Royal Kpn Nv · EURONEXT:KPN
Royal Kpn Nv — H1 2008 Earnings Presentation
76 slides from Royal Kpn Nv's earnings presentation, Jul 23, 2008
Slide 1: Half Year Results 2008
Half Year Results 2008 23 July 2008
Slide 2: Safe harbor
Safe harbor Certain statements contained in this presentation constitute forward-looking statements. These statements may include, without limitation, statements concerning future results of operations, the impact of regulatory initiatives on KPN’s operations, its and its joint ventures' share of ne
Slide 3: Disclaimer
Disclaimer We define EBITDA as operating result before depreciation and impairments of PP&E and amortization and impairments of intangible assets. Note that our definition of EBITDA deviates from the literal definition of earnings before interest, taxes, depreciation and amortization and should not
Slide 4: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Baptiest Coopmans, MD Consumer Eelco Blok, MD Business / W&O Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and
Slide 5: Highlights Q2
Highlights Q2 Strong performance across the group, outlook for the Netherlands upgraded • Visible results of ‘Back to Growth’ strategy – First quarter results beaten on all key metrics • Domestic performance ahead of expectations – Growth in new services, line loss further improving, wireless perfor
Slide 6: Financial highlights
Financial highlights • Strong financial performance Q2 ’08 – Revenues and other income of € 3.7 bn, up 22% – EBITDA flat at € 1.3 bn – Capex of € 0.5 bn, up 38% – Free cash flow1 of € 0.8 bn, on track to meet full-year guidance • Release of pension provisions of € 199 mn, solid position going forwar
Slide 7: Strategic progress the Netherlands
Strategic progress the Netherlands Acceleration in recent growth initiatives, new services selectively added Accelerating recent growth initiatives X 1,000 VoIP > 30% growth Broadband > 15% growth TV > 85% growth 983 2,382 2,402 2,443 2,471 923 2,344 636 847 553 733 786 2,114 497 650 414 337 296 101
Slide 8: Strategic progress the Netherlands (cont’d)
Strategic progress the Netherlands (cont’d) Main cost reduction initiatives defined until 2010, all segments contributing Opex 20071 Segment Cost reduction initiatives until 2010 (excl. D&A) • Simplification of processes and services Consumer ~€ 1.8 bn • ‘First time right’ processes • Focus on SAC/S
Slide 9: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Baptiest Coopmans, MD Consumer Eelco Blok, MD Business / W&O Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and
Slide 10: Group results
Group results Strong second quarter results, on track with ‘Back to Growth’ strategy € mn Q2 ’08 Q2 ’07 % YTD ’08 YTD ’07 % Revenues and other income 3,662 3,012 22% 7,232 5,936 22% – of which Revenues 3,654 2,957 24% 7,186 5,875 22% Operating expenses 3,006 2,363 27% 5,928 4,750 25% 1 – of which De
Slide 11: Group cash flow Q2 ’08
Group cash flow Q2 ’08 Free cash flow in line with guidance, seasonality effects largely reversed in Q2 € mn Q2 ’08 Q2 ’07 % • Free cash flow of € 0.8 bn in Q2 Operating result 656 649 1.1% – Working capital effect from Q1 reversed in Q2 ’08 Depreciation and amortization1 611 626 -2.4% – € 82 mn pro
Slide 12: Group financial profile
Group financial profile Smoothened redemption profile following bond issue in March € bn Debt Financing policy 12.1 11.9 12.1 10.7 2.5x 10.1 9.7 11.0 11.3 10.9 2.3 2.3 2.3 2.0x 10.0 2.1 1.8 1.9 9.3 8.8 Q1 ’07 Q2 ’07 Q3 ’07 Q4 ’07 Q1 ’08 Q2 ’08 Q1 ’07 Q2 ’07 Q3 ’07 Q4 ’07 Q1 ’08 Q2 ’08 Gross Debt Net
