Royal KPN NV · EURONEXT:KPN
Royal KPN NV — Q1 2008 Earnings Presentation
81 slides from Royal KPN NV's earnings presentation, Apr 29, 2008
Slide 1: First Quarter Results 2008
First Quarter Results 2008 29 April 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 Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 4
Slide 5: Highlights
Highlights • Solid Q1 performance in revenues, EBITDA and earnings • Accelerating growth and continued market outperformance at E-Plus • Robust underlying EBITDA in the Netherlands excluding acquisitions • Growth in wireless data, VoIP and TV; further improvement of net line loss • Solid financial a
Slide 6: Financial highlights
Financial highlights • Solid financial performance in Q1 ’08 – Revenues and other income up 22%, as a result of Getronics and iBasis – EBITDA up 3.5% – Free cash flow1 of € 351 mn – Earnings per share of € 0.19, up 19% • Committed to delivering shareholder returns of € 2 bn in 2008 – € 1 bn share re
Slide 7: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 7
Slide 8: Group results Q1 '08
Group results Q1 ’08 Revenue and EBITDA growth driven by acquisitions in 2007 € mn Q1 ’08 Q1 ’07 % • Revenues and other income up 22% due to acquisitions Revenues and other income 3,570 2,924 22% – of which Revenues 3,532 2,918 21% Operating expenses 2,922 2,387 22% • Operating expenses up 22% 1 – o
Slide 9: Group cash flow Q1 '08
Group cash flow Q1 ’08 Free cash flow of € 351 mn due to higher Capex, tax and interest payments € mn Q1 ’08 Q1 ’07 % • Free cash flow4 of € 351 mn in Q1 Operating result 648 537 21% – Seasonality of cash flow patterns Depreciation and amortization1 583 652 -10% – High Q4 ’07 Capex leading to Intere
Slide 10: Group financial profile
Group financial profile Financial profile strengthened following € 850 mn bond issue in March € bn Debt Financing policy 12.1 11.9 10.7 2.5x 10.1 9.7 11.0 10.9 2.0x 2.3 2.3 10.0 1.9 2.1 9.3 1.8 8.8 Q1 ’07 Q2 ’07 Q3 ’07 Q4 ’07 Q1 ’08 Q1 ’07 Q2 ’07 Q3 ’07 Q4 ’07 Q1 ’08 Gross Debt Net Debt Net Debt / E
Slide 11: Delisting
Delisting Delisting in New York, London and Frankfurt, compliance remains in place • NYSE: delisted as per 4 April 2008 • Deregistration with SEC as per early July 2008 Delisting • London Stock Exchange: delisted as per 24 April 2008 • Frankfurt Stock Exchange: delisting in Q3 2008 • Current ADR pro
Slide 12: EBITDA the Netherlands
EBITDA the Netherlands1 Solid underlying EBITDA in the Netherlands in Q1 ’08 € mn Underlying EBITDA the Netherlands1 • Underlying EBITDA defined as the Netherlands excluding Getronics, iBasis/KGCS and sale of real estate • EBITDA decrease of ~€ 20 mn y-on-y in Q1 ’08 924 884 850 850 842 – EBITDA dow
Slide 13: Financial highlights the Netherlands
Financial highlights the Netherlands Significant contribution from acquisitions, solid underlying EBITDA trend € mn Q1 ’08 Q1 ’07 % Revenues and other income 2,594 2,062 26% – of which wireless service revenues1 620 651 -4.8% Operating expenses 2,096 1,643 28% – of which D&A 379 440 -14% Operating r
Slide 14: Financial review the Netherlands by segment
Financial review the Netherlands by segment € mn Revenues and other income € mn EBITDA (margin) Consumer 1,037 1,032 1,053 1,011 980 19.0% 19.8% 17.5% 17.0% 14.9% 416 432 445 407 394 181 196 179 151 194 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Business1 23.4% 22.9% 23.1%
Slide 15: Financial review the Netherlands by segment (cont'd)
Financial review the Netherlands by segment (cont’d) € mn Revenues and other income € mn EBITDA (margin) Wholesale & Operations1 2 911 944 918 1,002 2 947 52.9% 55.7% 51.7% 2 2 46.7% 48.8% 354 348 254 264 266 482 526 475 468 462 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 G
