progress in execution of the contract as of the balance sheet date. Progress in execution of the contract is measured on the basis of costs (mainly hours) incurred to date as a percentage of total estimated costs for each contract.
Revenue from permanent placements includes the fee received or receivable for the services provided. This fee is generally a percentage of the remuneration package of the candidate placed (net basis). The revenue of these permanent placements is recognized at a point in time on completion of the service when the performance obligations are fulfilled, being, in principle, the start date of the candidate placed. For 'retained assignments', revenue is recognized upon the completion of certain pre-agreed stages of the service, for which the fee is non-refundable. Allowances are established to estimate losses due to candidates placed who do not remain employed during the agreed guarantee period.
For the job posting and r\u00e9sum\u00e9 services of Monster Worldwide Inc., revenue is recognized over time based on (statistical) usage during the term of the contract, based on the specific underlying elements of the contract and service.
For outplacement services, revenue is recognized over time as we provide the outplacement service, and revenue is generally based on the progress in execution of the contract measured in terms of hours of service.
For our activities as managed services provider, revenue is recognized over time and mainly based on the underlying volume of the contingent workforce.
For our recruitment process outsourcing services, revenue is recognized either at a point in time if we have agreed a fee per placement or over time if we have agreed a fee for managing the recruitment process during a certain period.
In situations where the Group is the principal in a transaction and thus controls a promised service before transferring that service to the client, the transaction is recorded gross in the statement of comprehensive income (such as in the case of temporary placements). When the Group acts as an agent and thus only arranges for another party to provide a service to the client, revenue is reported on a net basis (such as in cases where the Group acts as a managed services provider). When it is initially not fully clear whether or not Randstad controls the service, we use the following indicators to determine whether we control the service:
Our service concepts are grouped into revenue categories, being 'Staffing', 'Inhouse', and 'Professionals' (conducted under the responsibility of a country manager on a country-by-country basis), and Global Businesses (conducted on a worldwide basis with separate global leadership). Within all Randstad's revenue categories and in all parts of the world, both temporary and permanent placements are in principle undertaken and executed by the same team of employees. For a more detailed description of Randstad's services, see the section 'our strong foundation'.
The disaggregation of revenues (excluding intersegment revenue) for the categories Staffing, Inhouse and Professionals is shown in the table below.
Revenue of permanent placements in the categories Staffing, Inhouse, and Professionals amounted to \u20ac\u00a0734 million (2021: \u20ac\u00a0542 million). Revenue of recruitment process outsourcing within Global Businesses amounted to \u20ac\u00a0453 million (2021: \u20ac\u00a0253 million).
| \u00a0 | staffing | inhouse | professionals | total | ||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 1,908 | 1,677 | 1,281 | 1,072 | 2,308 | 1,809 | 5,497 | 4,558 |
| France | 1,963 | 1,886 | 877 | 818 | 1,076 | 921 | 3,916 | 3,625 |
| Netherlands | 1,572 | 1,633 | 1,311 | 1,215 | 643 | 565 | 3,526 | 3,413 |
| Italy | 1,633 | 1,480 | 554 | 467 | 44 | 31 | 2,231 | 1,978 |
| Germany | 954 | 969 | 731 | 606 | 329 | 320 | 2,014 | 1,895 |
| Belgium & Luxembourg | 969 | 939 | 496 | 472 | 216 | 189 | 1,681 | 1,600 |
| Iberia | 1,204 | 1,123 | 351 | 318 | 66 | 61 | 1,621 | 1,502 |
| Other European countries | 808 | 809 | 907 | 774 | 800 | 742 | 2,515 | 2,325 |
| Rest of the world | 1,837 | 1,690 | 303 | 200 | 853 | 614 | 2,993 | 2,504 |
| \u00a0 | 12,848 | 12,206 | 6,811 | 5,942 | 6,335 | 5,252 | 25,994 | 23,400 |
| Global businesses | - | - | - | - | - | - | 1,574 | 1,235 |
| Third-party revenue | 12,848 | 12,206 | 6,811 | 5,942 | 6,335 | 5,252 | 27,568 | 24,635 |
Revenue comprises the expected consideration for services rendered during the year to third parties and is recognized when control of the promised service is transferred to the third party (e.g., the client). A performance obligation is a promise in a contract to transfer a distinct service to the client. When the outcome of the contract cannot be measured reliably, revenue is recognized only to the extent that expenses incurred are eligible to be recovered. No revenue is recognized if it does not satisfy the \"highly probable criteria\".
Revenue from temporary placements is recognized over time and includes the amounts received or receivable for the services delivered by candidates placed, including their salary and salary-related employment costs (gross basis). These revenues are generally based on the number of hours worked by these candidates. The salary and salary-related employment costs of these candidates are reported under cost of services. Revenue from services rendered is recognized in the income statement in proportion to the progress in execution of the contract as of the balance sheet date. Progress in execution of the contract is measured on the basis of costs (mainly hours) incurred to date as a percentage of total estimated costs for each contract.
Revenue from permanent placements includes the fee received or receivable for the services provided. This fee is generally a percentage of the remuneration package of the candidate placed (net basis). The revenue of these permanent placements is recognized at a point in time on completion of the service when the performance obligations are fulfilled, being, in principle, the start date of the candidate placed. For 'retained assignments', revenue is recognized upon the completion of certain pre-agreed stages of the service, for which the fee is non-refundable. Allowances are established to estimate losses due to candidates placed who do not remain employed during the agreed guarantee period.
For the job posting and r\u00e9sum\u00e9 services of Monster Worldwide Inc., revenue is recognized over time based on (statistical) usage during the term of the contract, based on the specific underlying elements of the contract and service.
For outplacement services, revenue is recognized over time as we provide the outplacement service, and revenue is generally based on the progress in execution of the contract measured in terms of hours of service.
For our activities as managed services provider, revenue is recognized over time and mainly based on the underlying volume of the contingent workforce.
For our recruitment process outsourcing services, revenue is recognized either at a point in time if we have agreed a fee per placement or over time if we have agreed a fee for managing the recruitment process during a certain period.
In situations where the Group is the principal in a transaction and thus controls a promised service before transferring that service to the client, the transaction is recorded gross in the statement of comprehensive income (such as in the case of temporary placements). When the Group acts as an agent and thus only arranges for another party to provide a service to the client, revenue is reported on a net basis (such as in cases where the Group acts as a managed services provider). When it is initially not fully clear whether or not Randstad controls the service, we use the following indicators to determine whether we control the service:
Our service concepts are grouped into revenue categories, being 'Staffing', 'Inhouse', and 'Professionals' (conducted under the responsibility of a country manager on a country-by-country basis), and Global Businesses (conducted on a worldwide basis with separate global leadership). Within all Randstad's revenue categories and in all parts of the world, both temporary and permanent placements are in principle undertaken and executed by the same team of employees. For a more detailed description of Randstad's services, see the section 'our strong foundation'.
The disaggregation of revenues (excluding intersegment revenue) for the categories Staffing, Inhouse and Professionals is shown in the table below.
Revenue of permanent placements in the categories Staffing, Inhouse, and Professionals amounted to \u20ac\u00a0734 million (2021: \u20ac\u00a0542 million). Revenue of recruitment process outsourcing within Global Businesses amounted to \u20ac\u00a0453 million (2021: \u20ac\u00a0253 million).
| \u00a0 | staffing | inhouse | professionals | total | ||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 1,908 | 1,677 | 1,281 | 1,072 | 2,308 | 1,809 | 5,497 | 4,558 |
| France | 1,963 | 1,886 | 877 | 818 | 1,076 | 921 | 3,916 | 3,625 |
| Netherlands | 1,572 | 1,633 | 1,311 | 1,215 | 643 | 565 | 3,526 | 3,413 |
| Italy | 1,633 | 1,480 | 554 | 467 | 44 | 31 | 2,231 | 1,978 |
| Germany | 954 | 969 | 731 | 606 | 329 | 320 | 2,014 | 1,895 |
| Belgium & Luxembourg | 969 | 939 | 496 | 472 | 216 | 189 | 1,681 | 1,600 |
| Iberia | 1,204 | 1,123 | 351 | 318 | 66 | 61 | 1,621 | 1,502 |
| Other European countries | 808 | 809 | 907 | 774 | 800 | 742 | 2,515 | 2,325 |
| Rest of the world | 1,837 | 1,690 | 303 | 200 | 853 | 614 | 2,993 | 2,504 |
| \u00a0 | 12,848 | 12,206 | 6,811 | 5,942 | 6,335 | 5,252 | 25,994 | 23,400 |
| Global businesses | - | - | - | - | - | - | 1,574 | 1,235 |
| Third-party revenue | 12,848 | 12,206 | 6,811 | 5,942 | 6,335 | 5,252 | 27,568 | 24,635 |
Our service concepts are grouped into revenue categories, being 'Staffing', 'Inhouse', and 'Professionals' (conducted under the responsibility of a country manager on a country-by-country basis), and Global Businesses (conducted on a worldwide basis with separate global leadership). Within all Randstad's revenue categories and in all parts of the world, both temporary and permanent placements are in principle undertaken and executed by the same team of employees. For a more detailed description of Randstad's services, see the section 'our strong foundation'.
The disaggregation of revenues (excluding intersegment revenue) for the categories Staffing, Inhouse and Professionals is shown in the table below.
Revenue of permanent placements in the categories Staffing, Inhouse, and Professionals amounted to \u20ac\u00a0734 million (2021: \u20ac\u00a0542 million). Revenue of recruitment process outsourcing within Global Businesses amounted to \u20ac\u00a0453 million (2021: \u20ac\u00a0253 million).
| \u00a0 | staffing | inhouse | professionals | total | ||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 1,908 | 1,677 | 1,281 | 1,072 | 2,308 | 1,809 | 5,497 | 4,558 |
| France | 1,963 | 1,886 | 877 | 818 | 1,076 | 921 | 3,916 | 3,625 |
| Netherlands | 1,572 | 1,633 | 1,311 | 1,215 | 643 | 565 | 3,526 | 3,413 |
| Italy | 1,633 | 1,480 | 554 | 467 | 44 | 31 | 2,231 | 1,978 |
| Germany | 954 | 969 | 731 | 606 | 329 | 320 | 2,014 | 1,895 |
| Belgium & Luxembourg | 969 | 939 | 496 | 472 | 216 | 189 | 1,681 | 1,600 |
| Iberia | 1,204 | 1,123 | 351 | 318 | 66 | 61 | 1,621 | 1,502 |
| Other European countries | 808 | 809 | 907 | 774 | 800 | 742 | 2,515 | 2,325 |
| Rest of the world | 1,837 | 1,690 | 303 | 200 | 853 | 614 | 2,993 | 2,504 |
| \u00a0 | 12,848 | 12,206 | 6,811 | 5,942 | 6,335 | 5,252 | 25,994 | 23,400 |
| Global businesses | - | - | - | - | - | - | 1,574 | 1,235 |
| Third-party revenue | 12,848 | 12,206 | 6,811 | 5,942 | 6,335 | 5,252 | 27,568 | 24,635 |
Segments include 'geographical areas' and Global Businesses, and are reported in a manner consistent with internal management reporting provided to the Executive Board.
The Global Businesses segment consists of Monster, Randstad Sourceright, RiseSmart, and twago.
'Corporate' is also included in the disclosures on segments, and represents the unallocated part of assets and liabilities of holding activities, as well as the income and expenses of holding activities; the latter net after management and other charges to geographical areas and Global Businesses.
| \u00a0 | revenue 2022 | revenue 2021 | gross profit | operating profit | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| total | intersegment | third party | total | intersegment | third party | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 5,497 | - | 5,497 | 4,560 | (2) | 4,558 | 1,336 | 1,035 | 327 | 227 |
| France | 3,917 | (1) | 3,916 | 3,625 | - | 3,625 | 694 | 641 | 194 | 160 |
| Netherlands | 3,534 | (8) | 3,526 | 3,421 | (8) | 3,413 | 629 | 631 | 213 | 229 |
| Italy | 2,231 | - | 2,231 | 1,979 | (1) | 1,978 | 363 | 296 | 161 | 118 |
| Germany | 2,014 | - | 2,014 | 1,895 | - | 1,895 | 365 | 367 | 36 | 56 |
| Belgium & Luxembourg | 1,684 | (3) | 1,681 | 1,605 | (5) | 1,600 | 336 | 312 | 68 | 89 |
| Iberia | 1,625 | (4) | 1,621 | 1,504 | (2) | 1,502 | 251 | 214 | 93 | 83 |
| Other European countries | 2,536 | (21) | 2,515 | 2,345 | (20) | 2,325 | 431 | 381 | 83 | 67 |
| Rest of the world | 2,998 | (5) | 2,993 | 2,507 | (3) | 2,504 | 553 | 452 | 121 | 114 |
| Global Businesses | 1,588 | (14) | 1,574 | 1,248 | (13) | 1,235 | 801 | 575 | 13 | 17 |
| Corporate | - | - | - | - | - | - | - | - | (172) | (127) |
| Elimination | (56) | 56 | - | (54) | 54 | - | (8) | (8) | - | - |
| Total | 27,568 | - | 27,568 | 24,635 | - | 24,635 | 5,751 | 4,896 | 1,137 | 1,033 |
| \u00a0 | amortization and impairment of acquisition-related intangibles and goodwill | EBITA1 | depreciation/amortization and impairment of property, plant, equipment, and software | depreciation and impairment of right-of-use assets | EBITDA | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 11 | 3 | 338 | 230 | 18 | 20 | 23 | 23 | 379 | 273 |
| France | 4 | 36 | 198 | 196 | 19 | 14 | 33 | 34 | 250 | 244 |
| Netherlands | - | 4 | 213 | 233 | 9 | 9 | 23 | 24 | 245 | 266 |
| Italy | - | 1 | 161 | 119 | 6 | 8 | 9 | 9 | 176 | 136 |
| Germany | 1 | 1 | 37 | 57 | 3 | 11 | 21 | 21 | 61 | 89 |
| Belgium & Luxembourg | 4 | - | 72 | 89 | 3 | 3 | 20 | 17 | 95 | 109 |
| Iberia | - | - | 93 | 83 | 3 | 3 | 10 | 9 | 106 | 95 |
| Other European countries | - | 1 | 83 | 68 | 5 | 4 | 16 | 15 | 104 | 87 |
| Rest of the world | 7 | 5 | 128 | 119 | 7 | 14 | 24 | 23 | 159 | 156 |
| Global Businesses | - | 2 | 13 | 19 | 31 | 25 | 3 | 17 | 47 | 61 |
| Corporate | - | - | (172) | (127) | 17 | 23 | - | - | (155) | (104) |
| Total | 27 | 53 | 1,164 | 1,086 | 121 | 134 | 182 | 192 | 1,467 | 1,412 |
Assets by segment include total assets excluding deferred income tax assets, current income tax receivables, associates, equity investments, interest receivable, and cash and cash equivalents.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Total assets | 11,109 | 11,040 |
| \u00a0 | \u00a0 | \u00a0 |
| Less: | \u00a0 | \u00a0 |
| Deferred income tax assets | 633 | 619 |
| Associates | 3 | 2 |
| Equity investments | 38 | 51 |
| Interest receivable | 4 | 4 |
| Plan assets defined benefit pension plan | 3 | 5 |
| Current income tax receivables | 116 | 77 |
| Cash and cash equivalents | 274 | 859 |
| Assets by segment | 10,038 | 9,423 |
| \u00a0 | property, plant, equipment and software | right-of-use assets | goodwill | acquisition-related intangible assets | loans and receivables | operating working capital assets | total assets | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 43 | 44 | 56 | 57 | 687 | 651 | 32 | 40 | 2 | 2 | 874 | 896 | 1,694 | 1,690 |
| France | 29 | 33 | 112 | 111 | 538 | 515 | 15 | - | 139 | 138 | 787 | 718 | 1,620 | 1,515 |
| Netherlands | 37 | 33 | 50 | 48 | 855 | 855 | - | - | - | - | 553 | 529 | 1,495 | 1,465 |
| Italy | 10 | 10 | 44 | 25 | 59 | 59 | - | - | - | - | 505 | 472 | 618 | 566 |
| Germany | 11 | 10 | 63 | 71 | 290 | 290 | - | 1 | - | - | 414 | 409 | 778 | 781 |
| Belgium & Luxembourg | 7 | 8 | 69 | 70 | 169 | 181 | 12 | - | - | - | 317 | 334 | 574 | 593 |
| Iberia | 7 | 6 | 22 | 20 | 3 | 1 | 1 | - | - | - | 364 | 349 | 397 | 376 |
| Other European countries | 9 | 10 | 38 | 42 | 212 | 221 | - | - | - | - | 568 | 500 | 827 | 773 |
| Rest of the world | 22 | 20 | 63 | 55 | 193 | 148 | 84 | - | - | - | 480 | 414 | 842 | 637 |
| Global Businesses | 68 | 64 | 7 | 8 | 130 | 126 | - | - | 16 | 14 | 940 | 776 | 1,161 | 988 |
| Corporate | 27 | 25 | - | - | - | - | - | - | - | - | 143 | 170 | 170 | 195 |
| Eliminations | - | - | - | - | - | - | - | - | - | - | (138) | (156) | (138) | (156) |
| Total | 270 | 263 | 524 | 507 | 3,136 | 3,047 | 144 | 41 | 157 | 154 | 5,807 | 5,411 | 10,038 | 9,423 |
| \u00a0 | property, plant, equipment | software | right-of-use assets | acquisition-related intangible assets and goodwill | sum of additions | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 14 | 21 | 3 | 3 | 17 | 22 | - | 105 | 34 | 151 |
| France | 7 | 7 | 7 | 5 | 27 | 14 | 42 | - | 83 | 26 |
| Netherlands | 10 | 6 | 3 | - | 18 | 10 | - | - | 31 | 16 |
| Italy | 4 | 3 | 1 | 1 | 9 | 5 | - | - | 14 | 9 |
| Germany | 5 | 7 | - | 1 | 12 | 42 | - | - | 17 | 50 |
| Belgium & Luxembourg | 3 | 2 | - | - | 19 | 15 | 6 | 25 | 28 | 42 |
| Iberia | 4 | 3 | - | - | 6 | 2 | 3 | - | 13 | 5 |
| Other European countries | 3 | 3 | - | 1 | 12 | 14 | - | - | 15 | 18 |
| Rest of the world | 10 | 8 | - | 5 | 13 | 21 | 152 | - | 175 | 34 |
| Global Businesses | 2 | 4 | 35 | 29 | 2 | 4 | - | - | 39 | 37 |
| Corporate | - | 1 | 18 | 22 | - | - | - | - | 18 | 23 |
| Total | 62 | 65 | 67 | 67 | 135 | 149 | 203 | 130 | 467 | 411 |
Segments include 'geographical areas' and Global Businesses, and are reported in a manner consistent with internal management reporting provided to the Executive Board.
The Global Businesses segment consists of Monster, Randstad Sourceright, RiseSmart, and twago.
'Corporate' is also included in the disclosures on segments, and represents the unallocated part of assets and liabilities of holding activities, as well as the income and expenses of holding activities; the latter net after management and other charges to geographical areas and Global Businesses.
| \u00a0 | revenue 2022 | revenue 2021 | gross profit | operating profit | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| total | intersegment | third party | total | intersegment | third party | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 5,497 | - | 5,497 | 4,560 | (2) | 4,558 | 1,336 | 1,035 | 327 | 227 |
| France | 3,917 | (1) | 3,916 | 3,625 | - | 3,625 | 694 | 641 | 194 | 160 |
| Netherlands | 3,534 | (8) | 3,526 | 3,421 | (8) | 3,413 | 629 | 631 | 213 | 229 |
| Italy | 2,231 | - | 2,231 | 1,979 | (1) | 1,978 | 363 | 296 | 161 | 118 |
| Germany | 2,014 | - | 2,014 | 1,895 | - | 1,895 | 365 | 367 | 36 | 56 |
| Belgium & Luxembourg | 1,684 | (3) | 1,681 | 1,605 | (5) | 1,600 | 336 | 312 | 68 | 89 |
| Iberia | 1,625 | (4) | 1,621 | 1,504 | (2) | 1,502 | 251 | 214 | 93 | 83 |
| Other European countries | 2,536 | (21) | 2,515 | 2,345 | (20) | 2,325 | 431 | 381 | 83 | 67 |
| Rest of the world | 2,998 | (5) | 2,993 | 2,507 | (3) | 2,504 | 553 | 452 | 121 | 114 |
| Global Businesses | 1,588 | (14) | 1,574 | 1,248 | (13) | 1,235 | 801 | 575 | 13 | 17 |
| Corporate | - | - | - | - | - | - | - | - | (172) | (127) |
| Elimination | (56) | 56 | - | (54) | 54 | - | (8) | (8) | - | - |
| Total | 27,568 | - | 27,568 | 24,635 | - | 24,635 | 5,751 | 4,896 | 1,137 | 1,033 |
| \u00a0 | amortization and impairment of acquisition-related intangibles and goodwill | EBITA1 | depreciation/amortization and impairment of property, plant, equipment, and software | depreciation and impairment of right-of-use assets | EBITDA | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 11 | 3 | 338 | 230 | 18 | 20 | 23 | 23 | 379 | 273 |
| France | 4 | 36 | 198 | 196 | 19 | 14 | 33 | 34 | 250 | 244 |
| Netherlands | - | 4 | 213 | 233 | 9 | 9 | 23 | 24 | 245 | 266 |
| Italy | - | 1 | 161 | 119 | 6 | 8 | 9 | 9 | 176 | 136 |
| Germany | 1 | 1 | 37 | 57 | 3 | 11 | 21 | 21 | 61 | 89 |
| Belgium & Luxembourg | 4 | - | 72 | 89 | 3 | 3 | 20 | 17 | 95 | 109 |
| Iberia | - | - | 93 | 83 | 3 | 3 | 10 | 9 | 106 | 95 |
| Other European countries | - | 1 | 83 | 68 | 5 | 4 | 16 | 15 | 104 | 87 |
| Rest of the world | 7 | 5 | 128 | 119 | 7 | 14 | 24 | 23 | 159 | 156 |
| Global Businesses | - | 2 | 13 | 19 | 31 | 25 | 3 | 17 | 47 | 61 |
| Corporate | - | - | (172) | (127) | 17 | 23 | - | - | (155) | (104) |
| Total | 27 | 53 | 1,164 | 1,086 | 121 | 134 | 182 | 192 | 1,467 | 1,412 |
Assets by segment include total assets excluding deferred income tax assets, current income tax receivables, associates, equity investments, interest receivable, and cash and cash equivalents.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Total assets | 11,109 | 11,040 |
| \u00a0 | \u00a0 | \u00a0 |
| Less: | \u00a0 | \u00a0 |
| Deferred income tax assets | 633 | 619 |
| Associates | 3 | 2 |
| Equity investments | 38 | 51 |
| Interest receivable | 4 | 4 |
| Plan assets defined benefit pension plan | 3 | 5 |
| Current income tax receivables | 116 | 77 |
| Cash and cash equivalents | 274 | 859 |
| Assets by segment | 10,038 | 9,423 |
| \u00a0 | property, plant, equipment and software | right-of-use assets | goodwill | acquisition-related intangible assets | loans and receivables | operating working capital assets | total assets | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 43 | 44 | 56 | 57 | 687 | 651 | 32 | 40 | 2 | 2 | 874 | 896 | 1,694 | 1,690 |
| France | 29 | 33 | 112 | 111 | 538 | 515 | 15 | - | 139 | 138 | 787 | 718 | 1,620 | 1,515 |
| Netherlands | 37 | 33 | 50 | 48 | 855 | 855 | - | - | - | - | 553 | 529 | 1,495 | 1,465 |
| Italy | 10 | 10 | 44 | 25 | 59 | 59 | - | - | - | - | 505 | 472 | 618 | 566 |
| Germany | 11 | 10 | 63 | 71 | 290 | 290 | - | 1 | - | - | 414 | 409 | 778 | 781 |
| Belgium & Luxembourg | 7 | 8 | 69 | 70 | 169 | 181 | 12 | - | - | - | 317 | 334 | 574 | 593 |
| Iberia | 7 | 6 | 22 | 20 | 3 | 1 | 1 | - | - | - | 364 | 349 | 397 | 376 |
| Other European countries | 9 | 10 | 38 | 42 | 212 | 221 | - | - | - | - | 568 | 500 | 827 | 773 |
| Rest of the world | 22 | 20 | 63 | 55 | 193 | 148 | 84 | - | - | - | 480 | 414 | 842 | 637 |
| Global Businesses | 68 | 64 | 7 | 8 | 130 | 126 | - | - | 16 | 14 | 940 | 776 | 1,161 | 988 |
| Corporate | 27 | 25 | - | - | - | - | - | - | - | - | 143 | 170 | 170 | 195 |
| Eliminations | - | - | - | - | - | - | - | - | - | - | (138) | (156) | (138) | (156) |
| Total | 270 | 263 | 524 | 507 | 3,136 | 3,047 | 144 | 41 | 157 | 154 | 5,807 | 5,411 | 10,038 | 9,423 |
| \u00a0 | property, plant, equipment | software | right-of-use assets | acquisition-related intangible assets and goodwill | sum of additions | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 14 | 21 | 3 | 3 | 17 | 22 | - | 105 | 34 | 151 |
| France | 7 | 7 | 7 | 5 | 27 | 14 | 42 | - | 83 | 26 |
| Netherlands | 10 | 6 | 3 | - | 18 | 10 | - | - | 31 | 16 |
| Italy | 4 | 3 | 1 | 1 | 9 | 5 | - | - | 14 | 9 |
| Germany | 5 | 7 | - | 1 | 12 | 42 | - | - | 17 | 50 |
| Belgium & Luxembourg | 3 | 2 | - | - | 19 | 15 | 6 | 25 | 28 | 42 |
| Iberia | 4 | 3 | - | - | 6 | 2 | 3 | - | 13 | 5 |
| Other European countries | 3 | 3 | - | 1 | 12 | 14 | - | - | 15 | 18 |
| Rest of the world | 10 | 8 | - | 5 | 13 | 21 | 152 | - | 175 | 34 |
| Global Businesses | 2 | 4 | 35 | 29 | 2 | 4 | - | - | 39 | 37 |
| Corporate | - | 1 | 18 | 22 | - | - | - | - | 18 | 23 |
| Total | 62 | 65 | 67 | 67 | 135 | 149 | 203 | 130 | 467 | 411 |
During 2022 and 2021, the Group acquired 100% of the shares of the following companies:
| company | acquisition date |
|---|---|
| \u00a0 | \u00a0 |
| 2022 | \u00a0 |
| Avanzo Learning Process S.A.U. (Spain) | March 25, 2022 |
| Side (France) | May 12, 2022 |
| Finite Group (Australia) | September 2, 2022 |
| \u00a0 | \u00a0 |
| 2021 | \u00a0 |
| Cella, Inc. (USA) | September 30, 2021 |
| Hudson Benelux (Belgium) | December 9, 2021 |
In 2022, the Group acquired 100% of the shares of Avanzo, a company based in Spain, an expert in training and development solutions. The Group also acquired 100% of the shares of Side, a company based in France, a leading end-to-end digital staffing platform, as well as 100% of the shares of the Finite group, a group based in Australia and New Zealand, with main activities in HR consulting. The total amount of goodwill recorded for these acquisitions is not expected to be deductible for corporate tax purposes.