Slide 13: Pension provisions
Pension provisions Pension provisions release of € 199 mn in Q2 ’08, solid position going forward Release of pension provisions Pensions going forward • New Dutch collective labour • Solid pension position going forward agreement signed in March 2008 – Based on independent audit – Lower obligations
Slide 14: Restructuring provision the Netherlands
Restructuring provision the Netherlands Provision of € 207 mn covering majority of restructuring charges until 2010 Restructuring provision Restructuring charges going forward • FTE reduction plans as part of ‘Back • Provision covering majority of to Growth’ strategy finalized restructuring charges
Slide 15: EBITDA outlook in the Netherlands
EBITDA outlook in the Netherlands Upgrading outlook 2008 for the Netherlands excluding acquisitions € mn Underlying EBITDA the Netherlands1 • Further improvement in underlying -2 EBITDA in the Netherlands1 7 8 11 5 4 11 – EBITDA up € 18 mn in Q2 ’08, or 2 4 21 2.1% y-on-y 884 924 – € 20 mn additiona
Slide 16: Financial review the Netherlands by segment: Consumer and Business
Financial review the Netherlands by segment Solid revenue trends and strong margins in Consumer and Business • Solid revenue trend from improving line loss and growth in new services 17.5% 19.0% 17.0% 19.8% 20.1% 14.9% • Market share and net adds improving Consumer 1,037 1,032 1,053 1,011 1,007 980
Slide 17: Financial review the Netherlands by segment: Getronics, Wholesale & Operations
Financial review the Netherlands by segment (cont’d) Solid performance Getronics, lower margins at W&O from consolidation iBasis • Solid revenues in Q2 ’08, especially in 6.7% the Benelux Getronics1 4.7% 4.7% • High EBITDA margin in Q2 due to € 9 mn book gain on Getronics Italy 488 515 504 • € 14 mn
Slide 18: Financial review Mobile International by segment: E-Plus, BASE
Financial review Mobile International by segment Strong revenue growth at E-Plus and BASE with solid margins • 8.1% service revenue growth in Q2 36.2% 39.8% 37.6% 36.6% 37.6% 38.1% • Consolidation effect from SMS Michel and Blau Mobilfunk (€ 28 mn) 808 E-Plus 736 769 760 755 698 • Negative impact fr
Slide 19: Financial review Mobile International by segment (cont’d)
Financial review Mobile International by segment (cont’d) Continued growth in wholesale and contribution from recent acquisitions • Revenue increase from higher Mobile Wholesale NL subscription fees and traffic-related 41.2% 42.4% 40.2% 36.4% 38.6% revenues 33.7% • Negative impact from MTA reduction
Slide 20: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Baptiest Coopmans, MD Consumer Eelco Blok, MD Business / W&O Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and
Slide 21: Simplification Consumer
Simplification Consumer Focused operations to accelerate growth and achieve structurally lower costs • Rebranding well on track, number of brands already Reduction in halved from ten to five brands • Broadband service portfolio substantially simplified Simplified • Simplified installation packages a
Slide 22: Consumer wireline voice
Consumer wireline voice Net line loss further reduced to 40k through retention offers and VoIP growth X 1,000 Net line loss1 • Net line loss further reduced to 40k in Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q2 ’08 – 45k loss in KPN retail subscribers and 5k -40 -70 change in Consumer WLR -100 -90