Slide 16: Financial highlights Mobile International
Financial highlights Mobile International Continued profitable growth, especially at E-Plus € mn Q1 ’08 Q1 ’07 % Revenues and other income 1,028 937 9.7% – of which wireless service revenues1 947 900 5.2% Operating expenses 870 812 7.1% – of which D&A 203 212 -4.2% Operating result 158 125 26% EBITD
Slide 17: Financial review Mobile International by segment
Financial review Mobile International by segment € mn Revenues and other income € mn EBITDA (margin) E-Plus 736 769 760 755 39.8% 37.6% 36.6% 37.6% 698 36.2% 700 735 721 705 660 253 293 289 278 284 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 BASE 152 155 151 155 150 39.5% 4
Slide 18: Financial review Mobile International by segment (cont'd)
Financial review Mobile International by segment (cont’d) € mn Revenues and other income € mn EBITDA (margin) Mobile Wholesale NL 83 85 88 88 85 41.2% 38.6% 42.4% 36.4% 33.7% 88 87 82 84 84 28 35 32 34 36 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Other activities1 and int
Slide 19: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO The Netherlands Mobile International Concluding remarks Ad Scheepbouwer, Chairman and CEO 19
Slide 20: Consumer in Q1
Consumer in Q1 Continued growth in new services, strong improvement in net line loss • Net line loss more than halved since Q1 ’07 Customer focus Stop line loss • Impact from regulation in wireless fully absorbed by cost reductions • Growth in wireless data Growth in wireless Simplified multi brand
Slide 21: Consumer wireline voice
Consumer wireline voice Strong improvement in net line loss and continued growth in VoIP X 1,000 Net line loss1 • Net line loss further improved to 70k – Going forward split into change in KPN retail Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 subscribers (80k in Q1 ’08) and change in Consumer WLR (10k in Q1
Slide 22: Consumer internet wireline & TV
Consumer internet wireline & TV Strengthening leading position in broadband, strong growth in TV mn Broadband connections1 45% 44% 44% 44% 41% • Broadband market share stable at 44% 5.3 5.5 5.6 5. 0 5.2 – Telfort broadband showing solid growth 0.71 0.77 0.83 0.90 0.75 – Supported by ongoing growth i
Slide 23: Consumer fiber
Consumer fiber First customers connected to fiber in April, scaling up in coming quarters • Customer demand for higher bandwidths increasing • Platforms for VoIP and IPTV operational and stable Current status • Technical tests with FttC / FttH completed successfully in Q1 • New fiber (FttC and FttH)
Slide 24: Consumer wireless
Consumer wireless Impact from MTA and roaming absorbed by cost reductions mn Continued growth in Post Paid1 • Impact from regulation absorbed by cost 5.9 5.9 6.1 6.2 6.0 reductions, resulting in strong Q1 EBITDA 2.4 2.4 2.5 2.5 2.6 41% 41% 41% 43% • Customer base further strengthened in Q1 40% – Sha
Slide 25: Wireless data
Wireless data Range of data propositions expanded to meet growing demand • ‘Surf & Mail’ propositions with flat-fee data services on mobile Mobile – € 4.95 per month with maximum use of 5 MB handset – € 9.95 per month for unlimited use1 (128 kb/s down, 64 kb/s up) • ‘KPN Vandaag’ portal for news, tr
Slide 26: Business in Q1
Business in Q1 Growth in IP-based services, ICT-related services and outsourcing • Continued migration from traditional to Customer focus Leveraging leading position IP-based services • Ongoing growth in wireless customer base, especially in data • New partnerships in FttO Migration to IP-based Movi
