Royal KPN NV · EURONEXT:KPN
Royal KPN NV — Q3 2006 Earnings Presentation
70 slides from Royal KPN NV's earnings presentation, Oct 31, 2006
Slide 1: Third Quarter Results 2006
Third Quarter Results 2006 31 October 2006
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 our operations, our and our joint ventures' share of new
Slide 3: Disclaimer
Disclaimer We define EBITDA as operating profit before depreciation and impairments of PP&E and amortization and impairments of intangible assets. The measure is used by financial institutions and credit-rating agencies as one of the key indicators of borrowing potential. Many analysts use EBITDA as
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 • Mobile outperforming the market – E-Plus and BASE continuing to deliver profitable growth – KPN Mobile the Netherlands gaining market share • Future proofing Fixed division on track – Battle for market share in the Consumer segment leading to increased investment in customer base and li
Slide 6: Financial highlights Q3
Financial highlights Q3 • Continued strong financial performance – Revenues and other income up 3.7% (YTD 2.8%, or 2.1% per guidance definition1) – EBITDA up 4.4% (YTD 8.2%, or 6.7% per guidance definition1) – Strong free cash flow of € 728 mn (YTD € 2,139 mn) – EPS up 20.0% to € 0.18 • YTD sharehol
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 Q3
Group results Q3 € mn Q3 ’06 Q3 ’05 % • Revenues up 3.5% – Organic growth in Mobile, on top of Revenues and other income 3,037 2,930 3.7% Telfort consolidation – of which Revenues 3,028 2,926 3.5% – Contraction Fixed revenues due to Operating expenses 2,463 2,349 4.9% line loss and price pressure 1
Slide 9: Group results YTD
Group results YTD € mn YTD ’06 YTD ’05 % • Revenues up 2.1% – Telfort consolidation Revenues and other income 9,018 8,770 2.8% – Organic growth at all three Mobile – of which Revenues 8,919 8,737 2.1% operators Operating expenses 7,162 7,117 0.6% – Contraction Fixed revenues 1 – of which Depreciatio
Slide 10: Group cash flow Q3
Group cash flow Q3 € mn Q3 ’06 Q3 ’05 % • Free cash flow of € 728 mn Operating result 574 581 -1.2% • Capex up 15.2% Depreciation and amortization1 624 566 10.2% – Continued investment in indoor Interest paid/received -108 -95 13.7% coverage by E-Plus (E-GSM) Tax paid/received -1 2 - Other income -9
Slide 11: Group financial profile
Group financial profile € bn Debt Financing policy 10.9 11.0 2.5x 10.8 10.0 10.4 2.0x 1.9 1.8 1.9 9.4 1.7 1.7 8.9 8.8 7.9 8.2 Q3 ’05 Q4 ’05 Q1 ’06 Q2 ’06 Q3 ’06 Q3 ’05 Q4 ’05 Q1 ’06 Q2 ’06 Q3 ’06 Gross Debt Net Debt Net Debt / EBITDA1 Financial framework range € bn Redemption profile • Gross debt up
Slide 12: Balance sheet
Balance sheet Assets Equity and liabilities € bn € bn 23.4 22.7 23.8 22.6 22.4 23.4 22.7 23.8 22.6 22.4 4.0 4.6 5.0 5.5 4.6 4.6 4.7 5.1 4.8 3.8 Goodwill Group equity 4 4.2 1.9 1.7 1.6 4.4 1.7 1.7 4.5 4.4 4.3 1 Licenses Provisions 2 Other non- Non-current 10.5 10.5 11.6 11.7 9.9 9.8 11.6 current asse
Slide 13: Financial highlights Fixed
Financial highlights Fixed Line loss and price pressure impact € mn Q3 ’06 Q3 ’05 YTD ’06 YTD ’05 Revenues and other income 1,630 1,694 4,967 5,149 % change -3.8% -3.5% Operating expenses 1,309 1,298 3,877 3,976 – of which D&A 303 306 879 965 Operating result 321 396 1,090 1,173 EBITDA 623 702 1.968
Slide 14: EBITDA analysis Fixed