Slide 23: Consumer broadband
Consumer broadband Differentiating strategy to maximize customer value in broadband mn Broadband subscribers1 • Broadband market share stable at 44% 72% 73% 75% 76% 78% 78% – Continued market growth, despite very high broadband penetration 5.6 5.7 5.2 5.3 5.4 5.5 – KPN focusing on high-value custome
Slide 24: Consumer TV
Consumer TV Strategy aimed at creating meaningful scale in Dutch TV market x 1,000 TV subscribers • Continued strong growth in TV 20% 17% 18% 19% – 636k subscribers at end Q2 ’08, up 89% 13% 14% – Both Digitenne (DVB-T) and Interactive TV contributing to record net adds 636 497 553 • Continued netwo
Slide 25: Consumer wireless
Consumer wireless Upward trend from Q1 with service revenues and market share improving mn Continued growth in Post Paid1 • Focus on growing overall market size 6.2 6.0 6.1 5.9 5.9 6.1 – Step-up in commercial activities for new 2.4 2.4 2.5 2.5 2.6 2.7 services, e.g. wireless data and DVB-H 41% 41% 4
Slide 26: Wireless data
Wireless data Strong growth in wireless data, especially in non-SMS data services Non-voice as % of ARPU (SMS and data) • Revenues from wireless data almost 23% doubled since Q2 ’07 21% 22% 20% 18% 18% 19% 19% 21% 22% • Rapid growth in non-SMS data services, 16% 16% both in Consumer and Business – C
Slide 27: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Baptiest Coopmans, MD Consumer Eelco Blok, MD Business / W&O Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and
Slide 28: Business – Infrastructure Services
Business – Infrastructure Services Maintaining strong position in traditional services, growth in new services Traditional services • Maintaining strong position in traditional 35 34 34 33 32 services, while gradually migrating 30 customers to new world 1.79 1.75 1.70 1.68 1.66 1.61 • Resilient perf
Slide 29: Business – wireless services
Business – wireless services Trends improving from Q1 with service revenues almost flat in Q2 mn Subscribers up 9.6% y-on-y • Focus on maintaining market share and 31% 33% 35% 37% 38% retaining high-value corporate customers 29% • Customer base up 9.6% y-on-y 1.21 1.25 1.28 1.30 1.33 1.36 – Growth c
Slide 30: Business – ICT Services
Business – ICT Services ICT revenues back to level of previous quarters € mn Revenues ICT Services • Revenues from PABX business back on track following temporary decline in Q1 – Order intake and market share recovered 131 150 • Continued strong growth in online ICT 128 130 124 130 applications – Al
Slide 31: Getronics
Getronics Solid performance in Q2, strong progress in divestment program • Solid operational performance in Q2 ’08 Operational – Performance in the Benelux in line with expectations performance – UK and US operations impacted by exchange rate effects Q2 ’08 • Major 6-year contract won with CSC for 6
Slide 32: Getronics divestments
Getronics divestments Strong progress on divestments North America Non-core operations Benelux • Strategic partnership with CompuCom • Disposal of non-core operations in the in North America signed in June Benelux, as announced in February – Strengthening position in workspace management • IT soluti
Slide 33: All-IP status