Slide 27: Business reporting
Business reporting Key components of Business activities tied into reporting Key segments Scope KPIs • Workspace management • Managed workspaces Outsourcing Corporate • End-to-end ICT services for top 500 clients – Voice solutions • Outsourcing services – Mobile Revenues1 – Data € 0.5 bn • Managed s
Slide 28: Business – Infrastructure Services
Business – Infrastructure Services Migration to new services in wireline, wireless services absorbing regulation Traditional services X 1,000 IP data services Wireless services 102 62 235 235 231 229 226 42 32 35 32 35% 37% 31% 33% 29% 17 13 1.30 1.33 1.21 1.25 1.28 1.9 1.8 1.7 7 7 2 5 Q1 ’06 Q1 ’07
Slide 29: Business – Wireless data
Business – Wireless data Wide range of wireless data services using superior HSDPA network • Strong growth in data users and usage following national Mobile advertising handset • Add-on bundles for internet and e-mail on smartphone or PDA – € 9.95 – 19.95 per month depending on monthly use • Solid g
Slide 30: Business - FttO
Business - FttO Step up in FttO initiatives, ambition for over 7,500 connections by YE ’08 Market leadership strategy Breednet Cooperation • 11 business parks connected to FttO in Q1 • KPN announced participation in Breednet in April 2008 • Ambition for over 7,500 connections by YE ’08 – Targeting 6
Slide 31: Business – ICT Services
Business – ICT Services Expanding position in standardized ICT applications and housing & hosting € mn Revenues ICT Services • Strong growth in online ICT applications – National advertising campaigns in 2007 – Over 20k net accounts by end Q1 ’08 150 • Slow start in PABX business in Q1 ’08 after 131
Slide 32: Business – Corporate Solutions
Business – Corporate Solutions Sustained growth in workspace management € mn Revenues Corporate Solutions • Revenues up 17% y-on-y – Efficient execution of contracts won in 2007 – Cross and upselling existing customers – Higher Q4 revenues due to seasonality 142 124 124 128 109 • Customers serviced
Slide 33: Getronics strategy
Getronics strategy Positive feedback on new strategy, confirming intention for non-core assets • New Getronics strategy announced in February – Market leader in workspace management in the Benelux – Expanding global delivery capability for international clients Strategy • Future-Ready Workspace 2.0
Slide 34: Getronics results
Getronics results Solid Q1 results, integration and restructuring on track Key financials Getronics € mn 20071 Q1 ’08 • Solid revenues and EBITDA in Q1 ’08 – Recent divestments in Iberia and Australia Revenues 2,504 515 – € 4 mn restructuring and integration costs in Q1, Service revenues 2,237 472 h
Slide 35: Wholesale & Operations in Q1
Wholesale & Operations in Q1 First customers connected to fiber, cost and FTE reductions on track Proactive network rollout Open access model • All-IP network rollout on track Content All-IP services and infrastructure Services Applications IP/Ethernet IP/Ethernet Control • First customers connected
Slide 36: W&O – Operations
W&O – Operations Good progress in All-IP network rollout, cost savings on track • All-IP on track to achieve ambitions All-IP network • First customers connected to FttC and FttH following successful pilots rollout • Focus on commercial migration and network rollout going forward • Top real estate p
Slide 37: W&O – Wholesale