In 2021, the Group acquired 100% of the shares of Cella, Inc, a company based in the USA, with main activities in staffing, managed solutions and consulting, as well as 100% of the shares of Hudson Benelux, a group based in the Benelux countries, with main activities in technology recruitment, IT consulting and a broad array of IT & Digital professional services.
The acquisitions made in 2022 and 2021 are in line with Randstad's mid- to long-term strategy to grow in specialist activities and to strengthen our market position in certain markets and/or countries.
The fair value of the assets and liabilities arising from the above-mentioned acquisitions, based on (provisional) purchase price allocations, can be summarized as follows:
| \u00a0 | finite group | other | total 2022 | total 2021 |
|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Property, plant, equipment and software | - | - | - | 1 |
| Right of use assets | 3 | - | 3 | 4 |
| Acquisition-related intangible assets | 97 | 37 | 134 | 39 |
| Deferred tax assets | 1 | 2 | 3 | 1 |
| Total non-current assets | 101 | 39 | 140 | 45 |
| Working capital | 11 | (6) | 5 | (1) |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Lease liabilities | 3 | - | 3 | 7 |
| Provisions and employee benefit obligations | - | - | - | 6 |
| Deferred income tax liabilities | 36 | 10 | 46 | 12 |
| Total non-current liabilities | 39 | 10 | 49 | 25 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Net assets acquired | 73 | 23 | 96 | 19 |
| Goodwill | 55 | 14 | 69 | 91 |
| Total consideration | 128 | 37 | 165 | 110 |
| Net debt/ (cash) acquired included in working capital | 12 | (3) | 9 | 16 |
| Net debt/(cash) acquired | 12 | (3) | 9 | 16 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Consideration, adjusted for net debt/(cash) acquired | 140 | 34 | 174 | 126 |
| Deferred compensation on acquisitions | - | (9) | (9) | (2) |
| Consideration paid in respect of acquisitions in preceding years | - | 5 | 5 | 2 |
| Consideration paid | 140 | 30 | 170 | 126 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries, statement of cash flows | 140 | 30 | 170 | 126 |
In 2022, the Group finalized the purchase price allocation of the acquisition of Cella, Inc, with no adjustment to the provisional purchase price allocation performed in 2021.
In 2022, the Group also finalized the purchase price allocation of the acquisition of Hudson Benelux. The adjustment to the provisional purchase price allocation performed in 2021 resulted in a decrease of \u20ac\u00a011 million to the goodwill and an increase of \u20ac\u00a017 million to the acquisition-related intangibles.
In 2021, the Group finalized the purchase price allocation of the acquisition of the M\u00fchlenhoff + Partner Group, with no adjustment to the provisional purchase price allocation performed in 2020. The amount involved in the acquisition of the M\u00fchlenhoff + Partner Group in 2020 was neither considered material in relation to the total consideration nor in relation to the total goodwill, as it was acquired at a net cash outlay of zero, with net assets acquired amounting to \u20ac\u00a02 million, which was based on the provisional purchase price allocation.
The contribution of the acquired companies in 2022 to the Group's revenue was \u20ac\u00a0129 million and to the Group's EBITA \u20ac\u00a0(14) million. If these companies had been acquired on January 1, 2022, the estimated additional contribution to revenue and EBITA would have been \u20ac\u00a0331 million and \u20ac\u00a0(1) million respectively.
The contribution of the Finite group in 2022 to the Group's revenue was \u20ac\u00a0109 million and to the Group's EBITA \u20ac\u00a0(12) million. If Finite had been acquired on January 1, 2022, the estimated additional contribution to revenue and EBITA would have been \u20ac\u00a0302 million and \u20ac\u00a01 million respectively.
See note 5 for further information.
The Group uses the acquisition method to account for the acquisition of subsidiaries.
Goodwill at acquisition date is measured as:
When this difference is negative ('negative goodwill' or badwill), this amount is recognized directly in total operating expenses.
All considerations transferred to acquire a business are recorded at fair value as at the acquisition date; subsequent changes to the fair value of the contingent considerations classified as debt are recognized as expenses or income.
The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognized amounts of the acquiree's identifiable net assets.
All acquisition-related costs are expensed and included in other general and administrative expenses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-528": { "value": "During 2022 and 2021, the Group acquired 100% of the shares of the following companies:
| company | acquisition date |
|---|---|
| \u00a0 | \u00a0 |
| 2022 | \u00a0 |
| Avanzo Learning Process S.A.U. (Spain) | March 25, 2022 |
| Side (France) | May 12, 2022 |
| Finite Group (Australia) | September 2, 2022 |
| \u00a0 | \u00a0 |
| 2021 | \u00a0 |
| Cella, Inc. (USA) | September 30, 2021 |
| Hudson Benelux (Belgium) | December 9, 2021 |
In 2022, the Group acquired 100% of the shares of Avanzo, a company based in Spain, an expert in training and development solutions. The Group also acquired 100% of the shares of Side, a company based in France, a leading end-to-end digital staffing platform, as well as 100% of the shares of the Finite group, a group based in Australia and New Zealand, with main activities in HR consulting. The total amount of goodwill recorded for these acquisitions is not expected to be deductible for corporate tax purposes.
In 2021, the Group acquired 100% of the shares of Cella, Inc, a company based in the USA, with main activities in staffing, managed solutions and consulting, as well as 100% of the shares of Hudson Benelux, a group based in the Benelux countries, with main activities in technology recruitment, IT consulting and a broad array of IT & Digital professional services.
The acquisitions made in 2022 and 2021 are in line with Randstad's mid- to long-term strategy to grow in specialist activities and to strengthen our market position in certain markets and/or countries.
The fair value of the assets and liabilities arising from the above-mentioned acquisitions, based on (provisional) purchase price allocations, can be summarized as follows:
| \u00a0 | finite group | other | total 2022 | total 2021 |
|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Property, plant, equipment and software | - | - | - | 1 |
| Right of use assets | 3 | - | 3 | 4 |
| Acquisition-related intangible assets | 97 | 37 | 134 | 39 |
| Deferred tax assets | 1 | 2 | 3 | 1 |
| Total non-current assets | 101 | 39 | 140 | 45 |
| Working capital | 11 | (6) | 5 | (1) |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Lease liabilities | 3 | - | 3 | 7 |
| Provisions and employee benefit obligations | - | - | - | 6 |
| Deferred income tax liabilities | 36 | 10 | 46 | 12 |
| Total non-current liabilities | 39 | 10 | 49 | 25 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Net assets acquired | 73 | 23 | 96 | 19 |
| Goodwill | 55 | 14 | 69 | 91 |
| Total consideration | 128 | 37 | 165 | 110 |
| Net debt/ (cash) acquired included in working capital | 12 | (3) | 9 | 16 |
| Net debt/(cash) acquired | 12 | (3) | 9 | 16 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Consideration, adjusted for net debt/(cash) acquired | 140 | 34 | 174 | 126 |
| Deferred compensation on acquisitions | - | (9) | (9) | (2) |
| Consideration paid in respect of acquisitions in preceding years | - | 5 | 5 | 2 |
| Consideration paid | 140 | 30 | 170 | 126 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries, statement of cash flows | 140 | 30 | 170 | 126 |
In 2022, the Group finalized the purchase price allocation of the acquisition of Cella, Inc, with no adjustment to the provisional purchase price allocation performed in 2021.
In 2022, the Group also finalized the purchase price allocation of the acquisition of Hudson Benelux. The adjustment to the provisional purchase price allocation performed in 2021 resulted in a decrease of \u20ac\u00a011 million to the goodwill and an increase of \u20ac\u00a017 million to the acquisition-related intangibles.
In 2021, the Group finalized the purchase price allocation of the acquisition of the M\u00fchlenhoff + Partner Group, with no adjustment to the provisional purchase price allocation performed in 2020. The amount involved in the acquisition of the M\u00fchlenhoff + Partner Group in 2020 was neither considered material in relation to the total consideration nor in relation to the total goodwill, as it was acquired at a net cash outlay of zero, with net assets acquired amounting to \u20ac\u00a02 million, which was based on the provisional purchase price allocation.
The contribution of the acquired companies in 2022 to the Group's revenue was \u20ac\u00a0129 million and to the Group's EBITA \u20ac\u00a0(14) million. If these companies had been acquired on January 1, 2022, the estimated additional contribution to revenue and EBITA would have been \u20ac\u00a0331 million and \u20ac\u00a0(1) million respectively.
The contribution of the Finite group in 2022 to the Group's revenue was \u20ac\u00a0109 million and to the Group's EBITA \u20ac\u00a0(12) million. If Finite had been acquired on January 1, 2022, the estimated additional contribution to revenue and EBITA would have been \u20ac\u00a0302 million and \u20ac\u00a01 million respectively.
See note 5 for further information.
The Group uses the acquisition method to account for the acquisition of subsidiaries.
Goodwill at acquisition date is measured as:
When this difference is negative ('negative goodwill' or badwill), this amount is recognized directly in total operating expenses.
All considerations transferred to acquire a business are recorded at fair value as at the acquisition date; subsequent changes to the fair value of the contingent considerations classified as debt are recognized as expenses or income.
The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognized amounts of the acquiree's identifiable net assets.
All acquisition-related costs are expensed and included in other general and administrative expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-426": { "value": "During 2022 and 2021, the Group acquired 100% of the shares of the following companies:
| company | acquisition date |
|---|---|
| \u00a0 | \u00a0 |
| 2022 | \u00a0 |
| Avanzo Learning Process S.A.U. (Spain) | March 25, 2022 |
| Side (France) | May 12, 2022 |
| Finite Group (Australia) | September 2, 2022 |
| \u00a0 | \u00a0 |
| 2021 | \u00a0 |
| Cella, Inc. (USA) | September 30, 2021 |
| Hudson Benelux (Belgium) | December 9, 2021 |
In 2022, the Group acquired 100% of the shares of Avanzo, a company based in Spain, an expert in training and development solutions. The Group also acquired 100% of the shares of Side, a company based in France, a leading end-to-end digital staffing platform, as well as 100% of the shares of the Finite group, a group based in Australia and New Zealand, with main activities in HR consulting. The total amount of goodwill recorded for these acquisitions is not expected to be deductible for corporate tax purposes.
In 2021, the Group acquired 100% of the shares of Cella, Inc, a company based in the USA, with main activities in staffing, managed solutions and consulting, as well as 100% of the shares of Hudson Benelux, a group based in the Benelux countries, with main activities in technology recruitment, IT consulting and a broad array of IT & Digital professional services.
The acquisitions made in 2022 and 2021 are in line with Randstad's mid- to long-term strategy to grow in specialist activities and to strengthen our market position in certain markets and/or countries.
The fair value of the assets and liabilities arising from the above-mentioned acquisitions, based on (provisional) purchase price allocations, can be summarized as follows:
| \u00a0 | finite group | other | total 2022 | total 2021 |
|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Property, plant, equipment and software | - | - | - | 1 |
| Right of use assets | 3 | - | 3 | 4 |
| Acquisition-related intangible assets | 97 | 37 | 134 | 39 |
| Deferred tax assets | 1 | 2 | 3 | 1 |
| Total non-current assets | 101 | 39 | 140 | 45 |
| Working capital | 11 | (6) | 5 | (1) |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Lease liabilities | 3 | - | 3 | 7 |
| Provisions and employee benefit obligations | - | - | - | 6 |
| Deferred income tax liabilities | 36 | 10 | 46 | 12 |
| Total non-current liabilities | 39 | 10 | 49 | 25 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Net assets acquired | 73 | 23 | 96 | 19 |
| Goodwill | 55 | 14 | 69 | 91 |
| Total consideration | 128 | 37 | 165 | 110 |
| Net debt/ (cash) acquired included in working capital | 12 | (3) | 9 | 16 |
| Net debt/(cash) acquired | 12 | (3) | 9 | 16 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Consideration, adjusted for net debt/(cash) acquired | 140 | 34 | 174 | 126 |
| Deferred compensation on acquisitions | - | (9) | (9) | (2) |
| Consideration paid in respect of acquisitions in preceding years | - | 5 | 5 | 2 |
| Consideration paid | 140 | 30 | 170 | 126 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| Acquisition of subsidiaries, statement of cash flows | 140 | 30 | 170 | 126 |
In 2022, the Group finalized the purchase price allocation of the acquisition of Cella, Inc, with no adjustment to the provisional purchase price allocation performed in 2021.
In 2022, the Group also finalized the purchase price allocation of the acquisition of Hudson Benelux. The adjustment to the provisional purchase price allocation performed in 2021 resulted in a decrease of \u20ac\u00a011 million to the goodwill and an increase of \u20ac\u00a017 million to the acquisition-related intangibles.
In 2021, the Group finalized the purchase price allocation of the acquisition of the M\u00fchlenhoff + Partner Group, with no adjustment to the provisional purchase price allocation performed in 2020. The amount involved in the acquisition of the M\u00fchlenhoff + Partner Group in 2020 was neither considered material in relation to the total consideration nor in relation to the total goodwill, as it was acquired at a net cash outlay of zero, with net assets acquired amounting to \u20ac\u00a02 million, which was based on the provisional purchase price allocation.
The contribution of the acquired companies in 2022 to the Group's revenue was \u20ac\u00a0129 million and to the Group's EBITA \u20ac\u00a0(14) million. If these companies had been acquired on January 1, 2022, the estimated additional contribution to revenue and EBITA would have been \u20ac\u00a0331 million and \u20ac\u00a0(1) million respectively.
The contribution of the Finite group in 2022 to the Group's revenue was \u20ac\u00a0109 million and to the Group's EBITA \u20ac\u00a0(12) million. If Finite had been acquired on January 1, 2022, the estimated additional contribution to revenue and EBITA would have been \u20ac\u00a0302 million and \u20ac\u00a01 million respectively.
See note 5 for further information.
The Group uses the acquisition method to account for the acquisition of subsidiaries.
Goodwill at acquisition date is measured as:
When this difference is negative ('negative goodwill' or badwill), this amount is recognized directly in total operating expenses.
All considerations transferred to acquire a business are recorded at fair value as at the acquisition date; subsequent changes to the fair value of the contingent considerations classified as debt are recognized as expenses or income.
The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognized amounts of the acquiree's identifiable net assets.
All acquisition-related costs are expensed and included in other general and administrative expenses.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 16 | 17 |
| Additions at fair value | 6 | 3 |
| Redemptions | (6) | (5) |
| Translation differences | 2 | 1 |
| Balance as at December 31 | 18 | 16 |
| Non-current part | 11 | 11 |
| Current part | 7 | 5 |
| Balance as at December 31 | 18 | 16 |
The Group subleases some of its right-of-use assets. In these instances, the Group is an intermediate lessor. Most of the Group's sublease arrangements are classified as finance leases under IFRS 16. The classification of finance sublease is satisfied when substantially all the risk and rewards incidental to the underlying right-of-use assets arising from the head lease have been transferred. Sublease contracts with the classification of financial leases are recognized as a net investment in sublease, which is presented as a financial asset. The carrying amount of the underlying right-of-use asset is derecognized. The net investments in subleases are measured at the present value of the (future) lease receipts, discounted using our incremental borrowing rate at commencement date of the sublease. Sublease contracts with the classification of operating leases result in sublease income being recognized periodically during the sub-rental period. Operating subleases have no impact on the right-of-use asset measurement.
The maturity of net investments in subleases is set out in the table below, showing the undiscounted lease amounts to be received after the balance sheet date.
The nominal value of the net investments in subleases amounts to \u20ac\u00a019 million (2021: \u20ac\u00a017 million), which best represents the maximum exposure to credit risk. As at December 31, 2022 and 2021, the carrying amount equaled the fair value.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| year 1 | 8 | 5 |
| year 2 -5 | 11 | 12 |
| Undiscounted lease amounts to be received | 19 | 17 |
| Unearned finance income | (1) | (1) |
| Present value of lease amounts to be received | 18 | 16 |
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at December 31 | 18 | 16 |
The carrying amounts of loans and receivables are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount is impaired. If objective evidence exists that a financial asset or group of financial assets is impaired, the amount of the impairment loss is calculated as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows, discounted at the original effective interest rate (i.e., the effective interest rate computed at initial recognition of these financial assets). The resulting impairment loss is immediately recognized in net finance costs.
An impairment loss on financial assets is reversed if, in a subsequent period, the amount of the impairment loss decreases and this decrease can be related objectively to an event occurring after the impairment loss was recognized. Such reversal is immediately recognized in net finance costs.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Balance as at January 1 | 51 | 37 |
| Fair value adjustments | (9) | 8 |
| Additions | 1 | 7 |
| Disposals | (5) | (1) |
| Balance as at December 31 | 38 | 51 |
Equity investments are minority participations in early-stage to expansion-stage companies that are considered strategically relevant to Randstad. The typical investment amounts range between \u20ac\u00a02 million and \u20ac\u00a05 million. The Group has no significant influence over these investments. These investments are qualified as 'fair-value through other comprehensive income' investments, and if no reliable fair-value measurements are available, valued at cost. All investments are in principle considered non-current.
The fair value of the investments have decreased by \u20ac\u00a09 million (2021: increased by \u20ac\u00a08 million). This was based on share transactions and other market information. During the year 2022, the Group divested some of its minority participations. These divestments had a carrying amount of \u20ac\u00a05 million (2021: \u20ac\u00a01 million).
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Defined benefit plan, corporate employees in Belgium | 39 | 68 |
| Defined benefit plan, corporate employees in France | 28 | 38 |
| Defined benefit plan, corporate employees in Germany | 5 | 10 |
| Defined benefit plan, staffing and corporate employees in Switzerland | 1 | 3 |
| Defined benefit plans, corporate employees in other countries | 3 | 4 |
| Total | 76 | 123 |
The Group has various pension schemes, in accordance with local conditions and practices in the countries in which it operates. In some countries, such pension schemes are operated through a company pension fund. Most of the pension schemes are defined contribution plans, which are funded through payments to independent entities. For these schemes, the Group's obligation is limited to the payment of these annual contributions. The contributions constitute net periodic costs for the year in which they are due and are included in personnel expenses and/or cost of services.
A few pension schemes are defined benefit plans. The liability recognized in the balance sheet is the present value of the defined benefit obligation less the fair value of plan assets. Independent actuaries calculate the defined benefit obligations based on factors such as age, years of service, and compensation (based upon the projected unit credit method).
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds denominated in the currency in which the benefits will be paid, and with terms to maturity that approximate the term when the related pension liability is due.
Current service costs are recognized in personnel expenses and/or cost of services and reflect the increase in the defined benefit obligation resulting from employee service in the current year.
Past service costs are recognized immediately in personnel expenses and/or cost of services.
Withdrawals/benefits paid also include the net transfer of participants' vested benefits.
Remeasurement gains and losses of the net defined benefit obligation arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income.
The net interest expense on the net defined benefit liability is determined by applying the discount rate used to measure the defined benefit obligation at the beginning of the year to the then net defined benefit liability. Net interest expense is recognized in net finance costs.
In the Netherlands and Belgium, two pension schemes are operated through separate and independent company pension funds.
For the Netherlands, this is 'Stichting Pensioenfonds Flexsecurity' for staffing employees employed by Dutch Group companies; the fund operates a defined contribution pension plan. In 2022, the transactions with 'Stichting Pensioenfonds Flexsecurity' amounted to \u20ac\u00a062 million (2021: \u20ac\u00a053 million); the balance as at December 31, 2022 amounted to \u20ac\u00a05 million (December 31, 2021: \u20ac\u00a04 million) payable.
For Belgium, the pension fund is 'Pensioenfonds Belgische werkmaatschappijen van Randstad OFP' for corporate employees employed by Belgian Group companies. The plan is organized through a fund that is legally separated from the company. The Board of this pension fund is required to act in the interest of the fund and of all relevant stakeholders in the scheme; the investment policy with regard to the assets of the fund is also the responsibility of the Board. The fund operates a defined benefit pension plan, which is a final-salary pension plan, providing benefits to (former) employees in the form of a guaranteed level of pension payable for life upon retirement. The pension entitlement of corporate employees is based on the average pensionable salary in the last three years before retirement. The employer's contribution is capped at a maximum of 5% of salaries. In 2021, transactions with this fund amounted to \u20ac\u00a05 million (2021: \u20ac\u00a05 million). The balance as at December 31, 2022 amounted to \u20ac\u00a01 million and zero in 2021.
In the Netherlands, a second pension scheme is in origin a defined benefit pension plan. This pension plan is a closed plan (operated through an insurance company) and the net asset/liability is basically the difference between the expected future surplus interest sharing that will flow to the Group and a yearly guarantee payment based on the pension obligation towards employees. The net pension asset is fully recoverable and has been presented under (current) assets in the statement of financial position.
In France, the defined benefit pension plan is a final-salary pension plan, which provides benefits to (former) employees in the form of a guaranteed level of pension payable as a lump sum upon retirement. The plan is in addition to state plans. The company is legally required to pay lump sums to employees upon retirement. The amounts are based on the number of years of service in the company and on the base salary according to the collective bargaining agreement in force. The scheme covers all corporate employees employed by French Group companies.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Present value of funded obligations | 280 | 340 |
| Present value of unfunded obligations | - | - |
| Total present value of obligations | 280 | 340 |
| Fair value of plan assets | (204) | (217) |
| Liability in the balance sheet | 76 | 123 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Cash | 3% | 3% |
| Bonds | 26% | 26% |
| Equity instruments | 42% | 45% |
| Real estate | 10% | 6% |
| Other | 19% | 20% |
| \u00a0 | 100% | 100% |
as a % of fair value of total plan assets
The actual return on plan assets was \u20ac\u00a063 million negative (2021: \u20ac\u00a09 million positive), as a result of negative developments in the value of equity investments and higher interest rates having a negative impact on bonds valuations.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Discount rate | 1.2% - 4.1% | 0.3% - 1.1% |
| Expected salary increases | 0% - 3.7% | 0.0% - 3.45% |
| Expected pension increases | 0% - 1.8% | 0.0% - 2% |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Male | 20.7 - 22.5 | 20.5-22.5 |
| Female | 23.6 - 26.9 | 23.6-26.9 |
in years
The assumptions regarding future mortality are based on published statistics and mortality tables in each territory.
The Group expects the 2022 contributions to be paid for defined benefit plans to be approximately \u20ac\u00a019 million, excluding the impact of acquisitions and disposals.