All-IP status Simplification and asset optimization leading to substantial savings • Fiber network rollout linked to commercial strategy in Consumer and Business Commercial – FttC / FttH substantially strengthening competitive position versus cable strategy • Commercial attractiveness and potential
Slide 34: All-IP rollout
All-IP rollout Proven fiber rollout capability by end of 2008, mass FttC rollout as of 2009 • First customers activated on FttC • Commercial propositions, IT and processes ready • Fiber rings rolled out, deployment of street cabinets and active FttC equipment ongoing • 300k homes connected by end of
Slide 35: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Baptiest Coopmans, MD Consumer Eelco Blok, MD Business / W&O Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and
Slide 36: German market
German market E-Plus consistently outperforming German market Service revenue growth • E-Plus consistently outperforming 9.8% 10.9% 10.0% German market 7.8% 8.4% 8.1% 6.8% – E-Plus ~8% ahead of average 4.2% market growth in past year 2.5% 2.9% – Showing sustained success of 1% challenger strategy 1%
Slide 37: Operating review E-Plus
Operating review E-Plus Continued profitable growth with record net adds in Q2 ’08 Record net adds • Record net adds of 780k in Q2 ’08 15.4 16.2 14.1 14.8 – Customer base exceeds 16 mn 13.1 13.6 92 – Highest quarterly growth since 2000 127 – Additional contribution from retail chain 88 48 22 55 SMS
Slide 38: Operating review BASE
Operating review BASE Service revenues returning to growth, positive impact from new MTA regulation Continued customer growth • Customer base increased 20% y-on-y 2.9 3.0 3.1 2.6 2.7 – Net adds of 102k in Q2 ’08 2.5 – Growing share of Post Paid 4 6 6 18 23 15 • New MTA regulation implemented 137 94
Slide 39: Operating review Mobile Wholesale NL
Operating review Mobile Wholesale NL Ongoing growth from wholesale partnerships X 1,000 Net adds • Maintaining market leading position in 21 competitive Dutch MVNO market 15 – Solid net adds of 76k in Q2 ’08 36 49 70 33 75 – Growth in both Post Paid and Pre Paid 36 41 25 27 -33 • Service revenue gro
Slide 40: Mobile International - Other
Mobile International - Other Recent acquisitions and new businesses starting to contribute • Off to a good start, customer growth in line with expectations • New brand partner ‘XL móvil’ launched in June MVNO Spain – Leveraging distribution through travel agencies and media presence – Targeted at yo
Slide 41: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review The Netherlands Baptiest Coopmans, MD Consumer Eelco Blok, MD Business / W&O Operating review Mobile Int’l Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and
Slide 42: Concluding remarks
Concluding remarks Strong performance across the group, outlook for the Netherlands upgraded • Visible results of ‘Back to Growth’ strategy – First quarter results beaten on all key metrics • Domestic performance ahead of expectations – Growth in new services, line loss further improving, wireless p
Slide 43: Q&A
Q&A
Slide 44: Annex
Annex For further information please contact KPN Investor Relations Tel: +31 70 44 61583 Fax: +31 70 44 60593 [email protected] www.kpn.com/ir
Slide 45: Analysis of results
Analysis of results Key items worth mentioning in results interpretation € mn Q2 ’08 Q2 ’07 YTD ’08 YTD ’07 Revenue effect MTA tariff reduction Group -36 -35 -79 -66 EBITDA effect MTA tariff reduction Group -18 -19 -43 -33 Book gain on sale of subsidiaries Other/W&O 6 4 Book gain on sale of real est