W&O – Wholesale Step-up in external wholesale due to consolidation of iBasis € mn External revenues1 • External revenues up 37% 354 348 – Consolidation of iBasis as of Q4 ’07 – Growth in WBA and WLR 200 179 • Revenue upside from outsourcing deal 254 264 266 between iBasis and TDC 154 169 – Additiona
Slide 38: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO The Netherlands Mobile International Concluding remarks Ad Scheepbouwer, Chairman and CEO 38
Slide 39: Operating review E-Plus
Operating review E-Plus Service revenue growth accelerating, driven by new brands Strong net adds • Customer base exceeds 15 mn 15.4 – Strong net adds of 576k in Q1 14.8 13.6 14.1 13.1 – Growth predominantly in MVNOs 127 88 48 22 55 • Service revenue growth accelerating, up 568 528 467 367 459 6.8%
Slide 40: E-Plus – distribution
E-Plus – distribution More effective distribution through expansion of captive channels Distribution strategy Recent acquisitions in retail • Expanding E-Plus branch network from 500 to over 700 shops by YE ’08 • Acquisition of SMS Michel in January • Shift from expensive dealers towards • ~200 reta
Slide 41: Operating review BASE
Operating review BASE Focus on initiatives to reignite growth, positive draft decision on MTA tariffs Customer growth • Customer base reached 3 mn 2.7 2.9 3.0 – Net adds of 137k in Q1 ’08 2.5 2.6 – Growth mainly in Pre Paid segment 4 6 – Expanding leading position in MVNOs 18 23 6 94 100 137 115 131
Slide 42: Operating review Mobile Wholesale NL
Operating review Mobile Wholesale NL Further growth from new wholesale partnerships X 1,000 Net adds • Net adds of 8k in Q1 ’08 21 – High churn on inactive Pre Paid users 15 – Further growth in MVNOs, especially in 36 Post Paid 70 33 75 36 41 – Increased competition in ethnic segment, 25 position st
Slide 43: Mobile wholesale strategy
Mobile wholesale strategy Continued expansion in wholesale partnerships Wholesale strategy Initiatives in Q1 ’08 • Continuous search for expansion • MVNO in Spain launched through opportunities based on proven Orange network business model • First propositions launched in January MVNO Spain • MVNOs
Slide 44: MVNO Spain
MVNO Spain Successful launch in Spain, providing platform for further growth Attractive Spanish Market Successful launch with partners • Large market with high value potential • Commercially launched in January 2008 • Many interesting market segments Online discounter • High customer awareness • Mut
Slide 45: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO Concluding remarks Ad Scheepbouwer, Chairman and CEO 45
Slide 46: Concluding remarks
Concluding remarks • Solid Q1 performance in revenues, EBITDA and earnings • Accelerating growth and continued market outperformance at E-Plus • Robust underlying EBITDA in the Netherlands excluding acquisitions • Growth in wireless data, VoIP and TV; further improvement of net line loss • Solid fin
Slide 47: Q&A
Q&A
Slide 48: 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 49: Analysis of results
Analysis of results Key items worth mentioning in results interpretation € mn Q1 ’08 Q1 ’07 Revenue effect MTA tariff reduction Group -43 -31 EBITDA effect MTA tariff reduction Group -25 -14 Book gain on sale of subsidiaries W&O / Other 6 4 Book gain on sale of real estate W&O 11 1 Additional costs
Slide 50: 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 • New MTA tariffs valid from 1 December 2007 until 31 March 2009 Germany – T-Mobile / Vodafone lowe
Slide 51: Impact MTA reduction
Impact MTA reduction1 € mn Q1 ’08 2 Revenues EBITDA E-Plus -11 -6 BASE -12 -9 Mobile Wholesale NL -2 -2 Mobile International -25 -17 Consumer -13 -7 Business -6 -1 Wholesale & Operations -4 - The Netherlands -23 -8 Intercompany 5 - KPN Group -43 -25 1 Additional decline compared to 2007 2 Defined as
