Annual Report 2021

Notes to the consolidated profit and loss account

Net turnover

The management fees relate to the fees received for the performed asset management activities less custody fees and fees for pension management. The increase in asset management fees mainly relates to the increase in the assets under management and the increase in fixed fee due to increased strategic activities.

Other operating income (11)
This consists of realized income other than that arising directly from the administration contracts with pension funds and asset management for third parties.

Segmented information on net turnover

The segmented information is mainly in accordance with the legal structure of APG Group, whereby there is segmentation into APG Asset Management, APG DWS en Fondsenbedrijf and supporting services.

Operating expenses

Costs of outsourced work and other external costs (12)
This item includes the cost of hiring external staff, auditor’s costs, and consultancy costs.

Employee pension scheme
The pension scheme has been placed with Stichting Pensioenfonds ABP and PPF APG. Rights are accrued based on average pay and number of years of service, with conditional indexation. The pension scheme for the majority of the remaining employees has been placed with Stichting Personeelspensioenfonds APG. Rights are accrued based on average pay and number of years of service, with conditional indexation. APG Group has no obligation to make additional contributions in the event of shortfalls in these pension funds other than the payment of future contributions. Based on this so-called defined contribution scheme, it is sufficient for the company to report the contribution as a cost. The item Other personnel costs for the year 2021 includes the release of the provision for service anniversaries of € 4.8 million.

Specific schemes apply for most employees abroad.

Number of employees
In 2021 the group employed an average of 3,124 people (2020: 3,013), divided into the following segments.

In 2021 an average of 246 employees worked abroad (2020: 228). These employees are all employed by APG Asset Management.

Remuneration of Supervisory and Executive Board members (in euros)
The remuneration of Supervisory Board and Executive Board members is determined by the General Meeting of Shareholders.

Based on a decision of the State Secretary for Finance, the supervisory activities of the Supervisory Board members of APG will no longer be performed as VAT entrepreneur from May 7 2021 onward. Hence, the Supervisory Board members are no longer allowed to charge VAT for these activities. As a result, the amounts mentioned under 'Employer charges and taxes'  are lower in 2021 compared to 2020.

The column ‘direct salaries’ contains the fixed annual salary, the vacation allowance, and the year-end bonus. The column ‘compensation for reduction in pension accrual’ stems from a generic scheme at APG Group, whereby the reduction in the employer pension contribution due to the capping of pension accrual (2021: € 112,189 | 2020: € 110,111) accrues to the employee. The column ‘personnel charges’ contains the employer’s charges; the column ‘pension charges’ contains the charges for pension contributions. As of March 1 2021, Annette Mosman has been appointed as chairman of the Executive Board, which has resulted in an increase in remuneration for her.

The above table does not include compensation relating to mobility and vitality (2021: € 79,703 | 2020: € 98,349). The mobility and vitality allowances are both part of the Collective Labor Agreement, whereby with regard to mobility a choice can be made between a reimbursement whether a lease car and the vitality allowance contribute to an active and healthy lifestyle. 

All remuneration was unchanged except for the increase as per the collective labor agreement (CAO) which amounted to 1.5 percent for all APG Group employees in 2021. There are no early retirement schemes for members of the Executive Board.

Starting March 1st 2022, Ronald Wuijster will be re-appointed for a period of four years. Because of the performed achievements during his first term, his fixed remuneration will increase as of March 1, 2022 with € 40.000 per year (half of which in free time). This increase was carefully weighed against the social aspect of asset management services for the pension sector. With this increase, Mr. Wuijster is being remunerated below the market benchmarks. 

No loans, advances, or guarantees have been provided to current or former members of the Executive or Supervisory Board.

The increase in the item "Accommodation costs" in 2021 is a result of the move to a new office building which has caused double rental charges. In addition, the accommodation costs include an amount of € 6.1 million for the provision for the onerous rental contract for the old office building. 

Interest and similar income (16)

Interest income mainly relates to the revaluation of securities accounted for under financial non-current assets (2020: € 1.0 million). 

Interest and similar expenses (17)

The financial charges are mainly interest charges on current accounts. No interest or similar expenses pertained to related parties (2020: zero).

Taxes (18)
The taxes in the consolidated profit and loss account can be specified as follows.

The effective tax rate over 2021 was 23.4 percent, compared to a nominal rate applicable in the Netherlands of 25 percent. The lower effective tax rate in 2021 is mainly caused by deviating tax rates in the foreign countries in which APG operates and an incidental effect resulting from the change in tax rate in the Netherlands as of 2022. As of 2022, the tax rate in the Netherlands increases from 25 percent to 25.8 percent. As a result of this increase, APG has valued its deferred tax assets at year-end at 25.8%. Without this incidental effect, the effective tax rate is 24.3 percent. In the foreign countries in which APG operates, APG pays taxes according to the tax rates applicable there, which are lower than the current tax rate in the Netherlands.

Share of profit/(loss) of associates (19)
The result from investees is the result from investees not included in the consolidation including impairment losses on investees.