The most significant risks related to defined benefit plans are related to:
With respect to the provision for pensions, a change in the interest rate of 1%-point, with all other variables held constant, would result in a deviation in the range of \u20ac\u00a05 to \u20ac\u00a06 million (2021: \u20ac\u00a09 to \u20ac\u00a011 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-427": { "value": "In 2022, the Group disposed of subsidiaries/activities in Japan.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Property, plant and equipment, right-of-use assets and software | - | 1 |
| Goodwill and acquisition-related intangible assets | - | - |
| Total non-current assets | - | 1 |
| Working capital | - | 7 |
| Lease liabilities | - | 1 |
| Provisions | - | 5 |
| Assets and liabilities in disposed subsidiaries/activities | - | 2 |
| Translation differences reclassified to income statement | - | - |
| Net assets disposed after reclassification of translation differences | - | 2 |
| Loss on disposal | (1) | (1) |
| Consideration (paid) / received | (1) | 1 |
| Net cash of disposed subsidiaries/activities, included in working capital | - | (6) |
| Disposal of subsidiaries/activities, statement of cash flows | (1) | (5) |
In 2021, the Group disposed of subsidiaries/activities in Germany and Switzerland.
Upon disposal of a subsidiary, the gain or loss upon disposal is included in other general and administrative expenses. See note 5 for further information.
Subsidiaries are companies controlled by Randstad N.V. Control exists when Randstad is exposed to or has rights to variable returns from its involvement with subsidiary companies and has the ability to influence those returns through its power over the subsidiary, generally accompanying a shareholding of more than 50% of the voting rights. Subsidiaries are consolidated from the date that such control commences until the date that it ceases.
Intragroup balances and intragroup transactions are eliminated, as well as any unrealized gains from these transactions. Unrealized losses from intragroup transactions are also eliminated, unless there is evidence of impairment of the assets transferred. Intragroup transactions take place on an arm's length basis.
Upon translation of foreign activities, the assets and liabilities of operations in currencies other than the euro, including goodwill and fair-value adjustments arising on consolidation, are translated into euros at the foreign exchange rates at the balance sheet date. The income statements of these operations in currencies other than the euro are translated into euros at average exchange rates.
Upon the acquisition of a subsidiary that has a currency other than the euro, balance sheet items are translated into euros at the foreign exchange rates at the acquisition date.
The net investment in subsidiaries that have a currency other than the euro includes the participation in the net assets of these subsidiaries, and, if applicable, loans to these subsidiaries, settlement of which is neither planned nor expected to occur in the foreseeable future.
Translation differences that occur upon consolidation, relating to the translation of the net investment in subsidiaries that have a currency other than the euro, are recognized in other comprehensive income and presented in the (foreign currency) translation reserve, a separate component within equity, as are translation differences of financial liabilities designated as hedges of such investments (net investment hedge), to the extent that the hedge is effective. The gain or loss relating to the ineffective part is recognized immediately in net finance costs.
If the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation differences is allocated to the non-controlling interests.
Whenever a foreign operation is disposed of, these translation differences are released or charged to the statement of comprehensive income as part of the gain or loss on disposal.
north america
france
the netherlands
germany
belgium & luxembourg
italy
| iberia
other european countries
rest of the world
other subsidiaries
|
A list of all subsidiaries has been filed at the Chamber of Commerce in Amsterdam ('Kamer van Koophandel', Amsterdam; Chamber of Commerce number 33216172; Legal Entity Identification number 7245009EAAUUQJ0U4T57). Randstad N.V. has, directly or indirectly, a 100% interest in all subsidiaries, unless stated otherwise.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-428": { "value": " 12 earnings per ordinary share \u00a02022 2021 \u00a0\u00a0\u00a0Net income 929 768 Net income attributable to holders of ordinary shares 921 760 \u00a0\u00a0\u00a0Numbers of ordinary shares (in millions) \u00a0\u00a0Weighted average number of ordinary shares outstanding 182.8 183.8 Dilutive effect of share-based compensation arrangements 0.7 1.4 Weighted average number of diluted ordinary shares outstanding 183.5 185.2 Earnings per ordinary share (in \u20ac) \u00a0\u00a0Basic earnings per ordinary share 5.04 4.13 Diluted earnings per ordinary share 5.02 4.10 Basic earnings per ordinary share are calculated by dividing net income attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. The issued number of ordinary shares is adjusted for ordinary shares purchased by Randstad N.V., which are held as treasury shares. Diluted earnings per ordinary share are calculated by adjusting the weighted average number of ordinary shares outstanding, assuming conversion of all dilutive potential ordinary shares. The dilutive potential ordinary shares arise from various share-based compensation arrangements. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-530": { "value": " 12 earnings per ordinary share \u00a02022 2021 \u00a0\u00a0\u00a0Net income 929 768 Net income attributable to holders of ordinary shares 921 760 \u00a0\u00a0\u00a0Numbers of ordinary shares (in millions) \u00a0\u00a0Weighted average number of ordinary shares outstanding 182.8 183.8 Dilutive effect of share-based compensation arrangements 0.7 1.4 Weighted average number of diluted ordinary shares outstanding 183.5 185.2 Earnings per ordinary share (in \u20ac) \u00a0\u00a0Basic earnings per ordinary share 5.04 4.13 Diluted earnings per ordinary share 5.02 4.10 Basic earnings per ordinary share are calculated by dividing net income attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. The issued number of ordinary shares is adjusted for ordinary shares purchased by Randstad N.V., which are held as treasury shares. Diluted earnings per ordinary share are calculated by adjusting the weighted average number of ordinary shares outstanding, assuming conversion of all dilutive potential ordinary shares. The dilutive potential ordinary shares arise from various share-based compensation arrangements. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-430": { "value": "13.1 cost of services Cost of services comprises expenses directly attributable to revenue. These costs mainly include expenses related to people placed by Randstad, such as wages, salaries, and social charges. cost of services \u00a02022 2021 \u00a0\u00a0\u00a0Wages and salaries 17,599 15,923 Social security charges 3,205 2,931 Pension charges - defined contribution plans 190 156 Pension charges - defined benefit plans 9 10 Other post-employment benefit plans charges 12 20 Other long-term employee benefits 3 3 Wages, salaries, social security and pension charges 21,018 19,043 Depreciation of property, plant and equipment 2 1 Depreciation of right-of-use assets 19 20 Other cost of services 778 675 Total cost of services 21,817 19,739 Other costs of services includes travel related costs of \u20ac\u00a0314 million (2021: \u20ac\u00a0276 million) and training related costs of \u20ac\u00a0147 million (2021: \u20ac\u00a0135 million). ", "dimensions": { "concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-431": { "value": "13.1 cost of services Cost of services comprises expenses directly attributable to revenue. These costs mainly include expenses related to people placed by Randstad, such as wages, salaries, and social charges. cost of services \u00a02022 2021 \u00a0\u00a0\u00a0Wages and salaries 17,599 15,923 Social security charges 3,205 2,931 Pension charges - defined contribution plans 190 156 Pension charges - defined benefit plans 9 10 Other post-employment benefit plans charges 12 20 Other long-term employee benefits 3 3 Wages, salaries, social security and pension charges 21,018 19,043 Depreciation of property, plant and equipment 2 1 Depreciation of right-of-use assets 19 20 Other cost of services 778 675 Total cost of services 21,817 19,739 Other costs of services includes travel related costs of \u20ac\u00a0314 million (2021: \u20ac\u00a0276 million) and training related costs of \u20ac\u00a0147 million (2021: \u20ac\u00a0135 million). 13.2 operating expenses Operating expenses are classified based on the functional model and are recognized in the year to which they relate. In 2021, the operating expenses include other income of \u20ac\u00a035 million relating to a gain on the sale of an associate see note 22. 13.2.1 selling expenses Selling expenses comprise personnel and accommodation expenses in relation to operational activities at the outlets, advertising and marketing, and other selling expenses. Selling expenses include an amount of \u20ac\u00a07 million (2021: \u20ac\u00a00 million) related to impairment losses on trade receivables, as well as debt collection costs. 13.2.2 general and administrative expenses General and administrative expenses comprise personnel and accommodation expenses of head offices, IT expenses, other general and administrative expenses, as well as the amortization and impairment of acquisition-related intangible assets and goodwill. Other general and administrative expenses include: foreign exchange gain of \u20ac\u00a01 million (2021: loss of \u20ac\u00a01 million); a loss on the sale of property, plant and equipment of \u20ac\u00a01 million (2021: \u20ac\u00a01 million); acquisition-related expenses for acquired companies/activities of \u20ac\u00a03 million (2021: \u20ac\u00a02 million); an impairment of \u20ac\u00a015 million on software (2021: \u20ac\u00a026 million). 13.2.3 total operating expenses by nature total operating expenses by nature \u00a02022 2021 \u00a0\u00a0\u00a0Wages and salaries 2,689 2,186 Social security charges 449 388 Pension charges - defined contribution plans 51 43 Pension charges - defined benefit plans 13 9 Other post-employment benefit plans charges 1 1 Other long-term employee benefits 13 9 Share-based compensations 49 44 Wages, salaries, social security and pension charges 3,265 2,680 Other personnel expenses 200 155 Personnel expenses 3,465 2,835 Depreciation and impairment of property, plant and equipment 54 52 Amortization and impairment of software 65 81 Depreciation and impairment of right-of-use assets 163 172 Advertising and marketing 225 183 Accommodation 65 59 Other 550 463 Other income - (35) Operating expenses 4,587 3,810 Amortization and impairment of acquisition-related intangible assets and goodwill 27 53 Total operating expenses 4,614 3,863 Included in wages and salaries are restructuring related expenses for \u20ac\u00a045 million (2021: \u20ac\u00a020 million). Included in Other are IT-related costs of \u20ac\u00a0353 million (2021: \u20ac\u00a0294 million). Other income of last year relates to the gain on disposal of associates. See note 22. ", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-531": { "value": "13.1 cost of services Cost of services comprises expenses directly attributable to revenue. These costs mainly include expenses related to people placed by Randstad, such as wages, salaries, and social charges. cost of services \u00a02022 2021 \u00a0\u00a0\u00a0Wages and salaries 17,599 15,923 Social security charges 3,205 2,931 Pension charges - defined contribution plans 190 156 Pension charges - defined benefit plans 9 10 Other post-employment benefit plans charges 12 20 Other long-term employee benefits 3 3 Wages, salaries, social security and pension charges 21,018 19,043 Depreciation of property, plant and equipment 2 1 Depreciation of right-of-use assets 19 20 Other cost of services 778 675 Total cost of services 21,817 19,739 Other costs of services includes travel related costs of \u20ac\u00a0314 million (2021: \u20ac\u00a0276 million) and training related costs of \u20ac\u00a0147 million (2021: \u20ac\u00a0135 million). 13.2 operating expenses Operating expenses are classified based on the functional model and are recognized in the year to which they relate. In 2021, the operating expenses include other income of \u20ac\u00a035 million relating to a gain on the sale of an associate see note 22. 13.2.1 selling expenses Selling expenses comprise personnel and accommodation expenses in relation to operational activities at the outlets, advertising and marketing, and other selling expenses. Selling expenses include an amount of \u20ac\u00a07 million (2021: \u20ac\u00a00 million) related to impairment losses on trade receivables, as well as debt collection costs. 13.2.2 general and administrative expenses General and administrative expenses comprise personnel and accommodation expenses of head offices, IT expenses, other general and administrative expenses, as well as the amortization and impairment of acquisition-related intangible assets and goodwill. Other general and administrative expenses include: foreign exchange gain of \u20ac\u00a01 million (2021: loss of \u20ac\u00a01 million); a loss on the sale of property, plant and equipment of \u20ac\u00a01 million (2021: \u20ac\u00a01 million); acquisition-related expenses for acquired companies/activities of \u20ac\u00a03 million (2021: \u20ac\u00a02 million); an impairment of \u20ac\u00a015 million on software (2021: \u20ac\u00a026 million). 13.2.3 total operating expenses by nature total operating expenses by nature \u00a02022 2021 \u00a0\u00a0\u00a0Wages and salaries 2,689 2,186 Social security charges 449 388 Pension charges - defined contribution plans 51 43 Pension charges - defined benefit plans 13 9 Other post-employment benefit plans charges 1 1 Other long-term employee benefits 13 9 Share-based compensations 49 44 Wages, salaries, social security and pension charges 3,265 2,680 Other personnel expenses 200 155 Personnel expenses 3,465 2,835 Depreciation and impairment of property, plant and equipment 54 52 Amortization and impairment of software 65 81 Depreciation and impairment of right-of-use assets 163 172 Advertising and marketing 225 183 Accommodation 65 59 Other 550 463 Other income - (35) Operating expenses 4,587 3,810 Amortization and impairment of acquisition-related intangible assets and goodwill 27 53 Total operating expenses 4,614 3,863 Included in wages and salaries are restructuring related expenses for \u20ac\u00a045 million (2021: \u20ac\u00a020 million). Included in Other are IT-related costs of \u20ac\u00a0353 million (2021: \u20ac\u00a0294 million). Other income of last year relates to the gain on disposal of associates. See note 22. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-433": { "value": " 13.2 operating expenses Operating expenses are classified based on the functional model and are recognized in the year to which they relate. In 2021, the operating expenses include other income of \u20ac\u00a035 million relating to a gain on the sale of an associate see note 22. 13.2.1 selling expenses Selling expenses comprise personnel and accommodation expenses in relation to operational activities at the outlets, advertising and marketing, and other selling expenses. Selling expenses include an amount of \u20ac\u00a07 million (2021: \u20ac\u00a00 million) related to impairment losses on trade receivables, as well as debt collection costs. 13.2.2 general and administrative expenses General and administrative expenses comprise personnel and accommodation expenses of head offices, IT expenses, other general and administrative expenses, as well as the amortization and impairment of acquisition-related intangible assets and goodwill. Other general and administrative expenses include: foreign exchange gain of \u20ac\u00a01 million (2021: loss of \u20ac\u00a01 million); a loss on the sale of property, plant and equipment of \u20ac\u00a01 million (2021: \u20ac\u00a01 million); acquisition-related expenses for acquired companies/activities of \u20ac\u00a03 million (2021: \u20ac\u00a02 million); an impairment of \u20ac\u00a015 million on software (2021: \u20ac\u00a026 million). 13.2.3 total operating expenses by nature total operating expenses by nature \u00a02022 2021 \u00a0\u00a0\u00a0Wages and salaries 2,689 2,186 Social security charges 449 388 Pension charges - defined contribution plans 51 43 Pension charges - defined benefit plans 13 9 Other post-employment benefit plans charges 1 1 Other long-term employee benefits 13 9 Share-based compensations 49 44 Wages, salaries, social security and pension charges 3,265 2,680 Other personnel expenses 200 155 Personnel expenses 3,465 2,835 Depreciation and impairment of property, plant and equipment 54 52 Amortization and impairment of software 65 81 Depreciation and impairment of right-of-use assets 163 172 Advertising and marketing 225 183 Accommodation 65 59 Other 550 463 Other income - (35) Operating expenses 4,587 3,810 Amortization and impairment of acquisition-related intangible assets and goodwill 27 53 Total operating expenses 4,614 3,863 Included in wages and salaries are restructuring related expenses for \u20ac\u00a045 million (2021: \u20ac\u00a020 million). Included in Other are IT-related costs of \u20ac\u00a0353 million (2021: \u20ac\u00a0294 million). Other income of last year relates to the gain on disposal of associates. See note 22. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-434": { "value": " 13.2 operating expenses Operating expenses are classified based on the functional model and are recognized in the year to which they relate. In 2021, the operating expenses include other income of \u20ac\u00a035 million relating to a gain on the sale of an associate see note 22. 13.2.1 selling expenses Selling expenses comprise personnel and accommodation expenses in relation to operational activities at the outlets, advertising and marketing, and other selling expenses. Selling expenses include an amount of \u20ac\u00a07 million (2021: \u20ac\u00a00 million) related to impairment losses on trade receivables, as well as debt collection costs. 13.2.2 general and administrative expenses General and administrative expenses comprise personnel and accommodation expenses of head offices, IT expenses, other general and administrative expenses, as well as the amortization and impairment of acquisition-related intangible assets and goodwill. Other general and administrative expenses include: foreign exchange gain of \u20ac\u00a01 million (2021: loss of \u20ac\u00a01 million); a loss on the sale of property, plant and equipment of \u20ac\u00a01 million (2021: \u20ac\u00a01 million); acquisition-related expenses for acquired companies/activities of \u20ac\u00a03 million (2021: \u20ac\u00a02 million); an impairment of \u20ac\u00a015 million on software (2021: \u20ac\u00a026 million). 13.2.3 total operating expenses by nature total operating expenses by nature \u00a02022 2021 \u00a0\u00a0\u00a0Wages and salaries 2,689 2,186 Social security charges 449 388 Pension charges - defined contribution plans 51 43 Pension charges - defined benefit plans 13 9 Other post-employment benefit plans charges 1 1 Other long-term employee benefits 13 9 Share-based compensations 49 44 Wages, salaries, social security and pension charges 3,265 2,680 Other personnel expenses 200 155 Personnel expenses 3,465 2,835 Depreciation and impairment of property, plant and equipment 54 52 Amortization and impairment of software 65 81 Depreciation and impairment of right-of-use assets 163 172 Advertising and marketing 225 183 Accommodation 65 59 Other 550 463 Other income - (35) Operating expenses 4,587 3,810 Amortization and impairment of acquisition-related intangible assets and goodwill 27 53 Total operating expenses 4,614 3,863 Included in wages and salaries are restructuring related expenses for \u20ac\u00a045 million (2021: \u20ac\u00a020 million). Included in Other are IT-related costs of \u20ac\u00a0353 million (2021: \u20ac\u00a0294 million). Other income of last year relates to the gain on disposal of associates. See note 22. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-435": { "value": " 13.2 operating expenses Operating expenses are classified based on the functional model and are recognized in the year to which they relate. In 2021, the operating expenses include other income of \u20ac\u00a035 million relating to a gain on the sale of an associate see note 22. 13.2.1 selling expenses Selling expenses comprise personnel and accommodation expenses in relation to operational activities at the outlets, advertising and marketing, and other selling expenses. Selling expenses include an amount of \u20ac\u00a07 million (2021: \u20ac\u00a00 million) related to impairment losses on trade receivables, as well as debt collection costs. 13.2.2 general and administrative expenses General and administrative expenses comprise personnel and accommodation expenses of head offices, IT expenses, other general and administrative expenses, as well as the amortization and impairment of acquisition-related intangible assets and goodwill. Other general and administrative expenses include: foreign exchange gain of \u20ac\u00a01 million (2021: loss of \u20ac\u00a01 million); a loss on the sale of property, plant and equipment of \u20ac\u00a01 million (2021: \u20ac\u00a01 million); acquisition-related expenses for acquired companies/activities of \u20ac\u00a03 million (2021: \u20ac\u00a02 million); an impairment of \u20ac\u00a015 million on software (2021: \u20ac\u00a026 million). 13.2.3 total operating expenses by nature total operating expenses by nature \u00a02022 2021 \u00a0\u00a0\u00a0Wages and salaries 2,689 2,186 Social security charges 449 388 Pension charges - defined contribution plans 51 43 Pension charges - defined benefit plans 13 9 Other post-employment benefit plans charges 1 1 Other long-term employee benefits 13 9 Share-based compensations 49 44 Wages, salaries, social security and pension charges 3,265 2,680 Other personnel expenses 200 155 Personnel expenses 3,465 2,835 Depreciation and impairment of property, plant and equipment 54 52 Amortization and impairment of software 65 81 Depreciation and impairment of right-of-use assets 163 172 Advertising and marketing 225 183 Accommodation 65 59 Other 550 463 Other income - (35) Operating expenses 4,587 3,810 Amortization and impairment of acquisition-related intangible assets and goodwill 27 53 Total operating expenses 4,614 3,863 Included in wages and salaries are restructuring related expenses for \u20ac\u00a045 million (2021: \u20ac\u00a020 million). Included in Other are IT-related costs of \u20ac\u00a0353 million (2021: \u20ac\u00a0294 million). Other income of last year relates to the gain on disposal of associates. See note 22. ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-436": { "value": " 13.2.2 general and administrative expenses General and administrative expenses comprise personnel and accommodation expenses of head offices, IT expenses, other general and administrative expenses, as well as the amortization and impairment of acquisition-related intangible assets and goodwill. Other general and administrative expenses include: foreign exchange gain of \u20ac\u00a01 million (2021: loss of \u20ac\u00a01 million); a loss on the sale of property, plant and equipment of \u20ac\u00a01 million (2021: \u20ac\u00a01 million); acquisition-related expenses for acquired companies/activities of \u20ac\u00a03 million (2021: \u20ac\u00a02 million); an impairment of \u20ac\u00a015 million on software (2021: \u20ac\u00a026 million). ", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-437": { "value": " 13.2.3 total operating expenses by nature total operating expenses by nature \u00a02022 2021 \u00a0\u00a0\u00a0Wages and salaries 2,689 2,186 Social security charges 449 388 Pension charges - defined contribution plans 51 43 Pension charges - defined benefit plans 13 9 Other post-employment benefit plans charges 1 1 Other long-term employee benefits 13 9 Share-based compensations 49 44 Wages, salaries, social security and pension charges 3,265 2,680 Other personnel expenses 200 155 Personnel expenses 3,465 2,835 Depreciation and impairment of property, plant and equipment 54 52 Amortization and impairment of software 65 81 Depreciation and impairment of right-of-use assets 163 172 Advertising and marketing 225 183 Accommodation 65 59 Other 550 463 Other income - (35) Operating expenses 4,587 3,810 Amortization and impairment of acquisition-related intangible assets and goodwill 27 53 Total operating expenses 4,614 3,863 Included in wages and salaries are restructuring related expenses for \u20ac\u00a045 million (2021: \u20ac\u00a020 million). Included in Other are IT-related costs of \u20ac\u00a0353 million (2021: \u20ac\u00a0294 million). Other income of last year relates to the gain on disposal of associates. See note 22. ", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-438": { "value": " 13.3 depreciation, amortization and impairment of property, plant, equipment, software and right-of-use assets \u00a02022 2021 \u00a0\u00a0\u00a0Depreciation of buildings 1 1 Depreciation of computer hardware 21 20 Depreciation of leasehold improvements and furniture and fixtures 34 32 Impairment of leasehold improvements - - Depreciation and impairment of property, plant and equipment 56 53 Amortization of software 50 55 Impairment of software 15 26 Amortization and impairment of software 65 81 \u00a0\u00a0\u00a0Depreciation and impairment of property, plant, equipment and software 121 134 Depreciation of right-of-use buildings 126 133 Depreciation of right-of-use cars 47 45 Depreciation of right-of-use IT and other equipment 3 3 Impairment of right-of-use buildings 6 11 Depreciation and impairment of right-of-use assets 182 192 \u00a0\u00a0\u00a0Depreciation and impairment of property, plant, equipment, software and right-of-use assets 303 326 depreciation and impairment of property, plant, equipment, and software \u00a02022 2021 \u00a0\u00a0\u00a0Included in: \u00a0\u00a0Cost of services 2 1 Selling expenses 19 20 General and administrative expenses 100 113 \u00a0121 134 depreciation and impairment of right-of-use assets \u00a02022 2021 \u00a0\u00a0\u00a0Included in: \u00a0\u00a0Cost of services 19 20 Selling expenses 134 136 General and administrative expenses 29 36 \u00a0182 192 depreciation and impairment of property, plant, equipment, software and right-of-use assets \u00a02022 2021 \u00a0\u00a0\u00a0Included in: \u00a0\u00a0Cost of services 21 21 Selling expenses 153 156 General and administrative expenses 129 149 \u00a0303 326 13.4 amortization and impairment of acquisition-related intangible assets and goodwill amortization and impairment of acquisition-related intangible assets and goodwill \u00a02022 2021 \u00a0\u00a0\u00a0Amortization of acquisition-related intangible assets 27 51 Impairment of goodwill and acquisition-related intangible assets - 2 \u00a027 53 For impairment of goodwill, see note 5. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-440": { "value": " 13.5 grants and government support Grants are recognized when there is reasonable assurance that they will be received and that the Group will comply with the conditions attached to them. Grants that compensate for expenses incurred are credited to operating expenses and/or cost of services on a systematic basis in the same period in which the expenses are incurred. Grants included in operating profit amount to \u20ac\u00a042 million (2021: \u20ac\u00a038 million), of which \u20ac\u00a037 million (2021: \u20ac\u00a034 million) is reported under cost of services. These grants mainly relate to the compensation (in whole or in part) of talent training costs and costs related to employing selected talent categories. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-533": { "value": " 13.5 grants and government support Grants are recognized when there is reasonable assurance that they will be received and that the Group will comply with the conditions attached to them. Grants that compensate for expenses incurred are credited to operating expenses and/or cost of services on a systematic basis in the same period in which the expenses are incurred. Grants included in operating profit amount to \u20ac\u00a042 million (2021: \u20ac\u00a038 million), of which \u20ac\u00a037 million (2021: \u20ac\u00a034 million) is reported under cost of services. These grants mainly relate to the compensation (in whole or in part) of talent training costs and costs related to employing selected talent categories. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-441": { "value": " 14 total wages and salaries, social security, pension charges and other Wages, salaries, social security charges, pension charges and other are included in cost of services when they relate to candidates placed and in personnel expenses when they relate to corporate employees. total amounts of wages and salaries, social security, pension charges and other \u00a02022 2021 \u00a0\u00a0\u00a0Wages and salaries 20,288 18,109 Social security charges 3,654 3,319 Pension charges - defined contribution plans 241 199 Pension charges - defined benefit plans 22 19 Other post-employment benefit plans charges 13 21 Other long-term employee benefits 16 12 Share-based compensations 49 44 \u00a024,283 21,723 24 employee benefit obligations Employee benefit obligations comprise obligations from defined benefit pension plans, other post-employment benefits, and other long-term employee benefits. \u00a0defined benefit pension plans other post-employment benefits other long-term employee benefits total obligation plan assets net \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 470 (352) 118 24 65 207 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries - - - - - - Current service costs, total 33 - 33 13 16 62 Past service costs, total (1) - (1) - - (1) Contributions, employees - (10) (10) - - (10) Contributions, employers - (19) (19) - - (19) Withdrawals/benefits paid (35) 33 (2) (14) (8) (24) Total amount in statement of cash flows (3) 4 1 (1) 8 8 Remeasurement results (112) 65 (47) - - (47) Interest due to passage of time, net 4 (3) 1 - - 1 Translation differences 5 (5) \u00a0(1) - (1) Balance as at December 31, 2022 364 (291) 73 22 73 168 Reclassification of net pension plan assets (84) 87 3 - - 3 Balance as at December 31, 2022, after reclass 280 (204) 76 22 73 171 Non-current 280 (204) 76 13 56 145 Current \u00a0\u00a0\u00a09 17 26 Balance as at December 31, 2022 280 (204) 76 22 73 171 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Non-current 445 (334) 111 13 44 168 Current - - - 9 11 20 \u00a0445 (334) 111 22 55 188 Movements in 2021 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries - - - - 6 6 Current service costs, total 29 - 29 21 12 62 Contributions, employees - (10) (10) - - (10) Contributions, employers - (15) (15) - - (15) Withdrawals/benefits paid (21) 20 (1) (20) (9) (30) Total amount in statement of cash flows 8 (5) 3 1 3 7 Remeasurement results 10 (7) 3 - - 3 Interest due to passage of time, net 2 (2) - - - - Translation differences 5 (4) 1 (1) (1) 3 Balance as at December 31, 2021 470 (352) 118 24 65 207 Reclassification of net pension plan assets (130) 135 5 - - 5 Balance as at December 31, 2021 after reclass 340 (217) 123 24 65 212 Non-current 340 (217) 123 14 49 186 Current - - - 10 16 26 Balance as at December 31, 2021 340 (217) 123 24 65 212 24.1 employee benefit obligations employee benefit obligations charged to comprehensive income \u00a02022 2021 \u00a0\u00a0\u00a0Current service cost, total 62 62 Contributions, employees (10) (10) Current service cost net, charged to operating profit 52 52 Interest expense due to passage of time 4 2 Interest income due to passage of time (3) (2) Charged to net finance costs 1 - Net remeasurement gains charged to other comprehensive income (47) 3 Charged to comprehensive income 6 55 The discount rates used to calculate employee benefit obligations are in the following ranges: discount rates (employee benefit obligations) \u00a02022 2021 \u00a0\u00a0\u00a0Defined benefit pension plans 1.2% - 4.1% 0.3% - 1.1% Other post-employment benefits 3.3% - 6.9% 0.5% - 5.2% Other long-term employee benefits 1.5% - 2% (0.3%) - 2% The obligations regarding other post-employment benefits and other long-term employee benefits are unfunded. 