Slide 52: Restructuring charges
Restructuring charges € mn Q1 ’08 E-Plus BASE Mobile Wholesale NL Mobile International - Consumer -2 Business - Getronics -1 Wholesale & Operations - The Netherlands -3 Other -6 KPN Group -9 52
Slide 53: Operating expenses
Operating expenses € mn Q1 ’08 Q1 ’07 % Salaries and social security contributions 637 364 75.0% Cost of materials 249 207 20.3% Work contracted out and other expenses 1,260 1,047 20.3% Own work capitalized -24 -44 -45.5% Other operating expenses 217 161 34.8% Depreciation1 409 439 -6.8% Amortizatio
Slide 54: Analysis operating expenses: Salaries & Cost of materials
Analysis operating expenses1 Salaries & Cost of materials € mn Salaries 16.4% 18.0% Y-on-Y increase 12.5% 11.8% 11.8% 12.5% • Impact of acquisitions, partly offset by headcount 11.0% reductions 222 260 Q-on-Q increase • Wage increase due to KPN collective labour agreement as of Q1 ’08 364 349 332 36
Slide 55: 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% 35.9% 36.2% 37.4% • Higher wireless traffic volumes 37.1% 35.7% • Partly offset by lower wireline volumes 103 115 Q-on-Q decrease 1,126 1,224 1,145 • Higher handset sales due to increase in
Slide 56: Analysis operating expenses: Depreciation & Amortization
Analysis operating expenses Depreciation & Amortization € mn Depreciation1 Y-on-Y decrease 15.0% 14.1% • Lower asset base due to less CAPEX spending 12.6% 11.3% 11.6% in prior years • € 19 mn accelerated depreciation from Telfort network integration in Q1 ’07, partly offset by depreciation from Getr
Slide 57: Personnel
Personnel Continued underlying decline in the Netherlands • Personnel increase Y-on-Y of 18,610 FTE – 17,484 FTE increase from Getronics – 1,257 FTE reduction in the 43,531 43,409 Netherlands (excl. Getronics) – Reduction of 1,641 FTE in the 8,838 8,377 Netherlands excluding acquisitions 9,107 • FTE
Slide 58: Tax
Tax P&L Cash flow Fiscal units (€ mn) Q1 ’08 Q1 ’07 Q1 ’08 Q1 ’07 Dutch activities -98 -84 -104 - Getronics -1 - - - German Mobile activities -35 - - - Belgian Mobile activities -9 -9 - - Other activities - - -2 - Total -143 -93 -106 - • € 104 mn Dutch corporate tax paid – Tax recapture on E-Plus EB
Slide 59: Net cash flow from operating activities
Net cash flow from operating activities € mn Q1 ’08 Q1 ’07 Operating Result 648 537 Depreciation, amortization and impairments 583 652 Interest paid -129 -59 Income tax paid -106 - Other income -15 -6 Share based compensation 2 3 Change in provisions -61 -65 Net cash flow from operating activities b
Slide 60: Total cash flow
Total cash flow € mn Q1 ’08 Q1 ’07 Net cash flow from operating activities 648 834 1 Capex -356 -276 Acquisitions -61 - Disposals real estate 13 - Disposals other 7 15 Other - - Net cash flow from investing activities -397 -261 Dividends paid - - Share repurchases -199 -199 Debt financing -299 -266
Slide 61: Capex
Capex1 € mn Q1 ’08 Q1 ’07 % Mobile International 89 111 -19.8% % Revenues Mobile International 8.7% 11.9% E-Plus 68 92 -26.1% % Revenues E-Plus 9.0% 13.2% BASE 15 17 -11.8% % Revenues BASE 10.0% 11.2% Mobile Wholesale NL 1 1 0.0% % Revenues Mobile Wholesale NL 1.2% 1.2% The Netherlands 266 165 61.2%
Slide 62: Balance sheet
Balance sheet Assets Equity and liabilities € bn € bn 21.1 20.8 20.7 24.8 24.5 21.1 20.8 20.7 24.8 24.5 4.5 4.6 5.8 5.8 3.3 1.6 1.5 4.6 4.7 4.4 3.9 4.7 4.2 4.2 1.4 Goodwill Group equity 4 1.5 1.5 4.0 4.0 3.9 12.1 Licenses 1 Provisions 12.0 11.5 10.7 10.4 2 11.6 11.6 Other non- Non-current 9.2 9.0 9.