EBITDA analysis Fixed1 EBITDA decline traditional business partly offset by new business and efficiency € mn 702 -55 -25 +30 -11 +11 -29 623 Q3 ’05 Q3 '05 Line loss Price and New business Investments in Headcount2 Other Q3 ’06 Q3 '06 Consumer volume customer base Business voice/data 1 Breakdown base
Slide 15: Operating review Fixed by segment
Operating review Fixed by segment € mn Revenues and other income € mn EBITDA (margin) Consumer Consumer 583 589 572 573 557 15.8% 13.8% 14.0% 12.0% 11.8% 92 81 80 69 66 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Business Business 16.2% 669 13.7% 14.1% 644 647 1 12.2% 626 6
Slide 16: Financial highlights Mobile
Financial highlights Mobile Revenues and margin up in all three countries € mn Q3 ’06 Q3 ’05 YTD ’06 YTD ’05 Revenues and other income 1,689 1,448 4,789 4,177 % change 16.6% 14.7% – of which Service revenues1 1,610 1,358 4,548 3,873 % change 18.6% 17.4% Operating expenses 1,425 1,252 4,063 3,692 – o
Slide 17: Operating review E-Plus
Operating review E-Plus Continuing to deliver profitable growth Continued strong customer growth (21%) Continued increase of service revenue share Customers (mn) 11.9 12.2 (Post Paid %) 11.4 13.2% 10.7 (49%) (49%) 10.1 (50%) 12.8% (52%) (52%) 176 12.1% Net adds 316 11.8% 11.8% 77 518 111 219 333 308
Slide 18: Operating review KPN Mobile the Netherlands
Operating review KPN Mobile the Netherlands1 Outperforming the market following strong focus on Post Paid Strong focus on Post Paid Outperformance on service revenue growth Customers (mn) 8.1 8.1 8.3 8.5 (Post Paid %) 46.7% 47.5% (43%) (44%) 46.1% 46.3% (40%) (41%) 5.7 (44%) 37.7% Net adds 190 106 1
Slide 19: Operating review BASE
Operating review BASE Continued growth due to successful wholesale partnerships Strong uptake in net adds Continued increase in revenue market share Customers (mn) 2.1 2.2 2.0 2.0 1.9 Net adds ~15% ~14% >14% >13% >13% 5 53 76 57 31 28 62 33 15 11 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q3 ’05 Q4 ’05 Q1 ’
Slide 20: Dutch State's shareholding in KPN
Dutch State 80% 70.0% Dutch State’s shareholding in KPN 60% 45.0% 43.5% 40% 34.7% 31.7% 19.3% 20% 7.8% 0.0% 0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 IPO, State sells TNT Stake Stake Sale 300 mn Final 134 mn shares demerger reduced reduced shares sale Sale 92 mn Secondary P
Slide 21: Performance versus Guidance
Performance versus Guidance1 Item Outlook FY 2006, 1 August update Q1 ’06 Q2 ’06 Q3 ’06 YTD ’06 Revenues and Low single digit increase 1.6% 0.9% 3.7% 2.1% other income2 EBITDA2,3 Low single digit increase 3.7% 9.4% 7.0% 6.7% Capex € 1.7 - € 1.8 bn € 0.3 bn € 0.4 bn € 0.4 bn € 1.1 bn Free cash flow4
Slide 22: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO Fixed Mobile Concluding remarks Ad Scheepbouwer, Chairman and CEO 22
Slide 23: Investing in our future
Investing in our future KPN very well prepared to deal with challenging market • Multi-brand strategy, leveraging brands and distribution channels • VoIP roll-out at full speed, share in gross adds approximately 45% Attack • DVB-T roll-out on track, analogue switch-off in December • In-country conso
Slide 24: Consumer market
Consumer market Increasing share of VoIP mn Voice subscribers1 mn Broadband connections1,2 4.74 4.56 4.35 1.1 4.11 0.86 0.2 3.83 0.82 0.76 0.7 0.74 0.3 0.67 1.94 2.02 1.87 1.74 1.62 4.3 1.63 1.72 1.80 1.86 1.54 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 KPN P
Slide 25: VoIP
VoIP Market leader in gross additions in Q3 and turnaround in net line loss trend X 1,000 KPN VoIP subscriptions installed • Taking approximately 45% share of VoIP 270 gross additions in Q3 • KPN, Planet, Het Net and Slim covering 156 different segments on a single technological platform 73 – Mass m