24.2 pensions defined benefit pension plan schemes \u00a02022 2021 \u00a0\u00a0\u00a0Defined benefit plan, corporate employees in Belgium 39 68 Defined benefit plan, corporate employees in France 28 38 Defined benefit plan, corporate employees in Germany 5 10 Defined benefit plan, staffing and corporate employees in Switzerland 1 3 Defined benefit plans, corporate employees in other countries 3 4 Total 76 123 The Group has various pension schemes, in accordance with local conditions and practices in the countries in which it operates. In some countries, such pension schemes are operated through a company pension fund. Most of the pension schemes are defined contribution plans, which are funded through payments to independent entities. For these schemes, the Group's obligation is limited to the payment of these annual contributions. The contributions constitute net periodic costs for the year in which they are due and are included in personnel expenses and/or cost of services. A few pension schemes are defined benefit plans. The liability recognized in the balance sheet is the present value of the defined benefit obligation less the fair value of plan assets. Independent actuaries calculate the defined benefit obligations based on factors such as age, years of service, and compensation (based upon the projected unit credit method). The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds denominated in the currency in which the benefits will be paid, and with terms to maturity that approximate the term when the related pension liability is due. Current service costs are recognized in personnel expenses and/or cost of services and reflect the increase in the defined benefit obligation resulting from employee service in the current year. Past service costs are recognized immediately in personnel expenses and/or cost of services. Withdrawals/benefits paid also include the net transfer of participants' vested benefits. Remeasurement gains and losses of the net defined benefit obligation arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income. The net interest expense on the net defined benefit liability is determined by applying the discount rate used to measure the defined benefit obligation at the beginning of the year to the then net defined benefit liability. Net interest expense is recognized in net finance costs. In the Netherlands and Belgium, two pension schemes are operated through separate and independent company pension funds. For the Netherlands, this is 'Stichting Pensioenfonds Flexsecurity' for staffing employees employed by Dutch Group companies; the fund operates a defined contribution pension plan. In 2022, the transactions with 'Stichting Pensioenfonds Flexsecurity' amounted to \u20ac\u00a062 million (2021: \u20ac\u00a053 million); the balance as at December 31, 2022 amounted to \u20ac\u00a05 million (December 31, 2021: \u20ac\u00a04 million) payable. For Belgium, the pension fund is 'Pensioenfonds Belgische werkmaatschappijen van Randstad OFP' for corporate employees employed by Belgian Group companies. The plan is organized through a fund that is legally separated from the company. The Board of this pension fund is required to act in the interest of the fund and of all relevant stakeholders in the scheme; the investment policy with regard to the assets of the fund is also the responsibility of the Board. The fund operates a defined benefit pension plan, which is a final-salary pension plan, providing benefits to (former) employees in the form of a guaranteed level of pension payable for life upon retirement. The pension entitlement of corporate employees is based on the average pensionable salary in the last three years before retirement. The employer's contribution is capped at a maximum of 5% of salaries. In 2021, transactions with this fund amounted to \u20ac\u00a05 million (2021: \u20ac\u00a05 million). The balance as at December 31, 2022 amounted to \u20ac\u00a01 million and zero in 2021. In the Netherlands, a second pension scheme is in origin a defined benefit pension plan. This pension plan is a closed plan (operated through an insurance company) and the net asset/liability is basically the difference between the expected future surplus interest sharing that will flow to the Group and a yearly guarantee payment based on the pension obligation towards employees. The net pension asset is fully recoverable and has been presented under (current) assets in the statement of financial position. In France, the defined benefit pension plan is a final-salary pension plan, which provides benefits to (former) employees in the form of a guaranteed level of pension payable as a lump sum upon retirement. The plan is in addition to state plans. The company is legally required to pay lump sums to employees upon retirement. The amounts are based on the number of years of service in the company and on the base salary according to the collective bargaining agreement in force. The scheme covers all corporate employees employed by French Group companies. breakdown of obligations for defined benefit pension plans \u00a02022 2021 \u00a0\u00a0\u00a0Present value of funded obligations 280 340 Present value of unfunded obligations - - Total present value of obligations 280 340 Fair value of plan assets (204) (217) Liability in the balance sheet 76 123 major categories of plan assets \u00a02022 2021 \u00a0\u00a0\u00a0Cash 3% 3% Bonds 26% 26% Equity instruments 42% 45% Real estate 10% 6% Other 19% 20% \u00a0100% 100% as a % of fair value of total plan assets The actual return on plan assets was \u20ac\u00a063 million negative (2021: \u20ac\u00a09 million positive), as a result of negative developments in the value of equity investments and higher interest rates having a negative impact on bonds valuations. principal actuarial assumptions used for defined benefit pension plans \u00a02022 2021 \u00a0\u00a0\u00a0Discount rate 1.2% - 4.1% 0.3% - 1.1% Expected salary increases 0% - 3.7% 0.0% - 3.45% Expected pension increases 0% - 1.8% 0.0% - 2% average life expectancy1 \u00a02022 2021 \u00a0\u00a0\u00a0Male 20.7 - 22.5 20.5-22.5 Female 23.6 - 26.9 23.6-26.9 Average life expectancy of an individual retiring at the age of 65 on the balance sheet date. in years The assumptions regarding future mortality are based on published statistics and mortality tables in each territory. The Group expects the 2022 contributions to be paid for defined benefit plans to be approximately \u20ac\u00a019 million, excluding the impact of acquisitions and disposals. risks The most significant risks related to defined benefit plans are related to: Asset volatility: if the plan assets underperform, the yield on (high-quality) corporate bonds, which is the base for setting the discount rate in calculating the plan liabilities, will create a deficit; Interest/yield volatility: a decrease will result in an increase in the net plan liabilities; Salary volatility: future (expected) salaries are being used in the calculation of the plan liabilities; higher than expected salary increases will result in higher liabilities; Life expectancy: in the calculation of the plan liabilities, mortality tables are being used, indicating the life expectancy of the participants. If life expectancy increases, the plan liabilities will also increase. sensitivity With respect to the provision for pensions, a change in the interest rate of 1%-point, with all other variables held constant, would result in a deviation in the range of \u20ac\u00a05 to \u20ac\u00a06 million (2021: \u20ac\u00a09 to \u20ac\u00a011 million). 24.3 other post-employment benefits Other post-employment benefit plans are defined benefit plans and follow the same accounting treatment as defined benefit pension plans. Independent actuaries calculate the defined benefit obligations based on factors such as age, years of service, and compensation (based upon the projected unit credit method). These plans mainly consist of state-driven plans in Italy and India, post-employment health benefits in the US, and transition fee payments related to temporary workers in the Netherlands, based on the Dutch 'Wet Arbeidsmarkt in Balans' (WAB). Remeasurements of the obligation \u2212 comprising gains and losses arising from experience adjustments and changes in actuarial assumptions \u2212 are recognized in other comprehensive income. 24.4 other long-term employee benefits In accordance with applicable legal requirements, the Group recognizes liabilities for several other long-term employee benefit plans, such as schemes related to sickness and long-term disability and long-service leave plans. These liabilities are based on calculations made by independent actuaries based on factors such as age, years of service, expected sickness duration, and compensation (based on the 'projected unit credit method'). Remeasurement gains and losses related to these plans are recognized in personnel expenses and/or cost of services in the year in which they occur. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-442": { "value": " 15 net finance costs Net finance costs comprise interest expenses and interest income, as well as items similar to interest and exchange differences on cash, cash equivalents, and borrowings. Interest expenses and income are recognized in the income statement on a time-proportion basis, using the effective interest method. Interest due to the passage of time of loans and receivables (including net investments in subleases), deferred considerations and lease liabilities, as well as interest due to passage of time in relation to the valuation of certain provisions and employee benefit obligations, are also included in net finance costs. Changes in the value of deferred considerations and differences upon settlement of these deferred considerations (see note 25), as well as dividend paid to non-controlling interests classified as other liabilities, are also reported under net finance costs. net finance costs \u00a02022 2021 \u00a0\u00a0\u00a0Finance income \u00a0\u00a0Interest and similar income 9 6 Changes in value of other liabilities1 - - Interest due to passage of time1 4 4 Interest due to passege to time for net investments in subleases1 - - Foreign exchange gains, net1 17 2 \u00a030 12 Finance expenses \u00a0\u00a0Interest and similar expenses 10 11 Interest and commitment fees on non-current borrowings 10 4 Amortization of transaction cost non-current borrowings1 1 - Result on net monetary position1 3 1 Interest due to passage of time1 3 1 Interest due to passage of time for lease liabilities1 15 11 Foreign exchange losses, net1 - - \u00a042 28 \u00a0\u00a0\u00a0Net finance costs 12 16 Items considered non-cash. net finance costs, statement of cash flows \u00a02022 2021 \u00a0\u00a0\u00a0Finance income 30 12 Deduct: non-cash items 21 6 Cash items 9 6 Change in interest receivable - - Finance income, cash 9 6 Finance expenses 42 28 Deduct: non-cash items 22 13 Cash items 20 15 Change in interest payable 4 (2) Finance expenses, cash 24 13 \u00a0\u00a0\u00a0Net finance costs paid, statement of cash flows 15 7 ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-443": { "value": " 15 net finance costs Net finance costs comprise interest expenses and interest income, as well as items similar to interest and exchange differences on cash, cash equivalents, and borrowings. Interest expenses and income are recognized in the income statement on a time-proportion basis, using the effective interest method. Interest due to the passage of time of loans and receivables (including net investments in subleases), deferred considerations and lease liabilities, as well as interest due to passage of time in relation to the valuation of certain provisions and employee benefit obligations, are also included in net finance costs. Changes in the value of deferred considerations and differences upon settlement of these deferred considerations (see note 25), as well as dividend paid to non-controlling interests classified as other liabilities, are also reported under net finance costs. net finance costs \u00a02022 2021 \u00a0\u00a0\u00a0Finance income \u00a0\u00a0Interest and similar income 9 6 Changes in value of other liabilities1 - - Interest due to passage of time1 4 4 Interest due to passege to time for net investments in subleases1 - - Foreign exchange gains, net1 17 2 \u00a030 12 Finance expenses \u00a0\u00a0Interest and similar expenses 10 11 Interest and commitment fees on non-current borrowings 10 4 Amortization of transaction cost non-current borrowings1 1 - Result on net monetary position1 3 1 Interest due to passage of time1 3 1 Interest due to passage of time for lease liabilities1 15 11 Foreign exchange losses, net1 - - \u00a042 28 \u00a0\u00a0\u00a0Net finance costs 12 16 Items considered non-cash. net finance costs, statement of cash flows \u00a02022 2021 \u00a0\u00a0\u00a0Finance income 30 12 Deduct: non-cash items 21 6 Cash items 9 6 Change in interest receivable - - Finance income, cash 9 6 Finance expenses 42 28 Deduct: non-cash items 22 13 Cash items 20 15 Change in interest payable 4 (2) Finance expenses, cash 24 13 \u00a0\u00a0\u00a0Net finance costs paid, statement of cash flows 15 7 ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-444": { "value": " 15 net finance costs Net finance costs comprise interest expenses and interest income, as well as items similar to interest and exchange differences on cash, cash equivalents, and borrowings. Interest expenses and income are recognized in the income statement on a time-proportion basis, using the effective interest method. Interest due to the passage of time of loans and receivables (including net investments in subleases), deferred considerations and lease liabilities, as well as interest due to passage of time in relation to the valuation of certain provisions and employee benefit obligations, are also included in net finance costs. Changes in the value of deferred considerations and differences upon settlement of these deferred considerations (see note 25), as well as dividend paid to non-controlling interests classified as other liabilities, are also reported under net finance costs. net finance costs \u00a02022 2021 \u00a0\u00a0\u00a0Finance income \u00a0\u00a0Interest and similar income 9 6 Changes in value of other liabilities1 - - Interest due to passage of time1 4 4 Interest due to passege to time for net investments in subleases1 - - Foreign exchange gains, net1 17 2 \u00a030 12 Finance expenses \u00a0\u00a0Interest and similar expenses 10 11 Interest and commitment fees on non-current borrowings 10 4 Amortization of transaction cost non-current borrowings1 1 - Result on net monetary position1 3 1 Interest due to passage of time1 3 1 Interest due to passage of time for lease liabilities1 15 11 Foreign exchange losses, net1 - - \u00a042 28 \u00a0\u00a0\u00a0Net finance costs 12 16 Items considered non-cash. net finance costs, statement of cash flows \u00a02022 2021 \u00a0\u00a0\u00a0Finance income 30 12 Deduct: non-cash items 21 6 Cash items 9 6 Change in interest receivable - - Finance income, cash 9 6 Finance expenses 42 28 Deduct: non-cash items 22 13 Cash items 20 15 Change in interest payable 4 (2) Finance expenses, cash 24 13 \u00a0\u00a0\u00a0Net finance costs paid, statement of cash flows 15 7 ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-445": { "value": " 15 net finance costs Net finance costs comprise interest expenses and interest income, as well as items similar to interest and exchange differences on cash, cash equivalents, and borrowings. Interest expenses and income are recognized in the income statement on a time-proportion basis, using the effective interest method. Interest due to the passage of time of loans and receivables (including net investments in subleases), deferred considerations and lease liabilities, as well as interest due to passage of time in relation to the valuation of certain provisions and employee benefit obligations, are also included in net finance costs. Changes in the value of deferred considerations and differences upon settlement of these deferred considerations (see note 25), as well as dividend paid to non-controlling interests classified as other liabilities, are also reported under net finance costs. net finance costs \u00a02022 2021 \u00a0\u00a0\u00a0Finance income \u00a0\u00a0Interest and similar income 9 6 Changes in value of other liabilities1 - - Interest due to passage of time1 4 4 Interest due to passege to time for net investments in subleases1 - - Foreign exchange gains, net1 17 2 \u00a030 12 Finance expenses \u00a0\u00a0Interest and similar expenses 10 11 Interest and commitment fees on non-current borrowings 10 4 Amortization of transaction cost non-current borrowings1 1 - Result on net monetary position1 3 1 Interest due to passage of time1 3 1 Interest due to passage of time for lease liabilities1 15 11 Foreign exchange losses, net1 - - \u00a042 28 \u00a0\u00a0\u00a0Net finance costs 12 16 Items considered non-cash. net finance costs, statement of cash flows \u00a02022 2021 \u00a0\u00a0\u00a0Finance income 30 12 Deduct: non-cash items 21 6 Cash items 9 6 Change in interest receivable - - Finance income, cash 9 6 Finance expenses 42 28 Deduct: non-cash items 22 13 Cash items 20 15 Change in interest payable 4 (2) Finance expenses, cash 24 13 \u00a0\u00a0\u00a0Net finance costs paid, statement of cash flows 15 7 ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-534": { "value": " 15 net finance costs Net finance costs comprise interest expenses and interest income, as well as items similar to interest and exchange differences on cash, cash equivalents, and borrowings. Interest expenses and income are recognized in the income statement on a time-proportion basis, using the effective interest method. Interest due to the passage of time of loans and receivables (including net investments in subleases), deferred considerations and lease liabilities, as well as interest due to passage of time in relation to the valuation of certain provisions and employee benefit obligations, are also included in net finance costs. Changes in the value of deferred considerations and differences upon settlement of these deferred considerations (see note 25), as well as dividend paid to non-controlling interests classified as other liabilities, are also reported under net finance costs. net finance costs \u00a02022 2021 \u00a0\u00a0\u00a0Finance income \u00a0\u00a0Interest and similar income 9 6 Changes in value of other liabilities1 - - Interest due to passage of time1 4 4 Interest due to passege to time for net investments in subleases1 - - Foreign exchange gains, net1 17 2 \u00a030 12 Finance expenses \u00a0\u00a0Interest and similar expenses 10 11 Interest and commitment fees on non-current borrowings 10 4 Amortization of transaction cost non-current borrowings1 1 - Result on net monetary position1 3 1 Interest due to passage of time1 3 1 Interest due to passage of time for lease liabilities1 15 11 Foreign exchange losses, net1 - - \u00a042 28 \u00a0\u00a0\u00a0Net finance costs 12 16 Items considered non-cash. net finance costs, statement of cash flows \u00a02022 2021 \u00a0\u00a0\u00a0Finance income 30 12 Deduct: non-cash items 21 6 Cash items 9 6 Change in interest receivable - - Finance income, cash 9 6 Finance expenses 42 28 Deduct: non-cash items 22 13 Cash items 20 15 Change in interest payable 4 (2) Finance expenses, cash 24 13 \u00a0\u00a0\u00a0Net finance costs paid, statement of cash flows 15 7 ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-535": { "value": "Net finance costs comprise interest expenses and interest income, as well as items similar to interest and exchange differences on cash, cash equivalents, and borrowings. Interest expenses and income are recognized in the income statement on a time-proportion basis, using the effective interest method. Interest due to the passage of time of loans and receivables (including net investments in subleases), deferred considerations and lease liabilities, as well as interest due to passage of time in relation to the valuation of certain provisions and employee benefit obligations, are also included in net finance costs. Changes in the value of deferred considerations and differences upon settlement of these deferred considerations (see note 25), as well as dividend paid to non-controlling interests classified as other liabilities, are also reported under net finance costs. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-536": { "value": "Net finance costs comprise interest expenses and interest income, as well as items similar to interest and exchange differences on cash, cash equivalents, and borrowings. Interest expenses and income are recognized in the income statement on a time-proportion basis, using the effective interest method. Interest due to the passage of time of loans and receivables (including net investments in subleases), deferred considerations and lease liabilities, as well as interest due to passage of time in relation to the valuation of certain provisions and employee benefit obligations, are also included in net finance costs. Changes in the value of deferred considerations and differences upon settlement of these deferred considerations (see note 25), as well as dividend paid to non-controlling interests classified as other liabilities, are also reported under net finance costs. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-446": { "value": "Net finance costs comprise interest expenses and interest income, as well as items similar to interest and exchange differences on cash, cash equivalents, and borrowings. Interest expenses and income are recognized in the income statement on a time-proportion basis, using the effective interest method. Interest due to the passage of time of loans and receivables (including net investments in subleases), deferred considerations and lease liabilities, as well as interest due to passage of time in relation to the valuation of certain provisions and employee benefit obligations, are also included in net finance costs. Changes in the value of deferred considerations and differences upon settlement of these deferred considerations (see note 25), as well as dividend paid to non-controlling interests classified as other liabilities, are also reported under net finance costs. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-447": { "value": "Net finance costs comprise interest expenses and interest income, as well as items similar to interest and exchange differences on cash, cash equivalents, and borrowings. Interest expenses and income are recognized in the income statement on a time-proportion basis, using the effective interest method. Interest due to the passage of time of loans and receivables (including net investments in subleases), deferred considerations and lease liabilities, as well as interest due to passage of time in relation to the valuation of certain provisions and employee benefit obligations, are also included in net finance costs. Changes in the value of deferred considerations and differences upon settlement of these deferred considerations (see note 25), as well as dividend paid to non-controlling interests classified as other liabilities, are also reported under net finance costs. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-448": { "value": " 16 net income Net income includes foreign exchange gains of \u20ac\u00a018 million (2021: \u20ac\u00a01 million). For other items included in net income, see note 13.2. ", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-450": { "value": "18 property, plant and equipment \u00a0buildings and land computer hardware leasehold improvements, furniture and fixtures total \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 14 45 92 151 \u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0Additions - 16 46 62 Disposals (3) (2) (2) (7) Depreciation/impairment (1) (21) (34) (56) Translation differences 1 2 - 3 Balance as at December 31, 2022 11 40 102 153 Cost 38 178 420 636 Accumulated depreciation and impairment 27 138 318 483 Balance as at December 31, 2022 11 40 102 153 \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0Cost 42 225 417 684 Accumulated depreciation and impairment 27 183 335 545 \u00a015 42 82 139 Movements in 2021 \u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries - - 1 1 Disposal of subsidiaries - - (1) (1) Additions - 23 42 65 Disposals - (2) (2) (4) Depreciation/impairment (1) (20) (32) (53) Translation differences - 2 2 4 Balance as at December 31, 2021 14 45 92 151 Cost 42 218 419 679 Accumulated depreciation and impairment 28 173 327 528 Balance as at December 31, 2021 14 45 92 151 Based on appraisals made by independent and expert appraisers, the estimated fair value of buildings and land is approximately \u20ac\u00a022 million higher than the carrying amount (2021: \u20ac\u00a020 million higher based on appraisal performed in 2020). The fair value represents the market value, taking into account that the property is in a rented status. accounting policy Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditures that are directly attributable to the acquisition of the assets. Land is not depreciated. Depreciation on other property, plant and equipment is charged to operating expenses and/or cost of services on a straight-line basis over their estimated useful lives, from the date they are available for use. The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate. Gains and losses arising on disposal are included in the income statement under other general and administrative expenses. estimated useful lives of property, plant and equipment \u00a0term \u00a0\u00a0Buildings 33 years Computer hardware 4 years Leasehold improvements 5 years Furniture and fixtures 4-5 years on average Leasehold improvements are depreciated over the term of the initial lease, in the event that this term is shorter than five years. Impairments, if any, are mainly caused by the discontinuation of outlets. The net book value of leasehold improvements and other furniture and fixtures is impaired to the recoverable amount, based on each individual case. The recoverable amount tends to be zero. ", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-537": { "value": "18 property, plant and equipment \u00a0buildings and land computer hardware leasehold improvements, furniture and fixtures total \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 14 45 92 151 \u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0Additions - 16 46 62 Disposals (3) (2) (2) (7) Depreciation/impairment (1) (21) (34) (56) Translation differences 1 2 - 3 Balance as at December 31, 2022 11 40 102 153 Cost 38 178 420 636 Accumulated depreciation and impairment 27 138 318 483 Balance as at December 31, 2022 11 40 102 153 \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0Cost 42 225 417 684 Accumulated depreciation and impairment 27 183 335 545 \u00a015 42 82 139 Movements in 2021 \u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries - - 1 1 Disposal of subsidiaries - - (1) (1) Additions - 23 42 65 Disposals - (2) (2) (4) Depreciation/impairment (1) (20) (32) (53) Translation differences - 2 2 4 Balance as at December 31, 2021 14 45 92 151 Cost 42 218 419 679 Accumulated depreciation and impairment 28 173 327 528 Balance as at December 31, 2021 14 45 92 151 Based on appraisals made by independent and expert appraisers, the estimated fair value of buildings and land is approximately \u20ac\u00a022 million higher than the carrying amount (2021: \u20ac\u00a020 million higher based on appraisal performed in 2020). The fair value represents the market value, taking into account that the property is in a rented status. accounting policy Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditures that are directly attributable to the acquisition of the assets. Land is not depreciated. Depreciation on other property, plant and equipment is charged to operating expenses and/or cost of services on a straight-line basis over their estimated useful lives, from the date they are available for use. The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate. Gains and losses arising on disposal are included in the income statement under other general and administrative expenses. estimated useful lives of property, plant and equipment \u00a0term \u00a0\u00a0Buildings 33 years Computer hardware 4 years Leasehold improvements 5 years Furniture and fixtures 4-5 years on average Leasehold improvements are depreciated over the term of the initial lease, in the event that this term is shorter than five years. Impairments, if any, are mainly caused by the discontinuation of outlets. The net book value of leasehold improvements and other furniture and fixtures is impaired to the recoverable amount, based on each individual case. The recoverable amount tends to be zero. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-538": { "value": "18 property, plant and equipment \u00a0buildings and land computer hardware leasehold improvements, furniture and fixtures total \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 14 45 92 151 \u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0Additions - 16 46 62 Disposals (3) (2) (2) (7) Depreciation/impairment (1) (21) (34) (56) Translation differences 1 2 - 3 Balance as at December 31, 2022 11 40 102 153 Cost 38 178 420 636 Accumulated depreciation and impairment 27 138 318 483 Balance as at December 31, 2022 11 40 102 153 \u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0Cost 42 225 417 684 Accumulated depreciation and impairment 27 183 335 545 \u00a015 42 82 139 Movements in 2021 \u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries - - 1 1 Disposal of subsidiaries - - (1) (1) Additions - 23 42 65 Disposals - (2) (2) (4) Depreciation/impairment (1) (20) (32) (53) Translation differences - 2 2 4 Balance as at December 31, 2021 14 45 92 151 Cost 42 218 419 679 Accumulated depreciation and impairment 28 173 327 528 Balance as at December 31, 2021 14 45 92 151 Based on appraisals made by independent and expert appraisers, the estimated fair value of buildings and land is approximately \u20ac\u00a022 million higher than the carrying amount (2021: \u20ac\u00a020 million higher based on appraisal performed in 2020). The fair value represents the market value, taking into account that the property is in a rented status. accounting policy Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditures that are directly attributable to the acquisition of the assets. Land is not depreciated. Depreciation on other property, plant and equipment is charged to operating expenses and/or cost of services on a straight-line basis over their estimated useful lives, from the date they are available for use. The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate. Gains and losses arising on disposal are included in the income statement under other general and administrative expenses. estimated useful lives of property, plant and equipment \u00a0term \u00a0\u00a0Buildings 33 years Computer hardware 4 years Leasehold improvements 5 years Furniture and fixtures 4-5 years on average Leasehold improvements are depreciated over the term of the initial lease, in the event that this term is shorter than five years. Impairments, if any, are mainly caused by the discontinuation of outlets. The net book value of leasehold improvements and other furniture and fixtures is impaired to the recoverable amount, based on each individual case. The recoverable amount tends to be zero. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-451": { "value": " 19 software software \u00a02022 2021 \u00a0\u00a0\u00a0Cost 505 496 Accumulated amortization and impairment 393 374 Balance as at January 1 112 122 Additions 67 67 Amortization and impairment (65) (81) Translation differences 3 4 Balance as at December 31 117 112 Cost 528 505 Accumulated amortization and impairment 411 393 Balance as at December 31 117 112 accounting policy Acquired software (licenses) and developed software are stated at cost less accumulated amortization and impairment losses. Expenditures in relation to the development of on premise, identifiable and unique software (or significant enhancements to existing on premise software) used by the Group, of which the intellectual property is owned by the Group, for which it is probable that these will generate economic benefits exceeding costs beyond one year, are recognized as developed software and amortized over their estimated useful lives. Capitalized costs include employee costs of software development and third-party expenses. Expenditures associated with small enhancements or maintenance of software are recognized as an expense when incurred. Amortization of software applications is charged to operating expenses and/or cost of services on a straight-line basis over the estimated useful lives, from the date they are available for use. In 2022, we impaired \u20ac\u00a015 million (2021: \u20ac\u00a026 million). The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate. Internally developed software and purchased software are amortized on a straight-line basis over the useful lives of 3 to 5 years or, in the case of licenses, if the license period is shorter than 3 years, over this shorter period. Impairments, if any, are mainly caused by the discontinuation of software applications. The net book value of software is impaired to its recoverable amount, which tends to be zero, based on each individual case. net additions to property, plant and equipment, and software, statement of cash flows \u00a02022 2021 \u00a0\u00a0\u00a0Additions \u00a0\u00a0Property, plant and equipment (62) (65) Software (67) (67) \u00a0(129) (132) Disposals \u00a0\u00a0Proceeds property, plant and equipment 6 3 Loss 1 1 \u00a07 4 Statement of cash flows (122) (128) 20 acquisition-related intangible assets \u00a0client relationships brand names talent profiles technology total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 28 10 3 - 41 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries 83 38 2 11 134 Amortization and impairment (15) (6) (3) (3) (27) Translation differences (4) (1) 1 - (4) Balance as at December 31, 2022 92 41 3 8 144 Cost 117 47 6 11 181 Accumulated amortization and impairment 25 6 3 3 37 Balance as at December 31, 2022 92 41 3 8 144 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Cost 269 15 1 14 299 Accumulated amortization and impairment 222 12 - 12 246 \u00a047 3 1 2 53 Movements in 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries 25 10 4 - 39 Amortization and impairment (45) (3) (1) (2) (51) Translation differences 1 - (1) - - Balance as at December 31, 2021 28 10 3 - 41 Cost 37 10 4 - 51 Accumulated amortization and impairment 9 - 1 - 10 Balance as at December 31, 2021 28 10 3 - 41 accounting policy Acquisition-related intangible assets (client relationships (including franchise agreements), brand names, talent profiles and developed technology) that are acquired by the Group are stated at cost less accumulated amortization and impairment losses. When an intangible asset is acquired in a business combination, its cost is the fair value at the date of its acquisition. This cost is determined on a basis that reflects an amount that the entity would have paid for the asset in an arm's length transaction between knowledgeable and willing parties, based on the best information available. If the fair value cannot be measured reliably, the asset is not recognized as a separate intangible asset, but is included in goodwill. Amortization of acquisition-related intangible assets is charged to total operating expenses on a straight-line basis over their estimated useful lives, from the date they are available for use. If the asset is fully amortized, the at cost value is reversed against accumulated amortization. The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate. The estimated useful life of client relationships is 4 to 8 years, of brand names 1 to 10 years, of talent profiles 2 to 3 years, and of technology 5 to 6 years. Technology relates to the software platforms acquired in acquisitions and in use as an integral part of our business activities. Impairments, if any, can be the result of either the evidence that the assumptions for determining the estimated useful lives are incorrect or the annual impairment test of the cash-generating unit (or operating segment) to which the acquisition-related intangible assets are related. ", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-539": { "value": " 20 acquisition-related intangible assets \u00a0client relationships brand names talent profiles technology total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2022 28 10 3 - 41 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Movements in 2022 \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries 83 38 2 11 134 Amortization and impairment (15) (6) (3) (3) (27) Translation differences (4) (1) 1 - (4) Balance as at December 31, 2022 92 41 3 8 144 Cost 117 47 6 11 181 Accumulated amortization and impairment 25 6 3 3 37 Balance as at December 31, 2022 92 41 3 8 144 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Balance as at January 1, 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Cost 269 15 1 14 299 Accumulated amortization and impairment 222 12 - 12 246 \u00a047 3 1 2 53 Movements in 2021 \u00a0\u00a0\u00a0\u00a0\u00a0Acquisition of subsidiaries 25 10 4 - 39 Amortization and impairment (45) (3) (1) (2) (51) Translation differences 1 - (1) - - Balance as at December 31, 2021 28 10 3 - 41 Cost 37 10 4 - 51 Accumulated amortization and impairment 9 - 1 - 10 Balance as at December 31, 2021 28 10 3 - 41 accounting policy Acquisition-related intangible assets (client relationships (including franchise agreements), brand names, talent profiles and developed technology) that are acquired by the Group are stated at cost less accumulated amortization and impairment losses. When an intangible asset is acquired in a business combination, its cost is the fair value at the date of its acquisition. This cost is determined on a basis that reflects an amount that the entity would have paid for the asset in an arm's length transaction between knowledgeable and willing parties, based on the best information available. If the fair value cannot be measured reliably, the asset is not recognized as a separate intangible asset, but is included in goodwill. Amortization of acquisition-related intangible assets is charged to total operating expenses on a straight-line basis over their estimated useful lives, from the date they are available for use. If the asset is fully amortized, the at cost value is reversed against accumulated amortization. The residual values and useful lives are reviewed as at each balance sheet date and adjusted, if appropriate. The estimated useful life of client relationships is 4 to 8 years, of brand names 1 to 10 years, of talent profiles 2 to 3 years, and of technology 5 to 6 years. Technology relates to the software platforms acquired in acquisitions and in use as an integral part of our business activities. Impairments, if any, can be the result of either the evidence that the assumptions for determining the estimated useful lives are incorrect or the annual impairment test of the cash-generating unit (or operating segment) to which the acquisition-related intangible assets are related. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-541": { "value": " 21 financial assets Investments in financial assets are divided into various categories. Classification of these investments depends on the purposes for which the investments have been acquired. Management determines the classification at the time of the purchase and re-evaluates such designation at each subsequent balance sheet date. Purchase and sale of financial assets are recognized on the settlement date, which is the date an asset is delivered to or by the Group. The cost of financial assets includes transaction costs. financial assets \u00a02022 2021 \u00a0\u00a0\u00a0Loans and receivables 143 142 Equity investments 38 51 Financial assets 181 193 21.1 loans and receivables \u00a02022 2021 \u00a0\u00a0\u00a0Loans 132 131 Net investments in subleases 11 11 Loans and receivables 143 142 Loans and receivables are initially recognized at fair value and subsequently measured at amortized cost, using the effective interest method. Loans and receivables are neither past due nor impaired. Loans have counterparties such as governmental or semi-governmental bodies and relate to our French subsidiaries. Net investments in subleases comprise receivables originating from sublease contracts in respect of right-of-use buildings in which the Group is an intermediate lessor. These sublease contracts qualify as finance lease under IFRS 16. The Group does not hold any collateral as security. Loans and receivables are hold-to-collect contractual cash flows. In determining expected credit losses (ECL) and in estimating the probability of default of these loans and receivables over a 12-month ECL period, the Group has taken into account factors such as historical default experiences, the counterparties involved, and various other (external) sources of actual and forecast economic information. The Group did not observe any major change in risk compared to the prior year. No allowance for expected credit losses has been included for these loans and receivables, as the default risk is estimated to be zero. 21.1.1 loans loans \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 138 135 Additions at fair value 5 8 Redemptions (8) (9) Interest due to passage of time 4 4 Balance as at December 31 139 138 Non-current part 132 131 Current part 7 7 Balance as at December 31 139 138 Loans represent loans that are granted by the Group's subsidiaries in France each year to French public housing agencies in relation to legal arrangements for payment of certain social security charges. These annual loans are interest-free and have a repayment term of 20 years each. These investments have an average remaining term of 11 years (2021: 11 years) and an effective interest rate of 2.6% (2021: 2.8%). The nominal value of these loans amounts to \u20ac\u00a0171 million (2021: \u20ac\u00a0168 million) and best represents the maximum exposure to credit risk. As at December 31, 2022, the fair value was approximately \u20ac\u00a07 million lower than the carrying amount (2021: \u20ac\u00a033 million higher). The difference between additions at nominal value of \u20ac\u00a010 million (2021: \u20ac\u00a09 million) and at fair value is recognized in cost of services, and amounts to \u20ac\u00a05 million (2021: \u20ac\u00a01 million). 21.1.2 net investments in subleases \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 16 17 Additions at fair value 6 3 Redemptions (6) (5) Translation differences 2 1 Balance as at December 31 18 16 Non-current part 11 11 Current part 7 5 Balance as at December 31 18 16 accounting policy The Group subleases some of its right-of-use assets. In these instances, the Group is an intermediate lessor. Most of the Group's sublease arrangements are classified as finance leases under IFRS 16. The classification of finance sublease is satisfied when substantially all the risk and rewards incidental to the underlying right-of-use assets arising from the head lease have been transferred. Sublease contracts with the classification of financial leases are recognized as a net investment in sublease, which is presented as a financial asset. The carrying amount of the underlying right-of-use asset is derecognized. The net investments in subleases are measured at the present value of the (future) lease receipts, discounted using our incremental borrowing rate at commencement date of the sublease. Sublease contracts with the classification of operating leases result in sublease income being recognized periodically during the sub-rental period. Operating subleases have no impact on the right-of-use asset measurement. The maturity of net investments in subleases is set out in the table below, showing the undiscounted lease amounts to be received after the balance sheet date. The nominal value of the net investments in subleases amounts to \u20ac\u00a019 million (2021: \u20ac\u00a017 million), which best represents the maximum exposure to credit risk. As at December 31, 2022 and 2021, the carrying amount equaled the fair value. maturity of net investments in subleases \u00a02022 2021 \u00a0\u00a0\u00a0year 1 8 5 year 2 -5 11 12 Undiscounted lease amounts to be received 19 17 Unearned finance income (1) (1) Present value of lease amounts to be received 18 16 \u00a0\u00a0\u00a0Balance as at December 31 18 16 21.1.3 impairment of financial assets The carrying amounts of loans and receivables are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount is impaired. If objective evidence exists that a financial asset or group of financial assets is impaired, the amount of the impairment loss is calculated as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows, discounted at the original effective interest rate (i.e., the effective interest rate computed at initial recognition of these financial assets). The resulting impairment loss is immediately recognized in net finance costs. An impairment loss on financial assets is reversed if, in a subsequent period, the amount of the impairment loss decreases and this decrease can be related objectively to an event occurring after the impairment loss was recognized. Such reversal is immediately recognized in net finance costs. 21.2 equity investments equity investments \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 51 37 Fair value adjustments (9) 8 Additions 1 7 Disposals (5) (1) Balance as at December 31 38 51 Equity investments are minority participations in early-stage to expansion-stage companies that are considered strategically relevant to Randstad. The typical investment amounts range between \u20ac\u00a02 million and \u20ac\u00a05 million. The Group has no significant influence over these investments. These investments are qualified as 'fair-value through other comprehensive income' investments, and if no reliable fair-value measurements are available, valued at cost. All investments are in principle considered non-current. The fair value of the investments have decreased by \u20ac\u00a09 million (2021: increased by \u20ac\u00a08 million). This was based on share transactions and other market information. During the year 2022, the Group divested some of its minority participations. These divestments had a carrying amount of \u20ac\u00a05 million (2021: \u20ac\u00a01 million). ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-542": { "value": " 21.1 loans and receivables \u00a02022 2021 \u00a0\u00a0\u00a0Loans 132 131 Net investments in subleases 11 11 Loans and receivables 143 142 Loans and receivables are initially recognized at fair value and subsequently measured at amortized cost, using the effective interest method. Loans and receivables are neither past due nor impaired. Loans have counterparties such as governmental or semi-governmental bodies and relate to our French subsidiaries. Net investments in subleases comprise receivables originating from sublease contracts in respect of right-of-use buildings in which the Group is an intermediate lessor. These sublease contracts qualify as finance lease under IFRS 16. The Group does not hold any collateral as security. Loans and receivables are hold-to-collect contractual cash flows. In determining expected credit losses (ECL) and in estimating the probability of default of these loans and receivables over a 12-month ECL period, the Group has taken into account factors such as historical default experiences, the counterparties involved, and various other (external) sources of actual and forecast economic information. The Group did not observe any major change in risk compared to the prior year. No allowance for expected credit losses has been included for these loans and receivables, as the default risk is estimated to be zero. 21.1.1 loans loans \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 138 135 Additions at fair value 5 8 Redemptions (8) (9) Interest due to passage of time 4 4 Balance as at December 31 139 138 Non-current part 132 131 Current part 7 7 Balance as at December 31 139 138 Loans represent loans that are granted by the Group's subsidiaries in France each year to French public housing agencies in relation to legal arrangements for payment of certain social security charges. These annual loans are interest-free and have a repayment term of 20 years each. These investments have an average remaining term of 11 years (2021: 11 years) and an effective interest rate of 2.6% (2021: 2.8%). The nominal value of these loans amounts to \u20ac\u00a0171 million (2021: \u20ac\u00a0168 million) and best represents the maximum exposure to credit risk. As at December 31, 2022, the fair value was approximately \u20ac\u00a07 million lower than the carrying amount (2021: \u20ac\u00a033 million higher). The difference between additions at nominal value of \u20ac\u00a010 million (2021: \u20ac\u00a09 million) and at fair value is recognized in cost of services, and amounts to \u20ac\u00a05 million (2021: \u20ac\u00a01 million). 21.1.2 net investments in subleases \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 16 17 Additions at fair value 6 3 Redemptions (6) (5) Translation differences 2 1 Balance as at December 31 18 16 Non-current part 11 11 Current part 7 5 Balance as at December 31 18 16 accounting policy The Group subleases some of its right-of-use assets. In these instances, the Group is an intermediate lessor. Most of the Group's sublease arrangements are classified as finance leases under IFRS 16. The classification of finance sublease is satisfied when substantially all the risk and rewards incidental to the underlying right-of-use assets arising from the head lease have been transferred. Sublease contracts with the classification of financial leases are recognized as a net investment in sublease, which is presented as a financial asset. The carrying amount of the underlying right-of-use asset is derecognized. The net investments in subleases are measured at the present value of the (future) lease receipts, discounted using our incremental borrowing rate at commencement date of the sublease. Sublease contracts with the classification of operating leases result in sublease income being recognized periodically during the sub-rental period. Operating subleases have no impact on the right-of-use asset measurement. The maturity of net investments in subleases is set out in the table below, showing the undiscounted lease amounts to be received after the balance sheet date. The nominal value of the net investments in subleases amounts to \u20ac\u00a019 million (2021: \u20ac\u00a017 million), which best represents the maximum exposure to credit risk. As at December 31, 2022 and 2021, the carrying amount equaled the fair value. maturity of net investments in subleases \u00a02022 2021 \u00a0\u00a0\u00a0year 1 8 5 year 2 -5 11 12 Undiscounted lease amounts to be received 19 17 Unearned finance income (1) (1) Present value of lease amounts to be received 18 16 \u00a0\u00a0\u00a0Balance as at December 31 18 16 21.1.3 impairment of financial assets The carrying amounts of loans and receivables are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount is impaired. If objective evidence exists that a financial asset or group of financial assets is impaired, the amount of the impairment loss is calculated as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows, discounted at the original effective interest rate (i.e., the effective interest rate computed at initial recognition of these financial assets). The resulting impairment loss is immediately recognized in net finance costs. An impairment loss on financial assets is reversed if, in a subsequent period, the amount of the impairment loss decreases and this decrease can be related objectively to an event occurring after the impairment loss was recognized. Such reversal is immediately recognized in net finance costs. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-543": { "value": " 21.1.3 impairment of financial assets The carrying amounts of loans and receivables are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount is impaired. If objective evidence exists that a financial asset or group of financial assets is impaired, the amount of the impairment loss is calculated as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows, discounted at the original effective interest rate (i.e., the effective interest rate computed at initial recognition of these financial assets). The resulting impairment loss is immediately recognized in net finance costs. An impairment loss on financial assets is reversed if, in a subsequent period, the amount of the impairment loss decreases and this decrease can be related objectively to an event occurring after the impairment loss was recognized. Such reversal is immediately recognized in net finance costs. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-456": { "value": " 21.2 equity investments equity investments \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 51 37 Fair value adjustments (9) 8 Additions 1 7 Disposals (5) (1) Balance as at December 31 38 51 Equity investments are minority participations in early-stage to expansion-stage companies that are considered strategically relevant to Randstad. The typical investment amounts range between \u20ac\u00a02 million and \u20ac\u00a05 million. The Group has no significant influence over these investments. These investments are qualified as 'fair-value through other comprehensive income' investments, and if no reliable fair-value measurements are available, valued at cost. All investments are in principle considered non-current. The fair value of the investments have decreased by \u20ac\u00a09 million (2021: increased by \u20ac\u00a08 million). This was based on share transactions and other market information. During the year 2022, the Group divested some of its minority participations. These divestments had a carrying amount of \u20ac\u00a05 million (2021: \u20ac\u00a01 million). ", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-457": { "value": " 21.2 equity investments equity investments \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 51 37 Fair value adjustments (9) 8 Additions 1 7 Disposals (5) (1) Balance as at December 31 38 51 Equity investments are minority participations in early-stage to expansion-stage companies that are considered strategically relevant to Randstad. The typical investment amounts range between \u20ac\u00a02 million and \u20ac\u00a05 million. The Group has no significant influence over these investments. These investments are qualified as 'fair-value through other comprehensive income' investments, and if no reliable fair-value measurements are available, valued at cost. All investments are in principle considered non-current. The fair value of the investments have decreased by \u20ac\u00a09 million (2021: increased by \u20ac\u00a08 million). This was based on share transactions and other market information. During the year 2022, the Group divested some of its minority participations. These divestments had a carrying amount of \u20ac\u00a05 million (2021: \u20ac\u00a01 million). ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-458": { "value": " 21.2 equity investments equity investments \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 51 37 Fair value adjustments (9) 8 Additions 1 7 Disposals (5) (1) Balance as at December 31 38 51 Equity investments are minority participations in early-stage to expansion-stage companies that are considered strategically relevant to Randstad. The typical investment amounts range between \u20ac\u00a02 million and \u20ac\u00a05 million. The Group has no significant influence over these investments. These investments are qualified as 'fair-value through other comprehensive income' investments, and if no reliable fair-value measurements are available, valued at cost. All investments are in principle considered non-current. The fair value of the investments have decreased by \u20ac\u00a09 million (2021: increased by \u20ac\u00a08 million). This was based on share transactions and other market information. During the year 2022, the Group divested some of its minority participations. These divestments had a carrying amount of \u20ac\u00a05 million (2021: \u20ac\u00a01 million). 22 associates As at December 31, 2022, the Group had investments in associates of \u20ac\u00a03 million (2021: \u20ac\u00a02 million). The total assets and liabilities of associates amounted to approximately \u20ac\u00a08 million and \u20ac\u00a04 million respectively as at December 31, 2022 (2021: \u20ac\u00a09 million and \u20ac\u00a04 million respectively). Total revenue in 2022 amounted to \u20ac\u00a046 million (2021: \u20ac\u00a044 million). Our share in profit was \u20ac\u00a01 million (2021: \u20ac\u00a01 million). In 2021, the Group disposed of its 16.66% shareholding in Alma Career OY, Finland at a consideration of \u20ac\u00a058 million, resulting in a gain of \u20ac\u00a035 million (the gain is reported under other income in the operating expenses), based on a net asset value of this associate at the moment of disposal to the amount of \u20ac\u00a023 million. associates \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 2 25 Share in profit 1 1 Disposals - (23) Dividend (1) - Translation differences 1 (1) Balance as at December 31 3 2 accounting policy Associates are companies over which the Group has significant influence, but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method and are initially recognized at cost. The Group's investment in associates includes goodwill on acquisition, net of any accumulated impairment losses. The Group's share of the post-acquisition profits and losses of the associates is recognized as share in results of associates, and its share of post-acquisition movements in other comprehensive income of the associates is recognized in other comprehensive income, with a corresponding effect on the carrying amount of the associate. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-544": { "value": "Equity investments are minority participations in early-stage to expansion-stage companies that are considered strategically relevant to Randstad. The typical investment amounts range between \u20ac\u00a02 million and \u20ac\u00a05 million. The Group has no significant influence over these investments. These investments are qualified as 'fair-value through other comprehensive income' investments, and if no reliable fair-value measurements are available, valued at cost. All investments are in principle considered non-current. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-545": { "value": "Equity investments are minority participations in early-stage to expansion-stage companies that are considered strategically relevant to Randstad. The typical investment amounts range between \u20ac\u00a02 million and \u20ac\u00a05 million. The Group has no significant influence over these investments. These investments are qualified as 'fair-value through other comprehensive income' investments, and if no reliable fair-value measurements are available, valued at cost. All investments are in principle considered non-current. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-546": { "value": "Equity investments are minority participations in early-stage to expansion-stage companies that are considered strategically relevant to Randstad. The typical investment amounts range between \u20ac\u00a02 million and \u20ac\u00a05 million. The Group has no significant influence over these investments. These investments are qualified as 'fair-value through other comprehensive income' investments, and if no reliable fair-value measurements are available, valued at cost. All investments are in principle considered non-current. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-460": { "value": " 22 associates As at December 31, 2022, the Group had investments in associates of \u20ac\u00a03 million (2021: \u20ac\u00a02 million). The total assets and liabilities of associates amounted to approximately \u20ac\u00a08 million and \u20ac\u00a04 million respectively as at December 31, 2022 (2021: \u20ac\u00a09 million and \u20ac\u00a04 million respectively). Total revenue in 2022 amounted to \u20ac\u00a046 million (2021: \u20ac\u00a044 million). Our share in profit was \u20ac\u00a01 million (2021: \u20ac\u00a01 million). In 2021, the Group disposed of its 16.66% shareholding in Alma Career OY, Finland at a consideration of \u20ac\u00a058 million, resulting in a gain of \u20ac\u00a035 million (the gain is reported under other income in the operating expenses), based on a net asset value of this associate at the moment of disposal to the amount of \u20ac\u00a023 million. associates \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 2 25 Share in profit 1 1 Disposals - (23) Dividend (1) - Translation differences 1 (1) Balance as at December 31 3 2 accounting policy Associates are companies over which the Group has significant influence, but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method and are initially recognized at cost. The Group's investment in associates includes goodwill on acquisition, net of any accumulated impairment losses. The Group's share of the post-acquisition profits and losses of the associates is recognized as share in results of associates, and its share of post-acquisition movements in other comprehensive income of the associates is recognized in other comprehensive income, with a corresponding effect on the carrying amount of the associate. ", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-547": { "value": " 22 associates As at December 31, 2022, the Group had investments in associates of \u20ac\u00a03 million (2021: \u20ac\u00a02 million). The total assets and liabilities of associates amounted to approximately \u20ac\u00a08 million and \u20ac\u00a04 million respectively as at December 31, 2022 (2021: \u20ac\u00a09 million and \u20ac\u00a04 million respectively). Total revenue in 2022 amounted to \u20ac\u00a046 million (2021: \u20ac\u00a044 million). Our share in profit was \u20ac\u00a01 million (2021: \u20ac\u00a01 million). In 2021, the Group disposed of its 16.66% shareholding in Alma Career OY, Finland at a consideration of \u20ac\u00a058 million, resulting in a gain of \u20ac\u00a035 million (the gain is reported under other income in the operating expenses), based on a net asset value of this associate at the moment of disposal to the amount of \u20ac\u00a023 million. associates \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 2 25 Share in profit 1 1 Disposals - (23) Dividend (1) - Translation differences 1 (1) Balance as at December 31 3 2 accounting policy Associates are companies over which the Group has significant influence, but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method and are initially recognized at cost. The Group's investment in associates includes goodwill on acquisition, net of any accumulated impairment losses. The Group's share of the post-acquisition profits and losses of the associates is recognized as share in results of associates, and its share of post-acquisition movements in other comprehensive income of the associates is recognized in other comprehensive income, with a corresponding effect on the carrying amount of the associate. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-462": { "value": " 22 associates As at December 31, 2022, the Group had investments in associates of \u20ac\u00a03 million (2021: \u20ac\u00a02 million). The total assets and liabilities of associates amounted to approximately \u20ac\u00a08 million and \u20ac\u00a04 million respectively as at December 31, 2022 (2021: \u20ac\u00a09 million and \u20ac\u00a04 million respectively). Total revenue in 2022 amounted to \u20ac\u00a046 million (2021: \u20ac\u00a044 million). Our share in profit was \u20ac\u00a01 million (2021: \u20ac\u00a01 million). In 2021, the Group disposed of its 16.66% shareholding in Alma Career OY, Finland at a consideration of \u20ac\u00a058 million, resulting in a gain of \u20ac\u00a035 million (the gain is reported under other income in the operating expenses), based on a net asset value of this associate at the moment of disposal to the amount of \u20ac\u00a023 million. associates \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 2 25 Share in profit 1 1 Disposals - (23) Dividend (1) - Translation differences 1 (1) Balance as at December 31 3 2 accounting policy Associates are companies over which the Group has significant influence, but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method and are initially recognized at cost. The Group's investment in associates includes goodwill on acquisition, net of any accumulated impairment losses. The Group's share of the post-acquisition profits and losses of the associates is recognized as share in results of associates, and its share of post-acquisition movements in other comprehensive income of the associates is recognized in other comprehensive income, with a corresponding effect on the carrying amount of the associate. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-463": { "value": "23.1 shareholders' equity 23.1.1 authorized and issued capital Authorized capital is \u20ac\u00a0106 million (2021: \u20ac\u00a0106 million) and consists of 350,000,000 (2021: 350,000,000) ordinary shares with a nominal value of \u20ac\u00a00.10, a further 106,000 (2021: 106,000) type-A preference shares with a nominal value of \u20ac\u00a0500, 30,000,000 (2021: 30,000,000) type-B preference shares with a nominal value of \u20ac\u00a00.10, and 150,000,000 (2021: 150,000,000) type-C preference shares with a nominal value of \u20ac\u00a00.10. At year-end, issued share capital consists of 183,959,312 ordinary shares (2021: 183,959.312), 25,200,000 type-B preference shares (2021: 25,200,000), and 50,130,352 (2021: 50,130,352) type-C preference shares. For information regarding the rights, preferences and restrictions on each type of share, see 'voting rights' under corporate governance . The current conditions of the preference shares are such that the holders of these shares receive a dividend at the company's discretion, which dividend is preferred and cumulative, and that the voting rights are one vote per 7 type-B preference shares, and one vote for each \u20ac\u00a025 capital payment for type-C preference shares, resulting in 0.1117 vote per share on average. The dividend on preference shares type-B and type-C is reviewed every seven years. In November 2019, the dividend on type-B and type-C was reset. The dividend for preference shares type-B was set at 2% of the capital contribution. The dividend on type-C preference shares was set at 3.5% of the capital contribution. The next review of the dividend will take place in November 2026. Only the Executive Board can propose to the Annual General Meeting of Shareholders to decide that preference shares be repaid. number of outstanding ordinary and preference shares \u00a02022 2021 ordinary shares preference shares ordinary shares preference shares \u00a0\u00a0\u00a0\u00a0\u00a0January 1 183,959 75,330 183,304 75,330 From share-based compensation arrangements - - 655 - December 31 183,959 75,330 183,959 75,330 (x 1,000) Ordinary and preference shares are classified as equity. The distribution of the dividend on ordinary and preference shares is recognized as a liability in the period in which these dividends are adopted by the company's shareholders. accounting policy On the issue of new shares or on the extension of the term of preference shares outstanding, the proceeds less directly attributable costs are recognized in shareholders' equity within issued capital and, if applicable, within share premium. On the purchase of ordinary shares that are included in shareholders' equity, the consideration paid, including directly attributable costs, is recorded as a change in shareholders' equity. Purchased ordinary shares are classified as treasury shares and presented as a deduction from shareholders' equity under reserves. On the sale (or re-issue) of treasury shares, the proceeds less directly attributable costs are recognized under treasury shares for the original consideration paid; the remainder is recognized as a change in retained earnings. As at December 31, 2022, the company held 1,294,504 treasury shares (December 31, 2021: 907,523). 23.1.2 share premium At year-end, share premium consists of \u20ac\u00a02,032 million share premium on ordinary shares (2021: \u20ac\u00a02,025 million) and \u20ac\u00a0298 million share premium on preference shares (2021: \u20ac\u00a0298 million). Stichting Randstad Optiefonds, in its capacity of shareholder of the company, has delivered 144,630 Randstad shares to the company by way of share contribution amounting to \u20ac\u00a07,3 million. These shares were subsequently delivered to the employees of the company as part of the share purchase plan (see note 29.2). 23.1.3 translation reserve The translation reserve comprises all translation differences arising from the translation of the net investment in activities in currencies other than the euro, as well as translation differences of financial liabilities designated as hedges of such investments, to the extent that the hedge is effective. Such translation differences are recognized initially in other comprehensive income and presented in this separate component of shareholders' equity. If the net investment is disposed of, these translation differences are recognized in the statement of comprehensive income. The translation reserve also includes the tax effect on translation differences. 23.1.4 share-based compensations reserve The share-based compensations reserve comprises the value of vested rights in respect of share-based compensation arrangements as far as stock options have not been exercised or performance shares have not been allocated. The company has various share-based compensation arrangements. Additional information about these arrangements is given in note 29. The income statement includes an amount of \u20ac\u00a049 million (2021: \u20ac\u00a044 million) for share-based compensations. At year-end 2022, 1.8 million performance shares (2021: 1.9 million performance shares) are outstanding. Upon exercise of stock options or allocation of performance shares, this will lead to the issuance of the same number of new ordinary shares or the re-issue of treasury shares. 23.1.5 employee benefits reserve The employee benefits reserve comprises the cumulative remeasurements of post-employment benefit obligations. The amounts are net of corporate taxes. 23.1.6 other information See note 8 to the company financial statements for the restrictions on the distribution of dividends and the repayment of capital. Additional information about shareholders' equity is included in the consolidated statement of changes in equity. ", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-464": { "value": "23.1.1 authorized and issued capital Authorized capital is \u20ac\u00a0106 million (2021: \u20ac\u00a0106 million) and consists of 350,000,000 (2021: 350,000,000) ordinary shares with a nominal value of \u20ac\u00a00.10, a further 106,000 (2021: 106,000) type-A preference shares with a nominal value of \u20ac\u00a0500, 30,000,000 (2021: 30,000,000) type-B preference shares with a nominal value of \u20ac\u00a00.10, and 150,000,000 (2021: 150,000,000) type-C preference shares with a nominal value of \u20ac\u00a00.10. At year-end, issued share capital consists of 183,959,312 ordinary shares (2021: 183,959.312), 25,200,000 type-B preference shares (2021: 25,200,000), and 50,130,352 (2021: 50,130,352) type-C preference shares. For information regarding the rights, preferences and restrictions on each type of share, see 'voting rights' under corporate governance . The current conditions of the preference shares are such that the holders of these shares receive a dividend at the company's discretion, which dividend is preferred and cumulative, and that the voting rights are one vote per 7 type-B preference shares, and one vote for each \u20ac\u00a025 capital payment for type-C preference shares, resulting in 0.1117 vote per share on average. The dividend on preference shares type-B and type-C is reviewed every seven years. In November 2019, the dividend on type-B and type-C was reset. The dividend for preference shares type-B was set at 2% of the capital contribution. The dividend on type-C preference shares was set at 3.5% of the capital contribution. The next review of the dividend will take place in November 2026. Only the Executive Board can propose to the Annual General Meeting of Shareholders to decide that preference shares be repaid. number of outstanding ordinary and preference shares \u00a02022 2021 ordinary shares preference shares ordinary shares preference shares \u00a0\u00a0\u00a0\u00a0\u00a0January 1 183,959 75,330 183,304 75,330 From share-based compensation arrangements - - 655 - December 31 183,959 75,330 183,959 75,330 (x 1,000) Ordinary and preference shares are classified as equity. The distribution of the dividend on ordinary and preference shares is recognized as a liability in the period in which these dividends are adopted by the company's shareholders. accounting policy On the issue of new shares or on the extension of the term of preference shares outstanding, the proceeds less directly attributable costs are recognized in shareholders' equity within issued capital and, if applicable, within share premium. On the purchase of ordinary shares that are included in shareholders' equity, the consideration paid, including directly attributable costs, is recorded as a change in shareholders' equity. Purchased ordinary shares are classified as treasury shares and presented as a deduction from shareholders' equity under reserves. On the sale (or re-issue) of treasury shares, the proceeds less directly attributable costs are recognized under treasury shares for the original consideration paid; the remainder is recognized as a change in retained earnings. As at December 31, 2022, the company held 1,294,504 treasury shares (December 31, 2021: 907,523). ", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-548": { "value": "23.1.1 authorized and issued capital Authorized capital is \u20ac\u00a0106 million (2021: \u20ac\u00a0106 million) and consists of 350,000,000 (2021: 350,000,000) ordinary shares with a nominal value of \u20ac\u00a00.10, a further 106,000 (2021: 106,000) type-A preference shares with a nominal value of \u20ac\u00a0500, 30,000,000 (2021: 30,000,000) type-B preference shares with a nominal value of \u20ac\u00a00.10, and 150,000,000 (2021: 150,000,000) type-C preference shares with a nominal value of \u20ac\u00a00.10. At year-end, issued share capital consists of 183,959,312 ordinary shares (2021: 183,959.312), 25,200,000 type-B preference shares (2021: 25,200,000), and 50,130,352 (2021: 50,130,352) type-C preference shares. For information regarding the rights, preferences and restrictions on each type of share, see 'voting rights' under corporate governance . The current conditions of the preference shares are such that the holders of these shares receive a dividend at the company's discretion, which dividend is preferred and cumulative, and that the voting rights are one vote per 7 type-B preference shares, and one vote for each \u20ac\u00a025 capital payment for type-C preference shares, resulting in 0.1117 vote per share on average. The dividend on preference shares type-B and type-C is reviewed every seven years. In November 2019, the dividend on type-B and type-C was reset. The dividend for preference shares type-B was set at 2% of the capital contribution. The dividend on type-C preference shares was set at 3.5% of the capital contribution. The next review of the dividend will take place in November 2026. Only the Executive Board can propose to the Annual General Meeting of Shareholders to decide that preference shares be repaid. number of outstanding ordinary and preference shares \u00a02022 2021 ordinary shares preference shares ordinary shares preference shares \u00a0\u00a0\u00a0\u00a0\u00a0January 1 183,959 75,330 183,304 75,330 From share-based compensation arrangements - - 655 - December 31 183,959 75,330 183,959 75,330 (x 1,000) Ordinary and preference shares are classified as equity. The distribution of the dividend on ordinary and preference shares is recognized as a liability in the period in which these dividends are adopted by the company's shareholders. accounting policy On the issue of new shares or on the extension of the term of preference shares outstanding, the proceeds less directly attributable costs are recognized in shareholders' equity within issued capital and, if applicable, within share premium. On the purchase of ordinary shares that are included in shareholders' equity, the consideration paid, including directly attributable costs, is recorded as a change in shareholders' equity. Purchased ordinary shares are classified as treasury shares and presented as a deduction from shareholders' equity under reserves. On the sale (or re-issue) of treasury shares, the proceeds less directly attributable costs are recognized under treasury shares for the original consideration paid; the remainder is recognized as a change in retained earnings. As at December 31, 2022, the company held 1,294,504 treasury shares (December 31, 2021: 907,523). ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-465": { "value": "23.1.1 authorized and issued capital Authorized capital is \u20ac\u00a0106 million (2021: \u20ac\u00a0106 million) and consists of 350,000,000 (2021: 350,000,000) ordinary shares with a nominal value of \u20ac\u00a00.10, a further 106,000 (2021: 106,000) type-A preference shares with a nominal value of \u20ac\u00a0500, 30,000,000 (2021: 30,000,000) type-B preference shares with a nominal value of \u20ac\u00a00.10, and 150,000,000 (2021: 150,000,000) type-C preference shares with a nominal value of \u20ac\u00a00.10. At year-end, issued share capital consists of 183,959,312 ordinary shares (2021: 183,959.312), 25,200,000 type-B preference shares (2021: 25,200,000), and 50,130,352 (2021: 50,130,352) type-C preference shares. For information regarding the rights, preferences and restrictions on each type of share, see 'voting rights' under corporate governance . The current conditions of the preference shares are such that the holders of these shares receive a dividend at the company's discretion, which dividend is preferred and cumulative, and that the voting rights are one vote per 7 type-B preference shares, and one vote for each \u20ac\u00a025 capital payment for type-C preference shares, resulting in 0.1117 vote per share on average. The dividend on preference shares type-B and type-C is reviewed every seven years. In November 2019, the dividend on type-B and type-C was reset. The dividend for preference shares type-B was set at 2% of the capital contribution. The dividend on type-C preference shares was set at 3.5% of the capital contribution. The next review of the dividend will take place in November 2026. Only the Executive Board can propose to the Annual General Meeting of Shareholders to decide that preference shares be repaid. number of outstanding ordinary and preference shares \u00a02022 2021 ordinary shares preference shares ordinary shares preference shares \u00a0\u00a0\u00a0\u00a0\u00a0January 1 183,959 75,330 183,304 75,330 From share-based compensation arrangements - - 655 - December 31 183,959 75,330 183,959 75,330 (x 1,000) Ordinary and preference shares are classified as equity. The distribution of the dividend on ordinary and preference shares is recognized as a liability in the period in which these dividends are adopted by the company's shareholders. accounting policy On the issue of new shares or on the extension of the term of preference shares outstanding, the proceeds less directly attributable costs are recognized in shareholders' equity within issued capital and, if applicable, within share premium. On the purchase of ordinary shares that are included in shareholders' equity, the consideration paid, including directly attributable costs, is recorded as a change in shareholders' equity. Purchased ordinary shares are classified as treasury shares and presented as a deduction from shareholders' equity under reserves. On the sale (or re-issue) of treasury shares, the proceeds less directly attributable costs are recognized under treasury shares for the original consideration paid; the remainder is recognized as a change in retained earnings. As at December 31, 2022, the company held 1,294,504 treasury shares (December 31, 2021: 907,523). ", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-549": { "value": "23.1.1 authorized and issued capital Authorized capital is \u20ac\u00a0106 million (2021: \u20ac\u00a0106 million) and consists of 350,000,000 (2021: 350,000,000) ordinary shares with a nominal value of \u20ac\u00a00.10, a further 106,000 (2021: 106,000) type-A preference shares with a nominal value of \u20ac\u00a0500, 30,000,000 (2021: 30,000,000) type-B preference shares with a nominal value of \u20ac\u00a00.10, and 150,000,000 (2021: 150,000,000) type-C preference shares with a nominal value of \u20ac\u00a00.10. At year-end, issued share capital consists of 183,959,312 ordinary shares (2021: 183,959.312), 25,200,000 type-B preference shares (2021: 25,200,000), and 50,130,352 (2021: 50,130,352) type-C preference shares. For information regarding the rights, preferences and restrictions on each type of share, see 'voting rights' under corporate governance . The current conditions of the preference shares are such that the holders of these shares receive a dividend at the company's discretion, which dividend is preferred and cumulative, and that the voting rights are one vote per 7 type-B preference shares, and one vote for each \u20ac\u00a025 capital payment for type-C preference shares, resulting in 0.1117 vote per share on average. The dividend on preference shares type-B and type-C is reviewed every seven years. In November 2019, the dividend on type-B and type-C was reset. The dividend for preference shares type-B was set at 2% of the capital contribution. The dividend on type-C preference shares was set at 3.5% of the capital contribution. The next review of the dividend will take place in November 2026. Only the Executive Board can propose to the Annual General Meeting of Shareholders to decide that preference shares be repaid. number of outstanding ordinary and preference shares \u00a02022 2021 ordinary shares preference shares ordinary shares preference shares \u00a0\u00a0\u00a0\u00a0\u00a0January 1 183,959 75,330 183,304 75,330 From share-based compensation arrangements - - 655 - December 31 183,959 75,330 183,959 75,330 (x 1,000) Ordinary and preference shares are classified as equity. The distribution of the dividend on ordinary and preference shares is recognized as a liability in the period in which these dividends are adopted by the company's shareholders. accounting policy On the issue of new shares or on the extension of the term of preference shares outstanding, the proceeds less directly attributable costs are recognized in shareholders' equity within issued capital and, if applicable, within share premium. On the purchase of ordinary shares that are included in shareholders' equity, the consideration paid, including directly attributable costs, is recorded as a change in shareholders' equity. Purchased ordinary shares are classified as treasury shares and presented as a deduction from shareholders' equity under reserves. On the sale (or re-issue) of treasury shares, the proceeds less directly attributable costs are recognized under treasury shares for the original consideration paid; the remainder is recognized as a change in retained earnings. As at December 31, 2022, the company held 1,294,504 treasury shares (December 31, 2021: 907,523). ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-466": { "value": "23.1.1 authorized and issued capital Authorized capital is \u20ac\u00a0106 million (2021: \u20ac\u00a0106 million) and consists of 350,000,000 (2021: 350,000,000) ordinary shares with a nominal value of \u20ac\u00a00.10, a further 106,000 (2021: 106,000) type-A preference shares with a nominal value of \u20ac\u00a0500, 30,000,000 (2021: 30,000,000) type-B preference shares with a nominal value of \u20ac\u00a00.10, and 150,000,000 (2021: 150,000,000) type-C preference shares with a nominal value of \u20ac\u00a00.10. At year-end, issued share capital consists of 183,959,312 ordinary shares (2021: 183,959.312), 25,200,000 type-B preference shares (2021: 25,200,000), and 50,130,352 (2021: 50,130,352) type-C preference shares. For information regarding the rights, preferences and restrictions on each type of share, see 'voting rights' under corporate governance . The current conditions of the preference shares are such that the holders of these shares receive a dividend at the company's discretion, which dividend is preferred and cumulative, and that the voting rights are one vote per 7 type-B preference shares, and one vote for each \u20ac\u00a025 capital payment for type-C preference shares, resulting in 0.1117 vote per share on average. The dividend on preference shares type-B and type-C is reviewed every seven years. In November 2019, the dividend on type-B and type-C was reset. The dividend for preference shares type-B was set at 2% of the capital contribution. The dividend on type-C preference shares was set at 3.5% of the capital contribution. The next review of the dividend will take place in November 2026. Only the Executive Board can propose to the Annual General Meeting of Shareholders to decide that preference shares be repaid. number of outstanding ordinary and preference shares \u00a02022 2021 ordinary shares preference shares ordinary shares preference shares \u00a0\u00a0\u00a0\u00a0\u00a0January 1 183,959 75,330 183,304 75,330 From share-based compensation arrangements - - 655 - December 31 183,959 75,330 183,959 75,330 (x 1,000) Ordinary and preference shares are classified as equity. The distribution of the dividend on ordinary and preference shares is recognized as a liability in the period in which these dividends are adopted by the company's shareholders. accounting policy On the issue of new shares or on the extension of the term of preference shares outstanding, the proceeds less directly attributable costs are recognized in shareholders' equity within issued capital and, if applicable, within share premium. On the purchase of ordinary shares that are included in shareholders' equity, the consideration paid, including directly attributable costs, is recorded as a change in shareholders' equity. Purchased ordinary shares are classified as treasury shares and presented as a deduction from shareholders' equity under reserves. On the sale (or re-issue) of treasury shares, the proceeds less directly attributable costs are recognized under treasury shares for the original consideration paid; the remainder is recognized as a change in retained earnings. As at December 31, 2022, the company held 1,294,504 treasury shares (December 31, 2021: 907,523). ", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-467": { "value": " 23.2 dividends on ordinary and preference shares and share buyback dividends on ordinary and preference shares \u00a0dividend related to 2022 2021 2020 \u00a0\u00a0\u00a0\u00a0Ordinary shares \u00a0\u00a0\u00a0Dividend paid during 2021 \u00a0\u00a0596 Dividend paid during 2022 \u00a0914 \u00a0Dividend 2022 proposed 521 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Preference shares \u00a0\u00a0\u00a0Dividend paid during 2021 \u00a0\u00a08 Dividend paid during 2022 \u00a08 \u00a0Dividend 2022 proposed 8 \u00a0\u00a0Statement of cash flows \u00a0922 604 23.2.1 proposed profit appropriation At the Annual General Meeting of Shareholders, to be held on March 28, 2023, the Executive Board, with the approval of the Supervisory Board, will propose, in line with our dividend policy, that regular cash dividend of \u20ac\u00a02.85 per ordinary share be paid for the year 2022; which represents a payout of 50 % of adjusted net income. For preference shares B and C, it will be proposed by the Executive Board, with the approval of the Supervisory Board, that a dividend of \u20ac\u00a03.3 million and \u20ac\u00a04.9 million be paid respectively. The difference of \u20ac\u00a0408 million between the dividend proposed (\u20ac\u00a0521 million) and net income for the year (\u20ac\u00a0929 million) will be added to retained earnings. 23.2.2 proposed share buyback The Executive Board with the approval of the Supervisory Board will propose a share buyback of around \u20ac\u00a0400 million at the annual general meeting of shareholders. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-468": { "value": " 23.3 non-controlling interests In 2022 and 2021, no transactions took place with non-controlling interests without a change of control. accounting policy Non-controlling interests represent the net assets not held by the Group and are presented within total equity in the consolidated balance sheet as a separate category. Profit or loss and each component of other comprehensive income are attributed to the equity holders and to the non-controlling interests. The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For acquisitions of non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of the net assets is recorded in equity. Gains or losses on disposals of non-controlling interests are also recorded in equity as long as control of the subsidiary is maintained. Additional information about non-controlling interests is included in the consolidated statement of changes in equity. ", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-551": { "value": " 23.3 non-controlling interests In 2022 and 2021, no transactions took place with non-controlling interests without a change of control. accounting policy Non-controlling interests represent the net assets not held by the Group and are presented within total equity in the consolidated balance sheet as a separate category. Profit or loss and each component of other comprehensive income are attributed to the equity holders and to the non-controlling interests. The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For acquisitions of non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of the net assets is recorded in equity. Gains or losses on disposals of non-controlling interests are also recorded in equity as long as control of the subsidiary is maintained. Additional information about non-controlling interests is included in the consolidated statement of changes in equity. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-552": { "value": "24.1 employee benefit obligations employee benefit obligations charged to comprehensive income \u00a02022 2021 \u00a0\u00a0\u00a0Current service cost, total 62 62 Contributions, employees (10) (10) Current service cost net, charged to operating profit 52 52 Interest expense due to passage of time 4 2 Interest income due to passage of time (3) (2) Charged to net finance costs 1 - Net remeasurement gains charged to other comprehensive income (47) 3 Charged to comprehensive income 6 55 The discount rates used to calculate employee benefit obligations are in the following ranges: discount rates (employee benefit obligations) \u00a02022 2021 \u00a0\u00a0\u00a0Defined benefit pension plans 1.2% - 4.1% 0.3% - 1.1% Other post-employment benefits 3.3% - 6.9% 0.5% - 5.2% Other long-term employee benefits 1.5% - 2% (0.3%) - 2% The obligations regarding other post-employment benefits and other long-term employee benefits are unfunded. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-471": { "value": "25 other liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 4 4 Changes in value - - Deferred compensations from acquired subsidiaries/activities 9 2 Considerations paid in respect of acquisitions in preceding years (5) (2) Interest due to passage of time - - Translation differences (1) - Balance as at December 31 7 4 Non-current part 7 - Current part - 4 Balance as at December 31 7 4 accounting policy As at December 31, 2022 and December 31, 2021, other liabilities only comprise deferred payments (including earn-out arrangements) from business combinations in prior years. The initial amount of the earn-out liability is calculated based on the provisional purchase price allocation at the moment of acquisition. Any changes in the earn-out liability are included as adjustments to goodwill at the moment of the final purchase price allocation, performed at 1 year after acquisition. In case earn-out arrangements have a longer term than 1 year after the acquisition date , differences upon settlement between the actual cash outflow and the expected cash outflow, are accounted for in net finance costs . ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-472": { "value": "25 other liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 4 4 Changes in value - - Deferred compensations from acquired subsidiaries/activities 9 2 Considerations paid in respect of acquisitions in preceding years (5) (2) Interest due to passage of time - - Translation differences (1) - Balance as at December 31 7 4 Non-current part 7 - Current part - 4 Balance as at December 31 7 4 accounting policy As at December 31, 2022 and December 31, 2021, other liabilities only comprise deferred payments (including earn-out arrangements) from business combinations in prior years. The initial amount of the earn-out liability is calculated based on the provisional purchase price allocation at the moment of acquisition. Any changes in the earn-out liability are included as adjustments to goodwill at the moment of the final purchase price allocation, performed at 1 year after acquisition. In case earn-out arrangements have a longer term than 1 year after the acquisition date , differences upon settlement between the actual cash outflow and the expected cash outflow, are accounted for in net finance costs . ", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-473": { "value": "25 other liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 4 4 Changes in value - - Deferred compensations from acquired subsidiaries/activities 9 2 Considerations paid in respect of acquisitions in preceding years (5) (2) Interest due to passage of time - - Translation differences (1) - Balance as at December 31 7 4 Non-current part 7 - Current part - 4 Balance as at December 31 7 4 accounting policy As at December 31, 2022 and December 31, 2021, other liabilities only comprise deferred payments (including earn-out arrangements) from business combinations in prior years. The initial amount of the earn-out liability is calculated based on the provisional purchase price allocation at the moment of acquisition. Any changes in the earn-out liability are included as adjustments to goodwill at the moment of the final purchase price allocation, performed at 1 year after acquisition. In case earn-out arrangements have a longer term than 1 year after the acquisition date , differences upon settlement between the actual cash outflow and the expected cash outflow, are accounted for in net finance costs . ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-474": { "value": "25 other liabilities \u00a02022 2021 \u00a0\u00a0\u00a0Balance as at January 1 4 4 Changes in value - - Deferred compensations from acquired subsidiaries/activities 9 2 Considerations paid in respect of acquisitions in preceding years (5) (2) Interest due to passage of time - - Translation differences (1) - Balance as at December 31 7 4 Non-current part 7 - Current part - 4 Balance as at December 31 7 4 accounting policy As at December 31, 2022 and December 31, 2021, other liabilities only comprise deferred payments (including earn-out arrangements) from business combinations in prior years. The initial amount of the earn-out liability is calculated based on the provisional purchase price allocation at the moment of acquisition. Any changes in the earn-out liability are included as adjustments to goodwill at the moment of the final purchase price allocation, performed at 1 year after acquisition. In case earn-out arrangements have a longer term than 1 year after the acquisition date , differences upon settlement between the actual cash outflow and the expected cash outflow, are accounted for in net finance costs . ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-475": { "value": " 26 trade and other payables Trade and other payables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method. trade and other payables \u00a02022 2021 \u00a0\u00a0\u00a0Trade payables 874 806 Other taxes and social insurance charges 1,189 1,210 Pension contributions 23 18 Wages, salaries and other personnel costs 1,728 1,697 Other accruals 681 620 Deferred income 81 75 \u00a04,576 4,426 ", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-554": { "value": " 26 trade and other payables Trade and other payables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method. trade and other payables \u00a02022 2021 \u00a0\u00a0\u00a0Trade payables 874 806 Other taxes and social insurance charges 1,189 1,210 Pension contributions 23 18 Wages, salaries and other personnel costs 1,728 1,697 Other accruals 681 620 Deferred income 81 75 \u00a04,576 4,426 ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-476": { "value": " 26 trade and other payables Trade and other payables are initially stated at fair value. Subsequent measurement is at amortized cost, using the effective interest method. trade and other payables \u00a02022 2021 \u00a0\u00a0\u00a0Trade payables 874 806 Other taxes and social insurance charges 1,189 1,210 Pension contributions 23 18 Wages, salaries and other personnel costs 1,728 1,697 Other accruals 681 620 Deferred income 81 75 \u00a04,576 4,426 ", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-555": { "value": "The statement of cash flows has been prepared applying the indirect method.