Slide 63: Share repurchase progress
Share repurchase progress Date1 Value (€ mn) mn shares Avg. share price (€) January - - - February 45.9 3.65 12.58 March 166.6 14.43 11.55 Q1 ’08 212.5 18.08 11.75 April 77.3 6.74 11.48 Total 289.8 24.82 11.68 • € 1 bn share repurchase program commenced on 22 February 2007 – 21% executed by end of Q
Slide 64: Debt summary
Debt summary € bn Q1 ’08 Q4 ’07 Q1 ’07 Bonds 10.20 10.37 8.36 Eurobonds 8.42 8.48 6.31 Global bonds 1.78 1.89 2.05 Other debt 1.18 1.38 0.42 Other loans at Royal KPN1 1.11 1.29 0.38 Consolidated debt 0.07 0.09 0.04 Fair value financial instruments 0.53 0.35 0.94 Total debt 11.91 12.10 9.72 – of whic
Slide 65: Debt portfolio
Debt portfolio Breakdown of € 11.9 bn gross debt1 9% Financial 73% instrum ents 18% Other 4% 10% Eurobonds 71% Global bonds 15% EUR USD2 GBP2 25% 75% Fixed Floating (incl. swapped) 1 Book value of interest bearing financial liabilities plus the fair value of financial instruments related to these fi
Slide 66: Consumer voice market
Consumer voice market1 mn Q1 ’08 Q4 ’07 Q1 ’07 KPN PSTN / ISDN 2.68 2.85 3.58 Wholesale Line Rental (WLR) 0.34 0.32 0.05 Total traditional voice 3.02 3.17 3.63 KPN VoIP 0.92 0.85 0.65 Cable VoIP 1.14 1.05 0.83 Alternative DSL VoIP 0.30 0.28 0.25 Total VoIP 2.36 2.18 1.73 Cable voice analogue 0.08 0.
Slide 67: Business segment reporting
Business segment reporting Aligning reporting with organizational structure • Business segment restructuring into four reporting New reporting entities, following customer centric strategy 1 1. Infrastructure Services: voice wireline & wireless and network services (excl. housing & hosting) Infrastr
Slide 68: Restatement reported figures
Restatement reported figures Change in business reporting format as of Q1 ’08 Revenues and other income EBITDA FY 2007 (€ mn) Old reporting New reporting Change Old reporting New reporting Change E-Plus 2,963 2,963 - 1,113 1,113 - BASE 613 613 - 230 230 - Mobile Wholesale NL 344 344 - 129 129 - Othe
Slide 69: Business segment reporting
Business segment reporting Old reporting format New reporting format € mn Revenues and other income ’07 € mn Revenues and other income ’07 Corporate solutions 585 1 2,552 • End-to-end ICT services Infrastructure Services • Outsourcing services 17% • Voice wireline 77% • Data, network services Voice
Slide 70: 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 71: 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 11.4% 9.0% 14.7% 5.7% 5.4% 3.2% 8.6% 8.7% 9.1% 8.5% 1.3% 8.4% 6.8% -0.7% 4.2% -2.7% 2.5% 2.9% -5.7% -7.5% Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q1 '07
Slide 72: Dutch wireless services disclosure
Dutch wireless services disclosure1 Q1 ‘08 Q4 ’07 Q1 ‘07 Service revenues (€ mn) 704 723 733 − Consumer 394 407 416 − Business 226 229 235 − Mobile Wholesale NL 84 87 82 SAC / SRC (€) − Consumer 142 130 129 − Business 366 315 288 1 As of Q1 2008, KPN no longer provides the same pro forma disclosure