Slide 26: Tiscali
Tiscali Tiscali acquisition further strengthens position in broadband • Strengthening KPN’s position with 276k broadband subscribers – ~4% retail broadband market share Rationale – ~6% broadband market share • Significant cost and network synergies • Potential for cross-selling and up-selling • Tota
Slide 27: Growing subscriber base and continuous addition of new content
TV Growing subscriber base and continuous addition of new content DVB-T IPTV • Digitenne positioned as value-for-money • Mine positioned as premium proposition proposition • Full commercial roll-out starting as of • Subscriber base of 245k by end of Q3 January 2007 • Opportunity for Digitenne when a
Slide 28: Leveraging customer base
Leveraging customer base Combined offers gaining momentum mn KPN service units • Migration from single play to dual play is gaining momentum as a result of VoIP 5.4 • So far, migration of existing voice / 4.6 broadband customers to VoIP is value 0.3 accretive from a revenue perspective 4.3 – Higher
Slide 29: Strengthening distribution
Strengthening distribution Leading retail position reinforced with new outlets Channel # stores Examples • Primafoon (mainstream) 102 • Business Centers (SME) 17 Stores • Telfort (value for money) 15 (off-line) • KPN Klick (multimedia) 3 • Kral (to be converted to KPN Klick) 55 • 576 (youth) 2 • www
Slide 30: Voice in the business market
Voice in the business market Market share in traditional voice stabilizing Market share traditional voice minutes • Increased regulatory flexibility used to introduce new products and services 70% • New propositions and pricing schemes successful since first start in Q1 60% • Market share in traditi
Slide 31: Data in the Business market
Data in the Business market Moving up the value chain X 1,000 Business DSL Developments 45 39 32 • Strong growth in business DSL and value- 24 added services 16 • Up-selling to managed solutions Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 X 1,000 IP-VPN Acquisitions to strengthen position in 43 44 integrated
Slide 32: All-IP regulation
All-IP regulation Directional support for All-IP from OPTA • Position paper published to provide regulatory guidance (3 October) Regulator view • Directional support for KPN’s All-IP program: roll out of fiber, phase out traditional switched network and sale of local exchanges • KPN must provide unb
Slide 33: Status All-IP
Status All-IP Project on track • IP-based products available and successful, e.g. Fast Internet Access, IP-VPN and E-VPN Portfolio • InternetPlusBellen (VoIP) and Mine (IPTV) available, new services VoIP Connect and Wholesale Broadband Access planned • Backbone Ethernet network covering ~80% of NL •
Slide 34: Agenda
Agenda Chairman’s review Ad Scheepbouwer, Chairman and CEO Financial review Marcel Smits, CFO Operating review Ad Scheepbouwer, Chairman and CEO Fixed Mobile Concluding remarks Ad Scheepbouwer, Chairman and CEO 34
Slide 35: E-Plus
E-Plus Successful challenger strategy delivering profitable growth • Strengthening E-Plus brand, launch of “CleverOne” proposition Multi-brands • Youth brand “Vybemobile” launched with Universal Music • 10 MVNOs with strong and new distribution channels to address Wholesale previously untapped indiv
Slide 36: E-Plus: impact of new strategy