Cash flows in foreign currencies have been translated, in principle, at average exchange rates; certain material (mainly financing) transactions are translated at the exchange rate at the day of translation. Exchange differences concerning cash items are shown separately in the statement of cash flows. Income taxes paid/received are included in the cash flow from operating activities. Finance income received, finance expenses paid, and dividends paid are included in the cash flow from financing activities.
The purchase price of acquisitions paid, as well as the selling price of disposed subsidiaries received, is included in cash flow from investing activities. This purchase price paid, as well as the selling price received, are included in the statement of cash flows net of debt and cash acquired or disposed. Changes in assets and liabilities resulting from the acquisition and disposal of subsidiaries are taken into account in the calculation of the consolidated cash flows.
The majority of the items in the consolidated statement of cash flows are individually cross-referenced to the relevant notes to the consolidated statement of comprehensive income and the consolidated statement of financial position. For the remainder of the material items, the reconciliation between amounts as included in the consolidated statement of cash flows and related amounts in the consolidated statement of comprehensive income and the consolidated statement of financial position is shown in this note.
Operating working capital includes current assets, excluding cash and cash equivalents, current income tax receivables, current part of loans and receivables, current part of net investments in subleases, and the net plan assets defined benefit pension plan; minus current liabilities, excluding current borrowings, current income tax liabilities, and the current part of provisions, of employee benefit obligations, of other liabilities and of lease liabilities. Interest receivable and payable are also excluded in order to align the presentation of the movements in these items, which are presented under net cash flow from financing activities.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Current assets | 6,218 | 6,368 |
| Current liabilities | (5,027) | (4,793) |
| Working capital | 1,191 | 1,575 |
| \u00a0 | \u00a0 | \u00a0 |
| Current assets | 6,218 | 6,368 |
| Adjusted for: | \u00a0 | \u00a0 |
| Cash and cash equivalents | (274) | (859) |
| Current income tax receivables | (116) | (77) |
| Trade and other receivables | 5,828 | 5,432 |
| Adjusted for: | \u00a0 | \u00a0 |
| Current part of loans and receivables | (7) | (7) |
| Current part of net investments in sublease | (7) | (5) |
| Interest receivable | (4) | (4) |
| Net plan assets defined benefit pension plan | (3) | (5) |
| Operating working capital assets | 5,807 | 5,411 |
| \u00a0 | \u00a0 | \u00a0 |
| Current liabilities | (5,027) | (4,793) |
| Adjusted for: | \u00a0 | \u00a0 |
| Current borrowings | 69 | 16 |
| Current part of lease liabilities | 186 | 187 |
| Current income tax liabilities | 78 | 63 |
| Current part of provisions | 92 | 71 |
| Current part of employee benefit obligations | 26 | 26 |
| Current other liabilities | - | 4 |
| Trade and other payables | (4,576) | (4,426) |
| Adjusted for: | \u00a0 | \u00a0 |
| Interest payable | 8 | 12 |
| Operating working capital liabilities | (4,568) | (4,414) |
| Operating working capital assets | 5,807 | 5,411 |
| Operating working capital liabilities | (4,568) | (4,414) |
| Operating working capital | 1,239 | 997 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Trade and other receivables as at January 1 | 5,432 | 4,407 |
| Adjusted for: | \u00a0 | \u00a0 |
| Current part of loans and receivables, and net plan assets | (17) | (20) |
| Interest receivable | (4) | (3) |
| Operating working capital assets as at January 1 | 5,411 | 4,384 |
| Acquisition of subsidiaries | 56 | 32 |
| Disposal of subsidiaries | - | (3) |
| Translation gains/(losses) | 16 | 92 |
| Statement of cash flows | 324 | 906 |
| Operating working capital assets as at December 31 | 5,807 | 5,411 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Trade and other payables as at January 1 | 4,426 | 3,735 |
| Adjusted for: | \u00a0 | \u00a0 |
| Interest payable | (12) | (9) |
| Operating working capital liabilities as at January 1 | 4,414 | 3,726 |
| Acquisition of subsidiaries | 39 | 17 |
| Disposal of subsidiaries | - | (2) |
| Translation losses/(gains) | 4 | 57 |
| Statement of cash flows | 111 | 616 |
| Operating working capital liabilities as at December 31 | 4,568 | 4,414 |
The CICE receivable as an asset arose from tax credits under the French Competitive Employment Act (CICE). This act was aimed at improving the competitiveness of the French economy and at reducing unemployment. It was discontinued as of January 1, 2019.
In 2021, an amount of \u20ac\u00a08 million was received on the remaining CICE receivable outstanding as at December 31, 2020.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Loans | 5 | 1 |
| Net result of net investments in subleases | (6) | (3) |
| Net result of remeasurements of right-of-use assets and lease liabilities | (2) | (6) |
| Non-cash | (3) | (8) |
| \u00a0 | \u00a0 | \u00a0 |
| Collections of net investments in subleases | 6 | 5 |
| Cash | 6 | 5 |
| \u00a0 | \u00a0 | \u00a0 |
| Statement of cash flows | 3 | (3) |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| North America | 28 | 10 |
| France | 44 | 34 |
| Netherlands/Corporate | 501 | 55 |
| Italy | 36 | 14 |
| Germany | - | 13 |
| Belgium & Luxembourg | 19 | 42 |
| Iberia | 14 | 10 |
| Other European countries | 27 | 13 |
| Rest of the world | 43 | 13 |
| Global Businesses | - | - |
| Total | 261 | 204 |
The increase in corporate income taxes paid in North America can be explained by increased tax payments in the US. In the US,\u00a0the Group made use of almost all federal tax loss carry forward positions, which is why the Group started paying taxes. The increase in France was mainly caused by higher taxable profits in 2022. Germany's 2021 figures include payments related to prior years. 2022 resulted in zero net payments due to refunds related to the prior year offsetting the current-year payments. The decrease in payments in Belgium can be explained by lower taxable profits in 2022. The increase in Italy was mainly caused by higher taxable profits in 2022 and a payment related to 2021.
The increase in payments in the 'Rest of the world' region is mainly caused by higher taxable profits in Australia and Japan compared to 2021. In addition, the 2021 figures include significant refunds in India related to prior years.
Free cash flow comprises net cash from operating and investing activities, excluding the cash flows from the acquisition and disposal of subsidiaries/activities, of equity investments, and of associates, as well as the dividends from associates. Repayment of lease liabilities is also deducted in order to arrive at free cash flow.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Net cash flow from operating activities | 1,073 | 914 |
| Net cash flow from investing activities | (290) | (207) |
| \u00a0 | 783 | 707 |
| Acquisition of subsidiaries, equity investments and associates | 171 | 133 |
| Disposal of subsidiaries, equity investments and associates | (4) | (54) |
| Dividends from associates | (1) | - |
| \u00a0 | 949 | 786 |
| Repayment of lease liabilities | (210) | (196) |
| Free cash flow | 739 | 590 |
The statement of cash flows has been prepared applying the indirect method.
Cash flows in foreign currencies have been translated, in principle, at average exchange rates; certain material (mainly financing) transactions are translated at the exchange rate at the day of translation. Exchange differences concerning cash items are shown separately in the statement of cash flows. Income taxes paid/received are included in the cash flow from operating activities. Finance income received, finance expenses paid, and dividends paid are included in the cash flow from financing activities.
The purchase price of acquisitions paid, as well as the selling price of disposed subsidiaries received, is included in cash flow from investing activities. This purchase price paid, as well as the selling price received, are included in the statement of cash flows net of debt and cash acquired or disposed. Changes in assets and liabilities resulting from the acquisition and disposal of subsidiaries are taken into account in the calculation of the consolidated cash flows.
The majority of the items in the consolidated statement of cash flows are individually cross-referenced to the relevant notes to the consolidated statement of comprehensive income and the consolidated statement of financial position. For the remainder of the material items, the reconciliation between amounts as included in the consolidated statement of cash flows and related amounts in the consolidated statement of comprehensive income and the consolidated statement of financial position is shown in this note.
Operating working capital includes current assets, excluding cash and cash equivalents, current income tax receivables, current part of loans and receivables, current part of net investments in subleases, and the net plan assets defined benefit pension plan; minus current liabilities, excluding current borrowings, current income tax liabilities, and the current part of provisions, of employee benefit obligations, of other liabilities and of lease liabilities. Interest receivable and payable are also excluded in order to align the presentation of the movements in these items, which are presented under net cash flow from financing activities.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Current assets | 6,218 | 6,368 |
| Current liabilities | (5,027) | (4,793) |
| Working capital | 1,191 | 1,575 |
| \u00a0 | \u00a0 | \u00a0 |
| Current assets | 6,218 | 6,368 |
| Adjusted for: | \u00a0 | \u00a0 |
| Cash and cash equivalents | (274) | (859) |
| Current income tax receivables | (116) | (77) |
| Trade and other receivables | 5,828 | 5,432 |
| Adjusted for: | \u00a0 | \u00a0 |
| Current part of loans and receivables | (7) | (7) |
| Current part of net investments in sublease | (7) | (5) |
| Interest receivable | (4) | (4) |
| Net plan assets defined benefit pension plan | (3) | (5) |
| Operating working capital assets | 5,807 | 5,411 |
| \u00a0 | \u00a0 | \u00a0 |
| Current liabilities | (5,027) | (4,793) |
| Adjusted for: | \u00a0 | \u00a0 |
| Current borrowings | 69 | 16 |
| Current part of lease liabilities | 186 | 187 |
| Current income tax liabilities | 78 | 63 |
| Current part of provisions | 92 | 71 |
| Current part of employee benefit obligations | 26 | 26 |
| Current other liabilities | - | 4 |
| Trade and other payables | (4,576) | (4,426) |
| Adjusted for: | \u00a0 | \u00a0 |
| Interest payable | 8 | 12 |
| Operating working capital liabilities | (4,568) | (4,414) |
| Operating working capital assets | 5,807 | 5,411 |
| Operating working capital liabilities | (4,568) | (4,414) |
| Operating working capital | 1,239 | 997 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Trade and other receivables as at January 1 | 5,432 | 4,407 |
| Adjusted for: | \u00a0 | \u00a0 |
| Current part of loans and receivables, and net plan assets | (17) | (20) |
| Interest receivable | (4) | (3) |
| Operating working capital assets as at January 1 | 5,411 | 4,384 |
| Acquisition of subsidiaries | 56 | 32 |
| Disposal of subsidiaries | - | (3) |
| Translation gains/(losses) | 16 | 92 |
| Statement of cash flows | 324 | 906 |
| Operating working capital assets as at December 31 | 5,807 | 5,411 |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Trade and other payables as at January 1 | 4,426 | 3,735 |
| Adjusted for: | \u00a0 | \u00a0 |
| Interest payable | (12) | (9) |
| Operating working capital liabilities as at January 1 | 4,414 | 3,726 |
| Acquisition of subsidiaries | 39 | 17 |
| Disposal of subsidiaries | - | (2) |
| Translation losses/(gains) | 4 | 57 |
| Statement of cash flows | 111 | 616 |
| Operating working capital liabilities as at December 31 | 4,568 | 4,414 |
The CICE receivable as an asset arose from tax credits under the French Competitive Employment Act (CICE). This act was aimed at improving the competitiveness of the French economy and at reducing unemployment. It was discontinued as of January 1, 2019.
In 2021, an amount of \u20ac\u00a08 million was received on the remaining CICE receivable outstanding as at December 31, 2020.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Loans | 5 | 1 |
| Net result of net investments in subleases | (6) | (3) |
| Net result of remeasurements of right-of-use assets and lease liabilities | (2) | (6) |
| Non-cash | (3) | (8) |
| \u00a0 | \u00a0 | \u00a0 |
| Collections of net investments in subleases | 6 | 5 |
| Cash | 6 | 5 |
| \u00a0 | \u00a0 | \u00a0 |
| Statement of cash flows | 3 | (3) |
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| North America | 28 | 10 |
| France | 44 | 34 |
| Netherlands/Corporate | 501 | 55 |
| Italy | 36 | 14 |
| Germany | - | 13 |
| Belgium & Luxembourg | 19 | 42 |
| Iberia | 14 | 10 |
| Other European countries | 27 | 13 |
| Rest of the world | 43 | 13 |
| Global Businesses | - | - |
| Total | 261 | 204 |
The increase in corporate income taxes paid in North America can be explained by increased tax payments in the US. In the US,\u00a0the Group made use of almost all federal tax loss carry forward positions, which is why the Group started paying taxes. The increase in France was mainly caused by higher taxable profits in 2022. Germany's 2021 figures include payments related to prior years. 2022 resulted in zero net payments due to refunds related to the prior year offsetting the current-year payments. The decrease in payments in Belgium can be explained by lower taxable profits in 2022. The increase in Italy was mainly caused by higher taxable profits in 2022 and a payment related to 2021.
The increase in payments in the 'Rest of the world' region is mainly caused by higher taxable profits in Australia and Japan compared to 2021. In addition, the 2021 figures include significant refunds in India related to prior years.
Free cash flow comprises net cash from operating and investing activities, excluding the cash flows from the acquisition and disposal of subsidiaries/activities, of equity investments, and of associates, as well as the dividends from associates. Repayment of lease liabilities is also deducted in order to arrive at free cash flow.
| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Net cash flow from operating activities | 1,073 | 914 |
| Net cash flow from investing activities | (290) | (207) |
| \u00a0 | 783 | 707 |
| Acquisition of subsidiaries, equity investments and associates | 171 | 133 |
| Disposal of subsidiaries, equity investments and associates | (4) | (54) |
| Dividends from associates | (1) | - |
| \u00a0 | 949 | 786 |
| Repayment of lease liabilities | (210) | (196) |
| Free cash flow | 739 | 590 |
Subsidiaries are companies controlled by Randstad N.V. Control exists when Randstad is exposed to or has rights to variable returns from its involvement with subsidiary companies and has the ability to influence those returns through its power over the subsidiary, generally accompanying a shareholding of more than 50% of the voting rights. Subsidiaries are consolidated from the date that such control commences until the date that it ceases.
Intragroup balances and intragroup transactions are eliminated, as well as any unrealized gains from these transactions. Unrealized losses from intragroup transactions are also eliminated, unless there is evidence of impairment of the assets transferred. Intragroup transactions take place on an arm's length basis.
Upon translation of foreign activities, the assets and liabilities of operations in currencies other than the euro, including goodwill and fair-value adjustments arising on consolidation, are translated into euros at the foreign exchange rates at the balance sheet date. The income statements of these operations in currencies other than the euro are translated into euros at average exchange rates.
Upon the acquisition of a subsidiary that has a currency other than the euro, balance sheet items are translated into euros at the foreign exchange rates at the acquisition date.
The net investment in subsidiaries that have a currency other than the euro includes the participation in the net assets of these subsidiaries, and, if applicable, loans to these subsidiaries, settlement of which is neither planned nor expected to occur in the foreseeable future.
Translation differences that occur upon consolidation, relating to the translation of the net investment in subsidiaries that have a currency other than the euro, are recognized in other comprehensive income and presented in the (foreign currency) translation reserve, a separate component within equity, as are translation differences of financial liabilities designated as hedges of such investments (net investment hedge), to the extent that the hedge is effective. The gain or loss relating to the ineffective part is recognized immediately in net finance costs.
If the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation differences is allocated to the non-controlling interests.