Slide 46: MTA regulation
MTA regulation 15 Aug ’07 € cents per minute 1 July ’08 1 April ’09 1 July ’09 KPN 10.0 9.0 8.0 7.0 The Netherlands Vodafone 10.0 9.0 9.0 7.0 T-Mobile 11.4 10.4 10.4 8.1 Avg. asymmetry 1.4 1.4 2.4 1.1 • MTA tariffs valid from 1 December 2007 until 31 March 2009 Germany – T-Mobile / Vodafone lowered
Slide 47: Impact MTA reduction
Impact MTA reduction1 € mn Q2 ’08 YTD ’08 2 2 Revenues EBITDA Revenues EBITDA E-Plus -12 -7 -23 -13 BASE3 -2 -1 -14 -10 Mobile Wholesale NL -3 -2 -5 -4 Mobile International -17 -10 -42 -27 Consumer -13 -7 -26 -14 Business -6 -1 -12 -2 Wholesale & Operations -5 - -9 - The Netherlands -24 -8 -47 -16 I
Slide 48: Restructuring charges
Restructuring charges € mn Q2 ’08 YTD ’08 E-Plus BASE Mobile Wholesale NL Mobile International - - Consumer -1 -3 Business - - Getronics -1 -2 Wholesale & Operations -10 -10 The Netherlands -12 -15 Other -209 -215 KPN Group -221 -230 48
Slide 49: Operating expenses
Operating expenses € mn Q2 ’08 Q2 ’07 % Salaries and social security contributions 438 349 26% Cost of materials 236 200 18% Work contracted out and other expenses 1,335 1,069 25% Own work capitalized -23 -29 -21% Other operating expenses 409 148 >150% Depreciation1 407 416 -2.2% Amortization1 204 2
Slide 50: Analysis operating expenses: Salaries & Cost of materials
Analysis operating expenses1 Salaries & Cost of materials € mn Salaries 18.0% Y-on-Y increase 16.4% • Impact of acquisitions, partly offset by headcount 11.8% 11.0% 11.8% 12.5% 12.0% reductions 5.9% Q-on-Q decrease 222 260 • Release of pension provision of € 199 mn 252 349 332 365 377 186 Q2 ’07 Q3
Slide 51: Analysis operating expenses: Work contracted out & Other
Analysis operating expenses1 Work contracted out & Other € mn Work contracted out Y-on-Y increase 39.6% 38.0% 38.4% 36.2% 37.4% • Higher wireless traffic volumes 37.1% 35.7% 36.5% • Partly offset by lower wireline volumes 103 126 115 Q-on-Q increase 1,126 1,224 1,145 1,209 • Higher wireless traffic
Slide 52: Analysis operating expenses: Depreciation & Amortization
Analysis operating expenses Depreciation & Amortization € mn Depreciation1 Y-on-Y decrease 14.1% • Lower asset base due to less CAPEX spending 12.6% 11.3% 11.6% 11.1% in prior years • € 13 mn accelerated depreciation from Telfort network integration in Q2 ’07 • Accelerated depreciation of € 18 mn on
Slide 53: Personnel
Personnel Continued underlying decline in the Netherlands • Personnel increase Y-on-Y of 18,095 FTE – 17,247 FTE increase from Getronics – 1,449 FTE reduction in the 43,531 43,409 42,976 Netherlands (excl. Getronics) – Reduction of 1,833 FTE in the 8,838 8,377 8,243 Netherlands excluding acquisition
Slide 54: Tax
Tax P&L Cash flow Fiscal units (€ mn) Q2 ’08 Q2 ’07 Q2 ’08 Q2 ’07 Dutch activities -82 -95 -85 -42 Getronics -1 - - - German Mobile activities -32 -12 - - Belgian Mobile activities -13 -11 - - Other activities - - - - Total -128 -118 -85 -42 • € 85 mn net Dutch corporate tax paid – Tax recapture on
Slide 55: Net cash flow from operating activities
Net cash flow from operating activities € mn Q2 ’08 Q2 ’07 YTD ’08 YTD ’07 Operating Result 656 649 1,304 1,186 Depreciation, amortization and impairments 611 626 1,194 1,278 Interest paid -145 -194 -274 -253 Income tax paid -85 -42 -191 -42 Other income -8 -54 -23 -60 Share based compensation -1 2
Slide 56: Total cash flow