E-Plus: impact of new strategy 3.6 mn subscribers in new segments and acceleration of service revenue growth X 1,000 Subscribers new propositions Acceleration of service revenue growth 3,586 10.9% 2,850 9.8% 8.1% 7.6% 2,046 4.3% 1,079 415 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q3 '05 Q4 '05 Q1 '06 Q2 '0
Slide 37: E-Plus going forward
E-Plus going forward Execution ‘Be Best Challenger’ strategy • Further up-scaling of new brands: BASE, Simyo and strengthening of E-Plus brand Multi-brands • In addition, addressing individual segments directly and / or through wholesale partners • Continue to develop innovative products and attract
Slide 38: KPN Mobile the Netherlands
KPN Mobile the Netherlands Continued build-out of our market leadership • Outperforming the market with strong focus on Post Paid and multi-brands • Hi has successfully claimed MMS in youth market, as it did Multi-brands previously with SMS • Ay Yildiz launched to serve specific needs of Turkish com
Slide 39: BASE
BASE Profitable growth in competitive market • “Member Gets Member” campaign launched at the beginning of September targeted at Post Paid customers Customer • Further segment-targeted offerings such as professionals tariffs pull • Leverage on wholesale partnerships for specific market segments or st
Slide 40: Status update MTA
Status update MTA Many issues still under debate, limited visibility on further timing Regulatory proposal Current status • Lowering in 3 linear steps by July ’08 • Dutch court1 annulled – KPN, Vodafone: from 11.0 to 5.50 cents OPTA’s decision to regulate The MTA – Orange, T-Mobile: from 12.4 to 7.0
Slide 41: Sympac
Sympac Attractive mobile portfolio for corporates via partners International customers Partners Netherlands KPN Germany E-Plus Belgium BASE UK O2 France Bouygues Portugal Optimus Luxembourg Tango Czech Sympac footprint Republic Mobitel • 1st European Mobile Service Provider, services since August 20
Slide 42: 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 42
Slide 43: Revised outlook
Revised outlook EBITDA and free cash flow for 2006 revised upward Outlook FY 2006 As given 7 February 1 August update October update Revenues and other income1 Low single digit increase Unchanged Unchanged EBITDA1,2 Flat Low single digit increase Mid single digit increase Capex € 1.6 - € 1.8 bn € 1.
Slide 44: Concluding remarks
Concluding remarks • Strong performance in challenging markets • Mobile continuing to outperform and deliver profitable growth • Future proofing Fixed business on track • EBITDA and free cash flow outlook for 2006 further revised upward • € 2.6 bn shareholder returns year-to-date 44 p
Slide 45: Q&A
Q&A
Slide 46: 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
Slide 47: Guidance reconciliation
Guidance reconciliation Revenues and other income1 Q3 YTD € mn 2006 2005 2006 2005 Reported 3,037 2,930 9,018 8,770 Book gains - - -68 - Restructuring charges - - - - Telfort integration costs - - - - Brand unification costs - - - - Comparison with guidance 3,037 2,930 8,950 8,770 3.7% 2.1% EBITDA1,
Slide 48: Analysis of results
Analysis of results Key items worth mentioning in results interpretation € mn Q3 ’06 Q3 ’05 YTD ’06 YTD ’05 Revenue effect MTA tariff reduction Group -72 -66 -195 -195 EBITDA effect MTA tariff reduction Mobile -30 -31 -69 -91 Book gain on sale of subsidiaries Group 76 21 Book gain on sale of real es
Slide 49: Impact MTA reduction