Slide 73: KPIs Consumer Voice
KPIs Consumer Voice Voice Q1 ’08 Q4 ’07 Q1 ’07 Market penetration1 – Broadband 78% 76% 72% – VoIP penetration 42% 40% 34% Market share – Voice2 >55% >55% ~ 60% – Traditional voice3 ~75% ~75% ~70% – VoIP 39% 39% 37% – Broadband4 44% 44% 41% – TV 8% 7% 4% Access lines (x 1,000) 3.606 3,694 4,225 – PST
Slide 74: KPIs Consumer Broadband, TV & Wireless
KPIs Consumer Broadband, TV & Wireless Broadband Q1 ’08 Q4 ’07 Q1 ’07 Broadband ISP customers (x 1,000) 2,443 2,402 2,114 – KPN (Direct & Planet) 1,112 1,107 1,098 – Het Net 659 643 584 – XS4ALL 285 288 306 – Other 387 364 126 Broadband ARPU (€) 30 30 27 TV Q1 ’08 Q4 ’07 Q1 ’07 – Subscribers (x 1,00
Slide 75: KPIs Business Infrastructure Services
KPIs Business Infrastructure Services Wireline Q1 ’08 Q4 ’07 Q1 ’07 Market share voice1 >50% ~55% ~55% Access lines (x 1,000) 1,672 1,695 1,796 – PSTN 799 815 878 – ISDN 857 867 910 – VoIP 16 13 8 Traditional voice ARPU (€) 51 46 55 − Access 26 25 25 − Traffic 25 21 30 Network services (x 1,000) – L
Slide 76: KPIs Business ICT Services & Corporate Solutions
KPIs Business ICT Services & Corporate Solutions ICT Services Q1 ’08 Q4 ’07 Q1 ’07 Applications online (x 1,000) − Customers 22 18 4 Housing & Hosting (x 1,000) − Housing services1 (# m2) 9.9 9.9 6.9 − Hosting services (# servers) 1.8 1.7 1.3 Corporate Solutions Q1 ’08 Q4 ’07 Q1 ’07 Managed workspac
Slide 77: KPIs Getronics
KPIs Getronics1 Getronics Q1 ’08 Q4 ’07 Revenue and other income (€ mn) 515 488 – of which assets held for sale 0 46 Service revenues (€ mn) 472 433 Margin – Gross profit2 19% 21% – Service profit3 20% 22% Number of FTEs 17,484 18,031 1 Consolidated as of 23 October 2007 2 Defined as total gross pro
Slide 78: KPIs Wholesale & Operations
KPIs Wholesale & Operations Wholesale & Operations Q1 ’08 Q4 ’07 Q1 ’07 Retail voice (without ADSL) 4,339 4,529 5,363 Local loop (x 1,000) MDF access lines1 3,527 3,445 3,233 – of which line sharing2 1,804 1,895 2,149 Unbundling3 (mn) 1.0 0.9 1.0 – Shared unbundled lines 0.3 0.3 0.6 – Fully unbundle
Slide 79: KPIs E-Plus
KPIs E-Plus Q1 ’08 Q4 ’07 Q1 ’07 Market share1 Service revenue 14.7% 14.4% 13.5% Base 15.3% 15.3% 14.9% Customers (x 1,000) 15,383 14,807 13,143 – Of which new brands 8,423 7,575 5,149 – Post Paid 6,345 6,297 6,027 – Pre Paid 9,038 8,510 7,116 Service revenues (€ mn) 705 721 660 ARPU (€) 16 17 17 –
Slide 80: KPIs BASE
KPIs BASE Q1 ’08 Q4 ’07 Q1 ’07 Market share1 Revenue ~16% ~16% ~16% Base >23% >23% >22% Customers (x 1,000) 2,992 2,855 2,475 – Post Paid 518 512 484 – Pre Paid 2,474 2,343 1,991 Service revenues (€ mn) 145 148 149 ARPU (€) 17 18 21 – Post Paid 47 49 52 – Pre Paid 10 11 13 Non-voice as % of ARPU 17%
Slide 81: KPIs Mobile Wholesale NL
KPIs Mobile Wholesale NL Q1 ’08 Q4 ’07 Q1 ’07 Customers (x 1,000) 1,799 1,791 1,565 – Post Paid 511 470 380 – Pre Paid 1,288 1,321 1,185 Service revenues (€ mn) 84 87 82 81