Total cash flow € mn Q2 ’08 Q2 ’07 YTD ’08 YTD ’07 Net cash flow from operating activities 1,177 882 1,825 1,715 1 Capex -451 -327 -807 -603 Acquisitions -110 -233 -162 -233 Disposals real estate 1 82 14 82 Disposals other -9 0 -2 15 Other -4 -8 -13 -8 Net cash flow from investing activities -573 -4
Slide 57: Capex
Capex1 € mn Q2 ’08 Q2 ’07 % YTD ’08 YTD ’07 % Mobile International 135 127 6.3% 224 238 -5.9% % Revenues Mobile International 12.2% 13.0% 10.5% 12.4% E-Plus 119 99 20.2% 187 191 -2.1% % Revenues E-Plus 14.7% 13.5% 12.0% 13.3% BASE 10 28 -64.3% 25 45 -44.4% % Revenues BASE 5.8% 18.1% 7.8% 14.7% Mobil
Slide 58: Balance sheet
Balance sheet Assets Equity and liabilities € bn € bn 20.8 20.7 24.8 24.5 24.2 20.8 20.7 24.8 24.5 24.2 4.5 4.6 4.0 5.8 5.8 5.7 3.3 1.6 1.5 1.4 4.7 4.7 3.9 4.2 4.2 4.1 1.4 Goodwill Group equity 4 1.5 4.0 3.9 12.1 Licenses 1 Provisions 12.0 12.8 11.5 10.7 10.4 2 11.6 10.7 Other non- Non-current 9.0 9
Slide 59: Share repurchase progress
Share repurchase progress Date1 Value (€ mn) mn shares Avg. share price (€) Q1 ’08 212.5 18.08 11.75 April 81.5 7.10 11.48 May 95.0 8.24 11.53 June 247.2 22.21 11.13 Q2 ’08 423.7 37.55 11.28 July 163.6 15.1 10.83 Total 799.9 70.7 11.31 • € 1 bn share repurchase program commenced on 22 February 2008
Slide 60: Debt summary
Debt summary € bn Q2 ’08 Q1 ’08 Q2 ’07 Bonds 10.89 10.20 9.30 Eurobonds 9.13 8.42 7.32 Global bonds 1.76 1.78 1.98 Other debt 0.71 1.18 0.52 Other loans at Royal KPN1 0.06 1.11 0.44 Consolidated debt 0.65 0.07 0.08 Fair value financial instruments 0.50 0.53 0.24 Total debt 12.10 11.91 10.06 – of whi
Slide 61: Debt portfolio
Debt portfolio Breakdown of € 11.9 bn gross debt1 6% Financial 18% 76% instrum ents Other 4% 6% Eurobonds Global bonds 75% 15% EUR USD2 GBP2 19% 81% Fixed Floating (incl. swapped) 1 Book value of interest bearing financial liabilities plus the fair value of financial instruments related to these fin
Slide 62: Consumer voice market
Consumer voice market1 mn Q2 ’08 Q1 ’08 Q2 ’07 KPN PSTN / ISDN 2.57 2.68 3.28 Wholesale Line Rental (WLR) 0.36 0.34 0.18 Total traditional voice 2.93 3.02 3.46 KPN VoIP 0.98 0.92 0.73 Cable VoIP 1.17 1.14 0.91 Alternative DSL VoIP 0.32 0.30 0.25 Total VoIP 2.47 2.36 1.89 Cable voice analogue 0.08 0.
Slide 63: OPTA regulation
OPTA regulation Draft decision • Draft market analyses for fixed line in the Netherlands published on 15 July market • All relevant markets covered, including fixed termination and cable regulation analyses • Consultation period started, final decision expected in December 2008 • KPN pleased with de
Slide 64: Unbundling tariffs
Unbundling tariffs SLU and colocation set by OPTA, backhaul and WBA based on deal pricing Unbundling in current network Category Monthly tariffs Line sharing (LLU) € 0.37 / line LLU MDF colocation MDF backhaul (regulated) (regulated) (fiber, not regulated) Fully unbundled (LLU) € 8.00 / line MDF Nod
Slide 65: Reggefiber joint venture
Reggefiber joint venture Strengthening FttH capabilities through minority stake in Reggefiber FttH FttH operating model • Joint venture between KPN and Reggefiber for selective FttH rollout – KPN minority share of 41% in JV Service Service provider for – All existing FttH activities from KPN and Pro
Slide 66: Service revenue growth Mobile International