Impact MTA reduction1 € mn Q3 ’06 YTD ’06 2 2 Revenues EBITDA Revenues EBITDA KPN Mobile NL -17 -9 -64 -28 E-Plus -36 -21 -83 -41 Total Mobile -53 -30 -147 -69 Consumer -5 -17 Business -6 -19 Wholesale & Operations -31 -92 Total Fixed -42 -128 Intercompany 23 80 KPN Group -72 -30 -195 -69 MTA tariff
Slide 50: Restructuring charges
Restructuring charges € mn Q3 ’06 YTD ’06 E-Plus -23 -23 KPN Mobile NL -1 -1 BASE - - Total Mobile -24 -24 Consumer -1 -2 Business -1 -2 Wholesale & Operations -4 -7 Total Fixed -6 -11 Other -5 -12 KPN Group -35 -47 50
Slide 51: Operating expenses
Operating expenses € mn Q3 ’06 Q3 ’05 % Salaries and social security contributions 348 372 -6.5% Cost of materials 206 227 -9.3% Work contracted out and other expenses 1,143 1,020 12.1% Own work capitalized -26 -25 4.0% Other operating expenses 168 189 -11.1% Depreciation1 473 459 3.1% Amortization1
Slide 52: Analysis operating expenses
Analysis operating expenses Salaries & Cost of materials € mn Salaries Y-on-Y & Q-on-Q decrease 12.7% 12.9% 12.0% • Lower FTE due to ongoing headcount reduction, 11.5% predominantly at Fixed 9.2% • Partly offset by acquisition effects 372 284 377 355 348 Q3 ’05 Q4 ’05 Q1 ’06 Q2 ’06 Q3 ’06 Salaries a
Slide 53: Analysis operating expenses
Analysis operating expenses Work contracted out & other € mn Work contracted out Y-on-Y increase • Telfort consolidation as of Q4 ’05 34.9% 34.3% 35.8% 35.2% 37.7% • Higher traffic volumes at Mobile • Higher terminating cost at Fixed due to more international and mobile terminating traffic • Partly
Slide 54: Analysis operating expenses
Analysis operating expenses Depreciation & Amortization € mn Depreciation1 Y-on-Y increase • Telfort consolidation as of Q4 ’05 15.7% 15.7% 15.4% 15.8% 15.6% • Partly offset by Fixed depreciation which is trending down due to lower Capex spending in prior years 459 483 451 469 473 Q3 ’05 Q4 ’05 Q1 ’
Slide 55: Personnel
Personnel Continuing decline, predominantly in the Netherlands • Personnel reduction Y-on-Y -395 about 400 FTE, of which 430 in the Netherlands 26,598 • Y-on-Y acquisition effects 26,316 26,176 26,033 25,921 in the Netherlands of 6,752 6,684 6,734 1,342 FTE 6,807 6,787 • Excluding acquisition effect
Slide 56: Tax
Tax € mn Q3 ’06 Q3 ’05 Payments (–) Payments (–) Fiscal units P&L charge P&L charge Receipts (+) Receipts (+) Fixed division & Other activities -75 -1 -89 2 German Mobile activities - - - - Dutch Mobile activities -38 - -41 - – Mobile NV -42 - -41 - – Telfort BV 4 - - - Belgian Mobile activities 1 -
Slide 57: Net cash flow from operating activities
Net cash flow from operating activities € mn Q3 ’06 Q3 ’05 YTD ’06 YTD ’05 Operating Result 574 581 1,856 1,653 Depreciation, amortization and impairments 624 566 1,829 1,752 Interest paid -108 -95 -251 -226 Income tax paid -1 2 213 -19 Other income -9 -4 -99 -33 Change in provisions -19 -23 -122 -1
Slide 58: Total cash flow
Total cash flow € mn Q3 ’06 Q3 ’05 YTD ’06 YTD ’05 Net cash flow from operating activities 1,153 1,143 3,256 2,864 1 Capex -425 -369 -1,117 -925 Acquisitions -52 - -360 -10 Disposals 23 -1 107 192 Other -5 6 9 20 Net cash flow from investing activities -459 -364 -1,361 -723 Dividends paid -321 -281
Slide 59: Capex
Capex1 € mn Q3 ’06 Q3 ’05 % YTD ’06 YTD ’05 % Mobile 242 166 45.8% 597 443 34.8% % Revenues Mobile 14% 11% 12% 11% E-Plus 151 96 57.3% 367 263 39.5% % Revenues E-Plus 20% 13% 17% 13% KPN Mobile NL 59 43 37.2% 137 110 24.5% % Revenues KPN Mobile NL 8% 7% 6% 6% BASE 32 27 18.5% 94 70 34.3% % Revenues
Slide 60: Share buyback progress