Whenever a foreign operation is disposed of, these translation differences are released or charged to the statement of comprehensive income as part of the gain or loss on disposal.
north america
france
the netherlands
germany
belgium & luxembourg
italy
| iberia
other european countries
rest of the world
other subsidiaries
|
A list of all subsidiaries has been filed at the Chamber of Commerce in Amsterdam ('Kamer van Koophandel', Amsterdam; Chamber of Commerce number 33216172; Legal Entity Identification number 7245009EAAUUQJ0U4T57). Randstad N.V. has, directly or indirectly, a 100% interest in all subsidiaries, unless stated otherwise.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-556": { "value": "28.1 subsidiaries Subsidiaries are companies controlled by Randstad N.V. Control exists when Randstad is exposed to or has rights to variable returns from its involvement with subsidiary companies and has the ability to influence those returns through its power over the subsidiary, generally accompanying a shareholding of more than 50% of the voting rights. Subsidiaries are consolidated from the date that such control commences until the date that it ceases. Intragroup balances and intragroup transactions are eliminated, as well as any unrealized gains from these transactions. Unrealized losses from intragroup transactions are also eliminated, unless there is evidence of impairment of the assets transferred. Intragroup transactions take place on an arm's length basis. 28.2 financial statements of group companies Upon translation of foreign activities, the assets and liabilities of operations in currencies other than the euro, including goodwill and fair-value adjustments arising on consolidation, are translated into euros at the foreign exchange rates at the balance sheet date. The income statements of these operations in currencies other than the euro are translated into euros at average exchange rates. Upon the acquisition of a subsidiary that has a currency other than the euro, balance sheet items are translated into euros at the foreign exchange rates at the acquisition date. 28.3 net investment in subsidiaries that have a currency other than the euro The net investment in subsidiaries that have a currency other than the euro includes the participation in the net assets of these subsidiaries, and, if applicable, loans to these subsidiaries, settlement of which is neither planned nor expected to occur in the foreseeable future. Translation differences that occur upon consolidation, relating to the translation of the net investment in subsidiaries that have a currency other than the euro, are recognized in other comprehensive income and presented in the (foreign currency) translation reserve, a separate component within equity, as are translation differences of financial liabilities designated as hedges of such investments (net investment hedge), to the extent that the hedge is effective. The gain or loss relating to the ineffective part is recognized immediately in net finance costs. If the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation differences is allocated to the non-controlling interests. Whenever a foreign operation is disposed of, these translation differences are released or charged to the statement of comprehensive income as part of the gain or loss on disposal. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-558": { "value": " 28.3 net investment in subsidiaries that have a currency other than the euro The net investment in subsidiaries that have a currency other than the euro includes the participation in the net assets of these subsidiaries, and, if applicable, loans to these subsidiaries, settlement of which is neither planned nor expected to occur in the foreseeable future. Translation differences that occur upon consolidation, relating to the translation of the net investment in subsidiaries that have a currency other than the euro, are recognized in other comprehensive income and presented in the (foreign currency) translation reserve, a separate component within equity, as are translation differences of financial liabilities designated as hedges of such investments (net investment hedge), to the extent that the hedge is effective. The gain or loss relating to the ineffective part is recognized immediately in net finance costs. If the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation differences is allocated to the non-controlling interests. Whenever a foreign operation is disposed of, these translation differences are released or charged to the statement of comprehensive income as part of the gain or loss on disposal. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-560": { "value": " 29 share-based compensations The company has various share-based compensation arrangements that are settled in ordinary shares. The fair value of these share-based compensations, calculated on grant date, is based on valuation models, taking into account relevant market conditions and non-market vesting conditions. The fair value is included in personnel expenses in the vesting period during which the expected employee services are received. The same amount is credited to shareholders' equity. At each balance sheet date, the company reassesses its estimates of the non-market vesting conditions under these share-based compensation arrangements. The impact of the revision on original estimates with respect to the past vesting period, if any, is recognized in personnel expenses immediately, with a corresponding adjustment to shareholders' equity. Within the Group, a number of share-based compensation arrangements are in effect: performance share plans for Executive Board members and senior management, a share matching plan for Executive Board members, and a share purchase plan for all corporate employees. The actual annual grant of performance shares will, in principle, not exceed 1% of the ordinary issued capital. However, depending on the realization of related performance targets and the company's actual share price, the number of shares to be issued in relation to vesting of the performance shares might in a certain year exceed the 1% limit. 29.1 performance share plans 29.1.1 executive board performance share plan Conditional performance shares have been granted annually to the members of the Executive Board. The plan has a term of three years. The number of shares to vest depends on the company's TSR performance compared to a peer group of 18 companies (2021: 18 peers) measured over a three-year period starting on January 1 of the year of grant. The number of shares to vest also depends on achieving certain non financial performance targets. All performance share plans are equity-settled. The fair value is determined as at the date of each grant, based on a Monte Carlo simulation model. Volatility of the shares of the peer companies, as well as the pair-wise correlation between all peer shares, is estimated on the basis of historical daily prices over three years. Estimated dividends of the peer companies are based on historical dividends. The fair value is charged to the income statement during the vesting period, based on the on-target awards of the TSR part of each plan and on the expected outcome of the non-financial performance targets. At each balance sheet date, the non-market conditions (attrition and non-financial performance) are reassessed; any adjustment is charged to the income statement. The shares yet to be vested of a Board member who resigns from the Group within the three-year vesting period will, in principle, be forfeited. 29.1.2 senior management performance share plan Terms and conditions of the senior management performance share plan are identical to those of the Executive Board. The performance shares 2019 of the Executive Board and senior management vested on December 31, 2021, based on relative TSR performance and reaching certain non-financial targets of the company, resulting in 893,287 shares being allocated in February 2022 (share price at allocation date: \u20ac\u00a064.54), compared to an on-target award of 620,030 shares. The performance shares 2020 of the Executive Board and senior management vested on December 31, 2022, based on relative TSR performance and reaching certain non-financial targets of the company, resulting in 939.570 shares to be allocated in February 2023, compared to an on-target award of 587.307 shares. The expenses charged to the 2022 income statement amount to \u20ac\u00a029.9 million (2021: \u20ac\u00a034.1 million). 29.1.3 retention performance share plan In 2017, conditional performance shares were granted to certain senior management as part of a retention plan. These shares vested based on performance during the vesting periods 2017\u20132019, 2017\u20132020, and 2017\u20132021. The performance conditions are non-market conditions; possible adjustments due to the yearly assessment of conditional performance are charged to the income statement. The third and last tranche vested in December 2021. Performance targets resulted in an allocation of 12,997 shares being allocated in April 2022 (share price at allocation date \u20ac\u00a055,04) compared to an the on-target award of 10,316 shares. The final measurement of the performance conditions resulted in a release to the 2022 income statement of \u20ac\u00a00.2 million (2021: charge of \u20ac\u00a00.3 million). 29.1.4 other share plans These share plans are implemented to reward the participants for specific contributions. The shares granted are conditional, and vesting depends on performance on non-market-based conditions and/or the rendering of employee services during the vesting periods. The vesting periods on the remaining shares to vest vary from 1 to 2 years. The expenses charged to the 2022 income statement amount to \u20ac\u00a00.4 million (2021: \u20ac\u00a00.4 million). In 2022, after vesting in June, 25,557 shares were allocated at on-target awards (share price at allocation date: \u20ac\u00a050.90). parameters used for fair-value determination \u00a02022 2021 2020 \u00a0\u00a0\u00a0\u00a0Average share price at grant date \u20ac\u00a064.54 \u20ac\u00a056.20 \u20ac\u00a053.18 Expected volatility, based on historical prices over the three-year period to the valuation date 33.0% 33.0% 22.0% Expected dividends 8.0% 6.0% 7.6% Risk-free interest rate (yield on Dutch government bonds) 0.0% (0.5%) (0.4%) details of performance and matching share plans year of grant number of shares (x 1,000) on target average fair value at grant date per share (in \u20ac) january 1, 2022 granted forfeitures allocated in 2022 december 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02017 8 \u00a0\u00a0(8) - 50.44 2018 2 \u00a0\u00a0(2) - 53.87 2019 648 \u00a0\u00a0(648) - 39.37 2020 632 \u00a0(30) (2) 600 42.59 2021 642 \u00a0(64) \u00a0578 45.89 2022 \u00a0685 (75) \u00a0610 52.32 Total 1,932 685 (169) (660) 1,788 \u00a0 29.2 share purchase plan for corporate employees Under the share purchase plan, participating corporate employees may purchase shares through Stichting Randstad Optiefonds twice a year. The maximum amount to be spent within the plan is set annually at 5% of the participant's annual salary. Employees receive a number of bonus shares equal to 50% of the number of shares purchased; these bonus shares vest over a period of six months, only if employees hold on to the purchased shares for the same period of six months. For shares purchased as of May 1, 2022, the employees receive an additional bonus of 50% of bonus shares if they hold the purchased shares for 12 months. All bonus shares will vest under the condition that employees are employed by the Group during the vesting periods. The bonus shares are expensed by the company over the vesting period (2022: \u20ac\u00a018.4 million; 2021: \u20ac\u00a08.8 million). In 2022, a total of 226,297 (2021: 166,619) bonus shares were allocated to employees. 29.3 executive board share matching plan In line with the company's remuneration policy, 25% of the net annual bonus of the Executive Board is paid out in Randstad shares. After three years, these shares will be matched 1:1 subject to a sustainable performance of the Company and at the discretion of the Supervisory Board. Executive Board members are allowed to voluntarily convert an additional 25% of the net annual bonus with the same matching principles. The expenses recorded for the matching of shares amount to \u20ac\u00a00.3 million in 2022 (2021: \u20ac\u00a00.2 million). As a result of the 2018 annual bonus, 4,176 shares were matched 1:1. These shares were allocated in February 2022 at a share price of \u20ac\u00a064.54. 29.4 total share-based compensations in millions of \u20ac 2022 2021 \u00a0\u00a0\u00a0Performance share plans 29.9 34.1 Retention performance share plan -0.2 0.3 Other share plans 0.4 0.4 Share purchase plan 18.4 8.8 Share matching plan 0.3 0.2 Total share-based compensations 48.8 43.8 ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-482": { "value": " 29.1 performance share plans 29.1.1 executive board performance share plan Conditional performance shares have been granted annually to the members of the Executive Board. The plan has a term of three years. The number of shares to vest depends on the company's TSR performance compared to a peer group of 18 companies (2021: 18 peers) measured over a three-year period starting on January 1 of the year of grant. The number of shares to vest also depends on achieving certain non financial performance targets. All performance share plans are equity-settled. The fair value is determined as at the date of each grant, based on a Monte Carlo simulation model. Volatility of the shares of the peer companies, as well as the pair-wise correlation between all peer shares, is estimated on the basis of historical daily prices over three years. Estimated dividends of the peer companies are based on historical dividends. The fair value is charged to the income statement during the vesting period, based on the on-target awards of the TSR part of each plan and on the expected outcome of the non-financial performance targets. At each balance sheet date, the non-market conditions (attrition and non-financial performance) are reassessed; any adjustment is charged to the income statement. The shares yet to be vested of a Board member who resigns from the Group within the three-year vesting period will, in principle, be forfeited. 29.1.2 senior management performance share plan Terms and conditions of the senior management performance share plan are identical to those of the Executive Board. The performance shares 2019 of the Executive Board and senior management vested on December 31, 2021, based on relative TSR performance and reaching certain non-financial targets of the company, resulting in 893,287 shares being allocated in February 2022 (share price at allocation date: \u20ac\u00a064.54), compared to an on-target award of 620,030 shares. The performance shares 2020 of the Executive Board and senior management vested on December 31, 2022, based on relative TSR performance and reaching certain non-financial targets of the company, resulting in 939.570 shares to be allocated in February 2023, compared to an on-target award of 587.307 shares. The expenses charged to the 2022 income statement amount to \u20ac\u00a029.9 million (2021: \u20ac\u00a034.1 million). 29.1.3 retention performance share plan In 2017, conditional performance shares were granted to certain senior management as part of a retention plan. These shares vested based on performance during the vesting periods 2017\u20132019, 2017\u20132020, and 2017\u20132021. The performance conditions are non-market conditions; possible adjustments due to the yearly assessment of conditional performance are charged to the income statement. The third and last tranche vested in December 2021. Performance targets resulted in an allocation of 12,997 shares being allocated in April 2022 (share price at allocation date \u20ac\u00a055,04) compared to an the on-target award of 10,316 shares. The final measurement of the performance conditions resulted in a release to the 2022 income statement of \u20ac\u00a00.2 million (2021: charge of \u20ac\u00a00.3 million). 29.1.4 other share plans These share plans are implemented to reward the participants for specific contributions. The shares granted are conditional, and vesting depends on performance on non-market-based conditions and/or the rendering of employee services during the vesting periods. The vesting periods on the remaining shares to vest vary from 1 to 2 years. The expenses charged to the 2022 income statement amount to \u20ac\u00a00.4 million (2021: \u20ac\u00a00.4 million). In 2022, after vesting in June, 25,557 shares were allocated at on-target awards (share price at allocation date: \u20ac\u00a050.90). parameters used for fair-value determination \u00a02022 2021 2020 \u00a0\u00a0\u00a0\u00a0Average share price at grant date \u20ac\u00a064.54 \u20ac\u00a056.20 \u20ac\u00a053.18 Expected volatility, based on historical prices over the three-year period to the valuation date 33.0% 33.0% 22.0% Expected dividends 8.0% 6.0% 7.6% Risk-free interest rate (yield on Dutch government bonds) 0.0% (0.5%) (0.4%) details of performance and matching share plans year of grant number of shares (x 1,000) on target average fair value at grant date per share (in \u20ac) january 1, 2022 granted forfeitures allocated in 2022 december 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02017 8 \u00a0\u00a0(8) - 50.44 2018 2 \u00a0\u00a0(2) - 53.87 2019 648 \u00a0\u00a0(648) - 39.37 2020 632 \u00a0(30) (2) 600 42.59 2021 642 \u00a0(64) \u00a0578 45.89 2022 \u00a0685 (75) \u00a0610 52.32 Total 1,932 685 (169) (660) 1,788 \u00a0 29.4 total share-based compensations in millions of \u20ac 2022 2021 \u00a0\u00a0\u00a0Performance share plans 29.9 34.1 Retention performance share plan -0.2 0.3 Other share plans 0.4 0.4 Share purchase plan 18.4 8.8 Share matching plan 0.3 0.2 Total share-based compensations 48.8 43.8 ", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-561": { "value": " 30 related-party transactions Related party transactions are transfers of resources, services or obligations between the reporting entity and a related party. Related party transactions are conducted at arms length. 30.1 key management The members of the Executive Board and Supervisory Board are considered the key management of the Group. Details of the remuneration of the members of the Executive Board and Supervisory Board are included in the governance section of the annual report, under remuneration report . 30.2 remuneration of the members of the executive board The totals of the remuneration of the members of the Executive Board are included in the income statement. The expenses for performance shares refer to the fair value of share-based payments charged to the income statement for the years 2022 and 2021 respectively. The estimated costs on benefits pursuant to Article 32bb of the Dutch wage tax act amount to \u20ac\u00a04 million in 2022 and are included in social\u00a0charges and taxes (2021: \u20ac\u00a00). The Group has not issued any loans, commitments to provide loans, or guarantees to Executive Board members. Pension expenses related to Dutch-based Board members include compensation for the limitation of accrual of pension rights in 2022 and 2021. executive board remuneration \u00a02022 2021 \u00a0\u00a0\u00a0Fixed compensation \u00a0\u00a0Base salary 5,207 4,548 Compensation for departure 2,000 - Fringe benefits 86 68 \u00a07,293 4,616 Variable compensation \u00a0\u00a0Short-term bonus 3,733 4,245 Share-based compensations 5,007 6,017 \u00a08,740 10,262 \u00a0\u00a0\u00a0Pension expenses 1,406 1,226 Social charges and taxes 4,457 146 Total 21,896 16,250 x \u20ac\u00a01,000 number of performance and matching shares outstanding \u00a0january 1, 2022 new shares on target 20221 transfer forfeitures performance adjustment at allocation 2022 allocated in february 2022 december 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total performance shares outstanding of Executive Board members 331,444 111,613 (48,120) (45,688) 51,027 (166,808) 233,468 Total matching shares outstanding of Executive Board members 17,071 12,805 (3,023) (4,415) - (4,176) 18,262 Total shares outstanding of Executive Board members 348,515 124,418 (51,143) (50,103) 51,027 (170,984) 251,730 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total shares outstanding of former Executive Board members \u00a0\u00a051,143 \u00a0\u00a0\u00a051,143 The number of shares on target 2022 refer to the shares granted according to the executive performance plan (29.1) and the share matching plan (29.3). The performance shares 2019 were allocated in February 2022. The allocation amounted to 144% of the on-target award (share price at allocation date: \u20ac\u00a064.54). The performance shares 2020 vested on December 31, 2022, based on relative TSR performance of the company and the achievement of certain non-financial targets over the period January 1, 2020 \u2212 December 31, 2022, resulting in an overall vesting of 160% of the on-target award of 111.460 shares. Allocation after vesting of conditional shares awarded in 2020, 2021 and 2022 will take place in February 2023, 2024 and 2025 respectively. number of ordinary shares in randstad nv held by executive board \u00a02022 2021 \u00a0\u00a0\u00a0Unrestricted ordinary shares 51,337 60,744 Locked-up ordinary shares 133,452 106,390 Total 184,789 167,134 as at december 31 For the conditions and criteria governing the granting and vesting of performance shares, see note 29.1. 30.3 remuneration of the members of the supervisory board Remuneration of the members of the Supervisory Board is included in the income statement. The remuneration is fixed and includes gross expense allowances. In 2022, the total remuneration amounted to \u20ac\u00a0628,500 (2021: \u20ac\u00a0656,800). Total remuneration of former Supervisory Board members amounted to \u20ac\u00a00 (2021 \u20ac\u00a024,000). The Group has not issued any loans, commitments to provide loans, or guarantees to members of the Supervisory Board. 30.4 other related-party transactions The founder of the Randstad Group has an interest in a legal entity, which, based on the 'Wet financieel toezicht' (Act on Financial Supervision), is registered as a shareholder of Randstad N.V. in the 30% \u2212 40% category. Stichting Randstad Optiefonds, in its capacity as shareholder of the company, delivered 144,630 Randstad shares in 2022 to the Group by way of share contribution amounting to \u20ac\u00a07.3 million. These shares were subsequently delivered to the employees of the company as part of the share purchase plan (see note 29.2). The rental expenses of the ship Clipper Stad Amsterdam for promotional activities were \u20ac\u00a03 million (2021: \u20ac\u00a02 million). For transactions with company pension funds through which certain pension schemes are operated, see note 24.2 under 'Employee benefit obligations'. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-484": { "value": " 30 related-party transactions Related party transactions are transfers of resources, services or obligations between the reporting entity and a related party. Related party transactions are conducted at arms length. 30.1 key management The members of the Executive Board and Supervisory Board are considered the key management of the Group. Details of the remuneration of the members of the Executive Board and Supervisory Board are included in the governance section of the annual report, under remuneration report . 30.2 remuneration of the members of the executive board The totals of the remuneration of the members of the Executive Board are included in the income statement. The expenses for performance shares refer to the fair value of share-based payments charged to the income statement for the years 2022 and 2021 respectively. The estimated costs on benefits pursuant to Article 32bb of the Dutch wage tax act amount to \u20ac\u00a04 million in 2022 and are included in social\u00a0charges and taxes (2021: \u20ac\u00a00). The Group has not issued any loans, commitments to provide loans, or guarantees to Executive Board members. Pension expenses related to Dutch-based Board members include compensation for the limitation of accrual of pension rights in 2022 and 2021. executive board remuneration \u00a02022 2021 \u00a0\u00a0\u00a0Fixed compensation \u00a0\u00a0Base salary 5,207 4,548 Compensation for departure 2,000 - Fringe benefits 86 68 \u00a07,293 4,616 Variable compensation \u00a0\u00a0Short-term bonus 3,733 4,245 Share-based compensations 5,007 6,017 \u00a08,740 10,262 \u00a0\u00a0\u00a0Pension expenses 1,406 1,226 Social charges and taxes 4,457 146 Total 21,896 16,250 x \u20ac\u00a01,000 number of performance and matching shares outstanding \u00a0january 1, 2022 new shares on target 20221 transfer forfeitures performance adjustment at allocation 2022 allocated in february 2022 december 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total performance shares outstanding of Executive Board members 331,444 111,613 (48,120) (45,688) 51,027 (166,808) 233,468 Total matching shares outstanding of Executive Board members 17,071 12,805 (3,023) (4,415) - (4,176) 18,262 Total shares outstanding of Executive Board members 348,515 124,418 (51,143) (50,103) 51,027 (170,984) 251,730 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total shares outstanding of former Executive Board members \u00a0\u00a051,143 \u00a0\u00a0\u00a051,143 The number of shares on target 2022 refer to the shares granted according to the executive performance plan (29.1) and the share matching plan (29.3). The performance shares 2019 were allocated in February 2022. The allocation amounted to 144% of the on-target award (share price at allocation date: \u20ac\u00a064.54). The performance shares 2020 vested on December 31, 2022, based on relative TSR performance of the company and the achievement of certain non-financial targets over the period January 1, 2020 \u2212 December 31, 2022, resulting in an overall vesting of 160% of the on-target award of 111.460 shares. Allocation after vesting of conditional shares awarded in 2020, 2021 and 2022 will take place in February 2023, 2024 and 2025 respectively. number of ordinary shares in randstad nv held by executive board \u00a02022 2021 \u00a0\u00a0\u00a0Unrestricted ordinary shares 51,337 60,744 Locked-up ordinary shares 133,452 106,390 Total 184,789 167,134 as at december 31 For the conditions and criteria governing the granting and vesting of performance shares, see note 29.1. 30.3 remuneration of the members of the supervisory board Remuneration of the members of the Supervisory Board is included in the income statement. The remuneration is fixed and includes gross expense allowances. In 2022, the total remuneration amounted to \u20ac\u00a0628,500 (2021: \u20ac\u00a0656,800). Total remuneration of former Supervisory Board members amounted to \u20ac\u00a00 (2021 \u20ac\u00a024,000). The Group has not issued any loans, commitments to provide loans, or guarantees to members of the Supervisory Board. 30.4 other related-party transactions The founder of the Randstad Group has an interest in a legal entity, which, based on the 'Wet financieel toezicht' (Act on Financial Supervision), is registered as a shareholder of Randstad N.V. in the 30% \u2212 40% category. Stichting Randstad Optiefonds, in its capacity as shareholder of the company, delivered 144,630 Randstad shares in 2022 to the Group by way of share contribution amounting to \u20ac\u00a07.3 million. These shares were subsequently delivered to the employees of the company as part of the share purchase plan (see note 29.2). The rental expenses of the ship Clipper Stad Amsterdam for promotional activities were \u20ac\u00a03 million (2021: \u20ac\u00a02 million). For transactions with company pension funds through which certain pension schemes are operated, see note 24.2 under 'Employee benefit obligations'. ", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-485": { "value": " 30 related-party transactions Related party transactions are transfers of resources, services or obligations between the reporting entity and a related party. Related party transactions are conducted at arms length. 30.1 key management The members of the Executive Board and Supervisory Board are considered the key management of the Group. Details of the remuneration of the members of the Executive Board and Supervisory Board are included in the governance section of the annual report, under remuneration report . 30.2 remuneration of the members of the executive board The totals of the remuneration of the members of the Executive Board are included in the income statement. The expenses for performance shares refer to the fair value of share-based payments charged to the income statement for the years 2022 and 2021 respectively. The estimated costs on benefits pursuant to Article 32bb of the Dutch wage tax act amount to \u20ac\u00a04 million in 2022 and are included in social\u00a0charges and taxes (2021: \u20ac\u00a00). The Group has not issued any loans, commitments to provide loans, or guarantees to Executive Board members. Pension expenses related to Dutch-based Board members include compensation for the limitation of accrual of pension rights in 2022 and 2021. executive board remuneration \u00a02022 2021 \u00a0\u00a0\u00a0Fixed compensation \u00a0\u00a0Base salary 5,207 4,548 Compensation for departure 2,000 - Fringe benefits 86 68 \u00a07,293 4,616 Variable compensation \u00a0\u00a0Short-term bonus 3,733 4,245 Share-based compensations 5,007 6,017 \u00a08,740 10,262 \u00a0\u00a0\u00a0Pension expenses 1,406 1,226 Social charges and taxes 4,457 146 Total 21,896 16,250 x \u20ac\u00a01,000 number of performance and matching shares outstanding \u00a0january 1, 2022 new shares on target 20221 transfer forfeitures performance adjustment at allocation 2022 allocated in february 2022 december 31, 2022 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total performance shares outstanding of Executive Board members 331,444 111,613 (48,120) (45,688) 51,027 (166,808) 233,468 Total matching shares outstanding of Executive Board members 17,071 12,805 (3,023) (4,415) - (4,176) 18,262 Total shares outstanding of Executive Board members 348,515 124,418 (51,143) (50,103) 51,027 (170,984) 251,730 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total shares outstanding of former Executive Board members \u00a0\u00a051,143 \u00a0\u00a0\u00a051,143 The number of shares on target 2022 refer to the shares granted according to the executive performance plan (29.1) and the share matching plan (29.3). The performance shares 2019 were allocated in February 2022. The allocation amounted to 144% of the on-target award (share price at allocation date: \u20ac\u00a064.54). The performance shares 2020 vested on December 31, 2022, based on relative TSR performance of the company and the achievement of certain non-financial targets over the period January 1, 2020 \u2212 December 31, 2022, resulting in an overall vesting of 160% of the on-target award of 111.460 shares. Allocation after vesting of conditional shares awarded in 2020, 2021 and 2022 will take place in February 2023, 2024 and 2025 respectively. number of ordinary shares in randstad nv held by executive board \u00a02022 2021 \u00a0\u00a0\u00a0Unrestricted ordinary shares 51,337 60,744 Locked-up ordinary shares 133,452 106,390 Total 184,789 167,134 as at december 31 For the conditions and criteria governing the granting and vesting of performance shares, see note 29.1. 30.3 remuneration of the members of the supervisory board Remuneration of the members of the Supervisory Board is included in the income statement. The remuneration is fixed and includes gross expense allowances. In 2022, the total remuneration amounted to \u20ac\u00a0628,500 (2021: \u20ac\u00a0656,800). Total remuneration of former Supervisory Board members amounted to \u20ac\u00a00 (2021 \u20ac\u00a024,000). The Group has not issued any loans, commitments to provide loans, or guarantees to members of the Supervisory Board. 30.4 other related-party transactions The founder of the Randstad Group has an interest in a legal entity, which, based on the 'Wet financieel toezicht' (Act on Financial Supervision), is registered as a shareholder of Randstad N.V. in the 30% \u2212 40% category. Stichting Randstad Optiefonds, in its capacity as shareholder of the company, delivered 144,630 Randstad shares in 2022 to the Group by way of share contribution amounting to \u20ac\u00a07.3 million. These shares were subsequently delivered to the employees of the company as part of the share purchase plan (see note 29.2). The rental expenses of the ship Clipper Stad Amsterdam for promotional activities were \u20ac\u00a03 million (2021: \u20ac\u00a02 million). For transactions with company pension funds through which certain pension schemes are operated, see note 24.2 under 'Employee benefit obligations'. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:7245009EAAUUQJ0U4T57", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "ixv-486": { "value": "| \u00a0 | 2022 | 2021 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
| Candidates working | 662,600 | 653,300 |
| Corporate employees | 46,190 | 39,530 |
| \u00a0 | Candidates working | Corporate employees | ||
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| North America | 91,100 | 92,900 | 7,100 | 6,530 |
| France | 87,300 | 84,200 | 4,830 | 4,460 |
| Netherlands | 68,900 | 72,000 | 4,140 | 3,890 |
| Italy | 59,500 | 53,800 | 2,980 | 2,490 |
| Germany | 38,500 | 38,300 | 2,920 | 2,860 |
| Belgium & Luxembourg | 44,000 | 44,200 | 2,410 | 2,080 |
| Iberia | 61,800 | 60,400 | 2,610 | 2,160 |
| Other European countries | 60,200 | 63,400 | 4,020 | 3,670 |
| Rest of the world | 142,300 | 134,600 | 6,470 | 5,530 |
| Global Businesses | 9,000 | 9,500 | 8,290 | 5,540 |
| Corporate | - | - | 420 | 320 |
| Total | 662,600 | 653,300 | 46,190 | 39,530 |