Service revenue growth Mobile International Strong underlying growth outperforming the market Service revenue growth E-Plus Service revenue growth BASE 9.0% 8.6% 7.3% 5.4% 3.2% 9.9% 8.6% 8.7% 9.1% 8.5% 1.3% 8.1% 6.8% -0.7% 4.2% -2.7% 2.5% 2.9% -5.7% -7.5% Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q2 '07 Q3
Slide 67: Dutch wireless services disclosure
Dutch wireless services disclosure Q2 ’08 Q1 ’08 Q2 ’07 Service revenues (€ mn) 756 706 753 − Consumer 429 394 432 − Business 233 226 235 − Other Dutch activities1 94 86 86 SAC / SRC (€) − Consumer 150 142 131 − Business 354 366 351 1 Indicates amongst others Mobile Wholesale NL, Simyo and visitor r
Slide 68: KPIs Consumer Voice
KPIs Consumer Voice Voice Q2 ’08 Q1 ’08 Q2 ’07 Market penetration1 – Broadband 78% 78% 73% – VoIP penetration 44% 42% 36% Market share – Voice2 >55% >55% >55% – Traditional voice3 ~75% ~75% ~70% – VoIP 40% 39% 38% – Broadband4 44% 44% 45% – TV 9% 8% 5% Access lines (x 1,000) 3,554 3.606 4,017 – PSTN
Slide 69: KPIs Consumer Broadband, TV & Wireless
KPIs Consumer Broadband, TV & Wireless Broadband Q2 ’08 Q1 ’08 Q2 ’07 Broadband ISP customers (x 1,000) 2,471 2,443 2,344 – KPN (Direct & Planet) 1,108 1,112 1,106 – Het Net 672 659 607 – XS4ALL 286 285 294 – Other 405 387 337 Broadband ARPU (€) 29 29 29 TV Q2 ’08 Q1 ’08 Q2 ’07 – Subscribers (x 1,00
Slide 70: KPIs Business Infrastructure Services
KPIs Business Infrastructure Services Wireline Q2 ’08 Q1 ’08 Q2 ’07 Market share voice1 >50% >50% >55% Access lines (x 1,000) 1,632 1,672 1,757 – PSTN 774 799 852 – ISDN 837 857 895 – VoIP 21 16 10 Traditional voice ARPU (€) 52 51 51 − Access 26 26 25 − Traffic 26 25 26 Network services (x 1,000) –
Slide 71: KPIs Business ICT Services & Corporate Solutions
KPIs Business ICT Services & Corporate Solutions ICT Services Q2 ’08 Q1 ’08 Q2 ’07 Applications online (x 1,000) − Customers 79 22 8 Housing & Hosting (x 1,000) − Housing services1 (# m2) 9.8 9.9 7.6 − Hosting services (# servers) 2.04 1.8 1.31 Corporate Solutions Q2 ’08 Q1 ’08 Q2 ’07 Managed worksp
Slide 72: KPIs Getronics
KPIs Getronics1 Getronics Q2 ’08 Q1 ’08 Revenue and other income (€ mn) 504 515 Service revenues (€ mn) 462 472 Margin – Gross profit2 18% 19% – Service profit3 19% 20% Number of FTEs 17,247 17,484 1 Consolidated as of 23 October 2007 2 Defined as total gross profit divided by total revenue. Gross p
Slide 73: KPIs Wholesale & Operations
KPIs Wholesale & Operations Wholesale & Operations Q2 ’08 Q1 ’08 Q2 ’07 Retail voice (without ADSL) 4,182 4,339 5,031 Local loop (x 1,000) MDF access lines1 3,580 3,527 3,327 – of which line sharing2 1,726 1,804 1,959 Unbundling3 (mn) 1.0 1.0 0.9 – Shared unbundled lines 0.3 0.3 0.3 – Fully unbundle
Slide 74: KPIs E-Plus
KPIs E-Plus Q2 ’08 Q1 ’08 Q2 ’07 Market share1 Service revenue 15.0% 14.7% 13.7% Base 15.5% 15.3% 15.1% Customers (x 1,000) 16,163 15,383 13,565 – Of which new brands 9,387 8,423 5,880 – Post Paid 6,437 6,345 6,082 – Pre Paid 9,726 9,038 7,483 Service revenues (€ mn) 757 705 700 ARPU (€) 16 16 17 –
Slide 75: KPIs BASE
KPIs BASE Q2 ’08 Q1 ’08 Q2 ’07 Market share1 Revenue >16% ~16% ~16% Base ~24% ~24% >22% Customers (x 1,000) 3,094 2,992 2,581 – Post Paid 533 518 490 – Pre Paid 2,561 2,474 2,091 Service revenues (€ mn) 162 145 151 ARPU (€) 18 17 20 – Post Paid 53 47 52 – Pre Paid 11 10 12 Non-voice as % of ARPU 15%
Slide 76: KPIs Mobile Wholesale NL
KPIs Mobile Wholesale NL Q2 ’08 Q1 ’08 Q2 ’07 Customers (x 1,000) 1,875 1,799 1,623 – Post Paid 560 511 413 – Pre Paid 1,315 1,288 1,210 Service revenues (€ mn) 85 84 84 76