Share buyback progress € 1.6 bn share repurchases including share repurchases from Dutch State • € 1.6 bn share repurchases, exceeding announcement in February – € 0.8 bn share repurchases from Dutch State in September – € 1 bn program finalized at € 759 mn upon transaction with Dutch State Date1 va
Slide 61: Debt summary
Debt summary € bn Q3 ’06 Q2 ’06 Q3 ’05 Bonds 8.19 8.38 9.18 Subordinated convertible bonds - - 0.32 Eurobonds 6.02 6.28 5.65 Global bonds 2.17 2.10 3.21 Other debt 1.91 1.05 0. 85 Other loans at Royal KPN1 1.86 1.00 0.74 Consolidated debt 0.05 0.05 0.11 Fair value financial instruments 0.86 0.95 0.8
Slide 62: Debt portfolio
Debt portfolio Breakdown of € 11.0 bn1 gross debt 6% Financial instruments 67% 8% 27% Other Eurobonds 17% 55% EUR USD 2 GBP2 42% Global bonds 20% 58% Fixed Floating (incl. swapped) 1 Book value of interest bearing financial liabilities plus the fair value of financial instruments related to these fi
Slide 63: KPIs Fixed
KPIs Fixed Consumer Voice Q3 ’06 Q2 ’06 Q3 ’05 Market share traditional voice1 > 65% > 65% > 60% – Local ~ 70% ~ 70% > 65% – National > 60% > 60% ~ 60% – Fixed to Mobile > 65% > 65% ~ 65% – International > 40% > 40% > 40% Market share voice2 ~ 60% > 55% ~ 60% Lines (x 1,000) 4,285 4,552 5,137 – PSTN
Slide 64: KPIs Fixed
KPIs Fixed Consumer Internet & TV Q3 ’06 Q2 ’06 Q3 ’05 KPN ISP customers (x 1,000) 1,997 1,951 1,827 – Planet Internet 739 749 761 – Het Net 737 732 643 – XS4ALL 390 365 290 – Other1 131 105 133 Internet dial-up minutes (bn) 0.21 0.25 0.57 Broadband market share KPN (ISP) retail2 40.3% 39.6% 34.1% B
Slide 65: KPIs Fixed
KPIs Fixed Business Q3 ’06 Q2 ’06 Q3 ’05 Market share Business > 55% > 55% > 55% – Local ~ 60% ~ 60% > 60% – National > 55% > 55% > 55% – Fixed to Mobile > 55% > 55% > 55% – International ~ 45% ~ 45% ~ 45% Lines (x 1,000) 1,840 1,863 1,930 – PSTN 915 931 982 – ISDN 925 932 948 Minutes (bn) 1.91 2.08
Slide 66: KPIs Fixed
KPIs Fixed Wholesale & Operations Q3 ’06 Q2 ’06 Q3 ’05 Local loop (x 1,000) MDF access lines1 2,973 2,844 2,348 – of which line sharing1,2 2,258 2,325 2,247 ADSL coverage – ADSL 99% 99% 99% – ADSL 2+ 57% 57% Minutes (bn) 9.69 10.11 9.86 – Terminating services 3.03 3.24 3.13 – Originating voice 2.03
Slide 67: KPIs Mobile
KPIs Mobile E-Plus Q3 ’06 Q2 ’06 Q3 ’05 Market share1 Service revenue 13.2% 12.8% 11.8% Revenue 12.7% 12.5% 12.1% Base 14.8% 14.5% 13.2% Customers (x 1,000) 12,215 11,852 10,124 – Post Paid 5,938 5,827 5,258 – Pre Paid 6,277 6,025 4,866 Service revenues (€ mn) 714 683 644 ARPU (€) 20 20 21 – Post Pa
Slide 68: KPIs Mobile
KPIs Mobile KPN Mobile NL1 Q3 ’06 Q2 ’06 Q3 ’05 Market share2 Service revenue 47.5% 46.7% 37.7% Revenue 47.3% 46.4% 37.3% Base 50.3% 50.0% 37.0% Customers (x 1,000) 8,483 8,264 5,701 – Post Paid 3,717 3,527 2,524 – Pre Paid 4,766 4,737 3,177 Service revenues (€ mn) 752 710 588 ARPU (€) 30 29 32 – Po
Slide 69: KPIs Mobile
KPIs Mobile BASE Q3 ’06 Q2 ’06 Q3 ’05 Market share1 Revenue ~15% > 14% > 13% Base ~21% ~ 21% 19% Customers (x 1,000) 2,219 2,104 1,929 – Post Paid 541 488 372 – Pre Paid 1,678 1,616 1,557 Service revenues (€ mn) 159 152 138 ARPU (€) 25 24 24 – Post Paid 56 58 63 – Pre Paid 15 15 15 Non-voice as % of
Slide 70: Other in Q3
Other in Q3 € mn Revenues and other income € mn EBITDA1 53 13 -7 -8 Q3 ’05 Q3 ’06 Q3 ’05 Q3 ’06 • Deconsolidation effect Xantic – Revenues € 40 mn – EBITDA € 9 mn • € 10 mn decrease in restructuring cost (Q3 ’06 € 5 mn) 1 Defined as Operating result plus depreciation, amortization & impairments 70